By: African mining market

Endeavour Mining plc said a preliminary study at Assafou in the Ivory Coast has confirmed the potential for it to become a major gold producer for the FTSE 100 group.

Results from the pre-feasibility study indicated possible production of 329,000 oz a year at sustaining costs of US$892 an ounce over the first 10 years with a total estimated mine life of fifteen years.

Based on those numbers, the after-tax value NPV(5%) is US$1,526 million and a rate of return of 28% at a US$2,000/oz gold price, with an upfront capital cost of US$734 million using a similar processing plant configuration as Endeavour’s nearby Lafigué mine.

Defined maiden reserves are 72.8 million tonnes at 1.76g/t for 4.1 million oz of gold with indicated resources at 4.6 million oz plus the possibility of satellite deposits boosting the resource.

A definitive feasibility study (DFS) is now planned with completion scheduled between late 2025 and early 2026.

Ian Cockerill, chief executive, said Assafou can become a “tier 1 asset” for Endeavour with a long life and low costs.

“Given the excellent project economics, we will now launch the Definitive Feasibility Study and simultaneously advance the permitting process so that we are well positioned to potentially launch construction, with our best-in-class projects team, in the second half of 2026.

“With a robust pipeline of organic growth opportunities, we expect to continue to unlock value and deliver long-term production growth towards our 1.5 million ounce target, from a diversified portfolio of assets, by the end of the decade, while maintaining best-in-class margins.”