Resource World Magazine

www.resourceworld.com 51 A P R I L / M A Y 2 0 1 4 Back in 2010, in its maiden production year, Endeavour Mining Corp. [EDV-TSX; EVR- ASX; EDVMF-OTCQX] produced 80,000 ounces of gold. In 2013 that figure was 324,000 ounces and the forecast for 2014 is around 400,000 - 440,000 oz. It is an impres - sive growth story from the African focused gold producer established in 1988 by the man who is today its CEO, Neil Woodyer. Endeavour Mining's 2013 results, released on March 19, show that the company had gold revenues of US $443 million, which represented a mine cash margin of US $135.8 million. The company has adopted the World Gold Council's all in sustaining cost measure - ment of profitability (direct production costs, overheads, capital expenditure required to sustain the mine and royalties); that figure for 2013 was US $93 million. The company was producing at an all sustaining cost of gold sold of US $1,099/oz. The forecast equivalent figure for 2014 is US $985-$1,070/oz. Endeavour Mining has four operating gold mines in West Africa: Tabakoto in Mali, Nzema in Ghana, Agbaou in Côte d'Ivoire and Youga in Burkina Faso. The Hounde Project in Burkina Faso is in development. The company has 4,343 k oz gold in proven and probable reserves with grades of between 1.9 g/t and 4.6 g/t. In the measured and indicated resources category; it has 7,551 k oz at grades of between 1.3 g/t and 5.7 g/t. In the inferred resources category, the num - bers are 2,379 k oz at grades between 1.2 g/t and 4.7 g/t. The Tabakoto Mine in Mali has been in production since 2012. It is an underground and open pit operation with reserves of 0.712 million oz and resources of 1.077 million oz (measured and indicated) with inferred resources of 0.966 million oz. Tabakoto has decent grades of between 4.6 g/t and 5/7 g/t. Last year it produced 125,231 oz and is fore - cast to produce 140,000 oz in 2014. The mine is profitable with cash costs estimated in 2014 to be between US $790 to $840. In Côte d'Ivoire, the Agbaou Mine com- menced production earlier this year. It has reserves of 11.1 million tonnes grading 2.5 g/t gold for 0.905 million oz. Resources in the measured and indicated category are 1.57 million oz at 2.4 g/t gold with inferred at 0.073 million oz of 1.5 g/t. Production this year is estimated at 85,000 to 95,000 oz at a cash cost of US $730-$780/oz. In Ghana, the Nzema Mine has 0.797 million oz of 1.9 g/t gold in reserves, 1.943 million oz of 1.3 g/t in the measured and indicated resources cat - egory and 0.421 million oz of 1.2 g/t in the inferred category. This mine has also been producing since 2012 and is forecast this year to produce 110,000-120,000 ounces at a cash cost of between US $780 and $830/oz. Like the Agabaou Mine, it has a mine life of eight years. Endeavour Mining's small mine is the Youga in Burkina Faso which this year is forecast to produce 65,000-75,000 ounces at a cash cost of US $790-840/oz. It has 0.380 million oz in reserves at 1.9 g/t gold with its satellites located 4 km away currently contain - ing 0.692 million oz of 1.5 g/t in the measured and indicated resources category and 0.057 million oz of 1.2 g/t in the inferred category. Burkina Faso is host to Endeavour Mining's new devel - opment, the Hounde Project. When in production it will be producing at 180,000 oz/year which will make Endeavour Mining a 600,000-700,000 oz/ year producer. The Hounde Project is now in the permit - ting stage. It has reserves of 1.55 million oz of 1.95 g/t gold with measured and indicated resources of 1,874,000 oz at 1.98 g/t and inferred resources of 133,000 oz at 2.24 g/t. The Hounde Project requires US $315 million in upfront capital, plus US $62 million in sustain - ing capital. It has a scheduled mine life of eight years. Significantly the proposed mine is only 25 km away from the port of Abidjan. Endeavour Mining has a heavyweight board of directors. The promi - nent Vancouver financier Frank Giustra is a director along with former Gold Fields CEO, Ian Cockerill, as well as Michael Beckett, who chairs the company, former Chairman of Ashanti Goldfields. One issue confronting Endeavour Mining is that its mines are below 10 years mine life. However, the company has announced that its key objectives for 2014 include explora - tion focused on mine reserve replacement and exploration of the Tabakoto Project along with another exploration project, the nearby Kofi which covers approximately 449 km 2 – 219 km 2 currently under application – and mineral resources estimated at 500,000 oz of indicated at 2.25 g/t gold and 702,000 oz of inferred at 1.77 g/t gold. n Endeavour Mining ramping up gold production By Greg Barns A U S T R A L I A N U P D A T E www.precisiongeosurveys.com 604.484.9402 Magnetics - Radiometrics - Time Domain EM Airborne Geophysics

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