ENDEAVOUR'S ITY CIL PROJECT CONSTRUCTION
IS TRACKING AHEAD OF SCHEDULE AND ON-BUDGET
View News Release in PDF
Abidjan, October
17, 2018 - Endeavour Mining Corporation (TSX:EDV)(OTCQX:EDVMF)
is pleased to announce that the construction of its Ity
Carbon-in-Leach ("CIL") Project in Côte d'Ivoire is tracking two
months ahead of schedule and remains on-budget. The first gold pour
is now expected to occur in early Q2-2019 rather than mid-2019 as
previously planned.
Sébastien de
Montessus, President & CEO, stated: "I'd like to thank the
construction team for their hard work and excellent progress
achieved so far. Completing the construction sooner is expected to
result in material improvement to our 2019 free-cash flow
generation potential as Ity CIL will be a low-cost operation with
AISC expected to be below $500/oz over its first 5 years."
Jeremy Langford,
COO & Executive Vice-President Projects added: "The experience
that our in-house construction team has gained from our previous
builds in the region, the early installation of the Ball and SAG
mills, combined with the excellent progress made during the rainy
season, have been key factors which have helped advance the Ity CIL
construction ahead of schedule. We are also particularly pleased
with the continued strong safety track record with zero lost-time
incidents to date."
KEY MILESTONES ACHIEVED TO DATE
INCLUDE:
- More than 6 million man-hours worked with zero
lost-time injuries.
- Overall project completion stands at over 75%,
tracking approximately 2 months ahead of schedule.
- Nearly all of the $412 million initial capital
cost has been committed and approximately 65% has been spent
(inclusive of drawn equipment financing).
- The process plant construction is over 70%
complete, tracking ahead of schedule as the Ball and SAG mill
installation commenced three months earlier than initially planned.
Structural, mechanical, piping and electrical installation work is
well underway.
Picture 1: Process Plant
- Tailings storage facility (TSF) earthworks are
progressing well against schedule with over 70% completed. Rubber
lining has commenced.
Picture 2: Tailings Storage
Facility
- The 90kv transmission line and 29MW power station
construction are progressing well against schedule with over 70%
completed. First power drawdown is expected to in
Q1-2019.
Picture 3: Power Station
- The haul road bridge, to access the Daapleau pit,
is 92% complete, with substructure concrete completed.
Picture 4: Haul Road Bridge
- Employee permanent camp construction is complete
with all 312 rooms available for occupation.
- The resettlement program is progressing well
against schedule with over 90% completed.
Picture 5: Resettlement
- More than 2,800 personnel, including contractors,
are currently employed on-site, approximately 90% of which are
locals.
- The main upcoming milestones are presented in the
figure below:
Figure 1: Ity CIL Construction
Milestones
ABOUT THE ITY CIL
PROJECT
The Ity CIL project commenced
construction in September 2017, and is being carried out by
Endeavour's in-house team following their successful completion of
the Houndé and Agbaou constructions. The Optimized study, published
in September 2017, demonstrated the significant potential for Ity,
which has already been in operation for more than 20 years, to
become another flagship asset for Endeavour. The Ity CIL project is
expected to produce approximately 204,000 ounces annually for the
first 10 years, at a low AISC of $549/oz with robust economics
which includes an after-tax NPV5% of $710m based on a gold price of
$1,250/oz.
QUALIFIED
PERSONS
Jeremy Langford, Endeavour's Chief
Operating Officer - Fellow of the Australasian Institute of Mining
and Metallurgy - FAusIMM, is a Qualified Person under NI 43-101,
and has reviewed and approved the technical information in this
news release.
CONTACT
INFORMATION
Martino De Ciccio
VP - Strategy & Investor Relations
+44 203 011 2719
mdeciccio@endeavourmining.com |
Brunswick Group LLP in London
Carole Cable, Partner
+44 7974 982 458
ccable@brunswickgroup.com |
ABOUT ENDEAVOUR
MINING CORPORATION
Endeavour Mining
is a TSX listed intermediate African gold producer with a solid
track record of operational excellence, project development and
exploration in the highly prospective Birimian greenstone belt in
West Africa. Endeavour is focused on offering both near-term and
long-term growth opportunities with its project pipeline and its
exploration strategy, while generating immediate cash flow from its
operations.
Endeavour
operates 5 mines across Côte d'Ivoire (Agbaou and Ity), Burkina
Faso (Houndé, Karma), and Mali (Tabakoto) which are expected to
produce 670-720koz in 2018 at an AISC of $840-890/oz. Endeavour's
high-quality development projects (recently commissioned Houndé,
Ity CIL and Kalana) have the combined potential to deliver an
additional 600koz per year at an AISC well below $700/oz between
2018 and 2020. In addition, its exploration program aims to
discover 10-15Moz of gold between 2017 and 2021 which represents
more than twice the reserve depletion during the period. For more
information, please visit www.endeavourmining.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, 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.
Picture 4: Haul Road Bridge
Picture 5: Resettlement
Picture 1: Process Plant
Picture 3: Power Station
Figure 1: Ity CIL Construction Milestones
Picture 2: Tailings Storage Facility
View Press Release in PDF
This
announcement is distributed by West Corporation on behalf of West
Corporation 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
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