JOHANNESBURG (miningweekly.com) – Endeavour Mining has completed the development of its Houndé project, in Burkina Faso, with commercial production declared more than two months ahead of schedule and $15-million below its initial capital budget.
"We are extremely proud to declare commercial production ahead of schedule, below budget and, most importantly, at full nameplate capacity with all key metrics ahead of the assumptions set out in the feasibility study,” CEO Sébastien de Montessus said in a statement.
Houndé is expected to immediately start contributing to the group’s free cash flow generation.
“After unlocking value by successfully bringing the project into production, we now look forward to quickly creating further value through our exploration programme,” De Montessus added.
The Houndé mine began processing ore ahead of schedule on September 25 and achieved its first gold pour on October 18.
A seven-day performance trial was recently successfully completed with all key metrics above targets.
“Mining activities at the main Vindaloo openpit are progressing well with nearly three-months’ worth of feed already stockpiled and positive grade reconciliation against the resource model being achieved.”
The current stockpile totals 571 000 t at 2.6 g/t containing 47 000 oz, inclusive of 130 000 t at over 5 g/t.
Resettlement compensation for communities living near the high-grade Bouere and Dohoun satellite deposits has commenced, with mining activities scheduled to begin in late 2018.
Exploration drilling, which resumed in early 2017 following a two-year period of inactivity, has confirmed the occurrence of high-grade mineralisation at the nearby Kari Pump and other targets, with the initial results expected to be published in the coming weeks.