GEORGE TOWN, Grand Cayman, United Kingdom, June 30, 2016 (GLOBE NEWSWIRE) -- Endeavour Mining Corporation (TSX:EDV)(OTCQX:EDVMF) (the "Company") is pleased to announce that a groundbreaking ceremony was held today at its Houndé Project site in Burkina Faso. 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.
The ceremony celebrated an important milestone for both Endeavour and the government of Burkina Faso, as Houndé is expected to become the Company's flagship low-cost mine and a prominent mine within the country. More than 10,000 people attended the ceremony in support of the project, including the President of Burkina Faso, the Prime Minister, the Minister of Energy, Mines and Carriers, numerous other Government ministers, officials and diplomats, senior community representatives and members, as well as Endeavour's executive management, its Chairman of the Board, and Houndé employees.
Picture of President Roch Marc Christian Kaboré arriving at the ceremony. For additional photos, please click on the following link www.endeavourmining.com/media/image-library/hounde-groundbreaking-ceremony
Roch Marc Christian Kaboré, President of Burkina Faso, stated:
"We welcome Endeavour's investment in Burkina Faso, and the company's decision to make a long-term commitment to our country. This reflects the favourable investment environment that Burkina Faso has created for the mining sector, and is a strong signal of the future health of the gold mining industry in our country. The Houndé development will create hundreds of jobs, both directly in mining and also ancillary services, and the associated prosperity will raise living standards throughout the surrounding district. With the Houndé Project and the Karma mine, Endeavour Mining is becoming a key partner for our Country"
Alpha Oumar Dissa, Minister of Energy, Mines and Carriers, stated:
"We are extremely pleased with the advancement of the Houndé project, which demonstrates that the Houndé belt is amongst the world's most prosperous gold mining regions. We look forward to continue to work closely with Endeavour and the surrounding communities as they bring this flagship project to life. Congratulations to everyone involved, I know the Houndé Mine will benefit the Tuy region for generations to come."
Sébastien de Montessus, CEO of Endeavour, stated:
"We are honored to share this important event with President Kaboré, his Prime Minister, his Minister of Energy, Mines and Carriers, and the numerous government representatives here in support of the Houndé project. This strong governmental presence demonstrates Houndé's importance for both Endeavour and the country. The partnership between Endeavour and every level of government in Burkina Faso exemplifies our collaborative and local approach to building mines in West Africa. Burkina Faso is a key focus for Endeavour, and we are proud to be a contributor to the economy and to our communities."
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. Moreover, in its first 4 years, the average annual production is expected to be 235,000 ounces at an AISC of US$610/oz.
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 tzhe 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.
Significant achievements to date:
- Construction is progressing on-time and on-budget; procurement is approximately 30% complete with total capital commitments incurred amounting to $105 million
- Mining fleet equipment financing, amounting to approximately $38 million (for equipment valued at $46 million), has been signed with Komatsu Ltd.; deliveries commence in Q4-2016. A further $6 million of equipment financing for the balance of mining and construction equipment is anticipated to be engaged with a third party in the near term
- Long lead-time capital items have been ordered, including the Ball and Sag mill which will be manufactured by Outotec (who previously successfully supplied Endeavour's Nzema and Agbaou projects) with delivery of the mills expected in April 2017
- The grid power offtake agreement with Sonabel, the national electricity provider, has recently been signed, with a 38km 91kv overhead power line and a dedicated 91/11kv substation scheduled to be operational in Q3-2017
- Infrastructure and Bulk Earthworks have commenced, notably with the clearing and preparation of the process plant area, the Water Storage Dam, and the Water Harvest Dam; construction of roads within the project footprint; and construction of the 300-person permanent accommodation camp
- First concrete in the process plant is scheduled for August 2016
- Land compensation process was successfully completed and resettlement is underway, with all approvals in place
- Endeavour is in line with its objective of employing 90% Burkinabe nationals at Houndé and community investment program initiatives have commenced
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 535koz and 560koz at an AISC of US$870 to US$920/oz, excluding Karma which is in the commissioning stage. 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.
| Vincent Benoit |
EVP - Strategy & Business Development
+33 (0)1 70 38 36 96
Martino De Ciccio
VP - Strategy & Investor Relations
+33 (0)1 70 38 36 95
| DFH Public Affairs in Toronto |
(416) 206-0118 x.224
Brunswick Group LLP in London
Carole Cable, Partner
+44 7974 982 458
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.
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