TSX-listed Endeavour Mining has been granted a mining permit extension by the Burkina Faso government, covering the full Kari Area at its Houndé gold mine.
The Kari area hosts the Kari Gap, Kari South, Kari Pump, Kari Center and Kari West discoveries.
The company plans to publish an updated resource estimate for the Kari Area, incorporating drilling that was done in the first half of the year, in the coming weeks.
Endeavour has started with mining activities at the Kari Pump deposit, after more than 60 000 m of grade control drilling was completed during the second quarter of this year.
Production from the Houndé mine is expected to reach the upper end of guidance of between 230 000 oz and 250 000 oz for the year.
The Kari Area has been permitted as an extension of the main Houndé mining permit, thereby allowing the area to benefit from Burkina Faso’s 2003 Mining Code, which includes a corporate income tax rate of 17.5%, a 10% free-carried State interest and a royalty based on a 3% to 5% sliding scale, depending on the prevailing gold price.
“We are pleased to have received consent to start mining in the Kari Area, beginning with the Kari Pump deposit, and we are grateful to the Burkina Faso government for its extraordinary efforts to finalise this permit in spite of the unusual challenges resulting from the ongoing Covid-19 crisis.
“Endeavour has been keenly focused on creating value through the drill bit. Our success in moving Kari Pump from discovery to production in under three years underscores our aggressive exploration strategy and the value of our strong established government partnerships in West Africa,” says CEO Sébastien de Montessus.
A 2020 exploration programme of up to $11-million, totalling about 94 000 m, has been planned at the Houndé mine permit, including the Kari Area, with the aim of delineating additional resources.
More than 400 holes – representing just over 50 000 m – have already been drilled since the start of the year in the Kari Area, in addition to the grade control drilling.