Modern Mining April 2016

GOLD

Houndé

Endeavour has awarded the EPCM contract to Lycopodium Minerals, and detailed engi- neering is now commencing. Lycopodium has already had detailed involvement in the Houndé project, through the completion of the Detailed Feasibility Study and the recently completed optimisation reviews. The overall duration of the project construc- tion is estimated to be 18 months – with the first gold pour expected in the fourth quarter of

Above: Layout of the Houndé mine.

Left: Drilling at the Houndé site in Burkina Faso.

offset the power costs increasing from US$0,15 to US$0,18 per kWh. Site General and Administrative (G&A) costs have decreased due to favorable exchange rate variations and re-allocation of fixed labour costs into mining costs. The optimised and fully scoped upfront cap- ital cost has been estimated at US$328 million, inclusive of US$47 million for the owner-min- ing fleet and US$28 million for contingencies, which is in line with the 2015 estimate of US$32 million. The current upfront capital cost estimate is based on power supply from Sonabel, the national electricity utility, consisting of a 38 km, 91 kV overhead power line. Project capital commitment in 2016 is expected to be approximately US$180 mil- lion, with the remainder in 2017. Within the coming weeks, Endeavour expects to lock-in approximately 25 % of the total capital cost by placing firm orders for the SAG and ball mills, purchasing the mining fleet and paying land compensation and related taxes. Replicating its successful construction partnership at other mines it has developed,

Houndé Project Highlights

Ownership

90 % Endeavour, 10 % Burkina Faso

Reserve and Resources P+P Reserves

31 Mt at 2,1 g/t Au for 2,1 Moz M+I Resources (inclusive of reserves) 38 Mt at 2,1 g/t Au for 2,5 Moz Inferred Resources 3 Mt at 2,6 g/t Au for 0,3 Moz Mine type Open pit Mill type Gravity/CIL plant Production Mine life 10 years Strip ratio, W:O 8,4 Processing rate 3,0 Mt/a Average LOM Recovery rate 93 % Total LOM gold production 1 906 koz Average annual production 190 koz Average LOM AISC US$709/oz

April 2016  MODERN MINING  35