Endeavour Mining Corporation (TSE:EDV) (OTCMKTS:EDVMF) has positioned itself strongly for future growth as it announced it has completed the 25% increase to capacity at its carbon-in-leach (CIL) processing plant at the Ity mine in Ivory Coast.
The capacity has been lifted to be able to handle 5 million tonnes per annum (Mtpa) of ore from 4 Mtpa previously.
READ: Endeavour Mining posts strong quarterly numbers as it increases production from West African operations
Moreover, the firm has also acquired the highly prospective Mahapleu tenement such that the firm now controls the full 125 km trend along the Ity Birimian belt, it said in a statement.
"Building Ity on time and on budget has been a key achievement for 2019," said Sébastien de Montessus, President and CEO at Endeavour.
"With the plant upsize now complete, we are well positioned for 2020 and beyond. We believe the increased plant capacity will help accelerate the value created through exploration."
Patrick Bouisset, executive vice president of exploration and growth, added: "The Mahapleu tenement is a highly prospective area which remains unexplored despite being located within proximity to the Ity mine.
"With our primary exploration objective of extending mine lives beyond 10 years for both Houndé and Ity well on track, we can now focus on increasing our greenfield exploration efforts in Côte d’Ivoire with Mahapleu ranking high within our large greenfield portfolio, alongside Fetekro."
The plant upgrade was completed, with a minimal cost of between C$10 and C$15 million aimed for and the plant has achieved annualized throughput exceeding 5 Mtpa for the last two weeks, highlighted the miner.
Meanwhile, the Mahapleu tenement was bought for a minimal cash consideration, said Endeavour, and a royalty based on a sliding scale depending on the gold price, varying from 1% below US$1,200 per ounce to 2.5% above US$1,850 per ounce.
A large intrusion
According to airborne work, the Mahapleu central area, known as Doui, appears to host a large intrusion which has the potential to be similar in type and size to the one associated with the one that occurred at the Ity mine complex.
On November 5, the company reported that third-quarter production was 181,000 ounces, a 6% increase over second quarter 2019 figures, while all-in-sustaining costs remained flat.
Total earnings for the three months ended September 30 came in at US$33 million or US$0.30 per share compared to a loss of US$1 million or US$0.01 per share a year earlier.
Operating cash flow also doubled to US$115 million compared to the second quarter and net free cash flow hit US$52 million.
Shares in Toronto slipped 0.86% to C$24.02 each
Contact the author at [email protected]