PROJECT PLANS PROGRESS Houndé gold project will increase the company’s number of gold-producing mines to six
Intermediate gold producer Endeavour Mining plans to make a construction decision for its Houndé gold project, in Burkina Faso, in the first quarter of this year and intends to start construction in the second quarter. Gold production will start in the last quarter of 2017.
“Endeavour Mining is a consistent performer that has been reaping the benefits of the investments made over the past several years and, with Houndé, we are poised to construct our largest mine, with very attractive economics,” Endeavour Mining business development executive VP Doug Reddy tells Mining Weekly.
Houndé will increase the company’s number of gold-producing mines – in Mali, Ghana, Burkina Faso and Côte d’Ivoire – to six, and Endeavour’s collective gold production rate beyond its current 580 000 oz/y.
The TSX- and ASX-listed company estimates the initial start-up capital for the mine at $325-million, including working capital, import duties and contingency, with $55-million budgeted for buying or leasing a full mining fleet. The company forecasts a life-of-mine (LoM), all-in sustaining cost of $717/oz, which includes royalties, rehabilitation and closure costs.
On a 100% basis, Houndé, which Endeavour Mining considers to be the best undeveloped permitted project in West Africa, is estimated to produce 190 000 oz/y of gold over a ten-year mine life, but 248 000 oz/y for each of the first two years.
The project has proven and probable mineral reserves of 2.073-million ounces and an LoM production of 1.906-million recoverable ounces. The owner-operated openpit mine has reserves of 29.7-million tonnes, grading at 2.15 g/t of gold. Endeavour expects to realise an average process recovery of 92.7% at a milling rate of three-million tonnes a year through a semi- autogenous grinding ball mill, gravity, carbon-in-leach circuit.
Endeavour received the Houndé mining permit on February 5, 2015. Endeavour will hold 90% and the government of Burkina Faso 10% ownership upon incorporation of a mining company.
The project, about 250 km south-west of Ouagadougou, the capital of Burkina Faso, benefits from “excellent” infrastructure and also from Endeavour’s experience in opera- ting the Youga gold mine, also in Burkina Faso, adds the company.
Houndé will employ about 470 people – excluding catering, cleaning staff and miscellaneous contractors – comprising 41 international and African expatriates and 430 Burkinabe employees. A camp to house 270 senior staff will be installed, with the remaining employees living in the near- by communities, Endeavour explains.
The development plans for Houndé will be a key topic for Endeavour at this year’s Investing in African Mining Indaba, which will be held at the Cape Town International Convention Centre from February 8 to 11.
At the event, Endeavour Mining CEO Niel Woodyer will speak on the attraction of working in West Africa and the opportunity the company has to build Houndé, which is in the Houndé greenstone belt and just south of Canada-based mining company Semafo’s Mana mine.
Reddy notes that the company is optimistic about the 2016 Mining Indaba, pointing out that such events keep people in the industry up to date on current affairs, as they provide mining companies and development companies with an opportunity to meet with the investment community and analysts.