Endeavour Mining Unveils Promising PFS Findings for Assafou Project

Endeavour Mining Announces Promising PFS Results for Assafou Project

Endeavour Mining plc has revealed exciting outcomes from the recently completed Pre-Feasibility Study (PFS) for the Assafou Project. These findings demonstrate the project's strong potential to evolve into a tier one asset, aligning with Endeavour's strategic growth objectives.

Key Highlights of the PFS

The PFS outlines that the Assafou Project could achieve a production rate of approximately 329,000 ounces per year with an All-In Sustaining Cost (AISC) of $892 per ounce over the first decade. It reflects positive project economics, with a post-tax Net Present Value (NPV) of $1,526 million and an Internal Rate of Return (IRR) of 28% at a gold price of $2,000 per ounce.

Production Capabilities

With a planned mine life of 15 years based on an initial reserve estimate of 4.1 million ounces, the project is positioned to maintain its operations firmly within the lower cost quartile of the mining sector. Initial capital expenditures are projected to be around $734 million, geared towards establishing a processing plant designed for a 5 million tonne per annum (Mtpa) capacity, similar to that utilized at the nearby Lafigué mine.

Resource Conversion and Exploratory Prospects

The PFS also indicates a robust 90% conversion of resources to reserves, highlighting maiden reserves defined at 72.8 million tonnes with an average grade of 1.76 grams per tonne, yielding 4.1 million ounces. Exploration continues to reveal new resource opportunities, with over 70,000 meters of additional drilling completed since the cutoff date for the resource declaration.

Exploration and Future Developments

Endeavour Mining aims to commence the Definitive Feasibility Study (DFS) following these promising PFS results, with completion anticipated in 2025. The exploration team is enthusiastic about expanding on these findings, guiding the project towards potential construction in the near future.

Project Rationale and Community Engagement

Endeavour Mining's proactive approach includes advancing permitting processes and significantly engaging with the surrounding communities. As part of its commitment to responsible mining practices, the firm aims to minimize the project's environmental impact while maximizing community benefits.

Market Context and Opportunities

The current gold market presents favorable conditions for a project of this scale. Given the projected increase in global gold prices, the Assafou Project is well-positioned to deliver strong returns on investment. Endeavour Mining recognizes the Assafou Project as an essential factor in achieving its long-term ambition of reaching an annual production target of 1.5 million ounces.

Frequently Asked Questions

1. What are the expected production levels for the Assafou Project?

The project aims for an annual production of approximately 329,000 ounces over the first ten years with robust economic metrics.

2. How much capital is required for the Assafou Project?

The initial capital investment for the project is estimated at around $734 million.

3. What is the status of the project following the PFS?

Endeavour plans to proceed to the Definitive Feasibility Study stage, with initiation expected soon.

4. How does the resource conversion look for Assafou?

The PFS indicates a 90% resource to reserve conversion, with significant reserves established.

5. What is Endeavour Mining's broader strategy with the Assafou Project?

The project is a core part of Endeavour's goal to achieve long-term sustainable production growth and community engagement.

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