Endeavour Announces Wet Commissioning is Underway at Lafigué
Project
ENDEAVOUR ANNOUNCES WET COMMISSIONING IS
UNDERWAY AT LAFIGUÉ PROJECT
First gold expected in late-June · Project ahead
of schedule and on budget · 94% project completion
HIGHLIGHTS:
-
Wet commissioning of the processing plant is now underway
with overall construction activities 94% complete
-
Project remains on budget with first gold pour expected in
late-June; a quarter earlier than initially scheduled
-
Ore stockpiles stand at 1.6Mt at 1.30g/t gold for 65koz,
with over 14.4Mt of material mined since Q4-2023
-
Lafigué is expected to produce between 90-110koz of gold at
a sector leading AISC of between $900-975/oz in
FY-2024
-
92% national workforce on site with over 10% of the
workforce from the local community
|
Abidjan, 30 May
2024 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDMF)
(“Endeavour”, the “Group” or the “Company”) is pleased to announce
that wet commissioning activities are now underway at the Lafigué
project in Côte d’Ivoire. The project is on budget, with
construction now 94% complete, and the first gold pour is expected
to take place in late-June, a quarter ahead of schedule.
Ian Cockerill, Chief Executive Officer,
commented: “We are pleased with our progress at the Lafigué
project, as we begin wet commissioning, with construction on budget
and a quarter ahead of schedule. Lafigué is set to become another
cornerstone asset in Endeavour’s portfolio; with over 200koz of
annual production at an all-in sustaining cost below $900/oz over
its initial 13 year mine life.
Lafigué is a great example of our strong
track record of organic value creation. The project was discovered
through our own ambitious exploration programme for a cost of $31
million, equivalent to an industry low discovery cost of just $12
per Indicated resource ounce. Given its potential, we expedited the
necessary technical studies before launching construction in
Q4-2022 and we have now started wet commissioning at the project in
only 21 months from construction launch, and we continue to track
ahead of schedule for first gold in late-June. This is a tremendous
achievement, and it reiterates the strength of our exploration and
projects teams, which are underpinned by the high geological
prospectivity and the favourable operating environment in West
Africa.
With the commissioning of the Lafigué
project now underway and first gold production at the
Sabodala-Massawa BIOX® expansion achieved in early Q2 this year,
Endeavour is well positioned to successfully execute its growth
strategy, completing the current phase of investment, and
transitioning to a more cash flow generative phase. We will
continue to support our operations, optimisation initiatives and
exploration, while we re-focus our capital allocation priorities on
de-levering our balance sheet and increasing our commitment to
shareholder returns.”
Wet commissioning of the crushing, milling and
CIL circuits at the Lafigué processing plant are underway, with
first ore delivered to the crushing and milling circuits on 24 May.
Mining equipment mobilisation has fully advanced and mining
activities continue to accelerate according to schedule with 14.4Mt
of material moved since mining activities commenced in Q4-2023. Ore
stockpiles currently stand at 1.6Mt of ore grading 1.30 g/t gold
containing 65koz.
Initial growth capital expenditure for the
project is $448.0 million, of which approximately $434.9 million or
97% has been committed to date, with pricing in line with
expectations. $369.9 million, or 83% of the growth capital has been
incurred to date, with approximately $78.1 million expected to be
incurred in the remainder of Q2 and early Q3.
The addition of the Lafigué mine to Endeavour’s
portfolio, is expected to add average annual production of 203koz
at an AISC of $871/oz over its initial 13 year mine life, with
expected production of 90-110koz at an AISC of between $900-975/oz
in FY-2024.
Endeavour remains focussed on building local
talent, and during the project construction, up to 3,000 employees
and contractors were on site, 92% of whom were Ivorian nationals,
with over 10% from the local community. Endeavour launched a
partnership with the Ivorian Ministry of Technical Education,
Vocational Training and Apprenticeships to offer technical skills
training to young adults from the communities local to Lafigué, to
help combat youth unemployment. To date, 65 students in the
programme have been successfully employed at Lafigué in long-term
technical roles.
Figure 1: Lafigué processing plant overview with
project construction 94% complete
Please refer to Figure in the attached press
release.
Figure 2: Primary crushing
circuit with wet commissioning in progress
Please refer to Figure in the attached press
release.
Figure 3: Wet commissioning of the
ball mill is underway
Please refer to Figure in the attached press
release.
Figure 4: Wet commissioning of HPGR
is underway
Please refer to Figure in the attached press
release.
Figure 5: Wet commissioning of the
CIL circuit is underway
Please refer to Figure in the attached press
release.
Figure 6: Completed elution
circuit
Please refer to Figure in the attached press
release.
Figure 7: Gold room construction is
now largely complete
Please refer to Figure in the attached press
release.
ABOUT THE LAFIGUÉ PROJECT
The Lafigué permit is located towards the
northern end of the Birimian aged Oumé-Fetekro greenstone belt, in
north-central Côte d’Ivoire, approximately 500km from Abidjan by
road. The Lafigué deposit is located in the northeast part of the
Fetekro exploration permit, adjacent to existing infrastructure,
including sealed paved roads and high voltage grid power. Endeavour
has an 80% ownership stake in the Lafigué Project (with 10% owned
by the Ivorian Government and 10% owned by SODEMI, a state-owned
mining company) and a 100% ownership stake in the remainder of the
Fetekro exploration license.
Endeavour began exploration on the Fetekro
property in March 2017, following a strategic assessment of its
exploration tenements which identified the project as a top
priority target. To date, only a limited portion of the Fetekro
property has been explored, as the priority has been the
delineation of the Lafigué deposit. A maiden Mineral Resource
Estimate for the Lafigué deposit was published on 29 October 2018
and subsequently updated on 3 September 2019, 18 August 2020, and
15 May 2022. A Preliminary Economic Assessment (“PEA”) was
published on 18 August 2020 and a Preliminary Feasibility Study
(“PFS”) was completed with the effective date 31 December 2020.
Construction of the Lafigué project in Côte
d'Ivoire was launched in early Q4-2022, following the completion of
a Definitive Feasibility Study (“DFS”) which confirmed Lafigué’s
potential to be a cornerstone asset for Endeavour. The 2022 DFS
contemplates a 12.8 year LOM with average annual production of
203koz at a low AISC of $871/oz. The project displays robust
economics at an $1,800/oz gold price assumption including an
after-tax NPV5% of $870M and an after-tax IRR of 33%.
As at 31 December 2023, Proven and Probable
reserves totalled 49.9Mt at 1.69 g/t containing 2.7Moz of gold and
Measured and Indicated resources (inclusive of reserves) totalled
46.2.1Mt at 2.04 g/t containing 3.0Moz of gold.
Given the strong exploration potential,
Endeavour is targeting the discovery of 1.5 – 2.0 Moz of Indicated
resources across the Lafigué mining permit and the wider Fetekro
exploration permit area over the 2021 to 2025 period at a discovery
cost of $45/oz, to date 0.6 Moz has been discovered.
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
+44 203 011 2723
jackgarman@endeavourmining.com |
Brunswick Group LLP in London
Carole Cable, Partner
+44 207 404 5959
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, Côte 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.
- 240530 - NR - Lafigue Wet Commissioning
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