Published
11 Dec 2024
ENDEAVOUR ANNOUNCES POSITIVE PFS RESULTS FOR ASSAFOU PROJECT IN CÔTE D’IVOIRE
$1,526m NPV(5%) and IRR of 28% at $2,000/oz • 329kozpa at AISC of $892/oz over first 10 years
HIGHLIGHTS
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PFS confirms Assafou's potential to become a tier 1 asset for Endeavour
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PFS highlights 329kozpa production at AISC of $892/oz over first 10 years:
› 15-year mine life based on maiden reserve of 4.1Moz
› Robust project economics with after-tax NPV(5%) of $1,526m and IRR of 28%, at a $2,000/oz gold price
› Initial capital of $734m based on a 5Mtpa design nameplate capacity with a similar processing plant configuration as the nearby Lafigué min
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90% resource to reserve conversion with defined maiden reserves of 72.8Mt at 1.76g/t for 4.1Moz
› Indicated resources of 73.6Mt at 1.95g/t for 4.6Moz based on a drilling cutoff in October 2023, with over 70,000 metres of drilling completed subsequently
› Further resource expansion and definition at Assafou, and satellite deposits in close proximity to Assafou, is expected to be incorporated into the DFS
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Given the high-quality project and attractive economics, the DFS will now commence with completion expected between late 2025 and early 2026
Abidjan, 11 December 2024 - Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the “Group” or the “Company”) is pleased to announce that it has recently completed a positive Pre-Feasibility Study (“PFS”) for the Assafou-Dibibango (“Assafou”) project on the Tanda-Iguela property in Côte d’Ivoire. The PFS results meet Endeavour’s strategic targets and confirm Assafou’s potential to be a tier 1 asset, which justifies advancing the project to the Definitive Feasibility Study (“DFS”) stage.
I am delighted with the results of this pre-feasibility study that highlight the potential for Assafou to become a tier 1 asset for Endeavour.
We have defined a large, low-cost and long mine life project, capable of producing 330koz a year over the first ten years, while remaining firmly in the lowest cost quartile. The attractive returns profile ensures this project will remain a capital allocation priority for us and it demonstrates our ability to generate highly value accretive projects, organically, through our pipeline.
Our exploration team discovered Assafou in late 2021, and in less than three years we have defined a high-quality project with close to 5 million ounces of high-grade Indicated resource endowment. We expect that we will continue to grow the Assafou deposit’s resource, and delineate several exciting near-mine targets across the wider Tanda-Iguela property.
Given the excellent project economics, we will now launch the Definitive Feasibility Study and simultaneously advance the permitting process so that we are well positioned to potentially launch construction, with our best-in-class projects team, in the second half of 2026.
With a robust pipeline of organic growth opportunities, we expect to continue to unlock value and deliver long-term production growth towards our 1.5 million ounce target, from a diversified portfolio of assets, by the end of the decade, while maintaining best-in-class margins. This underpins our capital allocation framework, and we expect to continue to deliver supplemental shareholder returns in line with our existing policy, and maintain attractive shareholder returns through this next growth phase.
Ian Cockerill
Chief Executive Officer
Table 1: Assafou Project Highlights
The key operational and economic highlights of the Assafou PFS are summarised in Tables 2 and 3 below.
Table 2: Assafou PFS Summary
Table 3: Assafou PFS Project Economics
Endeavour expects to file a Technical Report pursuant to National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“the NI 43-101”) in respect of the Assafou PFS within 45 days of this news release.
QUALIFIED PERSONS
Kevin Harris, Vice President of Resources with Endeavour, a “Qualified Person” as defined by NI 43-101, has reviewed and approved the statistical analysis, geological modelling, and resource estimation disclosed herein in respect of Assafou. Dr Salih Ramazan FAusIMM, Vice President of Mine Planning with Endeavour, a “Qualified Person” as defined by NI 43-101, has reviewed and approve the mineral reserve estimate disclosed herein in respect of Assafou. Ross McMillan, SVP Technical Services of Endeavour Mining plc., a Fellow of the Australian Institute of Mining and Metallurgy, a “Qualified Person” as defined by NI 43-101, has reviewed and approved the technical information other than in respect of the statistical analysis, geological modelling, and resource estimation and mineral reserve estimate in respect of Assafou disclosed in this release.
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ABOUT ENDEAVOUR MINING PLC
Endeavour Mining is one of the world’s senior gold producers and the largest in West Africa, with operating assets across Senegal, Cote d’Ivoire and Burkina Faso and a strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.
A member of the World Gold Council, Endeavour is committed to the principles of responsible mining and delivering sustainable value to its employees, stakeholders and the communities where it operates. Endeavour is listed on the London and Toronto Stock Exchanges, under the symbol EDV.
For more information, please visit www.endeavourmining.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release contains "forward-looking statements" within the meaning of applicable securities laws. All statements, other than statements of historical fact, are "forward-looking statements". 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.sedarplus.ca for further information respecting the risks affecting Endeavour and its business.