Endeavour Mining to launch definitive studies for Fetekro, Kalana gold projects

Endeavour Mining Corp. said Feb. 23 that it will proceed with a definitive feasibility study for the Fetekro gold project in Côte d'Ivoire and the Kalana gold project in Mali, following positive prefeasibility studies.

Based on a gold price of $1,500 per ounce, the Fetekro study outlined a posttax net present value, discounted at 5%, of $479 million, with an internal rate of return of 33% and a 10-year mine life, while the Kalana study outlined a posttax NPV, discounted at 5%, of $331 million, an IRR of 49%, and an 11-year mine life.

The Fetekro study was based on proven and probable ore reserves of 31.9 million tonnes grading 2.0 g/t gold for 2.1 million ounces of contained gold, with measured and indicated resources of 32.0 Mt grading 2.4 g/t gold for 2.5 Moz contained gold.

Meanwhile, the Kalana study took into account proven and probable ore reserves of 35.6 Mt grading 1.6 g/t gold for 1.8 Moz contained gold, with measured and indicated resources of 46.0 Mt grading 1.6 g/t gold for 2.3 Moz contained gold.

Average production throughout the life of mine of the Fetekro open pit mine is pegged at 209,000 ounces per year at all-in sustaining costs, or AISC, of $838/oz, with output in the first five years of 220,000 ounces per year at AISC of $916/oz. For the Kalana open pit mine, production rate over the life of mine is set at 150,000 ounces per year at AISC of $901/oz, including 186,000 ounces per year at AISC of $679/oz in the initial five-year period.

Upfront capital costs for Fetekro are pegged at $338.0 million, including $37.7 million for contingency, while Kalana's costs are projected at $297.0 million, including $35.8 million for contingency.