ASX and TSX-listed Endeavour Mining Corporation says the technical report for the preliminary economic assessment (PEA) on its open cast Houndé gold project in Burkina Faso has been filed on the system for Electronic Document Analysis and Retrieval (SEDAR).SEDAR is a Canadian mandatory document filing and retrieval system for all Canadian public companies. The positive Hound PEA released in January shows potential production of 161 000 ozpa over ten years at a cost of less than US$600/oz. Early completion of the infill drilling programme supports the completion of the feasibility study by the end of the year. “With Agbaou construction on schedule, a seamless transition of our mine-building team from Agbaou to Houndé is planned in early 2014. Endeavour‘s gold production is forecast to be over 550 000 ozpa in 2016, including completion of the Tabakoto mill expansion in 2013, and production start-ups at Agbaou in Q1, 2014 and Hound in 2016,” says CEO Neil Woodyer. The feasibility study for Houndé commenced in January 2013 with the drilling programme concluded in February 2013, with 41 365 m and 369 drill holes completed. New highlights of the drilling include 73.9 m at 5.26 g/t gold and 38 m at 5.93 g/t gold.
Initial start-up capital is estimated at US$303 million, with sustaining capital estimated at US$57 million. Total initial funding requirements are estimated at US$345 million.Looking ahead, further modelling of the mineralisation, geology and alterations have commenced in preparation for an updated resource estimate as part of the feasibility study, while geotechnical drilling has been carried out over the preferred sites for the mill, tailings and water storage facilities and test pitting is in progress. Sterilisation augur drilling and geophysical surveys are also in progress. Sufficient metallurgical results have been obtained to allow for the determination of initial mill sizing and power requirements.