AMN - COTE D’IVOIRE: Ity CIL construction approved

Following robust results obtained from an optimisation study, Endeavour Mining's Board of Directors has approved the construction decision for the Ity CIL Project at its mine in Cote d'Ivoire. The mine has now moved into the construction phase. 

Feasibility and optimisation studies have been conducted to analyse the economic viability of constructing a straight forward gravity circuit/Carbon-In-Leach (CIL) plant as an alternate processing route to the current heap leach process.

Following publication of the November 2016 Feasibility Study, an optimisation study was prepared to better capture the value created from recent exploration success which has led to increasing the plant nameplate design from 3.0 million to 4.0 million tonnes/annum. In addition, several changes have been made to leverage construction and operating synergies between Ity, Agbaou and Houndé.

The latest study has significantly improved the production profile and economics of the CIL project and positions it to be Endeavour's next long-life low-cost flagship asset.

Results include:

* Long 14-year mine life based on current reserves which increased by 1.0 million ounces to 2.9 million;

* Average annual production over the first 5 years increased by 42% to 235,000 ounces and AISC decreased by 3% to $494/ounce;

* Average annual production over the first 10 years increased by 51% to 204,000 ounces and AISC decreased by 2% to $549/ounce; and

* Robust economics with after-tax NPV5% of $710 million, a 73% increase, based on a gold price of US$1250/ounce.

Endeavour’s president and CEO Sébastien de Montessus said, “The study clearly positions Ity as our next flagship asset with robust project economics, a strong long-life production profile, and significant exploration upside. Its average annual production in the first five years and an after-tax IRR of +20%, even at a low gold price of $1000 per ounce, are proof of the compelling economics of the project.

“With the upcoming first gold pour at Houndé and Ity CIL construction expected to be completed within 20-months, we remain on track to achieve our strategic milestones of becoming a +800,000 ounce per year gold producer with group AISC below $800 per ounce and mine lives above 10 years by 2019.”

COO Jeremy Langford added, “We have optimised the Ity CIL Project by maximising the construction and operational synergies between Agbaou, Houndé and Ity, and by leveraging the same designs, components, equipment and spare parts where possible from one project to the other, along with incorporating our extensive construction expertise.

“The construction team is excited to transition from Houndé to Ity and to continue to build on its construction track-record.”

Meantime, Endeavour has commenced wet commissioning of its Houndé Gold Project in Burkina Faso and the first ore has been introduced to the process plant milling circuit in preparation for production.

Construction is progressing ahead of schedule, with over 97% of the total project complete and on-budget, with the first gold pour expected ahead of schedule in the first half of the fourth quarter.

www.endeavourmining.com