Endeavour Outlines $1.5 Billion After Tax NPV For Assafou Project In PFS
Endeavour Mining (TSX: EDV) has released a pre feasibility study for its Assafou-Dibibango Project in Cote D’Ivoire, which outlines the potential for the project to become a tier 1 asset for the company.
The study outlines a net present value (5% discount) of $1,526 million on an after-tax basis for the open pit project along with an internal rate of return of 28%, based on $2,000 an ounce gold.
Estimates are based on 14.5 year mine life, for an operation that is expected to pull 329,000 gold ounces out of the ground annually for the first ten years. Over the life of mine, annual production is estimated to average 265,000 ounces per year. Cash costs are estimated at $863 an ounce, while all in sustaining costs are estimated at $936 an ounce over the life of the mine.
Upfront capital costs for the project are slated to come in at $734 million, based on a 5 million tonne per annum nameplate capacity for the mine.
The estimate is said to be based on reserves which sit at 4.1 million ounces at 1.76 g/t gold. The project boasts additional indicated resources of 4.6 million gold ounces at 1.95 g/t, and 208,000 inferred gold ounces at 1.97 g/t, which are expected to be upgraded following 70,000 metres of drilling that were completed subsequent to the study’s cut-off date. That data is expected to be included within a definitive feasibility study that is expected to be released between late 2025 and early 2026.
“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. [..] Given the excellent project economics, we will now launch the Definitive Feasibility Study and simultaneously advance the permitting process so that we are well positioned to potentially launch construction, with our best-in-class projects team, in the second half of 2026,” commented Ian Cockerill, CEO of Endeavour Mining.
Endeavour Mining last traded at $27.01 on the TSX.
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