Economy 01-05-2024 01:03 10 Views

Endeavour Achieves First Gold Pour at Sabodala-Massawa Expansion

Endeavour Mining (TSX:EDV,OTCQX:EDVMF) reported its first gold pour at the Sabodala-Massawa BIOX expansion in Senegal just 24 months after construction of the project commenced.

“We are proud to have achieved our first gold pour at the Sabodala-Massawa BIOX Expansion with over 3.5 million man hours worked with no lost time injuries,” commented CEO Ian Cockerill in the company’s announcement.

“We have commissioned the project and delivered first gold in only 2 years, marking the fourth capital project that we have completed in the last 10 years. All of these have been completed in two years or less, and have been delivered on schedule, on budget and with no lost time injuries. This is a testament to the quality of our projects team and the competitive advantage we have in West Africa,” he added.

The operation is expected to achieve commercial production in late Q2 of this year, ramping up to its nameplate capacity of 1.2 million metric tons annually in Q3. Since the start of wet commissioning in February, approximately 50,000 metric tons of ore have been processed through the project, with operations meeting expectations so far.

The gravity circuit’s first gold pour came on April 18, followed by the first gold pour from the BIOX circuit on April 28.

Endeavour planning ‘aggressive’ exploration campaign

The Sabodala-Massawa expansion, which began in early 2022, is anticipated to yield incremental production of 1.35 million ounces of gold at an all-in sustaining cost (AISC) of US$576 per ounce over the life of the project.

When it was announced, the company said the work would elevate Sabodala-Massawa to expected average annual production of 373,000 ounces over the next five years at an average AISC of US$745 per ounce.

With an upfront capital requirement of US$290 million, the expansion project was also expected to be self-funded by the existing Sabodala-Massawa operation. Endeavour acquired Sabodala-Massawa from Teranga Gold in February 2021. The asset was formed through Teranga’s acquisition of the Massawa project from Barrick Gold (TSX:ABX,NYSE:GOLD) in early 2020, which combined the Sabodala mill and deposits with the nearby Massawa deposits.

The mine is comprised of two mining licenses, with Endeavour holding a 90 percent stake in each license, and the government of Senegal holding the remaining interest.

Looking ahead, Endeavour plans to focus on an aggressive exploration program at Sabodala-Massawa, targeting resource-to-reserve conversion and adding near-mine refractory and non-refractory resources.

Proven and probable reserves currently amount to 3.5 million ounces of gold, with measured and indicated resources reaching a figure of 5.4 million ounces.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

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