Vancouver’s Endeavour Mining starts construction on Burkina Faso gold mine

Vancouver’s Endeavour Mining has commenced construction at its Hounde project in Burkina Faso, which is forecast to produce...


Karma mine, 90% owned by Endeavour once the merger with True Gold finalizes | Photo: Mining.com archives

Vancouver’s Endeavour Mining (TSX:EDV) has commenced construction at its Hounde project in Burkina Faso, which is forecast to produce about 1.9 million ounces of gold over a 10-year mine life.

Shares soared on the news and were trading 7.6% higher to $13.77 at 10:30 am ET. So far this year, Endeavour Mining’s value has climbed over 80%.

Building the mine would cost an initial $328 million to build, the firm said. The project will be the second low-cost gold mine Endeavour has in West Africa, after it grabbed the close-by Karma mine last month through a friendly acquisition of fellow Canadian miner True Gold (TSX-V: TGM)

In total, Endeavour owns five mines in Côte d’Ivoire, Ghana, Mali and Burkina Faso, and could produce between 575,000 and 600,000 ounces of gold this year at all-in sustaining costs ranging from $870 to $920 per ounces.

Once Hounde is operational, Endeavour will add 190,000 ounces per year.

In a separate statement, True Gold announced that Karma mine, 90% owned by Endeavour once the merger finalizes, has poured its first gold April 11.

Last year, Endeavour Mining produced 517,000 ounces of gold at all-in sustaining costs of $922 per ounce.

Mining.com