Canadian miner Endeavour Mining has published positive prefeasibility study (PFS) results for two Africa projects that would add nearly 360 000 oz/y to its production profile, confirming the quality of its organic growth pipeline.
The Fetekro project, in Côte d’Ivoire, has the potential to be a cornerstone mine, producing 209 000 oz/y over ten years, at an all-in sustaining cost (AISC) of $838/oz.
The company’s $20-million investment in exploration at Fetekro over the past three years has generated significant returns, as the project has an aftertax net present value (NPV), using a 5% discount, of $479-million and an internal rate of return (IRR) of 33%.
The Kalana PFS, in Mali, will be a 150 000 oz/y mine, operating for 11 years, at an AISC of 901/oz. The aftertax NPV is $331-million and its IRR is 49%.
“Together with a number of earlier stage projects, Endeavour now has an attractive pipeline of opportunities, each of which will compete for capital with the goal of generating strong returns across operations, projects and exploration,” said Endeavour president and CEO Sebastien de Montessus.
Definitive feasibility studies will get under way for Fetekro and Kalana, with further opportunities to optimise and expand the projects through exploration and engineering.
The DFS for Fetekro will be announced in late 2021 and that of Kalana in early 2022.