Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) is still a “top pick” among senior gold producers of analysts at Canaccord Genuity (TSX:CF, LSE:CF) after the company announced an initial three-million-ounce resource at its Tanda-Iguela project in Côte D’Ivoire.
The firm reiterated a Buy rating and a price target of C$40. Endeavour shares traded 1% higher at $27.42 Tuesday morning.
The new Tanda-Iguela resource is centred on the Assafou target and comprises 14.9 megatonnes of indicated resource grading 2.33 grams per ton for 1.11Moz (million ounces) and 32.9 million tons (Mt) of inferred grading 1.8 g/t for 1.90 Moz.
READ: Endeavour Mining reveals the significant potential of its Côte d’Ivoire gold discovery
The initial resource is the result of 58,000 m of completed drilling, the firm noted, and preliminary metallurgical tests indicate high gold recovery rates of above 95% with a significant portion recoverable by gravity. That means the project has minimal infrastructure requirements with main road and grid power in the area and limited relocation requirements.
“While early days, the new resource is already similar in size and grade to its La Figué project, also in Côte d’Ivoire, that was recently approved for construction and was also a greenfield exploration discovery by Endeavour,” analysts wrote.
“As a reminder, Endeavour recently approved construction of its La Figué project Côte d’Ivoire which was also a greenfield discovery by Endeavour. Endeavour announced an initial resource for that project in 2018 of 0.7 Moz grading 2.25 g/t which has increased, most recently, to an [measured and indicated] resource 46.3Mt grading 2.03 g/t for 3.0 Moz.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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