Always good to have a look at the Feasibility studies. This is for a gold deposit in the Hounde Belt, Burkina Faso A stone throw from BOE's ground at Golden Hill). Interesting set of numbers...best to have a look at the full study, which you can get from www.sedar.com site, or perhaps on their web site.
Looks like they will make more money than if you had the money in the bank! Even at $1300 per ounce. Who knows what gold will be worth in 8.1 years time plus build time, but my bet is a lot more than its worth now....
See the market is very shaky about the Fed tapering, and things have to change in the US, as the economists are on shaky grounds (either way in fact)
November 06, 2013 Endeavour Mining Announces Positive Feasibility Study For Houndé Gold Project In Burkina Faso View News Release in PDF Format
November 6, 2013 - Endeavour Mining Corporation ("Endeavour") (TSX:EDV, ASX:EVR, OTCQX:EDVMF) announces the results of a positive NI 43-101 compliant Feasibility Study ("FS") of its Houndé Gold Project, an open pit gold mine with an initial life of mine ("LOM") of over 8 years. The FS will be presented to the government of Burkina Faso as part of the on-going permitting process.
(All amounts in US dollars unless otherwise indicated)
Houndé FS Highlights, on a 100% basis, include: Average annual production of 178,000 gold ozs per year over an 8.1 year LOM, with total LOM production of 1.44 million ozs. An average gold recovery of 93.3% via a SAG/ball mill (SABC) grinding circuit followed by gravity/CIL plant capable of treating 3.0 million tonnes per annum (Mtpa) of ore (nameplate capacity: 9,000 tpd). Owner operated open pit mining and Proven and Probable reserve of 25 million tonnes with an average grade of 1.95 g/t Au. Initial start-up capital of $315 million (including working capital, import duties, and contingency). LOM sustaining capital of $62 million, and $26 million of rehabilitation and closure costs. Forecast LOM direct cash cost of $636/oz (excluding royalties) and all-in sustaining cost of $775/oz (including royalties and rehabilitation and closure). The project yields, on an after-tax basis:
At $1,300/oz Gold Price (Base Case) At $1,500/oz Gold Price (Sensitivity) NPV 0% $ million $364 $593 NPV 5% $ million $230 $408 IRR % 22.4% 33.4%
Neil Woodyer, CEO, stated "Houndé is a strong gold project with potential to produce approximately 180,000 ozs per year at an all-in sustaining cost of under $800 per ounce. At a $1,300 gold price, Houndé has an attractive after-tax IRR of 22% illustrating strong cash flow generation. The project also benefits from excellent infrastructure, our current Agbaou mine building expertise, and our Burkina Faso operating experience at Youga. While work continues on obtaining the Houndé mining permit, we are evaluating how best to integrate Houndé into Endeavour's production growth plans."
November 06, 2013 Endeavour Mining Announces Positive Feasibility Study For Houndé Gold Project In Burkina Faso View News Release in PDF Format
November 6, 2013 - Endeavour Mining Corporation ("Endeavour") (TSX:EDV, ASX:EVR, OTCQX:EDVMF) announces the results of a positive NI 43-101 compliant Feasibility Study ("FS") of its Houndé Gold Project, an open pit gold mine with an initial life of mine ("LOM") of over 8 years. The FS will be presented to the government of Burkina Faso as part of the on-going permitting process.
(All amounts in US dollars unless otherwise indicated)
Houndé FS Highlights, on a 100% basis, include: Average annual production of 178,000 gold ozs per year over an 8.1 year LOM, with total LOM production of 1.44 million ozs. An average gold recovery of 93.3% via a SAG/ball mill (SABC) grinding circuit followed by gravity/CIL plant capable of treating 3.0 million tonnes per annum (Mtpa) of ore (nameplate capacity: 9,000 tpd). Owner operated open pit mining and Proven and Probable reserve of 25 million tonnes with an average grade of 1.95 g/t Au. Initial start-up capital of $315 million (including working capital, import duties, and contingency). LOM sustaining capital of $62 million, and $26 million of rehabilitation and closure costs. Forecast LOM direct cash cost of $636/oz (excluding royalties) and all-in sustaining cost of $775/oz (including royalties and rehabilitation and closure). The project yields, on an after-tax basis:
At $1,300/oz Gold Price (Base Case) At $1,500/oz Gold Price (Sensitivity) NPV 0% $ million $364 $593 NPV 5% $ million $230 $408 IRR % 22.4% 33.4%
Neil Woodyer, CEO, stated "Houndé is a strong gold project with potential to produce approximately 180,000 ozs per year at an all-in sustaining cost of under $800 per ounce. At a $1,300 gold price, Houndé has an attractive after-tax IRR of 22% illustrating strong cash flow generation. The project also benefits from excellent infrastructure, our current Agbaou mine building expertise, and our Burkina Faso operating experience at Youga. While work continues on obtaining the Houndé mining permit, we are evaluating how best to integrate Houndé into Endeavour's production growth plans."
AMX Price at posting:
9.6¢ Sentiment: Buy Disclosure: Held
(20min delay)