RE:RE:News Out on Hounde !! ... (Might Explain today's move)Jut to clarify: Endeavour certainly does not need cash to explore Hounde. We have already defined 1.5Moz of RESERVES there and have applied for a mining licence for a 180koz p.a. mine. Subject to that licence, the project is ready to move into development, using the same team & methodlogy applied so successfully to Agbaou.
Of course, building a mine is a far more expensive operation than just exploring (these explo. costs are more or less petty cash for EDV) - and that expense will be of rather more concern to the market. However, based on recent conference calls, management does appear to be moving cautiously on this project and, IMO, will ensure a sound balance sheet and sufficient confidence in the gold price before proceeding.
ISTM that Savory (run by ex-Avion/Endeavour geologist, Don Dudek) are exploring an adjoining resource, which could add to Hounde's mine life. In time and subject to success, Endeavour might buy them out, as it did with the partners in the Kofi asset to extend the mine life at Tabakoto. Kofi is due to start mining next year, trucking ore to the Tabakoto mill.
Cheers,
Mark