Source - Alliance News

Endeavour Mining PLC said on Monday that it will expand its Sabodala-Massawa site in Senegal, following the conclusion of a new definitive feasibility study.

The London-headquartered gold miner said it will supplement its existing 4.2 million tonnes per annum carbon-in-leach plant with a 1.2 million tonnes per annum Biox plant. The Biox plant will help to process the high-grade refractory ores from the Massawa Central & Massawa North deposits.

Endeavour shares were up 4.7% to 2,006.00 pence each in London on Monday morning.

The move follows ‘robust’ definitive feasibility study economics, Endeavour said.

The miner said the expansion will lift the site to ‘top tier status’, with an anticipated average annual production of 373,000 ounces per year over the next five years, with average all-in sustaining costs of $745 per ounce.

The expansion is expected to yield an incremental 1.4 million ounces at a low AISC of $576 per ounce over the lifetime of the Biox project, it said.

It will require $290 million of upfront capital, which is expected to be self-funded from the existing operations at Sabodala-Massawa. Construction will begin in the second quarter of this year, with the first gold pour from the Biox plant expected in early 2024.

‘Given the robust project economics, which significantly exceed our investment criteria, and the strong exploration upside potential, we are excited to launch this low-capex intensive brownfield expansion project as it will continue to improve the quality of our operating portfolio and contribute to driving the group‘s return on capital employed above our 20% target,’ said President & Chief Executive Officer Sebastien de Montessus.

Endeavour said it is on track to discover its target amounts of between 2.3 million and 2.7 million ounces of indicated resources at Sabodala-Massawa between 2021 and 2025.

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