TSX-listed gold miner Endeavour Mining has increased its reserves by 41% at its flagship Houndé mine in Burkina Faso as a large portion of the Kari Pump maiden measured and indicated resource was converted to reserves.
Burkina Faso – Kari Pump, with a maiden measured and indicated reserve of 7.3 Mt grading at 3.01 g/t gold for 710 000 oz,is one of three discoveries made in the large Kari gold-in-soil anomaly, which covers a 6 km-long by 2.5 km-wide area, where more than 270 000 m have been drilled over the past two years.
Important to note is that Kari Pump represents only 35% of the large Kari gold-in-soil anomaly, with significant exploration potential remaining.
An aggressive 200 000 m extension drilling campaign with a budget of US$17 million is underway, mainly focused on the adjacent Kari West and Kari Center discoveries. The objective of the drilling campaign is to:
- Pursue Kari Pump extensions with the goal of delineating additional resources
- Delineate a maiden resource and reserve for both the Kari West and Center discoveries before year end, with interim drilling results expected to be published by early Q3-2019
- Explore other highly ranked targets including Vindaloo Deep and South, and Grand Espoir
Drill results for Kari West and Kari Center are expected to be published in early Q3, 2019, with maiden resource and reserve estimates expected in Q4, 2019.
In addition to adding a significant amount of reserves at Houndé, the mine is expected to benefit from Kari Pump’s favorable ore characteristics, with 53% of gold content located within the softer oxide and transition zones, compared to only 12% for the Houndé mine. As the mineralization starts at surface, it is amenable to open pit mining.
“We are very pleased with the maiden Kari Pump reserve as we enjoyed a very high conversion rate of resources to reserves. Moreover, it demonstrates the value unlocked through exploration as these high-quality ounces were discovered at a cost of less than $13.50/oz of reserve and have the potential to be produced at an all-in sustaining cost of below $800/oz. We therefore look forward to producing from Kari Pump as it is expected to improve the mine’s production profile due to its higher-grades and attractive ore characteristics,” says Endeavour Mining President and CEO Sébastien de Montessus.
Environmental studies on Kari Pump have been launched and an application for a mining license is scheduled to be submitted later in 2019, with the goal of initiating mining activities in late 2020 or early 2021, following the completion of mining at the nearby high-grade Bouere deposit.
An updated mine plan and technical report are expected to be released following the publication of maiden reserves at the Kari West and Center discoveries.