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GEORGE TOWN, Grand Cayman, Sept. 6, 2016 (GLOBE NEWSWIRE) -- Endeavour Mining Corporation (TSX: EDV ) (OTCQX:EDVMF) (the "Company") is pleased to announce that excellent progress is being made at its Houndé Gold Project in Burkina Faso. Construction is progressing on-time and on-budget, with the first gold pour expected during the fourth quarter of 2017.
Jeremy Langford, EVP Construction Services Group of Endeavour, stated:
"We are very pleased to have successfully achieved our first set of key project milestones safely, ahead of schedule and on-budget, despite the wet-season being upon us. Our employment statistics are extremely pleasing with over 96% of our 1,058 project staff and contractors being Burkinabe Nationals. I am proud that this project will deliver significant economic benefits to the local area and the whole of Burkina Faso, in addition to becoming Endeavour's flagship operating mine."
Key milestones achieved to date include:
- Procurement is approximately 45% complete, with total capital commitments amounting to $150 million.
- CIL ring beam concrete pour achieved early-August, two weeks ahead of schedule. As of September 6 th , all six ring beams have been completed.
- Mining fleet equipment financing agreement signed with Komatsu Ltd., with deliveries already on-site, machinery commissioned and operational.
- Water harvest dam construction completed, with water already being pumped to the water storage dam, two months ahead of schedule.
- Construction of the 300-person permanent accommodation village is 30% complete and on-schedule for completion during Q1-2017.
- Crusher civil earthworks commenced late August.
- Following the signing of the power offtake agreement with Sonabel, the national electricity provider, procurement has been completed for the 38km 91kv overhead power line with construction scheduled to start in October 2016.
- Detailed engineering of the processing facility is progressing well and on schedule to be completed mid-November 2016.
- 1,058 personnel including contractors are currently employed on-site, of which over 96% are Burkinabe, exceeding Endeavour's objectives.
- Strong safety record with over 400,000 man-hours worked without a Lost Time Injury (LTI) or Medical Treatment Injury (MTI).
- The land compensation process has been successfully completed and resettlement is underway, with all approvals in place.
About the Houndé Project
Once in production, Endeavour's 90%-owned Houndé Project will become the Company's flagship low-cost mine, ranking amongst West Africa's top tier cash generating mines, with an average annual production of 190,000 ounces at an All-In Sustaining Cost ("AISC") of US$709/oz over an initial 10-year mine life based on reserves. In its first 4 years, the average annual production is expected to be 235,000 ounces at an AISC of US$610/oz[1].
The project is an open pit mine with a 3.0Mtpa gravity circuit / Carbon-In-Leach plant. The initial capital cost is estimated at $328 million, inclusive of $46 million for the owner-mining fleet. Construction began in April 2016 and is progressing on-time and on-budget with the first gold pour expected during the fourth quarter of 2017.
Endeavour will employ up to 1,800 people during Houndé's construction phase and 470 once the project reaches commercial production, with an objective of employing 90% Burkinabe nationals and a focus on increasing female employment in the region.
[1] As announced in Endeavour's April 11, 2016, news release entitled "Endeavour starts construction of its Houndé Project, its next low-cost gold mine" available on the Company's website and on Sedar.
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 US$870 to US$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 US$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 +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 VP - Strategy & Investor Relations +33 (0)1 70 38 36 95 mdeciccio@endeavourmining.com Vincent Benoit EVP - Strategy & Business Development +33 (0)1 70 38 36 96 vbenoit@endeavourmining.com | DFH Public Affairs in Toronto John Vincic (416) 206-0118 x.224 jvincic@dfhpublicaffairs.com Brunswick Group LLP in London Carole Cable, Partner +44 7974 982 458 ccable@brunswickgroup.com |
Qualified Persons
Adriaan "Attie" Roux , Pr.Sci.Nat, Endeavour's Chief Operating Officer, is a Qualified Person under NI 43-101, and has reviewed and approved the operational analysis, operating and capital estimates, and other technical information in this news release.
Endeavour Mining | Executive Office | Bureau 76, 7 Boulevard des Moulins, Monaco 98000
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 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. 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.
View News Release in PDF Format http://hugin.info/171882/R/2040076/760947.pdf CIL ring beam http://hugin.info/171882/R/2040076/760954.png Komatsu fleet arrivals http://hugin.info/171882/R/2040076/760955.png Water harvest dam http://hugin.info/171882/R/2040076/760956.png Resettlement site http://hugin.info/171882/R/2040076/760957.png Crusher civil earthworks http://hugin.info/171882/R/2040076/760958.png
