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Endeavour Mining Corp
Symbol EDV
Shares Issued 109,153,901
Close 2019-03-19 C$ 19.09
Market Cap C$ 2,083,747,970
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Endeavour produces 1,800 oz Au from first pour at Ity

2019-03-19 10:34 ET - News Release

Mr. Sebastien de Montessus reports

ENDEAVOUR ACHIEVES FIRST GOLD POUR AT ITY CIL PROJECT 4 MONTHS AHEAD OF SCHEDULE

Endeavour Mining Corp.'s first gold pour from the Ity CIL (carbon-in-leach) project in Cote d'Ivoire took place on March 18, 2019, ahead of schedule and under budget. The first pour yielded approximately 1,800 ounces of gold.

Highlights:

  • Over 8.5 million man hours have been worked without a lost time injury.
  • The first gold pour was achieved four months ahead of schedule, marking the successful completion of the Ity CIL project build in less than 18 months and under budget.
  • The plant is already running at its four-million-tonne-per-annum nameplate capacity following a rapid ramp-up.
  • Debottleneck and optimization work are under way to increase the plant capacity by one million tonne per annum (Mtpa) to five Mtpa, at a minimal cost of $10-million to $15-million.
  • Commercial production is expected to be declared in early Q2 as performance trial testing will soon commence.
  • Ity is expected to produce 160,000 ounces to 200,000 ounces in 2019 at an all-in sustaining cost of $525 per ounce to $590 per ounce.
  • An aggressive exploration program at the La Plaque target is under way with the aim of publishing an updated resource in Q2 2019.

Approximately 135,160 tonnes of ore have been processed since ore was introduced into the CIL processing plant on Feb. 20, 2019. Commercial production is expected to be declared in early Q2 2019 with performance trial testing soon to commence, as the crushing, milling and CIL circuits have quickly attained a stable nameplate capacity of four Mtpa.

Following the performance tests already conducted, Endeavour launched optimization and debottlenecking work which is expected to increase the plant nameplate capacity by one Mtpa to five Mtpa, at a minimal cost of $10-million to $15-million. The volumetric upsize work mainly comprises an upgrade in pipes and pumps and a second 50-tonne oxygen plant with no additional mining fleet required. These plant upgrades are expected to be completed during scheduled plant maintenance shutdowns throughout the next six months.

Sebastien de Montessus, president and chief executive officer, stated: "As we approach commercial production, I would like to acknowledge the hard work of our in-house construction team for successfully delivering the Ity CIL project ahead of schedule and under budget, with an exceptional safety record of over 8.5 million hours without a lost time injury. This first gold pour and the remarkably quick ramp-up period is a transformational event for Endeavour as the Ity CIL project will quickly contribute to group's cash-generation potential.

"Given its current 15-year mine life and strong exploration potential, our ability to increase the plant size by one Mtpa to one Mpta for minimal additional capex [capital expenditure] represents a very compelling investment and is in line with our focus on capital allocation efficiency and return on capital employed criteria. With this upgrade, Ity has the potential to produce circa 300,000 ounces of gold per annum at a low AISC."

The Ity CIL project capex spend is tracking under budget compared with the initial budget of $412-million. As construction is tracking ahead of schedule and below budget, Endeavour decided to conduct additional works, such as the construction of a fuel farm, building exploration facilities, and an additional $7-million of crop compensation and resettlement related to prospective exploration grounds. Due to these additional works, and the $10-million to $15-million required for the above-stated plant upgrade to five Mtpa, the total project capex spend is expected to amount to circa $420-million.

An $11-million exploration program, totalling approximately 71,000 metres of drilling, has been planned for 2019, with the aim of delineating additional resources at the Le Plaque target and testing other targets such as Floleu, Daapleu SW and Samuel.

As previously guided, Ity is expected to produce 160,000 ounces to 200,000 ounces in 2019 at an AISC of $525 per ounce to $590 per ounce, with the bottom end of production guidance corresponding to the four Mtpa nameplate capacity while the top-end factors in upsides such as an earlier start date, an expedited ramp-up and the plant producing above its nameplate.

Qualified person

Clinton Bennett, Endeavour's vice-president of technical services, a member of the Australasian Institute of Mining and Metallurgy, is a qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and has reviewed and approved the technical information in this news release.

About Endeavour Mining Corp.

Endeavour Toronto Stock Exchange-listed intermediate African gold producer with a solid 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.

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