Endeavour announces positive Feasibility Study for its Ity CIL project
(Thomson Reuters ONE) -
Endeavour announces positive Feasibility Study for its Ity CIL project
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* Robust CIL Project Feasibility Study results demonstrate potential for the
Ity mine to become another Endeavour long-life low-cost flagship asse
* Long 14-year mine life based on current reserves which increased to
1.9Moz, up 31% compared to Pre-Feasibility Study
* Low All-In Sustaining Costs ("AISC") of $507/oz on average over the
first 5 years and $603/oz over life of mine ("LOM")
* Solid average annual production of 165koz over the first 5 years and
114koz over LOM
* Robust economics with after-tax NPV 5% of $411m, IRR of 36% and quick
payback period of 25 months based on a gold price of $1,250/oz
* Upside potential remains with further conversion of known resources,
inclusion of new discoveries, and on-going exploration on several near-
mine targets
* Feasibility Study expected to significantly improve in H1-2017, following an
update to include the new high-grade discoveries and resource conversion
potential
George Town, November 10, 2016 - Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) is
pleased to announce positive results for its independent Feasibility Study
("FS") for the Carbon in Leach ("CIL") Project at its 55%-owned Ity Mine in Cote
d'Ivoire.
The Ity CIL Project is expected to deliver average production of 114,000 ounces
per year over a 14-year mine life at an AISC of $603/oz, based on current
reserves. The project will be comprised of multiple open pit mines and existing
decommissioned heap leach stockpiles, and will include the construction of a new
3.0Mtpa gravity circuit/ Carbon-In-Leach plant. The initial capital cost is
estimated at $307 million with a 20-month construction period.
Sebastien de Montessus, President and CEO of Endeavour, stated:
"The robust results of the feasibility study for the Ity CIL project and the
exploration upside demonstrate the potential for the Ity mine complex to become
another flagship asset. We believe this project aligns very well with our key
strategic criteria for project development and is another example of our ability
to identify and advance internal development opportunities that crystallize
long-term value for our shareholders.
The Ity CIL project has the potential to be a long-life, low-cost mine with
exploration upside that can add materially to our overall production and be a
positive cash flow generator, while lowering our group all-in sustaining cost
profile. Furthermore, the greater Ity area also offers some of the most
promising exploration potential within our portfolio and along the prolific
Birimian greenstone belt. Its importance as our top priority exploration area
will be highlighted in our soon to be released five year exploration strategy.
With strong financing and liquidity sources available, we look forward to
quickly moving toward an investment decision in early 2017. This would allow us
to smoothly transition our in-house construction team currently working on our
Houndé project. In addition, we will also explore the potential and trade-offs
to run the CIL and Heap leaching operations in parallel for the first few
years."
Ity CIL Project Overview
The Ity CIL Project Feasibility Study ("FS") has been prepared and compiled in
accordance with National Instrument 43-101 ("NI 43-101") by Lycopodium Minerals
Pty Ltd ("Lycopodium") with the support of six globally recognized engineering
firms as described in the section entitled "Qualified Persons" of this press
release. The Feasibility Study has been conducted on a stand-alone basis to
analyze the economic viability of constructing a 3.0Mtpa gravity circuit/Carbon-
In-Leach plant as an alternate processing route to the current heap leach
process, for notably the new discoveries made in recent years. The study will be
summarized in a Technical Report prepared in accordance with National Instrument
43-101 that will be filed on SEDAR within 45 days.
The Feasibility Study production profile and economics have significantly
improved compared to the September 2015 Pre-Feasibility Study[1] mainly as a
result of:
* A 31% increase in reserves due to the inclusion of additional deposits and
further resource conversion
* Increased mill size from 2.0Mtpa to 3.0Mtpa, lifting annual production while
maintaining a 14-year mine life
* Optimized Tailings Storage Facility ("TSF") and associated earthworks
* Optimized mine sequencing, processing scheduling, and river
diversions/hydrogeology
* Optimized mining equipment to reduce load and haul, overhaul and re-handle
costs
* Simplified and optimized process plant design, by Endeavour Project services
along with Lycopodium, to follow the same path as the Houndé project, and
Agbaou and Nzema mines, in addition to removing the refractory processing
route, which will be investigated further
* Optimized upfront capital cost and re-sequenced overall build time
The Ity CIL Project Feasibility Study results are summarized in Tables 1 and 2
below.
Table 1: Ity CIL Project Feasibility Study Highlights
--------------------------------------------------------
Life of Mine Production
Strip ratio, w:o 2.1
Tonnes of ore processed, Mt 41.0 Mt
Grade processed, Au g/t 1.42 g/t
Gold content processed, Moz 1.88Moz
LOM Average Gold recovery, % 83%
Gold production, Moz 1.56Moz
Mine life, years 14 years
Average annual gold production, koz 114Koz
Cash costs, $/oz $528
AISC, $/oz $603
Average for years 1 to 5:
Gold production, kozpa 165koz
Cash costs, $/oz $446
AISC, $/oz $507
Average for years 1 to 9:
Gold production, kozpa 144koz
Cash costs, $/oz $475
AISC, $/oz $542
Capital Cost
Upfront capital cost, $m $282m
Equipment lease $25m
--------------------------------------------------------
Table 2: Ity CIL Feasibility Study Project Economics
Gold Price ($/oz) $1,150 $1,200 $1,250 $1,300 1,350
----------------------------------------------------------------------------
After-tax Project NPV(5%), $m 315 363 411 452 500
After-tax Project IRR, % 30% 33% 36% 39% 42%
----------------------------------------------------------------------------
Payback, years 2.7 2.4 2.1 1.9 1.7
----------------------------------------------------------------------------
Notes: Economics have been centered on a Base Case using a gold Price of
$1,250/oz. Economics based on 100% equity funding with equipment lease
financing. Payback period calculated starting from production start.
Prior to making a final investment decision in H1-2017, the key project
milestones expected are:
* Completion of ownership discussions to increase Endeavour's stake of the Ity
asset
* Award of mining permits for the Gbeitouo and Daapleu deposits
* Commencement of the pre-project optimization phase and completion of the
Sulphide processing investigation
* Update of Feasibility Study to include the recent high-grade Bakatouo and
CollineSud discoveries and expected further resource conversion of existing
deposits
* Trade-off study to run the CIL and Heap leaching operations in parallel for
the first few years
Feasibility Study Reserves Increased by 31%
A total of eight Indicated Mineral Resource prospect areas were included in the
Feasibility Study. These included six insitu gold deposits (Daapleu, Mont Ity,
Ity Flat, Zia NE, Walter and Gbeitouo) in addition to the Teckraie stockpile and
the Aires decommissioned leach pad.
As shown in Table 3 below, the Ity CIL reserves increased by 373koz, up 31%
compared to the Pre-Feasibility Study Reserves. Completion of in-fill drilling
and resource estimations, following the publication of the PFS, allowed for
additional deposits and further resources to be included in the scope of the
Feasibility Study.
Table 3: Comparison of Feasibility Study to Pre-Feasibility Study CIL Reserves
Feasibility Study Pre-Feasibility Study
Reserves, Reserves,
Deposits as at October 1, 2016 as at September 30, 2015 Variance
on a 100% --------------------------- --------------------------- (koz)
basis Tonnage Grade Content Tonnage Grade Content
(Mt) (Au g/t) (Au koz) (Mt) (Au (Au koz)
g/t)
-------------------------------------------------------------------------------
Open Pits
Daapleu 19.3 1.51 936 15.2 1.61 787 +149
Mont Ity / 3.8 2.19 268 0.2 6.84 44 +224
Ity Flat
Gbeitouo 2.6 1.35 112 1.3 2.56 104 +8
Walter 1.9 1.22 73 1.1 2.00 68 +5
Zia NE 4.8 1.24 192 4.0 1.60 204 (12)
-------------------------------------------------------------------------------
Sub-total 32.4 1.52 1,580 21.7 1.73 1,207 +373
Existing
Stockpiles
Aires 5.8 1.09 202 6.1 1.04 206 (4)
Teckraie 2.8 1.07 97 - - - +97
Stockpiles - - - 0.2 3.17 16 (16)
-------------------------------------------------------------------------------
Sub-total 8.6 1.08 300 6.3 1.10 222 +78
Total 41.0 1.42 1,880 28.0 1.59 1,429 +451
-------------------------------------------------------------------------------
Mineral Reserve estimates follow the Canadian Institute of Mining, Metallurgy
and Petroleum ("CIM") definitions standards for mineral resources and reserves
and have been completed in accordance with the Standards of Disclosure for
Mineral Projects as defined by National Instrument 43-101. Notes provided in
Section "About the Mineral Reserves and Resources" of this Press Release.
Additional Resource to Reserve Conversion Potential
Mineral Resource Estimate used in the Feasibility Study
The Mineral Resource estimate used in the Ity CIL Feasibility Study was
completed by Cube Consulting, and was based on more conservative assumptions
allowing for increased confidence and a higher Indicated Resource to Reserve
conversion ratio.
The largest deposit is Daapleu which contains up to 50% of the mineable reserve
and is the only deposit to contain significant sulphide mineralization, while
the other deposits contain mainly oxide mineralization. Optimization work and
increased oxide content has enabled the proportion of Sulfide mineralization to
be reduced to 25% of the total reserve tonnage (24% of reserve ounces).
Additional Potential for Resource Conversion
Beyond the potential to delineate additional resources at known deposits and
make new discoveries, a significant opportunity exists to convert delineated
resources to reserves.
An updated study is therefore expected to be completed in the first half of
2017 to include:
The recently discovered Bakatouo and Colline Sud deposits and the results from
the ongoing 11,700 meter reverse-circulation ("RC") and diamond-drilling ("DD")
program to test their extensions and conduct infill drilling.
Further resource conversion potential on both Daapleu and Mont Ity following the
completion of the planned 33,000 meter in-fill drilling program
Inclusion of Verse Ouest following the recent completion of the in-fill drilling
program
Table 4: Resource to Reserve Conversion
Probable Reserves Indicated Resources Inferred Resources
----------------------- ----------------------- ----------------------
Tonnage Grade Content Tonnage Grade Content Tonnage Grade Content
Deposits
on a 100%
basis.
Resources (Au (Au (Au (Au (Au (Au
are (Mt) g/t) koz) (Mt) g/t) koz) (Mt) g/t) koz)
inclusive
of
reserves.
-----------------------------------------------------------------------------------
Open Pits
Daapleu 19.3 1.51 936 19.9 1.51 965 4.3 1.15 160
Mont Ity / 3.8 2.19 268 7.5 2.19 527 11.1 1.92 684
Ity Flat
Gbeitouo 2.6 1.35 112 2.9 1.35 124 0.3 1.48 13
Walter 1.9 1.22 73 2.1 1.21 81 0.7 1.32 28
Zia NE 4.8 1.24 192 7.7 1.31 325 4.0 1.39 179
Bakatouo - - - 4.8 3.07 475 0.8 2.86 70
Colline - - - 0.6 2.13 40 0.5 2.53 38
Sud
-----------------------------------------------------------------------------------
Total Open 32.4 1.52 1,580 45.4 1.73 2,537 21.7 1.68 1,172
Pits
Existing
Stockpiles
Aires 5.8 1.09 202 5.8 1.09 202 0.2 0.78 6
Teckraie 2.8 1.07 97 2.8 1.07 97 0.1 0.55 2
Verse - - - - - - 8.4 0.85 230
Ouest
Total 8.6 1.08 300 8.6 1.08 300 8.7 0.85 238
Stockpiles
-----------------------------------------------------------------------------------
Total 41.0 1.42 1,880 54.1 1.63 2,837 30.4 1.44 1,410
-----------------------------------------------------------------------------------
Both Mineral Reserve and Resource estimates follow the Canadian Institute of
Mining, Metallurgy and Petroleum ("CIM") definitions standards for mineral
resources and reserves and have been completed in accordance with the Standards
of Disclosure for Mineral Projects as defined by National Instrument
43-101.Notes provided in Section "About the Mineral Reserves and Resources" of
this Press Release. Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher category. Investors
are cautioned not to assume that part or all of an inferred resource is
economically mineable.
Mining Operations, Processing, and Metallurgy
Mining and Processing Strategy
The selected strategy is to mine and process Daapleu and Ity Flat higher grade
ore early, while stockpiling low grade ore for treatment when open pit mining
operations are complete. As such, the mining period is 9 years followed by the
processing of stockpiled low-grade ore for another 5 years. This strategy was
established through pit optimization work which indicated that parallel
processing of the Daapleu sulphide ores with free milling oxide ores gave the
best return. As such, the higher grade Daapleu and Ity Flat material will be
mined and processed first with lower grade Daapleu and Ity Flat material
stockpiled during this time and processed once mining ends. Mill feed
requirements will be supplemented successively with oxide material from Mont
Ity, Gbeitouo, Walter and Zia NE and existing ore stockpiled from current heap
leach operations.
Mining Operations
The mine planning, resource and cost estimation for the Feasibility Study is
based on an owner operated mining operation using 90-tonne haul trucks. Mining
is scheduled to commence three months before the start of the processing plant
to pre-strip the pits and stockpile ore.
Table 5: Mine Plan
Pre- Year Year Year Year Year Year Year Year Year Total
prod 1 2 3 4 5 6 7 8 9
----------------------------------------------------------------------------------
Total material moved, Mt 3.1 15.5 15.3 17.4 16.1 15.7 15.7 12.5 11.6 5.6 128.6
Total ore mined, Mt 0.7 5.4 4.8 4.3 6.2 5.0 4.2 3.6 4.2 2.6 41.0
Stripping ratio, w:o 3.6 1.9 2.2 3 1.6 2.2 2.8 2.4 1.8 1.1 2.1
Grade mined, g/t Au 1.53 1.54 1.85 1.42 1.51 1.4 1.35 1.06 1.16 1.27 1.42
Contained gold mined, koz 33 266 284 198 304 225 182 124 156 107 1,880
----------------------------------------------------------------------------------
Processing Operations
The conventional gravity circuit/Carbon-In-Leach plant is designed to process a
nominal capacity of 3.0 Mtpa based on a constant ore blend of approximately 60%
primary and 40% oxide.
The process plant will compose of a vibrating grizzly / single stage primary
crushing circuit that produces a crushed product size of (P80 160 mm), followed
by a coarse ore stockpile area that supplies the SAG / Ball mill grinding
circuit. The product size of the grinding circuit is (P80 75um). The gravity
testwork has indicated that a portion of the Gold in CIL feed can be recovered
by gravity gold recovery methods. A gravity concentrator and Intensive Leach
Reactor (ILR) have been included in the design. The CIL circuit comprises six
CIL tanks containing carbon for gold and silver adsorption and a fifteen tonne
split Anglo (AARL) elution circuit. Electrowinning and induction furnace
smelting completes the gold doré production process. A cyanide detoxification
circuit is included in the process facility design, for treatment of process
residue before discharge to the 46Mt Tailings Storage Facility (TSF), located
adjacent to the processing facility. Feed water for the processing facility will
come from various sources such as, pit dewatering bores, the Cavally river for
(make-up) and decant return from the TSF.
Table 6: Processing Schedule (first 9 years)
Year Year Year Year Total
Year 1 Year 2 Year 3 Year 4 Year 5 6 7 8 9 (Year
1-14)
-------------------------------------------------------------------------------
Ore
processed, 2.8 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 41.0
Mt
Grade
processed, 2.37 2.64 1.74 2.26 2.01 1.62 1.16 1.37 1.22 1.42
g/t Au
Recovery 76% 76% 80% 85% 77% 85% 93% 94% 93% 83%
rate, %
Recovered 163 193 134 185 150 133 103 124 109 1,562
gold, koz
-------------------------------------------------------------------------------
Metallurgy
It is expected that overall gold recovery rates for the life of mine will be
83%, varying between 60% and 97% amongst deposits and mineralization, as shown
in Table 7 below.
Table 7: Gold Recovery Rate by Deposit
Daapleu Daapleu Gbeitouo Ity Mont Walter Zia Stockpiles Total
Sulphides Oxides Flat Ity NE
-------------------------------------------------------------------------------
LOM
Tonnage,
Mt 6.4 12.9 2.6 1.6 2.2 1.9 4.8 8.6 41.0
% of LOM
Tonnage 15.5 31.5 6.3% 3.9% 5.4% 4.5% 11.8% 21.0% 100%
Gold
Grade,
g/t Au 2.43 1.05 1.35 2.09 2.23 1.22 1.24 1.08 1.42
Gold
Recovery
rate, % 60% 85% 88% 90% 89% 96% 97% 86% 83%
-------------------------------------------------------------------------------
Metallurgical testwork indicated that the Ity CIL ores do not show any
indication of 'preg-robbing' characteristics. Testwork leach kinetics for most
of the oxide ores are rapid (with 80-90% of total gold recovery being achieved
in less than the first eight hours of leaching). Metallurgical testwork has also
indicated that silver levels in Ity ores were significant, with silver-to-gold
ratios of between 2 and 4 recorded from the variability head assays and overall
silver recovery rates of 60%. For the economic model, payable silver in the doré
ingots has been estimated on a conservative ratio of 2 to 1.
In addition, a sulphide ore metallurgical testwork campaign is currently
underway with a view to exploring potential further increases in sulphide
material recovery.
Low Operating Costs
The operating cost estimates, as summarized in the Table below, are based on
prices obtained during the third quarter of 2016.
Table 8: Life of Mine Operating Costs in US$, estimated at ± 15% accuracy
----------------------------------------------------------------------------
Open Pit Mining, $/tonne moved $2.27/t
----------------------------------------------------------------------------
Ore Rehandle & Crusher Feed, $/t ore rehandled $0.83/t
----------------------------------------------------------------------------
Processing, $/t milled $10.56/t
----------------------------------------------------------------------------
G&A costs, $/t milled $2.79/t
----------------------------------------------------------------------------
Operating Cost, $/t milled (including power) $20.56/t
----------------------------------------------------------------------------
Operating costs have been based on a delivered diesel price of $1.00/L and are
in line with current local pricing. Following the connection to the grid,
electricity costs have been estimated based on$0.1243/kWh, in line with Agbaou's
current costs (corresponding to $3.63/t milled on average over the life of
mine).
Upfront Capital Costs of $307m and 20-month Construction Period
The initial capital cost has been estimated at $307 million, inclusive of $26
million for contingencies. The upfront capital is expected to be $282 million as
a $25 million lease financing is expected to be put in place for the mining
fleet.
Table 9: Initial Capital Cost Estimate Summary in US$m, ± 15%
----------------------------------------------------------------------
Treatment Plant 63
----------------------------------------------------------------------
Reagents and Services 9
----------------------------------------------------------------------
Infrastructure and Tailings 46
----------------------------------------------------------------------
Mining (includes pre-striping and $38m for upfront equipment) 59
----------------------------------------------------------------------
Construction Distributables 24
----------------------------------------------------------------------
Management Costs 16
----------------------------------------------------------------------
Owners Project Costs 59
----------------------------------------------------------------------
Owners Operations Costs 4
----------------------------------------------------------------------
Sub-Total 282
----------------------------------------------------------------------
Contingency 26
----------------------------------------------------------------------
Total 307
----------------------------------------------------------------------
Capital costs include the construction of a 58 kilometer, 91kv overhead power
line to connect to the national grid at Danane with a substation at Ity which
will be owned by Côte d'Ivoire Energie ("CIE"). The infrastructure in place will
be improved with roads upgraded to an all-weather and free draining carriageway
to provide access for the delivery of equipment, materials and services to the
site. A new camp will be built approximately 1 kilometer west of the process
plant and will provide accommodation for 200 employees, and provisions have been
made to construct a suitable airstrip.
A Cavally River diversion will be installed upstream of the Daapleu pit, with a
second diversion upstream of the Walter pit. Pit protection bunds will also be
installed and a bridge/culvert road structure from Daapleu over the Cavally
River will also be built.
The proposed approach to project implementation is similar in nature to the
current execution methodology of the Endeavour Project Services In-House team in
that EDV will engage a suitably qualified Engineering, Procurement and
Construction Management (EPCM) Engineer for design and construction management
of the process plant and infrastructure, which will then be handed over to an
Owner's operating team. Endeavour will self-perform the development of the mine
infrastructure and provision of ongoing drill and blast and mine operating
services under an Owner's mine technical team.
A preliminary schedule shows the project can be executed within 20 months from
EPCM award.
Community and Social Responsibility Actions
Endeavour recognizes that an active CSR program is the foundation of long-term
success and its social license to operate. Baseline studies for the ESIA from
2013 to 2016 have been completed and an ESIA report was published in March 2016
and a Resettlement Action Plan ("RAP") has been completed.
Three environmental permits have been granted covering the mining and process
plant, Daapleu and Gbeitouo exploitation and mining and surface infrastructure.
During the LOM construction and operation activities Endeavour is confident of
achieving similar employment opportunities for the Local and National Ivorian
population to that experienced in the past.
Conference call and live webcast
Management will host a conference call and live webcast on November 10, 2016, at
9:30am Toronto time (EST), 2:30pm London time (GMT), 3:30pm Paris time (CET), to
discuss the Ity CIL Project Feasibility Study.
The live webcast can be accessed through the following link:
http://edge.media-server.com/m/p/8ogtz5xc
Analysts and interested investors are also invited to participate and ask
questions using the dial-in numbers below:
International: +1646 254 3360
North American toll-free: 1877 280 2342
UK toll-free: 0800 279 4992
Confirmation code: 1175325
A replay of the conference call and webcast will be available on Endeavour's
website.
About the Mineral Reserves and Resources
The insitu Mineral Resources which include Daapleu, Gbeitouo, Mont Ity / Ity
Flat, Walter, ZiaNE, Bakatouo, and CollineSud have been reported inside
optimised pit shells and above a 0.5 g/t Au cut-off. Reporting within an
optimised pit shell satisfies the requirement for the Mineral Resource to have
reasonable prospects for future economic extraction. The pit optimisation
assumes a US$1,500/oz Au price.
The Mineral Resource for the rock dumps which include the Teckraie and Verse
Ouest Mineral Resources and also the Aires heap leach pad have not been reported
inside an optimised pit shell. These deposits have been built up above the
existing topography and the associated shallow laterite located directly below,
therefore satisfying the requirement for the Mineral Resource to have reasonable
prospects for future economic extraction. The Teckraie and Verse Ouest rock dump
Mineral Resources and Aires leach pad Mineral Resources have been reported above
0.0 g/t Au because there is unlikely to be any grade selectivity during mining.
The underlying laterite Mineral Resources for each of the deposits has been
reported above 0.5 g/t Au given the possibility for some mining selectivity. All
Mineral Resources are current as at May 31, 2016, other than Bakatouo and
Colline Sud for which it is June 27, 2016 as published on November 7, 2016 and
available on the Company's website. Mineral resources which are not mineral
reserves do not have demonstrated economic viability.
Reported tonnage and grade figures have been rounded from raw estimates to
reflect the relative accuracy of the estimate. Minor variations may occur during
the addition of rounded numbers.
The Qualified Person as defined by National Instrument 43-101 for the Mineral
Reserves and Resources presented in this Press Release, with the exception of
Bakatouo and CollineSud, are described in the "Qualified Persons" section of
this news release.
The statistical analysis, geological modelling and resource estimation for
Bakatouo and Colline Sud were prepared by Kevin Harris, CPG. Mr. Harris is
Endeavour Mining's Group Resource Manager and is a "Qualified Person" as defined
by National Instrument 43-101 - Standards of Disclosure for Mineral Projects
("NI 43-101").
A gold price of US$1,250/oz was used in the pit optimizations for Mineral
Reserves. The estimation of break-even cut-off grades are based on net revenue
(gold price x process recovery) and the throughput (ore related) costs.
Qualified Persons
The complete NI 43-101 Technical Report pertaining to the Feasibility Study will
be filed within 45 days and will be available on Endeavour's website and on
www.sedar.com. The technical information contained in Feasibility Study was
carried out, reviewed and approved by the following companies and independent
Qualified Persons:
Qualified Person Company Scope / Responsibility
-------------------------------------------------------------------------------
David Gordon, Lycopodium Minerals * Metallurgical testwork
BAppSc supervision and
FAusIMM interpretation
* Process plant and related
process infrastructure
design
* Process capital and
operating cost estimation
* Compilation of overall
capital and operating cost
estimates
* Risk assessment
* Project implementation
* Overall report compilation
-------------------------------------------------------------------------------
Mark Zammit, Cube Consulting (Cube) * Sampling and verification
BSc (Hons) Perth, Australia * Database validation
Grad Cert Geostat MAIG * Review of geological
interpretation of geology
and mineralization
* Exploratory data analysis
* Geological modelling
* Mineral Resource
documentation
-------------------------------------------------------------------------------
Tamer Dincer, Mining Solutions * Reserve Calculation
BSc and MSc Consultancy * Pit optimisation
Mining Engineering * Mining design and
FAusIMM scheduling
* Mining cost estimation
* Mine fleet selection and
optimisation
* Preparation of tender
documentation and
equipment cost sourcing
* Technical and commercial
evaluation
-------------------------------------------------------------------------------
David Morgan, Knight Piesold * Hydrology modelling and
BSc and MSc Consulting geotechnical investigation
CEng Institute * Waste rock geochemistry
Engineers (Aust) review
* Tailings storage facility
(TSF) design
* Hydrology design
* Haul road design
* Airstrip conceptual design
* Cavally River diversion
-------------------------------------------------------------------------------
Peter O Bryan, BE Peter O'Bryan & * Pit wall geotechnical
(Mining) MEngSc MAusIMM Associates
(CP) MMICA
-------------------------------------------------------------------------------
This press release has been reviewed and approved by Adriaan "Attie" Roux,
Pr.Sci.Nat, Endeavour's Chief Operating Officer, a Qualified Person under NI
43-101.
About Endeavour Mining Corporation
Endeavour Mining is a TSX-listed intermediate gold producer, focused on
developing a portfolio of high quality mines in the prolific West-African
region, where it has established a solid operational and construction track
record.
Endeavour is ideally positioned as the major pure West African multi-operation
gold mining company, operating 5 mines in Côte d'Ivoire (Agbaou and Ity),
Burkina Faso (Karma), Mali (Tabakoto), and Ghana (Nzema). In 2016, it expects to
produce between 575koz and 610koz at an AISC of $870 to $920/oz. Endeavour is
currently building its Houndé project in Burkina Faso, which is expected to
commence production in Q4-2017 and to become its flagship low-cost mine with an
average annual production of 190koz at an AISC of $709/oz over an initial 10-
year mine life based on reserves. The development of the Houndé project is
expected to lift Endeavour's group production to + 900kozpa and decrease its
average AISC to circa $800/oz by 2018, while exploration aims to extend all mine
lives to +10 years.
Contact Information
Martino De Ciccio DFH Public Affairs in Toronto
VP - Strategy & Investor Relations John Vincic
+33 (0)1 70 38 36 95 (416) 206-0118 x.224
mdeciccio(at)endeavourmining.com jvincic(at)dfhpublicaffairs.com
Brunswick Group LLP in London
Carole Cable, Partner
+44 7974 982 458
ccable(at)brunswickgroup.com
Corporate Office: 5 Young St, Kensington, London W8 5EH, UK
This news release contains "forward-looking statements" including but not
limited to, statements with respect to Endeavour's plans and operating
performance, the estimation of mineral reserves and resources, the timing and
amount of estimated future production, costs of future production, future
capital expenditures, future financing sources, and the success of exploration
activities. Generally, these forward-looking statements can be identified by the
use of forward-looking terminology such as "expects", "expected", "budgeted",
"forecasts" and "anticipates". Forward-looking statements, while based on
management's best estimates and assumptions, are subject to risks and
uncertainties that may cause actual results to be materially different from
those expressed or implied by such forward-looking statements, including but not
limited to: risks related to the successful integration of acquisitions; risks
related to international operations; risks related to general economic
conditions and credit availability, actual results of current exploration
activities, unanticipated reclamation expenses; changes in project parameters as
plans continue to be refined; fluctuations in prices of metals including gold;
fluctuations in foreign currency exchange rates, increases in market prices of
mining consumables, possible variations in ore reserves, grade or recovery
rates; failure of plant, equipment or processes to operate as anticipated;
accidents, labour disputes, title disputes, claims and limitations on insurance
coverage and other risks of the mining industry; delays in the completion of
development or construction activities, changes in national and local government
regulation of mining operations, tax rules and regulations, and political and
economic developments in countries in which Endeavour operates. Although
Endeavour has attempted to identify important factors that could cause actual
results to differ materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Please refer to Endeavour's most
recent Annual Information Form filed under its profile at www.sedar.com for
further information respecting the risks affecting Endeavour and its business.
AISC, all-in sustaining costs at the mine level, cash costs, operating EBITDA,
all-in sustaining margin, free cash flow, net free cash flow, free cash flow per
share, net debt, and adjusted earnings are non-GAAP financial performance
measures with no standard meaning under IFRS, further discussed in the section
Non-GAAP Measures in the most recently filed Management Discussion and Analysis
for the year ended December 31, 2015.
Appendix A: Maps and Figures
Figure 1: Site Layout
Figure 2: Simplified Ity Area Map with Exploration Targets
Appendix B: Mine Plan
+---------+
| Total/ | Pre- Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
| Average | prod 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
-------------+---------+-----------------------------------------------------------------------------------------------
Mining | |
schedule | |
| |
Total | |
material | | 15, 15, 17, 16, 15, 15, 12, 11,
moved, kt | 128,564| 3,116 501 332 394 064 740 727 454 626 5,610 0 0 0 0 0 0
| |
Total waste | | 10, 10, 13, 10, 11,
moved, kt | 87,522| 2,435 113 558 053 9,822 744 536 8,810 7,462 2,989 0 0 0 0 0 0
| |
Total ore | |
mined, kt | 41,042| 680 5,388 4,774 4,340 6,243 4,996 4,190 3,644 4,165 2,622 0 0 0 0 0 0
| |
Stripping | |
ratio, w:0 | 2.1| 3.6 1.9 2.2 3.0 1.6 2.2 2.8 2.4 1.8 1.1 0 0 0 0 0 0
| |
Au grade - | |
ore mined, | |
g/t | 1.42| 1.53 1.54 1.85 1.42 1.51 1.40 1.35 1.06 1.16 1.27 0 0 0 0 0 0
| |
Contained | |
gold - ore | | 265, 284, 197, 303, 224, 182, 124, 155, 107,
mined, oz |1,879,948|33,477 913 370 787 757 970 196 419 812 246 0 0 0 0 0 0
| |
Processing | |
schedule | |
| |
Total ore | |
processed, | |
kt | 41,042| 0 2,815 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 2,227 0
| |
Au grade - | |
ore | |
processed, | |
g/t | 1.42| 0 2.37 2.64 1.74 2.26 2.01 1.62 1.16 1.37 1.22 0.69 0.69 0.69 0.69 0.68 0
| |
Contained | |
gold - ore | |
processed, | | 214, 254, 167, 218, 194, 156, 111, 131, 117, 66, 66, 66, 66, 48,
oz |1,879,948| 0 471 320 545 450 183 608 802 794 700 167 167 167 167 409 0
| |
Au recovery,| |
% | 83.1%| 0 75.8% 75.7% 80.2% 84.8% 77.4% 85.1% 92.5% 94.0% 92.7% 85.1% 85.1% 85.1% 85.1% 86.6% 0.0%
| |
Recovered | | 162, 192, 134, 185, 150, 133, 103, 123, 109, 56, 56, 56, 56, 41,
gold, oz |1,561,902| 0 517 517 441 172 297 276 413 927 071 340 340 340 340 912 0
| |
Payable | | 162, 192, 134, 184, 150, 133, 103, 123, 108, 56, 56, 56, 56, 41,
gold, oz |1,560,340| 0 355 324 306 986 147 143 309 803 962 284 284 284 284 870 0
| |
Cash flow | |
summary, $m | |
| |
Gross | |
revenue | 1,950.4| 0.0 202.9 240.4 167.9 231.2 187.7 166.4 129.1 154.8 136.2 70.4 70.4 70.4 70.4 52.3 0.0
| |
Plus: Silver| |
credits | 46.9| 0.0 4.9 5.8 4.0 5.6 4.5 4.0 3.1 3.7 3.3 1.7 1.7 1.7 1.7 1.3 0.0
| |
Less: | |
Royalties | 68.3| 0.0 7.1 8.4 5.9 8.1 6.6 5.8 4.5 5.4 4.8 2.5 2.5 2.5 2.5 1.8 0.0
| |
Less: | |
Refining & | |
transport | |
charges | 6.7| 0.0 0.7 0.8 0.6 0.8 0.6 0.6 0.4 0.5 0.5 0.2 0.2 0.2 0.2 0.2 0.0
-------------+---------+-----------------------------------------------------------------------------------------------
Net revenue | 1,922.3| 0.0 200.0 236.9 165.5 227.9 185.0 164.0 127.3 152.5 134.2 69.3 69.3 69.3 69.3 51.6 0.0
| |
Operating | |
costs | |
| |
Mining | 315.3| 0.0 35.0 33.7 34.8 44.2 40.1 33.2 18.0 23.2 24.1 6.0 5.9 5.3 6.2 5.5 0.0
| |
Processing | |
and | |
maintenance | 433.4| 0.0 29.3 31.7 32.3 33.7 31.7 32.5 32.1 31.7 31.2 31.0 31.0 31.0 31.0 23.0 0.0
| |
Site G&A | 114.9| 0.0 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 6.3 0.0
-------------+---------+-----------------------------------------------------------------------------------------------
Total | |
operating | |
costs | 863.6| 0.0 72.7 73.8 75.5 86.2 80.2 74.0 58.5 63.2 63.7 45.4 45.3 44.7 45.5 34.7 0.0
| |
Operating | |
margin | 1,058.7| 0.0 127.3 163.1 90.0 141.7 104.7 90.0 68.8 89.3 70.6 23.9 24.0 24.6 23.8 16.9 0.0
| |
Construction| |
capital | 277.0| 277.0
| |
Lease | |
payments - | |
mine | |
equipment | 32.3| 0.0 6.5 6.5 6.5 6.5 6.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
| |
Sustaining | |
capital - | |
mine | |
equipment | 19.6| 0.0 1.7 0.0 2.2 0.9 2.5 4.4 0.0 0.7 1.5 4.2 1.6 0.0 0.0 0.0 0.0
| |
Sustaining | |
capital - | |
TSF lifts | 29.6| 0.0 0.0 1.4 1.6 2.0 2.0 2.0 2.4 2.4 2.4 2.4 2.8 2.8 2.8 2.8 0.0
| |
Closure | 5.0| 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.0
| |
Working | |
capital | 0.0| 4.2 2.6 -0.4 0.7 -0.4 -0.5 -0.4 -1.1 0.8 -1.1 -0.7 0.1 -0.1 0.0 -3.4 -0.3
-------------+---------+-----------------------------------------------------------------------------------------------
Net project | |
cash flow | |
before tax | 695.2|-281.2 116.5 155.7 79.1 132.8 94.3 84.0 67.4 85.4 67.7 18.0 19.6 22.0 21.0 17.5 -4.7
| |
Taxes | 88.0| 0.0 0.0 0.0 2.7 1.0 14.4 0.0 11.7 7.9 14.0 11.5 5.3 5.3 5.3 5.3 3.8
-------------+---------+-----------------------------------------------------------------------------------------------
Net after- | |
tax cash | |
flow | 607.2|-281.2 116.5 155.7 76.4 131.8 79.9 84.0 55.7 77.5 53.7 6.5 14.3 16.8 15.7 12.2 -8.5
-------------+---------+-----------------------------------------------------------------------------------------------
Cash cost | |
(net Ag | |
credit), | |
$/oz | $528| $422 $358 $536 $440 $509 $530 $541 $485 $559 $781 $779 $768 $783 $804
| |
All-in | |
sustaining | |
cost, $/oz | $603| $477 $409 $608 $500 $582 $622 $608 $554 $638 $943 $900 $861 $876 $913
-------------+---------+-----------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
[1]The technical report related to the Ity CIL Project 2015 Pre-Feasibility
Study, entitled "Technical Report for the Ity Gold Mine, Côte d'Ivoire, West
Africa" was filed on Sedar on October 7, 2015.
Exploration Targets:
http://hugin.info/171882/R/2055986/770061.jpg
View News Release in PDF Format:
http://hugin.info/171882/R/2055986/770058.pdf
Site Layout:
http://hugin.info/171882/R/2055986/770060.jpg
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Endeavour Mining Corporation via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 10.11.2016 - 12:42 Uhr
Sprache: Deutsch
News-ID 506258
Anzahl Zeichen: 54098
contact information:
Town:
George Town, Grand Cayman
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 184 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Endeavour announces positive Feasibility Study for its Ity CIL project"
steht unter der journalistisch-redaktionellen Verantwortung von
Endeavour Mining Corporation (Nachricht senden)
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