Key Takeaways:
The definitive feasibility study confirms Assafou as a top-tier project, expected to produce 320,000 ounces of gold annually for its first eight years at a low all-in sustaining cost of $1,026 per ounce.
Endeavour plans a final investment decision by the end of 2026, targeting a 16-year mine life and positioning the project as a cornerstone of its growth strategy in West Africa.
Assafou Project Economics (at $2,100/oz Gold Price)
(Bloomberg) -- Endeavour Mining PLC (LSE:EDV, TSX:EDV) on Thursday outlined plans for its Assafou project in Côte d'Ivoire, with a definitive feasibility study projecting a 16-year mine life and an after-tax net present value of $1.7 billion at a $2,100 per ounce gold price.
"We are pleased with the results of the Assafou project DFS, which confirms the quality and scale of the asset that will underpin the next phase of Endeavour’s organic growth," Ian Cockerill, Chief Executive Officer, said in a statement.
The study details a robust production profile, with average output of 320,000 ounces annually over the first eight years at an all-in sustaining cost (AISC) of $1,026 per ounce. Total proven and probable reserves stand at 4.1 million ounces, part of a larger 5.2-million-ounce measured and indicated resource.
The project, discovered for just $13 million in 2022, now requires $1.061 billion in upfront capital. A final investment decision is targeted for the end of 2026, positioning Endeavour to capitalize on a strong gold market and growing investor interest in the West African gold belt, which has seen exploration budgets climb 11 percent last year, according to industry data.
The DFS outlines an initial capital cost of $1.061 billion, a significant increase from the $734 million estimated in the 2024 preliminary feasibility study. The company attributed the higher cost to key scope changes aimed at de-risking the project and optimizing its long-term performance.
These changes include a more robust backup power system capable of supporting the full 28.0MW load, an extended 55-kilometer diversion of the national highway, and significant upgrades to the processing plant. The plant modifications, based on learnings from the company’s Lafigué project, feature larger secondary crushers and an optimized flowsheet to improve redundancy and minimize downtime.
Construction is projected to take 24 to 30 months following a final investment decision. Early works, including detailed engineering and procurement of long-lead items, are already underway.
The Assafou project is set to become Endeavour's lowest-cost and longest-life mine, strengthening a portfolio that includes assets across Senegal, Côte d'Ivoire, and Burkina Faso. The operation will use conventional open-pit mining methods and a 5.0 Mtpa gravity and carbon-in-leach (CIL) processing plant. Metallurgical test work confirmed high recovery rates of 94 percent, with a notable 70 percent of gold recoverable through the gravity circuit alone.
The project's economics are underpinned by a sliding royalty scale in Côte d'Ivoire, ranging from 5.0 percent to 8.0 percent, and a corporate tax rate of 25 percent. The government of Côte d’Ivoire is entitled to a 10 percent free-carried interest in the project.
Endeavour's development of Assafou aligns with a broader trend of major investment in African gold production. Peers like Fortuna Mining (NYSE: FSM) and Aya Gold & Silver (TSX: AYA) are also advancing significant projects in Senegal and Morocco, respectively, as miners look to capitalize on gold prices that have remained strong on the back of sustained central bank buying.
This article is for informational purposes only and does not constitute investment advice.
