Near-mine exploration programs yield strong results for Endeavour Mining

Toronto Stock Exchange: EDV           
Australian Securities Exchange: EVR

MONACO, Feb. 23, 2012 /CNW/ - Endeavour Mining Corporation ("Endeavour" or the "Corporation") (TSX:EDV, ASX:EVR) is pleased to report the results from the successful 2011 exploration programs and provide an overview of the 2012 work plans for the Nzema gold mine in Ghana and the Youga gold mine in Burkina Faso.  Total attributable measured and indicated mineral resources have increased to 3.8 million gold ounces plus 1.4 million gold ounces inferred as of December 31, 2011 at a 0.5 g/t cut-off (see Table 1 at the end of this news release).  Highlights include:

Youga gold mine, Burkina Faso

  • 49% increase in proven and probable reserves (a gain of 179,000 ounces; net of 2011 depletion) and extension of mine life to 7.3 years (see Table 2 at end of this news release)
  • Addition of 172,000 ounces of measured and indicated mineral resources (net of 2011 depletion, at a 0.5 g/t cut-off) from the Main and East hanging wall mineralization and the satellite deposits

Nzema gold mine, Ghana

  • Addition of 65,000 ounces of measured and indicated mineral resources (net of 2011 depletion, at a 0.5 g/t cut-off), plus a 40% increase of inferred mineral resources of 186,000 ounces at a 0.5 g/t cut-off
  • Updated Nzema reserves are currently being prepared for reporting in the next few weeks

2012 Exploration Budget

  • Exploration budget of US$30 million for 2012 to continue resource delineation, test deposit extensions and exploration of new targets including $7.5 million allotted to Youga and $8.1 million to Nzema mine permits.  The 2012 exploration budget includes +200,000 metres of drilling.

Over 60% of the combined 2011 exploration expenditure of $23 million was dedicated to delineating resources and increasing reserves at the Youga and Nzema mines with a combined total of 82,252 metres of drilling.  An exploration summary with a list of previously unreported drill hole intercepts and exploration activities in the fourth quarter of 2011 is provided on the Endeavour Mining website (http://www.endeavourmining.com/i/pdf/2011-12-31_ES.pdf) and should be read in conjunction with this news release.

Neil Woodyer, CEO, stated: "I am very pleased with the results of the 2011 exploration programs. With both Nzema and Youga operating in steady-state mode, our primary exploration focus was to extend mine life and at Youga we extended mine life to 7.3 years by increasing reserves by 49% (net of 2011 depletion).  At Nzema, where existing reserves support a 10 year mine life, the exploration programs focused on oxides and sulphides along the Salman trend.  I expect the on-trend oxides could enhance the short to medium term production scheduling while the sulphides provide us with a large-scale opportunity.  In addition, we are now in a position to extend our exploration efforts to our early stage projects in Côte d'Ivoire, Mali and Liberia."

Youga 2012 Exploration Program

The 2012 Youga program includes 10,500 metres core drilling and 40,500 metres reverse circulation (RC) drilling within the mine permit area and will test:

  • depth extent of the Main deposit to examine the possibility for pit expansion or underground potential
  • the East deposit on strike, exploring a possible fault offset area, and also to test below the planned pushback prior to commencement of mining
  • strike extensions of the A2NE, Zergoré, NTV deposits to add resources
  • several prospects (Laforge, Castel, Beaufort) on the 3 km long Brasserie Trend which extends north and south from the Zergoré deposit
  • the Leduc deposit which will be examined for potential to add to resources this year.

In addition, several new exploration targets have been identified for prospecting and drilling, following completion of a comprehensive structural synthesis based on field examinations and the existing airborne magnetic and radiometric survey of the Youga area.

The majority of mineralization at Youga is hosted within Tarkwa sediments however the A2NE and Zergoré deposits have demonstrated that similar opportunities are present in the surrounding Birimian greenstone belt.  Soil geochemistry, ground geophysics, and RC drilling is planned on Tarkwa and Birimian units within the surrounding Zerbogo and Songo permits.

Nzema 2012 Exploration Program

The 2012 Nzema exploration program includes:

  • delineating and exploring the oxides in Salman and Anwia
  • drilling of the Salman trend sulphides
  • drilling on Aliva, Bokrobo, Nfutu, Avrebo to delineate additional resources and improve classification of inferred resources
  • exploration drilling on Tumentu, Akropon, Bernard and Hotopo areas.

The program includes 8,200 metres core drilling and 27,900 metres RC drilling mostly on the deposits in the immediate mine area plus 17,800 metres reverse air blast (RAB) and air core drilling plus auger, trench, soil sampling programs to develop new oxide targets.

In 2011, a conceptual study including initial metallurgical testwork for the Salman sulphides was received and forms the basis to advance this significant opportunity towards a preliminary economic assessment.  The 2012 Salman sulphide work program will include resource delineation, further metallurgical testwork, and associated engineering studies.

Qualified Persons

K. Kirk Woodman, P. Geo, General Manager Exploration is the Qualified Person overseeing Endeavour's exploration projects in Burkina Faso, Mali and Cote d'Ivoire and has reviewed and approved this press release.

Martin Bennett, MAIG, General Manager Exploration is the Qualified Person overseeing Endeavour's exploration projects in Ghana and Liberia and has reviewed and approved this press 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 and Mineral Reserve Estimates at the Youga Mine contained in this news release.

About Endeavour Mining Corporation

Endeavour is a growth focused West African gold production and exploration company led by an accomplished management team. Endeavour is currently producing gold at a rate of 180,000 ounces per year from two operating mines (Nzema in Ghana and Youga in Burkina Faso). With a near-term mine construction decision (Agbaou in Côte d'Ivoire) and an extensive 2012 exploration program underway, Endeavour's goal is to produce approximately 250,000 ounces of gold per year from the end of 2013 from existing properties. Endeavour also has an acquisition growth strategy focused on West Africa and is targeting the acquisition of additional gold production before the end of 2013.

Endeavour Mining Corporation is listed on the TSX (symbol EDV) and ASX (symbol EVR).

On behalf of Endeavour Mining Corporation

"Neil Woodyer"

Neil Woodyer
Chief Executive Officer

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The foregoing information may contain forward-looking information relating to the future performance of Endeavour Mining Corporation. Forward-looking information, specifically, that concerning future performance, is subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Corporation's filings with the appropriate securities commissions.

Table 1: Mineral Resources including reserves, 0.5g/t cut-off as of 31 December 2011

Deposit   Measured  Indicated Measured & Indicated Inferred 
kt Au (g/t) k Ozs kt Au (g/t) k Ozs kt Au (g/t) k Ozs kt Au (g/t) k Ozs
Nzema1,2,3,4, - Total 31,658 1.4 1,409 16,671 1.2 656 48,329 1.3 2,064 17,725 1.1 652
Attributable - 90%     1,268     590     1,858     587
Youga5 3,526 2.3 266 7,897 1.6 398 11,422 1.8 664 3,462 1.2 138
Attributable - 90%     239     358     598     124
Youga Satellites6 3,220 1.1 118 3,731 1.2 146 6,951 1.2 264 1,211 1.4 55
Attributable - 90%     106     131     238     50
Ouaré 7 - Total                   4,738 2.1 323
Attributable - 90%                       291
Agbaou8- Total       16,590 1.9 1,015 16.590 1.9 1,015 5,072 1.7 272
Attributable - 85%           863     863     231
Finkolo9 - Total 3,290 2.3 242 6.820 2.0 445 10.110 2.1 687 6,730 1.4 301
Attributable - 40%     97     178     275     120
Total     2,036     2,660     4,694     1,741
Total Attributable     1,710     2,120     3,831     1,403

Table 2: Mineral Reserves at Youga as of 31 December 2011

Deposit Proven  Probable  Total 
  kt Au (g/t) k Ozs kt Au (g/t) k Ozs kt Au (g/t) k Ozs
Youga5 2,238 2.4 176 2,396 1.8 141 4,634 2.1 317
Youga Satellites6 1,279 1.4 59 1,396 1.6 71 2,674 1.5 131
Youga Total 3,517 2.1 235 3,792 1.7 212 7,308 1.9 448
Youga Attributable - 90%     212     191     403

Totals may not add due to rounding errors.

1 Technical Report Southern Ashanti Gold Project, Ghana, West Africa effective August 17, 2009, prepared by Ron Heeks (M.AusIMM), Technical Manager Adamus Resources Limited. Qualified Persons not independent of Endeavour Mining Corporation, Depleted as of December 31, 2011
2 2012 Mineral Resource update of the Salman Gold Deposit effective February 16 2012, prepared by Nic Johnson (M.AIG), MPR Geological Consultants.
3 2012 Mineral Resource update of the Aliva and Nfutu Gold Deposits effective February 17, 2012, prepared by Nic Johnson (M.AIG), MPR Geological Consultants.
4 Mineral Resource for the Akropon Gold Deposit, Internal Resource Estimate effective February 20, 2012, prepared by William Yeo, Qualified Persons not independent of Endeavour Mining Corporation.
5 Technical Report and Update of Mineral Resources and Mineral Reserves for the Youga Gold Mine, Burkina Faso, West Africa, effective December 31, 2010 and dated March 15, 2011, prepared by A. de Freitas and K. Woodman, Qualified Persons not independent of Endeavour Mining Corporation, Depleted as of December 31, 2011
6 Youga Satellite Deposits, Internal Resource Estimates, prepared by AMEC under supervision of K. Woodman Internal Reserve Estimates, prepared by SEMS under supervision of A. de Freitas Qualified Persons not independent of Endeavour Mining Corporation
7 Ouare Deposit, Internal Resource Estimate, dated June 16 2009 prepared by A. Mouton under supervision of K. Woodman Qualified Persons not independent of Endeavour Mining Corporation
8 Feasibility Update Study Report on the Agbaou Gold Project, Cote d'Ivoire, West Africa for Etruscan Resources Inc, dated September 2009, prepared by MDM Engineering International Ltd. and Coffey Mining Pty Ltd.
9 Tabakoroni Feasibility Study Report, Tabakoroni Gold Deposit, Mali, West Africa,  dated June 10, 2010, prepared by S. Stein and K. Woodman, Qualified Persons not independent of Endeavour Mining Corporation

 

 

SOURCE Endeavour Mining Corporation

For further information:

Stephen Roberts, Vice President - Investor Relations +1 604 609 6130, sroberts@endeavourmining.com

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