Néré Mining buys Karma gold mine in Burkina Faso

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Néré Mining buys Karma gold mine in Burkina Faso

Néré Mining has bought off Karma gold mine in Burkina Faso from Endeavour Mining. Endeavour sealed the sale of its 90% interest mine for a total consideration of up to $25 million plus a 2.5% Net Smelter Return royalty.

According to Endeavour’s President and CEO Sébastien de Montessus the sale is in line with the firm’s strategy of actively managing their portfolio to focus management efforts on high margin, long-life and low all-in sustaining cost, core assets.

“Following the sale of the Karma mine, Endeavour has updated its production and all-in sustaining cost (“AISC”) guidance for continuing operations to account for the removal of Karma’s guided production of 85 – 100koz at a AISC of $1,200 – 1,250/oz for 2022, with guidance for the other operations remaining unchanged,” said CEO Sébastien.

2022 production guidance

According to the company’s statement, its 2022 production guidance for continuing operations has decreased from 1,400 – 1,500koz to 1,315 – 1,400koz, while AISC guidance from continuing operations has decreased by $10/oz to $880 – 930/oz.

Karma mine which is located approximately 185 km northwest of Ouagadougou, the capital of Burkina Faso, is a low-grade heap leach operation consisting of several shallow, low strip ratio, free-dig open pit gold deposits.

In 2017, an optimization project was completed to lift the stacking capacity. Ore is treated at a 5Mtpa heap leach facility. The first gold pour took place in April 2016 and commercial production was achieved in October 2016.

Karma produced approximately 88,000 ounces of gold at an all-in sustaining cost of $1,195/oz in 2021. Endeavour owned a 90% stake in the Karma mine, with the remaining 10% owned by the State of Burkina Faso.

Endeavour is one of the world’s senior gold producers and the largest in West Africa, with operating assets across Senegal, Cote d’Ivoire and Burkina Faso and a portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.

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