Construction on-time & on-budget · 4 million man-hours achieved without an LTI · SAG Mill installation has commenced · Gold pour expected as forecast during Q4-2017
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Endeavour Mining Corporation (TSX: EDV )(OTCQX:EDVMF) is pleased to announce that excellent progress is being made at its Houndé Gold Project in Burkina Faso, having achieved a major milestone with the Sag Mill components, which are the longest lead items, already on site and installation underway. Construction is progressing on-time with over 85% of the total project complete and on-budget, with the first gold pour expected during the fourth quarter of 2017.
Sébastien de Montessus, President & CEO, stated: "I would like to thank the team for their continued hard work and dedication which is allowing Houndé construction to remain on-budget and on-time for a first gold pour in the fourth quarter. Most importantly, I would like to congratulate them for posting 4 million hours without a lost time injury (LTI) - continuing to build on their track record at Agbaou, which was also built without an LTI incident.
Following a two year period without drilling, we are also excited to have restarted exploration activities to focus on delineating high-grade targets, with results expected to be published in the second half of the year."
Key milestones achieved to date include:
- 4.0 million man-hours have been worked without a lost time injury.
- 100% of the procurement has been complete, reducing cost over-run risk, and less than $120 million out of the forecasted $327 million total project capex remains to be spent (representing less than 35%).
- SAG and ball mill plinths concrete has been completed, components arrived on site and are currently being installed.
- The TSF Cell 1 (shown in the top portion of the below picture) construction is complete, TSF Cell 2 construction has commenced, and ROM pad extension is underway.
- The power station concrete civils is complete and the 90kv overhead power line construction is 90% complete. Power from the national grid is scheduled for end of July 2017.
- Open pit pre-strip mining at the Main Vindaloo open pit commenced in late December 2016. Mining of ore has also commenced with a mine plan to have 600,000 tonnes of stockpiled ore on the ROM pad during plant commissioning.
- Construction of the 300-person permanent accommodation village and resettlement (pictured below) has been completed.
- The construction of the water harvest dam decant tower is complete, with water already being pumped to the water storage dam.
- Over 2,000 personnel including contractors are currently employed on-site, more than 94% of which are Burkinabe.
- Following a two year period without exploration drilling, activities resumed in early 2017 to focus on delineating high-grade targets such as Bouere and Kari Pump, Sia, and Kari Fault, in addition to preforming reconnaissance drilling.
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.
ABOUT ENDEAVOUR MINING
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 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 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 | DFH Public Affairs in Toronto John Vincic, Senior Advisor (416) 206-0118 x.224 jvincic@dfhpublicaffairs.com Brunswick Group LLP in London Carole Cable, Partner +44 7974 982 458 ccable@brunswickgroup.com |
Corporate Office: 5 Young St, Kensington, London W8 5EH, UK
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[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.
View News Release in PDF Format View Sag shell in place View Sag mil shell lower half View ROM Pad, TSF and Plant View Control Cable Installation & Termination at Pa Sub Station View Vindaloo pit View Resettlement of village View Houndé Drilling targets
