This follows approval from Endeavour Mining’s board of directors.
The Houndé project is expected to deliver average production of 190 000 ozpa over a 10-year mine life from its 3 Mtpa gravity circuit/carbon-in-leach plant at an all-in sustaining cost of US$709/oz, based on current reserves.
Having obtained all its permits, early earthworks have commenced at the $328 million project.
“Once in production, Houndé will become our flagship low-cost mine and will rank amongst West Africa’s top tier cash generating mines,” says Endeavour Mining CEO Neil Woodyer.
Furthermore, Houndé will benefit both from the company’s construction track-record, demonstrated most recently at Agbaou, and its team’s operating experience in Burkina Faso.
“The project is fully-funded based on our expected pro-forma cash position following the completion of the True Gold acquisition, the mine equipment financing, and the undrawn portion of our revolving credit facility,” Woodyer advised.
“However, rather than draw on its revolving facility, it is Endeavour’s objective to fund the remaining capital needs from free cash flow. We have therefore prudently implemented a short-term Gold Revenue Protection program to secure and de-risk the necessary cash flows, providing comfort even if the gold price were to fall to $1,000/oz,” he noted.
“With the ramp-up of the Karma mine soon underway, and our operations delivering a strong performance, we are now well positioned to build the Houndé project, which will further lift the overall quality of our portfolio,” says Woodyer.