Houndé progressing on time, within budget

21st October 2016


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Construction at West Africa-focused gold producer Endeavour Mining’s Houndé gold project, in Burkina Faso, which began in April, is progressing on schedule and within budget, with the first gold pour expected during the fourth quarter of 2017.

The Houndé project is an openpit mine with a three-million-tonne-a-year gravity circuit and carbon-in-leach plant. Endeavour says the detailed engineering of the processing facility at the mine is progressing well and it is on schedule to be completed by mid-November.

“We are pleased to have successfully achieved our first set of key project milestones safely, ahead of schedule and on budget, despite the wet season being upon us. Our employment statistics are extremely pleasing, with over 96% of our 1 058 project staff and contractors being Burkinabe nationals,” stated Endeavour construction services executive VP Jeremy Langford in a September announcement.

Some of the key milestones achieved by the company include the carbon-in-leach ring beam concrete pour in early August, two weeks ahead of schedule, with all six ring beams completed as of September 6.

“I am proud that this project will deliver significant economic benefits to the local area and the whole of Burkina Faso, in addition to becoming Endeavour’s flagship operating mine,” says Langford.

The company’s mining fleet equipment financing agreement signed with equipment manufacturing company Komatsu is complete with deliveries already on site, machinery commissioned and operational. The water harvest dam construction has also been completed two months ahead of schedule, with water already being pumped to the water-storage dam.

The construction of the 300-person permanent accommodation village is 30% complete and on schedule for completion during the first quarter of 2017. Endeavour explains that the land compensation process has been successfully completed and resettlement is under way, with all approvals in place.

Langford explains that, once in production, Houndé, which is 90%-owned by Endeavour, will become the company’s flagship low-cost mine, ranking among West Africa’s top-tier cash-generating mines, with an average production rate of 190 000 oz/y at an all-in sustaining cost (AISC) of $709/oz over an initial ten-year mine life, based on reserves.

In its first four years, the average yearly production is expected to be 235 000 oz at an AISC of $610/oz.

The project’s initial capital cost is estimated at $328-million, inclusive of $46-million for the owner-mining fleet.

Endeavour will employ up to 1 800 people during Houndé’s construction phase and 470 once the project reaches commercial production, and aims to employ 90% Burkinabe nationals and increase employment of women in the region.

Edited by Tracy Hancock
Creamer Media Contributing Editor


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