Endeavour Mining Announces Maiden Gold Reserve At Kari Pump
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(Kitco News) - Endeavour Mining (TSX: EDV) late Monday reported a 41% increase in reserves at its flagship Houndé mine in Burkina Faso after a large portion of the Kari Pump maiden estimate for measured and indicated resource was converted to reserves.
The Kari Pump maiden reserve was put at 7.3 million tonnes at 3.01 grams per tonne of gold for a total of 710,000 gold ounces.
Sébastien de Montessus, president and chief executive officer, said there was a high conversion rate of resources to reserves. The company put this at 89% based on a gold price of $1,250 an ounce.
“Moreover, it demonstrates the value unlocked through exploration as these high-quality ounces were discovered at a cost of less than $13.50/oz of reserve and have the potential to be produced at an all-in sustaining cost of below $800/oz,” the CEO said. “We therefore look forward to producing from Kari Pump as it is expected to improve the mine’s production profile due to its higher-grades and attractive ore characteristics.”
He added that Endeavour soon will publish drill results from the ongoing 2019 Houndé exploration program, which is mainly focused on the nearby Kari West and Kari Center discoveries.
“The additional reserves should allow Hounde to maintain >200kozs [200,000 ounces of] annual production over the medium term,” said a research note from Credit Suisse. “Overall Hounde reserves have increased from 1.74Mozs as at Dec. 31, 2018 to 2.45Mozs (up ~41%). We expect a positive stock reaction.”
Kari Pump is located only 7 kilometers west of the processing plant and is one of three discoveries made in the large Kari gold-in-soil anomaly, the company said. In 2017 and 2018, exploration focused mainly on the Kari Pump discovery with over 200,000 meters drilled. This led to the maiden resource announced in November 2018. The company is extending drilling with the goal of delineating additional resources and reserves.