Name of the Project
Kalana gold project.

Location
South-western Mali.

Project Owner/s
Multinational mining company Endeavour Mining.

Project Description
The Kalana project comprises two primary deposits – Kalana and Kalanako – and two tailings storage facilities.

The project has proven and probable reserves of 35.6-million tonnes grading 1.6 g/t gold. Indicated resources are estimated at 46-million tonnes grading 1.57 g/t gold and inferred resources of 4.6-million tonnes grading 1.67 g/t gold.

A prefeasibility study (PFS) has demonstrated Kalana’s ability to deliver 186 000 oz/y of gold over the first five years of operation and 150000 oz/y over its 11-year mine life, with significant near mine exploration opportunities.

The PFS is based on a 30-million-tonne-a-year contract-mining operation.

The Kalana pit will be developed in six stages, while Kalanako will be mined in two stages forming two separate pits.

The processing plant design has been based on a nominal capacity of three-million tonnes a year of primary mineralised material if fed with fresh rock, and a capacity of 3.8-million tonnes a year if fed with oxide material.

The project will be powered by Malian grid power, which will require the construction of a 51 km 66 kV power line from Yanfolila and a new substation at the project.

The project requires the partial resettlement of Kalana town, owing to the placement of project infrastructure and the need to ensure a safe buffer zone between mining activities and the community.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of S498-million and an internal rate of return of 59%, with a payback of 1.1 years from the start of commercial production.

Capital Expenditure
The project will require an upfront capital cost of $297-million.

Planned Start/End Date
Not stated.

Latest Developments
The definitive feasibility study is expected to start immediately and is due to be completed in the first quarter of 2022,

Further exploration is envisaged on near-mine exploration targets

Key Contracts, Suppliers and Consultants
Lycopodium Minerals (PFS), with inputs from Snowden and Knight Piésold to assess the economic viability of the Kalana project.

Contact Details for Project Information
Endeavour Mining, tel +44 203 011 2723 or email info@endeavourmining.com