|
View News Release in PDF Format
Highlights:
-- Significant high-grade maiden resource totaling 515koz of Indicated and 108koz of Inferred on the recently announced Bakatouo and Colline Sud discoveries
<p>-- Located in proximity to the current mining complex, with mineralization close to surface and average gold grades nearly twice that of the current resource base
-- Located in proximity to the current mining complex, with mineralization close to surface and average gold grades nearly twice that of the current resource base
-- Provides potential to both extend the existing heap leach operation and improve the economics of the future CIL project
-- Both discoveries remain open with follow-up drilling now commencing
-- Recently completed Auger drilling program outlines large and highly anomalous clusters with values as high as 7,000ppb, identifying several new near-mine high priority exploration targets
-- High resolution Airborne geophysical survey is planned before year-end on the recently secured 80km trend along the Ity mine
-- Feasibility Study for Ity CIL Project expected to be published later this week, which will be updated in H1-2017 to include the Bakatouo and Colline Sud discoveries
Endeavour Mining Corporation (TSX:EDV)(OTCQX:EDVMF) is pleased to announce a maiden Mineral Resource estimate for its recent Bakatouo and Colline Sud discoveries at its Ity Gold Mine in Cote d'Ivoire. It also announces the identification of several new high-priority near-mill exploration targets following the completion of its Auger drilling program.
The Bakatouo and Colline Sud deposits, both located within 2.5km from the current processing plant, are characterised by their high-grade and close-to-surface mineralization and remain open in various directions. Moreover, a large portion of the resource is amenable to the heap leach process with oxide and fresh mineralization content making up 42% of the total Indicated resource ounces. This suggests the potential to both extend the existing heap leach operation and improve the economics of the future Carbon-in-Leach ("CIL") project, for which a feasibility study is expected shortly.
The Bakatouo and Colline Sud resources have been estimated based on the drill results published on September 13 and October 14, 2016, respectively.
Table 1: NI 43-101 Mineral Resource estimate at a lower cut-off grade of 0.5g/t Au on a 100% basis
Deposit Indicated Resource Inferred Resource
Tonnes Grade Ounces (koz) Tonnes Grade Ounces (koz)
(kt) (g/t Au) (kt) (g/t Au)
Bakatouo 4,812 3.07 475 762 2.86 70
Colline Sud 588 2.13 40 472 2.53 38
Total 5,400 2.97 515 1,234 2.73 108
The mineral resource estimate of the Bakatouo and Colline Sud deposits are reported in accordance with National Instrument 43-101 and has been estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) "Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines". The mineral resource estimate is classified as "Indicated" and "Inferred" as defined by the CIM. More details provided in Appendix 1.
Sebastien de Montessus, President & CEO, stated: "We are very pleased with these results and resource estimates as they demonstrate the significant upside potential that exists in and around Ity. They reinforce our belief that Ity can become another flagship asset. We will soon be publishing the feasibility study for the proposed CIL project and will work to update this in early 2017 to include these new resources. As part of this, we will examine the trade-off opportunity of operating both the existing heap leach operation and CIL in parallel for the first few years."
Patrick Bouisset, Executive Vice-President Exploration and Growth of Endeavour, commented: "Beyond the recently announced discoveries and high-grade resource increase, we are very excited about the prospectivity of the Greater Ity Area. The results of our Auger drilling program coupled with our gold in soil and structural analysis indicate that the overall potential of the area extends well beyond our present resource footprint.
We look forward to continuing to expand our ongoing exploration program to further explore the newly identified near-mine targets and along the wider 80 kilometer trend, for which a high resolution Airborne geophysical survey is expected to be initiated before year-end."
About the Auger drilling program and New Identified Targets
A regional 2,150 holes Auger drilling program, totalling 26,855 meters, has recently been completed within a 5km area of the current mining complex, on both the 55%-owned Ity mine area and the 100%-owned adjacent exploration tenements.
Auger results indicate that very strong anomalous gold values (>1,000 ppb) occur within the saprolite at numerous locations within the area covered by the program, allowing for the definition of large and highly anomalous clusters and the generation of several new near-mine high priority exploration targets.
The most significant near-mine targets identified are:
-- Bakatouo Northeast area: Auger results clearly suggest a 1km northeast trending anomaly located immediately to the northeast of the new Bakatouo discovery, with best values >7,000ppb in the saprolite.
-- Vavoua area: New 1.5km northeast trending anomaly with best values >1,400ppb in the saprolite.
-- Morgan/Yacetouo area: Large and significant 3km long and northeast trending anomaly with best values >2,450ppb in the saprolite.
-- Le Plaque area (PR 558): Significant 2km long N20° trending anomaly with best values >5,000ppb in the saprolite.
-- Daapleu Southwest area: Large gold anomaly in saprolite that covers over 4km(2), with best values >2,200ppb.
Drilling grid N135° was designed to be orthogonal to the regional geological structural trends. A total of 9,640 samples were collected at 200 x 50 meters and 400 x 50 meters grid spacing.
The defined Auger clusters may correspond and validate previously identified gold in soil anomalies (such as in Colline Sud or Daapleu) or allow for the definition of new prospective areas (such as Bakatouo NE or Daapleu SW), where no gold in soil anomalies were previously detected due to a probable alluviums cover associated with Cavally river overflows.
All the holes penetrated the alluvial cover and were terminated at least 2 meters within the mineralized saprolite. A high number of samples taken within the lateritic to mottled zone section above the saprolite also returned some very high grades (up to 10,000 ppb over several meters). Although these samples may not represent the nature of the underlying geology and mineralization, they indicate gold occurrences in the area of the newly defined targets. This reinforces our view that these targets are highly prospective.
Next Steps
-- Exploration has resumed on Colline Sud and is expected to continue in H1-2017
-- Exploration is expected to soon resume on Bakatouo and on the newly defined exploration targets and continue in H1-2017
-- Further insights on the medium-term exploration will be detailed in the upcoming Exploration Strategic Review for both the near-mine and Greater Ity Areas.
-- High resolution Airborne geophysical survey (Mag/Spectro/VTEM) expected to be initiated before year-end on the 80km-long Greater Ity Area
-- Feasibility Study for Ity CIL Project expected to be published later this week, which will be updated in H1-2017 to include the Bakatouo and Colline Sud discoveries
About the Mineral Resource
The effective date of this resource estimate is June 27, 2016. The mineral resource is reported at a 0.50 g/t gold cut-off grade within Whittle optimised pit shells based the economic parameters described in Table 2 below:
Table 2: Whittle Pit Shell Parameters
Parameter
Pit Slope Angle 40
Gold Price US$1,500/oz
Mining Cost $3.5/t
Mining Recovery 95 %
Mining Dilution 30 %
Processing Cost $30/t
Colline Sud Recovery Rate 90 %
Bakatouo Recovery Rate Varies between 70-90%
Preliminary metallurgical studies done on the Bakatouo and Colline Sud deposits indicate that the gold recoveries of the mineralized material are similar to the other deposits at the Ity Gold Mine.
Bakatouo Resource Modeling
The Bakatouo gold mineralization is carried in various facies such as oxide and reduced superficial clays, granodiorite, marbles, and endo and exoskarn facies located at the contact between intrusives and sediments. This mineralization is characterised by high-grade areas, especially where karstification processes concentrated the initial gold mineralization into a much smaller rock volume.
The Bakatouo geological model was developed in Leapfrog 3D modeling software using available geology information from 165 diamond drill holes totaling 20,417 meter completed between 2014 and 2016. The geological model and assay data guided the mineralisation model. A total of 20 mineralized domains were interpreted and modeled into 3D wireframes within Geovia Surpac modeling software. The mineralized zones have an average strike of 45 azimuth dipping 50NW. The drill holes gold assays were composited to one meter intervals within the mineralized wireframes and capped at 50 g/t Au. Spatial analysis of the gold mineralization using variograms indicated a good continuity of the grades along strike and down dip of the mineralised zones.
Gold grades were interpolated using ordinary kriging constrained by the mineralized domains. Density values of the oxidized material vary from 1.3 to 1.5 based on weathering material type while the fresh rocks density values vary from 2.7 to 2.9 based on rocktypes. The mineral resource was modelled using a 3D block model built in Geovia Surpac. Measures were conducted to validate the accuracy of the estimate, including comparing results from the kriging estimate to inverse distance and nearest neighbour estimates, swath plots comparison and visual review on sections.
Colline Sud Resource Modeling
The Colline Sud mineralization is mainly hosted by surficial oxidized clays. In the South East sector it is oriented at N45 azimuth along strike and dipping on average at 55 NW. It sits above some enhanced dissolution areas located at the contact between marbles and volcanosediments. Mineralization is also hosted in volcanosediment and skarnoide marble at depth. The contact between carbonate and volcanosediments could represent a possible shearing zone, which may have favoured posterior circulation of fluids linked with neighbouring intrusives. Skarns facies are also present, although less developed than in Mount Ity or Bakatouo. Ore bodies in Colline Sud are also thinner and less developed than at Bakatouo.
The methodology used to estimate a mineral resource for the Colline Sud deposit is very similar to the one described for the Bakatouo deposit. The Colline Sud database consists of 132 diamond drill holes and 25 reverse circulation holes for a total 13,089 meters. The geological model was completed in the Geovia Surpac mining software from which 21 mineralised domains were created. The average strike and dip of the mineralised zones is 45 azimuth dipping 55oNW. Composite intervals of 1.0 meter were used with a capping of 27 g/t Au. The oxidized material density values range from 1.4 to 1.5 and vary by weathering material type. The fresh rocks were assigned a density of 2.8.
The disclosure of a mineral resource statement for the Bakatouo and Colline Sud deposits is not deemed material to Endeavour as a whole. Therefore, the Company will not be filing a technical report in respect of this mineral resource estimate.
Assays and Quality Assurance/Quality Control
The Bakatouo and Colline Sud drill results used to estimate the resources presented in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. Drill core (HQ and NQ) samples were prepared on site at the SMI (Societe des Mines Ity). The prep samples were analyzed using a standard 50-gram gold fire assay with an Atomic Absorption finish at Bureau Veritas Laboratories (Abidjan). Core sampling and assay data were monitored through a quality assurance/quality control program designed to follow NI 43-101 and industry best practice.
Auger samples were directly collected on site. A composite sample was taken for each lithology (laterite, duricrust and mottled zone) except for saprolite where one or two composites of two meters long were taken at bottom hole. Samples were crushed and pulverized on site at the Ity exploration mechanical preparation facilities. The pulverized samples (pulps) were analyzed using a standard 50-gram gold fire assay with an Atomic Absorption finish at Bureau Veritas Laboratories in Abidjan (independent lab). ICP-ES analysis were completed by ACME Laboratories Ltd. in Vancouver. Sampling and assay data were monitored through a quality assurance/quality control program designed to follow NI 43-101 and industry best practice.
Only results issued from saprolite composites are represented in the Figure 1 of the Appendix.
Qualified Person
The statistical analysis, geological modelling and resource estimation were prepared by Kevin Harris, CPG. Mr. Harris is Endeavour Mining's Group Resource Manager and is a "Qualified Person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
The scientific and technical content related to Auger drilling of this news release has been reviewed, verified and compiled by Gerard de Hert, EurGeol, Senior VP West Africa Exploration for Endeavour Mining. Gerard de Hert has more than 19 years of mineral exploration and mining experience, and is a "Qualified Person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
About Endeavour Mining Corporation
Endeavour Mining is a TSX-listed intermediate gold producer, focused on developing a portfolio of high quality mines in the prolific West-African region, where it has established a solid operational and construction track record.
Endeavour is ideally positioned as the major pure West-African multi-operation gold mining company, operating 5 mines in Cote d'Ivoire (Agbaou and Ity), Burkina Faso (Karma), Mali (Tabakoto), and Ghana (Nzema). In 2016, it expects to produce between 575koz and 610koz at an AISC of US$870 to US$920/oz. Endeavour is currently building its Hounde project in Burkina Faso, which is expected to commence production in Q4-2017 and to become its flagship low-cost mine with an average annual production of 190koz at an AISC of US$709/oz over an initial 10-year mine life based on reserves. The development of the Hounde project is expected to lift Endeavour's group production to + 900kozpa and decrease its average AISC to circa $800/oz by 2018, while exploration aims to extend all mine lives to +10 years.
Contact Information
Martino De Ciccio DFH Public Affairs in Toronto
VP - Strategy & Investor Relations John Vincic
+33 (0)1 70 38 36 95 (416) 206-0118 x.224
[email protected] [email protected]
Brunswick Group LLP in London
Carole Cable, Partner
+44 7974 982 458
[email protected]
Corporate Office: 5 Young St, Kensington, London W8 5EH, UK
This news release contains "forward-looking statements" including but not limited to, statements with respect to Endeavour's plans and operating performance, the mineral resource estimate of the Bakatouo and Colline Sud deposits, 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. 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.
Appendix 1: Detailed Resource Table
Detailed NI 43-101 Mineral Resource estimate at a lower cut-off grade of 0.5g/t Au on a 100% basis
Deposit and Mineralization Type on a 100% basis Indicated Resource Inferred Resource
Tonnes Grade Ounces Tonnes Grade Ounces
(kt) (g/t Au) (koz) (kt) (g/t Au) (koz)
Bakatouo Deposit
Oxide + Transition 1,628 3.73 179 218 4.19 26
Fresh 3,184 2.90 296 544 3.66 45
Sub-Total 4,812 3.07 475 762 2.86 70
Colline Sud Deposit
Oxide + Transition 588 2.13 40 220 2.90 20
Fresh - - - 252 2.21 18
Sub-Total 588 2.13 40 472 2.53 38
Total Bakatouo and Colline Sud
Oxide + Transition 2,216 3.07 219 438 3.24 46
Fresh 3,184 2.90 296 796 2.44 63
Total 5,400 2.97 515 1,234 2.73 108
Notes:
-- The oxide-transition material is amenable to the heap leach process currently in use at the Ity Mine.
-- Indicated and Inferred Mineral Resources are not Mineral Reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
-- Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor variations may occur during the addition of rounded numbers.
-- In order to establish the "reasonable prospects for eventual economic extraction", the Mineral Resources were constrained within a Whittle-optimized US$1,500 pit shell.
Appendix 2: Ity Area Maps
Figure 1: Ity Area Auger and Geochemistry Anomalies
Note: The gold-in-soil and Auger high cut-off values used compared to standard reporting values (100 ppb) were chosen to improve the readability of the above map.
Figure 2: Simplified Ity Area Map with Exploration Targets
Attachments:
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/87c7db65-d5bd-4c59-bccb-ca5306b5f748
Attachments:
http://www.globenewswire.com/NewsRoom/AttachmentNg/52a1a345-37e8-45c5-b35e-8fdb1f94d192
Attachments:
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/714c354e-a7b3-4960-8920-67cbdb8ac1c3
<img src="http://www.globenewswire.com/newsroom/ti?ndecode=MTUwIzY2MDI0NTQ=" alt="" width="1" height="1"/>
|
