A definitive feasibility study (DFS) on London- and Toronto-listed Endeavour Mining's Assafou-Dibbango (Assafou) project, in Côte d'Ivoire, has confirmed the the quality and scale of the asset, which will underpin the next phase of the company's organic growth, CEO Ian Cockerill says.

"Assafou has the potential to become another cornerstone asset for Endeavour, adding 320 000 oz/y of production at a first-quartile all-in sustaining cost (AISC) of $1 026/oz, over the first eight years of its16-year mine life. It will be our lowest-cost and longest-life mine, further improving our portfolio quality while bolstering the resilience of the business.

"The impressive project economics demonstrate our ability to rapidly generate value through the drill bit. Assafou was discovered for $13-million in 2022 and only four years later has a value of $5.1-billion at a $4 000/oz gold price. As we continue to de-risk the project and grow its resource base through exploration, we expect to unlock even more value," he adds.

The DFS estimates an upfront capital cost of $1.06-billion will be needed to build the mine and its associated infrastructure.

The Assafou deposit mineralisation extends from surface to depths in excess of 300 m and is amenable to conventional openpit, drill and blast mining. Ore will be processed through a five-million-tonne-a-year gravity or carbon-in-leach processing plant.

The after-tax net present value (NPV) is estimated at $2.1-billion and the internal rate of return (IRR) at 28% at a gold price of $2.500/oz. The NPV and IRR increases to $5.1-billion and 55%, respectively, at a gold price of $4 000/oz.

Endeavour expects to make a final investment decision (FID) on the project before the end of this year. If it decides to proceed with the development, construction is projected to take between 24 and 30 months.

"Working closely with our supportive in-country stakeholders, we are advancing the project’s mining convention, and we are targeting an FID before the end of the year. Simultaneously, we have launched early works, detailed engineering and design, key tenders and long-lead orders to expedite construction.

"As we advance Assafou, we will remain disciplined and prioritise maximising free cash flow from every ounce of gold we produce, ensuring that we continue to deliver sector leading shareholder returns, while we organically grow production to 1.5-million ounces by 2030,” says Cockerill.