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GOLD
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MODERN MINING
April 2016
H
oundé is located approximately
250 km or a three hour drive
south-west of Ouagadougou, the
capital city of Burkina Faso, and
25 km from a rail line which
runs to Abidjan in Côte d’Ivoire. The property
is within the Houndé greenstone belt and just
south of Semafo’s Mana mine.
During the past year, a thorough review
and optimisation of the project was completed
and an implementation plan established. The
mining and ore processing schedules have
remained unchanged since February 2015
while the operating and capital costs were
fully scoped and optimised by Endeavour, with
assistance from Lycopodium Minerals.
Following cost and business risk compari-
sons, the ‘Owner Operator’ option was selected
over the ‘Contractor Mining’ approach. The
fully scoped mining costs were revised upward
mainly due to increased cost assumptions
for ore re-handling, blasting and fixed cost
re-allocation. All deposits are amenable to
conventional open-pit mining methods and
the pits are expected to reach depths of up to
175 m. The proposed mining fleet will have the
capacity to move in excess of 35 Mt/a.
During the optimisation process both the
Run of Mine (ROM) pad and the Tailings
Storage Facility (TSF) were relocated to more
favourable locations. Furthermore, the TSF was
changed from basin to paddock style to opti-
mise the usage of waste material and generate
nearly US$25 million in reclamation and clo-
sure cost savings.
The processing costs estimate decreased
due to the positive impacts of (i) reagents use
optimisation; (ii) power demand optimisations;
and (iii) relocation of the TSF, which more than
Construction kicks off
at
Endeavour Mining, listed on the TSX, has announced
that its 90 %-owned Houndé gold project in Burkina Faso
has entered the construction phase of its development.
Houndé is expected to deliver an average production of
190 000 ounces per year over a 10-year mine life at an AISC
of US$709/oz, based on current reserves. The project is an
open-pit mine with a 3,0 Mt/a gravity circuit/CIL plant. The
initial capital cost is estimated at US$328 million, inclusive
of US$47 million for the owner-mining fleet.