VANCOUVER, June 25, 2014 /CNW/ - Endeavour Mining Corporation ("Endeavour" or the "Corporation") (TSX:EDV) (ASX:EVR) (OTCQX:EDVMF) announces commencement of production of ore from the Segala underground mine as planned. In addition the Kofi Nord mining permit has been received. This mining permit area covers all eight of the known deposits on the Kofi property and includes the Kofi C deposit which is now incorporated in the Tabakoto production schedule for 2015. The Segala and Kofi deposits provide additional feed sources and exploration upside for the Tabakoto milling complex, which was doubled in capacity in 2013.
First ore production from the first stope in the Segala underground mine occurred on June 22, 2014. Photo 1 shows the ore pile at the bottom of the first stope. The Segala mine will continue to ramp up the volume of ore being hauled in the coming months, displacing relatively lower grade material currently being processed from stockpiles.
Neil Woodyer, CEO, stated
"Segala provides the Tabakoto plant with another source of higher grade ore. Add to that the commencement of owner mining at the Tabakoto underground mine and we are well on the way to finishing the production improvement program that we set in motion a year ago when we doubled the plant capacity.
We also recently received the mining permit for the Kofi Nord property which gives us an additional feed from the Kofi C deposit. The Kofi Nord property is currently known to host eight deposits, so we see significant potential for this property to be a long-term feed source for our Tabakoto mill."
Segala is accessed by a spiral decline that extends from the mined-out Segala open pit and follows the footwall of the steeply dipping ore body. Mineralization occurs as a series of parallel closely spaced zones that comprise the main ore body which is 20 metres wide on average. The long hole transverse mining method with cemented rock fill is being used. This method enables the ore to be mined in multiple passes in those areas where the ore body is particularly wide.
The decline is currently over 1,290 metres in length and extends to a vertical depth of over 200 metres. Development takes place on levels spaced 20 metres apart and over 3,750 metres have been completed on the upper four levels which will give access to four stopes by the end of Q3. A total of eight stopes will be active at different mining stages (mucking, drilling, cable bolting, filling, or in development) when the production is fully ramped up.
Ore is being hauled from the mine in 30 tonne trucks to a ROM pad and then hauled by 18 tonne trucks to the Tabakoto plant, 5 km to the southeast. The average planned grade is 3.70 g/t.
The transition to owner mining in the Tabakoto underground mine is progressing well. Owner mining commenced April 1st, and although Q1 and Q2/2014 include some overlapping costs, it is anticipated that the mining costs will reduce according to the schedule and make the Tabakoto operation more cost effective in the second half of this year.
The Segala underground mine is also owner-operated such that all underground activities are now being completed by Endeavour employees. Endeavour retained over 300 employees from the contractor for a high level of workforce continuity, and there is a continued focus on training the Malian workforce.
Kofi Nord Permit Received
The mining permit for Kofi Nord was received on June 13, 2014. The permit incorporates all eight of the Kofi mineral deposits (Indicated mineral resource of 8.065 Mt at 2.31 g/t Au for 599,100 ounces plus Inferred mineral resource of 10.536 Mt at 1.71 g/t Au for 577,600 ounces; qualified persons listed below).
Geotechnical, metallurgical, environmental and social investigations were completed as part of the evaluation of the Kofi C deposit. Studies continue on the Kofi B deposit and will progress to the other deposits on the Kofi property.
The Kofi C deposit adds 1.552 Mt at 4.26 g/t Au for 213,000 ounces of Probable mineral reserves to Tabakoto and opens up the opportunity for incorporation of the other deposits into the production schedule. A 38 km haul road is planned and production is scheduled for early 2015. A total capital expenditure is estimated at under $13 million and would be incurred in early 2015 but may be brought forward to the end of 2014.
Adriaan "Attie" Roux, Pr.Sci.Nat, Endeavour's Chief Operating Officer, is a Qualified Person under NI 43-101, and has reviewed and approved the technical information related to mining operations in this news release.
The Tabakoto and Kofi mineral resources and mineral reserves are reported within "Technical Report and Mineral Resource and Reserve Update for the Tabakoto Gold Mine, Mali, West Africa" effective date December 31, 2013. Prepared by G. de Hert (Endeavour), K. Harris (Endeavour), M. Alyoshin (Endeavour), V. Duke (Sound Mining), A. Roux (Endeavour), E. Puritch, P.Eng. (P&E Mining Consultants Inc.), and A. Yassa, P.Geo. (P&E Mining Consultants Inc.).
About Endeavour Mining Corporation
Endeavour is a Canadian-based gold mining company producing over 400,000 ounces per year from four mines in West Africa. Endeavour is focused on effectively managing its existing assets to maximize cash flow as well as pursuing organic and strategic growth opportunities that benefit from its management and operational expertise.
On behalf of Endeavour Mining Corporation
Chief Executive Officer
This news release contains "forward-looking statements" including but not limited to, statements with respect to Endeavour's plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, and the success of exploration activities. 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.
Image with caption: "Segala ore pile in first stope. (CNW Group/Endeavour Mining Corporation)". Image available at: http://photos.newswire.ca/images/download/20140625_C1419_PHOTO_EN_3933.jpg
Image with caption: "Tabakoto and Kofi Properties. (CNW Group/Endeavour Mining Corporation)". Image available at: http://photos.newswire.ca/images/download/20140625_C1419_PHOTO_EN_3934.jpg
SOURCE: Endeavour Mining Corporation
For further information: Doug Reddy, SVP Business Development, +1 604 609 6114, [email protected]; UK/Europe: Bobby Morse, Buchanan, +44 20 7466 5000, [email protected]; Endeavour Mining Corporation, Corporate Office, Suite 3123, 595 Burrard Street, P.O. Box 49139, Vancouver, BC V7X 1J1 Canada, Tel: +1 604 685 4554, www.endeavourmining.com; A Cayman Islands exempted company with limited liability. ARBN 153 067 639