Endeavour Achieves First Gold Pour at Sabodala-Massawa Expansion
ENDEAVOUR ACHIEVES FIRST GOLD POUR AT
SABODALA-MASSAWA EXPANSION
First gold delivered in only 2 years · On budget
and on schedule · 0 LTIs with over 3.5m man hours worked
HIGHLIGHTS:
-
First gold pour at the Sabodala-Massawa BIOX® Expansion
achieved only 24 months after construction launch, transforming the
Sabodala-Massawa Complex into a tier 1 mine
-
Commercial production at the BIOX® Expansion project is
expected in late Q2-2024, with the project ramping up to its
nameplate capacity of 1.2Mtpa in Q3-2024
-
Over 3.5 million man hours have been completed with zero
lost-time injuries
-
Largest Group exploration programme planned at
Sabodala-Massawa in 2024, with a spend of $21m, focussed on
resource to reserve conversion and adding near mine refractory and
non-refractory resources
-
Following the on-schedule startup of the BIOX® Expansion,
the Group remains on track to achieve its full-year guidance of
1,130-1,270koz at an industry leading AISC of $955 –
1,035/oz
|
Dakar, 29 April
2024 – Endeavour Mining plc (LSE:EDV, TSX:EDV,
OTCQX:EDVMF) (“Endeavour”, the “Group” or the “Company”) is pleased
to announce that the first gold pour from the Sabodala-Massawa
BIOX® Expansion project (“BIOX® Expansion”) in Senegal took place
on 18 April 2024, marking the successful delivery of the BIOX®
Expansion project on schedule and on budget with no lost time
injuries.
Ian Cockerill, CEO, commented “We are proud
to have achieved our first gold pour at the Sabodala-Massawa BIOX®
Expansion with over 3.5 million man hours worked with no lost time
injuries.
We have commissioned the project and
delivered first gold in only 2 years, marking the fourth capital
project that we have completed in the last 10 years. All of these
have been completed in two years or less, and have been delivered
on schedule, on budget and with no lost time injuries. This is a
testament to the quality of our projects team and the competitive
advantage we have in West Africa.
At the Sabodala-Massawa BIOX® Expansion we
expect to achieve nameplate capacity in Q3-2024 driving stronger
production at lower all-in sustaining costs through the year,
sustaining the Sabodala-Massawa complex’s industry leading cost
profile.
With the Sabodala-Massawa expansion
successfully commissioned, we are now focussed on delivering the
Lafigué project in the coming weeks, a full quarter ahead of
schedule. The successful launch of both the Sabodala-Massawa
expansion and the Lafigué project will further improve the quality
of the portfolio, adding low-cost production and extending mine
life visibility. The completion of the two projects underpins our
transition to a more cash flow generative phase, from the second
half of the year, when we will focus on enhancing shareholder
returns and de-levering our balance sheet, as we continue to
execute on our strategy.”
Since the start of wet commissioning on 27
February 2024, approximately 50,000 tonnes of ore have been
processed through the BIOX® Expansion, with the processing plant
operating in line with expectations. The first gold pour from the
gravity circuit was completed on 18 April 2024 and yielded
approximately 112 ounces of gold, the first gold pour from the
BIOX® circuit was completed on 28 April 2024 and yielded
approximately 612 ounces. The BIOX® Expansion is expected to
achieve commercial production in late Q2-2024 and ramp up to its
stable nameplate capacity of 1.2Mtpa, in Q3-2024.
Figure 1: First gold pour from the
BIOX® circuit pictured at the Sabodala-Massawa BIOX®
Expansion project
Please refer to Figure in the attached press
release.
Figure 2: Lawrence Manjengwa,
Vice President and Head of Operations at
Sabodala-Massawa, pictured with the first gold
bar from the BIOX® circuit at the Sabodala-Massawa
BIOX® Expansion
Please refer to Figure in the attached press
release.
SABODALA-MASSAWA EXPLORATION PROGRAMME
At Sabodala-Massawa, 2.3 – 2.7Moz of Indicated
resources discoveries are being targeted over the 2021 to 2025
period, of which 1.0Moz has already been discovered. This year an
aggressive $21.0 million exploration program, totalling
approximately 126,000 meters of drilling, has been planned with the
aim of converting existing resources into reserves and delineating
additional refractory and non-refractory resources across the
Sabodala and Massawa mining permits, in addition to the recently
acquired Niamaya exploration permit to the northeast of
Sabodala-Massawa complex. The Niamaya permit is located within
close proximity to the processing plant and increases the size of
the Sabodala-Massawa exploration package by 43km2 to
1,272 km2.
Figure 3: Sabodala-Massawa
Exploration Map
Please refer to Figure in the attached
press release.
The exploration program will focus on converting
existing resources to reserves, principally at the Delya, Samina,
Tina, Kerekounda and Golouma deposits that are in close proximity
to the Sabodala-Massawa processing plant.
The exploration program will also target
additional non-refractory oxide resources at the Niakafiri,
Kerekounda, Golouma, Kiesta and Delya deposits. At the Niakafiri,
Kerekounda and Golouma deposits, within 10 kilometres of the
Sabodala-Massawa processing plant, drilling will focus will on
extending mineralisation along the Niakafiri and Kerekounda
mineralised trends. At the Kiesta and Delya deposits, drilling will
focus on expanding the existing resources along strike and at
depth.
Refractory resources will be targeted at the
Massawa Complex, where the exploration programme is focussed on
extending resources at depth in the Massawa Central Zone pits and
along the Main Transcurrent Zone structural corridor towards the
Kanoumba complex and the Kwasara target.
ABOUT THE SABODALA-MASSAWA
MINE
The Sabodala-Massawa mine was acquired by
Endeavour in February 2021, as part of its acquisition of Teranga.
Endeavour owns a 90% stake in the Sabodala-Massawa mine, with
the remaining 10% owned by the Government of Senegal.
Located approximately 630 km east-southeast
of Dakar, the capital of Senegal, the Sabodala-Massawa
mine consists of several open pit operations on the highly
prospective Birimian Greenstone Belt. Non-refractory ore is treated
at a 4.0Mtpa CIL plant that achieved commercial production in
November 2009. In 2021, Endeavour expedited the completion of the
initial upgrades at the existing CIL plant and simultaneously
advanced the definitive feasibility study for the addition of a
refractory ore processing plant to confirm the economic viability
of processing the high-grade refractory ores from the Massawa
Central Zone and Massawa North Zone deposits. In April 2022,
Endeavour launched the construction of the 1.2Mtpa BIOX® circuit to
process the large refractory ore resource with first gold achieved
on 18 April 2024. As at 31 December 2023, Proven and Probable
reserves totalled 53.1Mt at 2.05 g/t containing 3.5Moz of gold and
Measured and Indicated resources (inclusive of reserves) totalled
88.2Mt at 1.92 g/t containing 5.4Moz of gold. For the full year
ended 31 December 2023, Sabodala-Massawa produced 294koz at an AISC
of $767/oz. For FY-2024, Sabodala-Massawa is expected to produce
between 360-400koz at an AISC of between $750-850/oz.
Sabodala-Massawa is Endeavour’s largest
exploration focus in 2024 with a guided spend of $21 million, or
31% of total Group exploration expenditure for the year. The
exploration programme is focussed on converting existing resources
to reserves and expanding non-refractory and refractory resources
for the existing CIL processing plant and the new BIOX® Expansion
respectively. The exploration programme remains on track to achieve
its 5-year target of discovering an additional 2.3 - 2.7Moz of
Indicated resources by the end of 2025.
QUALIFIED PERSONS
Mark Morcombe, COO of Endeavour Mining PLC., a
Fellow 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 ("NI 43-101") and has
reviewed and approved the technical information in this news
release.
CONTACT INFORMATION
Jack Garman
Vice President, Investor Relations
+442030112723
jackgarman@endeavourmining.com |
Brunswick Group LLP in London
Carole Cable, Partner
+442074045959
ccable@brunswickgroup.com |
ABOUT ENDEAVOUR MINING
CORPORATION
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.sedar.com for
further information respecting the risks affecting Endeavour and
its business.
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