The planned ramp-up of Canadian gold miner Endeavour Mining’s Karma mine, in north-central Burkina Faso, and the strength of its other operations has ensured that the company is well positioned to build its Houndé project, which will further enhance the quality of its portfolio, CEO Neil Woodyer notes.

In April, the company announced that its 18-month construction programme had started at its Houndé gold project, located 250 km south-west of Burkina Faso’s capital, Ouagadougou.

Woodyer adds that, once Houndé starts production, it will become Endeavour’s flagship low-cost mine and will rank among West Africa’s top-tier cash generating mines. Further, Houndé will benefit from the company’s construction record and the team’s operating experience in Burkina Faso.

The project has a measured resource of 38-million tonnes, grading at 2.1 g/t of gold, accounting for about 2.5-million ounces. Houndé will be an openpit mine with an average production of 190 000 oz/y over a ten-year mine life at all-in sustaining costs of $709/oz. The project includes a gravity circuit carbon-in-leach plant with a capacity of three-million tonnes a year.

The current capital cost estimate stands at $328-million and is based on the expectation that the mine will draw power from the national power utility’s 91 kV overhead powerline. Endeavour has set aside about $180-million for this year’s capital expenditure, with the remaining $148-million set aside for next year.

Houndé’s construction will replicate that of Endeavour’s Nzema mine, in Ghana, and its Agbaou mine, in Côte d’Ivoire. Both were low-cost projects that were completed on time and within budget. The company has contracted Australian engineering and project management firm Lycopodium Minerals to undertake Houndé’s engineering, procurement and construction management (EPCM). Lycopodium also completed EPCM work for Nzema and Agbaou.

Endeavour intends to complete 72% of the project build, with Lycopodium primarily focusing on the processing facility, which accounts for the remaining 28%. Endeavour’s project management team will include about 90 personnel to perform the remaining construction tasks. It will also be responsible for all the concrete work.

The Houndé exploration licence covers 1 075 km2 within the Birimian belt. At least 15 other significant targets, all within 20 km of the planned mill, have been identified by previous limited drilling campaigns. These targets remain largely untested and Endeavour plans to target high-grade prospects as a priority.

Other African Operations
The Karma mine was acquired by Endeavour this year and announced first gold production in April. Karma includes six identified gold deposits and is a shallow openpit operation. Ramp-up to full production is under way and Karma is forecast to produce between 110 000 oz/y and 120 000 oz/y of gold for the first five years.

Agbaou achieved commercial production in January 2014. The mine, which is located 200 km north of the port city of Abidjan, delivered record production last year, yielding 181 365 oz of gold, a 23% increase on the previous year. The mine’s low-cost profile is a result of high plant throughput, high recoveries, as well as low-cost and reliable grid power. The openpit operation has a mine life of seven years and a measured resource of 4.4-million tonnes, grading at 2.5 g/t of gold, accounting for 1.2-million ounces.

The Tabakoto project, located 360 km west of Bamako, in south-western Mali, underwent a complete asset turnaround after Endeavour acquired it in 2012. The Tabakoto licence area comprises eight deposits, namely Tabakoto, Segala, Dar Salam, Betea, Kofi A, B, and C, and A Linear. Tabakoto and Segala were the only operational mines and, in 2013, their openpit mines were converted to underground mines, with the semi-autogenous grinding mill’s capacity expanded from 2 000 t/d to 4 000 t/d. The Kofi C openpit mine, north of Tabakoto, was commissioned and started production in the first quarter of last year.

Consequently, Tabakoto production increased 19% in 2015, compared with 2014. Endeavour continues to focus on optimising operations and reducing costs at the mine

Nzema, located in the southern end of the Ashanti gold belt in south-western Ghana, began commercial production in 2011. It processes ores from its Adamus openpits, as well as bought third-party ores. It produced 110 302 oz last year.

Ity, the longest operating gold mine, in Côte d’Ivoire, has produced more than 1.2-million ounces of gold in more than 20 years of operation, says Endeavour. First production occurred in 2008 and the mine is expected to reach the end of its life in 2019. A definitive feasibility study for a carbon-in-leach project is expected for mid-2016. It is hoped that the project will extend the mine life by ten years.