Endeavour adjusts guidance as it sells noncore Burkina Faso mine
LSE- and TSX-V-listed Endeavour Mining has sold its 90% interest in the Karma mine for up to $25-million to Nere Mining, a Burkina Faso-based consortium led by prominent business figure Elie Quedraogo.
Endeavour CEO Sebastien de Montessus said that Karma was a noncore asset for the company and that he believed the new owners would leverage their experience and knowledge gained from local investments to maxismise the mine’s future prospects.
“We are very proud of what we have accomplished at Karma, in particular the growth and development of our local employees, who we wish to thank for their commitment, professionalism and contribution to Endeavour’s success over the past several years,” he said.
Located about 185 km northwest of Burkina Faso’s capital, the Karma mine is a low-grade heap leach operation consisting of several shallow, low strip ratio, free-dig openpit gold deposits. Ore is treated at a five-million-tonne-a-year heap leach facility.
Karma produced about 88 000 oz of gold at an all-in sustaining cost (AISC) of $1 195/oz in 2021.
Following the sale of the mine, Endeavour has moved Karma’s guided production of 85 000 oz to 100 000 oz at an AISC of $1 200/oz to $1 250/oz for 2022, with guidance for the other operations remaining unchanged. As a result, the production guidance for continuing operations has been lowered to between 1.32-million ounces and 1.4-million ounces, while the AISC guidance has decreased by $10/oz to between $880/oz and $930/oz.
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