Endeavour Increases Ity's Indicated Resource by 65% Since Feasibility Study
(Thomson Reuters ONE) -
ENDEAVOUR INCREASES ITY'S INDICATED RESOURCE BY 65% SINCE FEASIBILITY STUDY
View News Release in PDF Format
ITY EXPLORATION Highlights:
* Significant exploration efforts in H1-2017 have increased the Indicated
Resource by 1.0Moz to 3.8Moz
* The Indicated Resource inventory for the CIL Project has increased by
1.5Moz (+65%) compared to the inventory on which the 2016 Feasibility Study
was based
* In light of this strong resource growth, an Optimization Study is expected
to be published in September 2017, which is expected to be based on a larger
CIL plant of circa 4.0Mtpa, up from the previously contemplated 3.0Mtpa
* Endeavour expects its internal contruction team to transition from Houndé to
Ity in Q4-2017, with a formal investment decision currently expected to be
taken by the Board in September 2017
* Exploration activities in H2-2017 will focus on follow-up extension drilling
on existing deposits, delineating a maiden resource at the recently
discoverd Le Plaque area, and drilling several other near-mine exploration
targets
Abidjan, July 27, 2017 - Endeavour Mining (TSX:EDV)(OTCQX:EDVMF) is pleased to
announce that its exploration program at its Ity CIL Project, in Cote d'Ivoire,
has increased the Indicated Resource by 1.0 million ounces since the beginning
of the year, to reach 3.8 million ounces.
As illustrated in Table 1, this marks a 1.5 million ounce increase in the
Indicated Resource base since the publication of the November 2016 Feasibility
Study ("FS"), representing a 65% increase. An updated reserve estimate is
expected to be published in September as part of an Optimization Study ("OS")
which is expected to be based on a circa 4.0Mtpa gravity circuit/Carbon-In-Leach
("CIL") plant, an increase from the previously contemplated 3.0Mtpa plant, to
better capture the value created from recent exploration success.
Table 1: Summarized Resource Evolution Following Publication of 2016 CIL
Feasibility Study
(On a 100% 2017 OPTIMIZATION YEAR-END 2016 2016 FEASIBILITY VARIANCE
basis) STUDY INVENTORY INVENTORY STUDY INVENTORY (OS VS. FS)
-------------------------------------------------------------------------------
P&P Reserves n/a
(only CIL) update in progress 1.9 Moz 1.9 Moz
M&I Resources 3.8 Moz
(inclusive of 2.8 Moz 2.3 Moz +1.5 Moz
Reserves)
Inferred 0.8 Moz 1.4 Moz 1.3 Moz (0.5 Moz)
Resources
-------------------------------------------------------------------------------
Reserves shown exclude the Heap Leach operation Reserves. Resource estimated to
the Indicated status, as such no Measured Resources available. 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 for the 2017 Optimization Study
Inventory Mineral Resource estimate are provided in Section "About the Mineral
Resources" of this Press Release, with effective date May 31, 2017. Full details
on the Year-End 2016 Inventory and the 2016 Feasibility Study Inventory are
available in the Company's published press releases dated respectively March
7, 2017 and November 10, 2016.
Patrick Bouisset, Executive Vice-President Exploration and Growth at Endeavour,
said: "Our exploration team has done exceptional work over the past months which
has led to a significant increase in the resource base at Ity ahead of the
Optimization Study. These results and the numerous other identified targets, on
which initial drilling reconnaissance is currently being conducted, further
demonstrate the prospective nature of the greater Ity area and our confidence in
delivering against our 5-year exploration strategy disclosed last November. We
believe that the 80km Ity corridor which we control is among the most
prospective areas in West Africa and we look forward to building on our
exploration success."
Sébastien de Montessus, President & CEO, stated: "Under Patrick's leadership,
Ity has been transformed from a 20-year operation nearing the end of its life
into an asset that now has the potential to be one of our flagship
operations. Our ability to quickly grow the Indicated Resource demonstrates the
robustness of Ity, as well as the quality of our exploration team. We now look
forward to announcing the results of the Optimisation Study and making a formal
investment decision in September, following which we will transition the
construction team from Houndé to Ity later this year."
EXPLORATION EFFORTS
Ahead of the Optimization Study, exploration efforts since the beginning of the
year have been mainly directed at increasing Indicated Resources on known
deposits through in-fill, delineation, and extension drilling, with up to eight
rigs deployed. As shown in Figure 1 below, more than 31,000 meters of diamond
drilling were conducted, with efforts mainly focused on Daapleu, Bakatouo, Verse
Ouest, Colline Sud and Mont Ity/Ity Flat deposits.
In parallel, initial drilling also took place on several other exploration
targets in the vicinity of the Ity mine and the Le Plaque discovery, which was
announced earlier this year. This exploration program will be pursued during the
second half of 2017, following the integration of pending analysis results.
Figure 1: Ity Mining Complex H1-2017 Exploration Drilling Focus
Compared to the resource inventory used to build the 2016 Feasibility Study, a
total of 1.5Moz of Indicated Resources were added, with the main increases
coming from the discovery of Bakatouo (+704koz), and additional Indicated
resources outlined at Daapleu (+384koz), Mont Ity / Flat (+189koz), and Verse
Ouest (+187koz), as shown Table 2 below.
Table 2: Resource Evolution Following Publication of 2016 CIL Feasibility Study
2017 OPTIMIZATION STUDY INVENTORY 2016 FEASIBILITY STUDY INVENTORY
----------------------------------------------- ----------------------------------------------
Indicated Resources Inferred Resources Indicated Resources Inferred Resources
Deposits ----------------------- ----------------------- ----------------------- ----------------------
on a 100% Tonnage Grade Content Tonnage Grade Content Tonnage Grade Content Tonnage Grade Content
basis (Mt) (Au (Au (Mt) (Au (Au (Mt) (Au (Au (Mt) (Au (Au
g/t) koz) g/t) koz) g/t) koz) g/t) koz)
---------------------------------------------------------------------------------------------------------
Open Pits
Daapleu 28.1 1.50 1,349 0.7 0.92 22 19.9 1.51 965 4.3 1.15 160
Mont Ity 10.1 2.20 716 9.7 1.40 436 7.5 2.19 527 11.1 1.92 684
/ Flat
Gbeitouo 2.9 1.35 124 0.3 1.48 13 2.9 1.35 124 0.3 1.48 13
Walter 1.6 1.23 65 0.6 1.35 26 2.1 1.21 81 0.7 1.32 28
Zia NE 6.7 1.28 274 4.0 1.40 178 7.7 1.31 325 4.0 1.39 179
Bakatouo 10.2 2.14 704 0.6 2.27 44 - - - - - -
Colline - - - - - -
Sud 1.0 2.14 66 0.4 2.11 28
---------------------------------------------------------------------------------------------------------
Sub-total 60.6 1.69 3,298 16.3 1.43 747 40.1 1.57 2,022 20.4 1.62 1,064
Existing
Stockpiles
Aires 5.8 1.09 202 0.2 0.78 6 5.8 1.09 202 0.2 0.78 6
Teckraie 2.8 1.07 97 0.1 0.55 2 2.8 1.07 97 0.1 0.55 2
Verse - - - 8.4 0.85 230
Ouest 5.9 0.99 187 2.3 0.50 37
---------------------------------------------------------------------------------------------------------
Sub-total 14.5 1.04 486 2.6 0.54 45 8.6 1.08 300 8.7 0.85 238
Total 75.1 1.57 3,784 18.9 1.30 792 48.7 1.48 2,322 29.1 1.39 1,302
---------------------------------------------------------------------------------------------------------
Resource estimated to the Indicated status, as such no Measured Resources
available. 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 for the
2017 Optimization Study Inventory Mineral Resource estimate are provided in
Section "About the Mineral Resources" of this Press Release, with effective date
April 30, 2017. Full details on the Year-End 2016 Inventory and the 2016
Feasibility Study Inventory are available in the Company's published press
releases dated respectively March 7, 2017 and November 10, 2016.
BAKATOUO DEPOSIT
A total of 4,700 meters comprising 30 holes were drilled on the Bakatouo deposit
following the publication of its maiden resource in late 2016, with both infill
and extension drilling done as shown in Figure 2 below.
Figure 2: Bakatouo Drill Area
Drilling conducted during the first half of 2017 has identified additional
mineralization within the previous resource envelope and at depth, as well as
through some extensions which remain partially open to the southeast, southwest,
northwest and northeast of the deposit. Additional drilling is planned in the
second half of the year to test these extensions, with the priority being the
northeast extension.
Figure 3: Bakatouo Cross-Section
As shown in the table below, the H1-2017 program added 229koz of Indicated
Resources while the average grade decreased as ounces added through the defined
extensions were of lower grade than the central part of the deposit. The
Indicated resource however remains very robust with more than 35% of its
Indicated Resource grading above 4.5 g/t and 50% grading above 3.0 g/t. Due to
its higher-grade nature, the Optimization Study envisages Bakatouo to be mined
in the first years of the CIL production.
Table 3: Bakatouo Resource Evolution
AS AT APRIL 30, 2017 AS AT DEC 31, 2016
---------------------------------------------------------------------------
Tonnage (Mt) 10.2 4.8
Indicated
Resource Grade (Au g/t) 2.14 3.07
Content (Au koz) 704 475
---------------------------------------------------------------------------
Tonnage (Mt) 0.6 0.8
Inferred
Resource Grade (Au g/t) 2.27 2.86
Content (Au koz) 44 70
---------------------------------------------------------------------------
DAAPLEU DEPOSIT
A total of over 14,860 meters, comprising 77 holes, were drilled on the Daapleu
deposit consisting of both infill drilling and resource delineation outside of
and as an extension of the down dip of the 2016 resource boundary, as
illustrated in Figure 4 below, increasing the Daapleu Indicated Resource by
384koz to 1,349koz.
Figure 4: Daapleu Drill Area
The H1-2017 program has demonstrated the high continuity of mineralization
(Fluidized Rhyolite and high grade shear zone) within the Daapleu deposit, which
remains fully open at depth towards the northwest as illustrated in Figure 5
below.
Figure 5: Daapleu Cross-Section
MONT ITY/ITY FLAT DEPOSIT
A total of over 8,300 meters, comprising 77 holes, were drilled at the Mont Ity
/Ity Flat deposits during the first half of 2017, concentrating on the northeast
high grade zone which was not previously accessible for drilling due to ongoing
mining activities. This drill campaign confirmed the continuity of
mineralization between the two areas, which are now considered to be a single
deposit, and added 189koz of Indicated Resources. An additional drilling program
is ongoing on the central part of the Mont Ity deposit in order to convert
additional Inferred Resources into Indicated status before year-end.
The results demonstrate the very high grade mineralization in this area of the
deposit, as shown in selected intercepts illustrated in Figure 6 below.
Figure 6: Mont Drill Area
Within the drilled area, mineralization remains clearly open at depth, as shown
in Figure 7 below.
Figure 7: Mont Ity/Flat Cross-Section
OTHER NEARBY TARGETS
In H1-2017, initial exploration drilling, for which the results are still
pending, also took place on several other exploration targets in the vicinity of
the Ity mine (as per the blue dashed area in the Figure 8 below) and on the Le
Plaque discovery which was announced earlier this year. This area, located
within 5km from the current Ity mining complex, represents a small portion of
the 80km corridor controlled by Endeavour.
This exploration program will be pursued in Q4-2017, after the end of the rainy
season and the integration of pending analysis results, with the main focus on
delineating a maiden Inferred Resource at the Le Plaque discovery.
Figure 8: Ity Mine Area and Surrounding Exploration Targets
NEXT STEPS
* Follow-up drilling on the Bakatouo extensions
* Drilling campaign on Le Plaque to delineate the extent of mineralized
potential and aim for Inferred status by year-end
* Follow-up drilling on other exploration targets in the vicinity of the Ity
mining complex
* Follow-up on the airborne geophysical survey, soil geochemistry, and auger
drill results obtained in H1-2017 on the Greater Ity regional area
QUALIFIED PERSONS
The scientific and technical content of this news release has been reviewed,
verified and compiled by Gérard de Hert, EurGeol, Senior VP West Africa
Exploration for Endeavour Mining. Gérard de Hert has more than 19 years of
mineral exploration and mining experience, and is a "Qualified Person" as
defined by National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101").
ASSAYS AND QUALITY ASSURANCE/QUALITY CONTROL
All the related drill samples were prepared in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects. All samples were
diamond drill core (HQ and NQ size at Daapleu and Bakatouo, HQ and NTW at Ity-
Ity FLat). After photography, and geologic and geotechnical logging, the core
was marked up for sampling via approved procedures and was cut in half with
electric saw and diamond impregnated core blades. Sampling involved collecting
the left-hand side at designated sampling intervals for processing and analysis,
and leaving the right-hand side in core boxes for reference.
Samples were dried, crushed and pulverized on site at the SMI Ity exploration
mechanical preparation facilities. The facilities were constructed and
commissioned with Bureau Veritas Laboratories (Abidjan), an independent
laboratory services provider, whom also designed and implemented site procedures
and protocols and supervised training. In January 2017, SGS Laboratories (SGS
Cote D'Ivoire SA) took over the management and running of the preparation
facilities, as part of a new contract with SGS to build and run an onsite
laboratory to process present and future exploration and mine sample processing
requirements. The new laboratory maintains separate dedicated preparation
equipment for both exploration and mine samples.
The pulverized samples (pulps) were stored in 200g kraft paper packets and
shipped to SGS Burkina SA in Ouagadougou for gold analysis. Samples were
analyzed using a standard 50-gram gold fire assay with an Atomic Absorption
finish (FAA505); above detection limit samples were re-analyzed via gravimetric
procedure (FAG505).
Sampling and assay data were monitored through a quality assurance/quality
control program designed to follow NI 43-101 and industry best practice.
Certified reference materials were sourced from Geostats Pty Ltd Australia.
Standards (oxide and sulphide at different grades) duplicate and blank control
samples were inserted at a rate of 18 in every batch of 100 samples submitted to
SGS. Results are loaded electronically into the company's Acquire database.
ABOUT THE MINERAL RESOURCE
The insitu Mineral Resources, which include Daapleu, Mont Ity / Ity Flat,
Bakatouo, Gbeitouo, Walter, Zia NE and Colline Sud, 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 April 30, 2017.
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 statistical analysis, geological modelling and resource estimation for
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").
The statistical analysis, geological modelling and resource estimation for
Bakatouo, Mt Ity/Ity flat, Daapleu and Verse Ouest were prepared by Mark Zammit,
CPG. Mr. Zammit is a principal consultant geologist with Cube Consulting Pty Ltd
and is a "Qualified Person" as defined by National Instrument 43-101 - Standards
of Disclosure for Mineral Projects ("NI 43-101").
CONTACT INFORMATION
Martino De Ciccio DFH Public Affairs in Toronto
VP - Strategy & Investor Relations John Vincic, Senior Advisor
+44 203 640 8665 (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
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 across Côte d'Ivoire (Agbaou and Ity),
Burkina Faso (Karma), Mali (Tabakoto), and Ghana (Nzema). In 2017, it expects to
produce between 600koz and 640koz at an AISC of US$860 to US$905/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 US$709/oz over an initial 10-
year mine life, based on reserves. The development of the Houndé and Ity CIL
projects are expected to lift Endeavour's group production to +900kozpa and
decrease its average AISC to circa $800/oz by 2019, while exploration aims to
extend all mine lives to +10 years.
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, 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 mana gement'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.
Appendix A:
Figure 9: Endeavour Controlled 80km Ity Mine Corridor
Figure 3: Bakatouo Cross-Section:
http://hugin.info/171882/R/2123608/810061.jpg
Figure 6: Mont Drill Area:
http://hugin.info/171882/R/2123608/810064.jpg
Figure 9: Endeavour Controlled 80km Ity Mine Corridor:
http://hugin.info/171882/R/2123608/810068.jpg
Figure 5: Daapleu Cross-Section:
http://hugin.info/171882/R/2123608/810063.jpg
Figure 8: Ity Mine Area and Surrounding Exploration Targets:
http://hugin.info/171882/R/2123608/810067.jpg
Figure 2: Bakatouo Drill Area:
http://hugin.info/171882/R/2123608/810060.jpg
Figure 7: Mont Ity/Flat Cross-Section:
http://hugin.info/171882/R/2123608/810065.png
Figure 4: Daapleu Drill Area:
http://hugin.info/171882/R/2123608/810062.jpg
View News Release in PDF Format:
http://hugin.info/171882/R/2123608/810040.pdf
Figure 1: Ity Mining Complex H1-2017 Exploration Drilling Focus:
http://hugin.info/171882/R/2123608/810059.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: 27.07.2017 - 15:56 Uhr
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News-ID 554282
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