Endeavour Mining begins commissioning Lafigue gold mine
Endeavour Mining (TSX, LON: EDV) has begun wet commissioning of its 80%-owned and newly built Lafigué gold mine in Côte d’Ivoire, with production slated to begin in late June.
The company said construction of Lafigué is now 94% complete and the project remains on budget. First gold pour is expected to take place next month, it said, which is a quarter ahead of schedule.
Wet commissioning happens when companies operate equipment for the first time post construction, including process fluids and chemicals usage, for the purposes of trialing or testing their performance.
“Given the project’s potential, we expedited the necessary technical studies before launching construction in Q4-2022 and we have now started wet commissioning at the project in only 21 months from construction launch,” chief executive Ian Cockerill said.
The executive said Lafigué would become another cornerstone asset in Endeavour Mining’s portfolio, with over 200,000 ounces of gold production a year, at an all-in sustaining cost below $900 per ounce over its initial 13-year mine life.
“With the commissioning of the Lafigue project now underway and first gold production at the Sabodala-Massawa BIOX expansion achieved in early Q2 this year, Endeavour is well positioned to successfully execute its growth strategy,” Cockerill said.
West Africa growth
The gold and silver miner, with projects across West Africa, poured first gold from the expansion at its Sabodala-Massawa mine in Senegal on April 18. The $290 million BIOX project was the fourth capital project Endeavour Mining has completed in the last ten years.
The news injects some positivity into Endeavour Mining’s recent history, which was tainted by the firing earlier this year of former president and chief executive officer Sébastien de Montessus for serious misconduct.
The announcement also follows accusations of misrepresentation over the sale of two African gold mines, Wahgnion and Boungou in Burkina Faso, as the fallout from the tenure of the ousted executive continues.
London-traded shares jumped about 2.2% on the news and were trading at 1,712p by 1 p.m. local time. This leaves Endeavour Mining with a market capitalization of £1.38 billion ($1.75bn).
