MOVERS & Shakers
Construction under
way at Houndé Gold
Projects
Endeavour Mining started construction of
its 90% owned Houndé gold project in
western Burkina Faso on April 11, the same
day that True Gold Mining's Karma mine
poured its rst gold in north-central
Burkina Faso. Endeavour acquired True
Gold in a transaction that was approved at
special meetings of the companies'
shareholders on April 21 and that closed on
April 26. Acquisition of Karma adds
110,000 to 120,000 oz/y to Endeavour gold
production over a projected mine life of 8.5
years based on current reserves.
e Houndé project is designed to deliver
average production of 190,000 oz/y of gold
over a 10-year mine life at an all-in
sustaining cost of $709/oz, based on
current reserves. e project is an open-pit
mine with a 3-million-mt/y
gravity/carbon-in-leach plant. Initial
capital cost to develop the project is
estimated at $328 million, inclusive of $47
million for an owner-operated mining
eet. Project capital spending in 2016 is
expected to be approximately $180
million, with the remainder scheduled
for 2017.
e current upfront capital cost estimate is
based on power supply from Sonabel, the
Burkina Faso national electricity utility,
consisting of a 38-km, 91-kV overhead
power line.
When the Houndé project reaches full
pro du c t i on i n 2 0 1 8 , E n d e av ou r ' s
company-wide gold production rate will
increase to about 900,000 oz/y, and its
average all-in sustaining cost will drop to
below $800/oz.
e overall duration of Houndé project
construction is estimated at 18 months.
Endeavour plans to self-perform 72% of
the project build, with Lycopodium
contracted to focus on the processing
facility, which is the remaining 28% of the
total capital commitment for the project.
Houndé has proven and probable reserves
totaling 31 million mt, grading 2.1 g/mt
and containing 2.1 million oz of gold;
measured and indicated resources totaling
38 million mt, grading 2.1 g/mt and
containing 2.5 million oz; and inferred
resources totaling 3 million mt, grading 2.6
g/mt and containing 300,000 oz.