Once a mining permit is granted, the process for which is underway, Endeavour will be entitled to lift its stake to 80% from 65% currently, while SODEMI (the state-owned mining company) and the Government of Côte d’Ivoire will each own 10%.
Endeavour acquired the additional stake from SODEMI for 19 million plus contingent payments of $3 per ounce for future proven and probable reserves, which are defined outside the existing measured and indicated resource boundary.
Endeavour is lifting the stake ahead of a pre-feasibility study (PFS) which is due to be published in the first quarter of 2021.
"We believe that we have the opportunity to develop Fetekro into a cornerstone asset for Endeavour, which we define as assets with the potential to produce more than 200,000 ounces per annum over 10 years at low AISC," noted chief executive at Endeavour Sébastien de Montessus.
"Fetekro has significant exploration potential, an already defined large-scale deposit with straightforward metallurgy and high gold recovery. It also benefits from being located close to existing infrastructure and requires only minimal relocation.
"We are eager to complete the PFS, which is expected to build on the PEA we recently published based on only half of the current resource, to demonstrate further the robust economics of the project.”
Fetekro lies around 500km from Abidjan and close to existing infrastructure, including sealed roads and grid power.
The new PFS will be based on the updated 2.5 million ounce (Moz) Indicated resource and will define a production scenario based on a 3 million tonne per annum (Mtpa) mill throughput, compared to 1.5Mtpa in the PEA.
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