-
During Q1 2012, mining of Salman North 1A and 1B pits
continued whilst Teberu 04 commenced in February 2012
-
Phase 2 of the tailings storage facility raise is in
progress
-
During Q1 2012, the Nzema Mine contributed $22.7 million
towards the total cash margin of $38.9 million
-
During Q1 2012, the Nzema Mine contributed $11.3 million
towards earnings from mining operations and generated $11.8
million of operating cash flow from mine operations
-
Salman resettlement was completed and inauguration ceremony
was held on March 17, 2012
-
Mill throughput increased to a record 255,000 tonnes
-
Metallurgical recovery improved to 94.9%
-
Grid Power Project progress -- Phase II to improve grid
power supply quality and availability is scheduled for
completion in Q3/2012
-
Further exploration progress yielding positive results on
both current operating pits and proximal new deposits
within the Youga mine exploitation permit
-
During Q1 2012, the Youga Mine contributed $16.1 million
towards the total cash margin of $38.9 million
-
During Q1 2012, the Youga Mine contributed $15.1 million
towards earnings from mining operations and generated $12.6
million of operating cash flow from mine operations
-
Work commenced in the first quarter on the construction of
the $0.25 million Youga high school project which is
scheduled for completion in the fourth quarter of 2012. In
addition, a number of other corporate social responsibility
initiatives relating to health, education and social
interaction were progressed including donations of
medicines and an ambulance to Zabre hospital, upgrading of
a youth centre and the provision of maintenance services
for the Youga medical clinic / maternity ward and primary
school
Endeavour is nearing completion of the Agbaou engineering
optimization studies which take into account the improved
resources/reserves from the successful drilling campaigns of
2010 and 2011. The current project parameters include
development costs in the range of $150 to $175 million, annual
gold production of approximately 100,000 ounces per year, and
cash costs (excluding royalties) in the range of $650 per
ounce. The estimated development cost increase reflects a
combination of an increase in the planned process plant
throughput, anticipated to enhance project economics; and
global inflationary pressure on mining project costs. A NI
43-101 technical report is scheduled to be ready within the
next few weeks. Furthermore, Endeavour has been engaged in
discussions with the Côte d'Ivoire government to obtain a
mining permit and, in parallel, Endeavour is finalizing the
EPCM contractor selection. Exploration is currently being
conducted on authorized permits in Burkina Faso, Côte
d'Ivoire, Ghana, Liberia and Mali. Endeavour's land
position is the third largest in West Africa and covers over
10,000 square kilometres. The Corporation has approved an
exploration budget of $34.0 million for 2012 that is expected
to include approximately 215,000 metres of drilling, of which
approximately $20.0 million is directed towards increasing
resources and reserves to extend mine lives at the Nzema and
Youga operations, $6.0 million towards increasing resources and
reserves at Agbaou, $6.4 million towards delineating resources
and conducting further metallurgical testing of the Nzema
sulphides in Ghana, and the balance towards regional programs.
During Q1 2012, $9.7 million of the approximate $20.0 million
"near-mine" exploration program was completed. The
positive results from the near mine exploration along the
Brassiere Trend at Youga, which included YZRC-201: 42m of 3.4
g/t (including 1m at 14.5 g/t and 4m at 6.3 g/t) was disclosed
in a news release on April 30, 2012. On May 2, 2012, Endeavour
announced the expansion of the sulphide drilling program at
Nzema following review of the drilling results to date, the
delivery of the Conceptual Trade-off Study by AMEC Minproc
Limited and the initial metallurgical testwork completed at SGS
Australia Minerals Services. The drilling results to date have
confirmed the presence of several sulphide ore shoots below the
principal oxide pits at the Salman Trend. This refractory gold
mineralization represents a target that Endeavour believes has
the potential to significantly increase production at Nzema.
Net earnings / (loss) from continuing operations have been
adjusted for the impact of the fair value change of both the
gold hedge liability, Endeavour's warrants that are
denominated in Canadian dollars, and other financial
instruments, which are non-cash items. In addition, the
non-cash impact of the increase in the Ghana corporate income
tax rate, from 25% to 35%, on the deferred income tax liability
was adjusted. Endeavour is pleased to announce that Michelle
Borthwick has been appointed as Corporate Secretary. Management
will host two conference calls to discuss the Q1 results, at
times convenient for the Australian and North American time
zones. Both conference calls will feature Neil Woodyer, Chief
Executive Officer, Mark Connelly, Chief Operating Officer, and
Christian Milau, Chief Financial Officer. Analysts and
interested investors are invited to participate using the dial
in numbers below. The same dial in numbers will be used for
both conference calls. The calls will be archived for later
playback on Endeavour's website until May 9, 2013. Adriaan
"Attie" Roux, Pr. Sci.Nat, Endeavour's Senior
Vice President -- Operations, is a Qualified Person under NI
43-101, and has reviewed and approved the technical information
related to mining operations in this news release. K. Kirk
Woodman, P.Geo., Endeavour's General Manager of
Exploration, is the Qualified Person overseeing exploration
projects in French West Africa and has reviewed and approved
the technical information related to Mineral Resource Estimates
at the Youga Mine contained in this news release. Adrian de
Freitas, MIMMM, C. Eng., Endeavour's General Manager, Youga
Mine is a Qualified Person under NI 43-101, and has reviewed
and approved the technical information related to mining
operations at the Youga Mine contained in this news release.
Endeavour is a gold producer delivering growth. Endeavour owns
two gold mines producing approximately 180,000 ozs per year in
Ghana and Burkina Faso that are generating significant
operating cash flows to fund exploration and development
growth. In addition to upside potential at its current
operations, Endeavour's gold project in Côte d'Ivoire
is ready for construction (mining permit submitted; currently
negotiating EPCM contract) for an additional 100,000 ozs per
year. Endeavour's strong financial base encourages
investments in long-term operational growth, exploration to
replace and increase reserves, and funding for acquisitions.
Endeavour Mining Corporation is listed on the TSX (symbol EDV)
and ASX (symbol EVR), and also trades on the OTCQX (symbol
EDVMF). A Cayman Islands exempted company with limited
liability.
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