Karma is a mesothermal, shear-hosted gold deposit. Production began in early 2016 from five open pits using conventional truck and shovel methods. The soft nature of the open pit ore and waste material allows the majority of the ore to be excavated without blasting, making it a low cost operation. Ore is processed with heap leaching and recoveries are averaging 90%. Endeavour Mining has forecasted 100 kozs to 110 kozs of gold production from Karma during 2017.
Karma hosts a target-rich landscape with the essential hallmarks of a multi-deposit environment. The property consists of six contiguous exploration permits (Goulagou, Rambo, Kao, Rounga, Youba, and Tougou) totaling more than 856 km2 and includes more than forty-five high-priority targets with high-grade rock values associated with gold-in-soil anomalies and historical workings that remain untested.
The Proven and Probable Reserves as of Dec. 2016 totaled 37.9 Mt of 0.92 g/t material for 1.1 Mozs of contained gold (cut-off grades are 0.2–0.5 g/t depending on oxide, transition and sulphide material).
Sandstorm has a gold stream agreement to purchase 25,000 ounces of gold over five years and 1.625% of the gold produced thereafter from the Karma Project. Sandstorm will make ongoing payments of 20% of the spot price of gold for each ounce purchased from Endeavour Mining. The stream was acquired in exchange for an upfront payment of US$25 million to True Gold Mining Inc. in August 2014. True Gold was acquired by Endeavour Mining in April 2016.