Endeavour Mining has announced that the Assafou-Dibibango gold project in Côte d’Ivoire will require an initial capital expenditure (capex) of $734m, based on the findings of a preliminary feasibility study (PFS).
The initial cost, which is based on a five million tonnes per annum (Mtpa) design nameplate capacity with a similar processing plant configuration as the nearby Lafigué gold mine, includes a contingency of $79m.
According to the PFS, the Assafou-Dibibango project will have a mine life of 14.5 years.
The gold project is expected to yield 329koz of gold annually during its first decade of operations, with output exceeding 350koz annually over an eight-year period post-ramp-up.
Over the life of the mine, average production at the Assafou-Dibibango gold project is expected to reach 265koz per year.
The PFS projects a post-tax net present value (NPV) of $1.53bn for the gold project. It also estimates an after-tax internal rate of return (IRR) of 28%, with a payback period of 3.8 years from the commencement of commercial production.
Discovered in 2022, the Assafou-Dibibango project is located on the Tanda Iguela property. Endeavour Mining acquired the Tanda exploration permit in 2015, followed by the Iguela permit in 2017.
The company will retain full ownership of the Tanda-Iguela permits until their conversion into an exploitation permit.
Under the terms of the current 2014 Mining Convention, once the exploitation permit is issued, Endeavour Mining will own 80% stake in the Assafou-Dibibango project, with SODEMI, the state-owned mining company, and Côte d’Ivoire government each holding 10%.
Endeavour Mining stated that the PFS results align with its strategic objectives and confirm the Assafou-Dibibango project’s potential to qualify as a tier-one asset, justifying progression to the definitive feasibility study (DFS) stage.
The DFS is set to begin immediately, with completion expected between late 2025 and early 2026.
Endeavour Mining CEO Ian Cockerill said: “We have defined a large, low-cost and long mine life project, capable of producing 330koz a year over the first ten years, while remaining firmly in the lowest cost quartile.
“The attractive returns profile ensures this project will remain a capital allocation priority for us and it demonstrates our ability to generate highly value accretive projects, organically, through our pipeline.”
