Endeavour Mining Corp. (TSX:EDV,ASX:EVR,OTCQX:EDVMF) announced the receipt of a positive NI 43-101 compliant preliminary economic assessment (PEA) for its Burkina Faso-based Hounde gold project, also noting that an updated mineral resource estimate for the project is available.
According to the press release, highlights of the PEA include:
- Estimated potential average annual production of 161,000 gold ozs per year over a 10 year mine life, with total life of mine production of 1.61 million ozs
- An average 91% process recovery at a milling rate of 8,000 tonnes per day supplying a conventional gravity/CIL circuit
- Owner operated open pit mining and a potentially economic portion of the resource of 28 million tonnes grading 2.0 g/t Au (at 0.91 g/t Au cut-off)
- Initial start-up capital is estimated at $303 million with sustaining capital estimated at $57 million (excluding VAT and import duties)
- Total initial funding requirement is estimated at $345 million including start-up capital, VAT, import duties and certain first year equipment purchases
- Forecast life of mine direct cash cost of $563 per ounce (excluding royalties)