Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2) said on Thursday its Assafou gold project in Côte d’Ivoire could be worth $5.1 billion at current gold prices after a definitive feasibility study confirmed the deposit's potential as a major long-life asset for the company.
The London-listed miner said the study projected average annual production of more than 320,000 ounces over the first eight years of a 16-year mine life, at an all-in sustaining cost of $1,026 per ounce.
At a gold price of $2,500 per ounce, the project carries an after-tax net present value of $2.1 billion and an internal rate of return of 28%, rising to $5.1 billion and 55% respectively at $4,000 per ounce, roughly in line with where gold is trading near record highs.
"Assafou has the potential to become another cornerstone asset for Endeavour," CEO Ian Cockerill said in a statement, adding it would be the company's "lowest-cost and longest-life mine."
Cockerill highlighted the speed at which value had been created, noting the deposit was discovered for just $13 million in 2022 and now carries a multi-billion dollar valuation. The Assafou measured-and-indicated resource has grown 470% since discovery to more than 5 million ounces.
Capital costs and timeline
Endeavour said upfront capital for the project is estimated at $1.06 billion, based on a scalable 5 million tonne per annum processing plant design. The company said the increased capital reflects changes to site infrastructure compared with a preliminary feasibility study published in December 2024. As well, plant optimizations aimed at reducing ramp-up risk, and design features to allow for future expansion.
Proven and probable reserves stand at 4.4 million ounces, while measured-and-indicated resources total 5 million ounces. A maiden proven reserve of 1.3 million ounces and maiden measured resource of 1.4 million ounces, covering roughly 40% of the first five years of the mine plan, were established following 99,000 metres of additional drilling conducted since the preliminary study.
The company said it has launched early works, including long-lead equipment orders, detailed engineering and design, and key contractor tenders. A final investment decision is targeted before the end of 2026, with construction expected to take 24 to 30 months thereafter.
Negotiations on a mining convention with in-country stakeholders are expected to wrap up in the third quarter of this year.
Exploration upside
Endeavour said Assafou represents only the first discovery in what it described as a highly prospective and underexplored geological belt, with more than 20 satellite targets identified in the surrounding area. Mineralization at the main deposit remains open along strike and at depth, while the nearby Pala Trend 3 satellite deposit hosts a maiden resource of 0.2 million ounces located just one kilometre away.
Cockerill said the company would remain "disciplined" in its capital allocation even as it advances the project, committing to maximize free cash flow and sustain shareholder returns.
Assafou is central to Endeavour's stated ambition of growing group production to 1.5 million ounces per year by 2030 at first-quartile costs.