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GOLD
April 2016
MODERN MINING
35
Houndé
Above:
Layout of the
Houndé mine.
Left:
Drilling at the Houndé
site in Burkina Faso.
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
Houndé Project Highlights
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,
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