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ENDEAVOUR INCREASES INDICATED RESOURCES AT FETEKRO BY 141% TO 1.2MOZ
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FETEKRO HIGHLIGHTS:
- 35,000m were drilled on the Lafigue target following the maiden resource published in October 2018 which was based on only 32,000m of drilling
- Lafigue deposit Indicated resource has grown by 141% while grade increased by 13% - Indicated resource of 14.6 million tonnes at 2.54 g/t Au for 1,190Koz
- Inferred resource of 0.9 million tonnes at 2.17 g/t Au for 60Koz
- Low discovery cost of $9 per Indicated resource ounce
- 95% of the resource has been classified to the Indicated category
- The Lafigue deposit extends over an area 2.2 km long by 0.6 km wide and remains open at depth and towards the Southeast and South
- Amenable to open pit mining as mineralization starts at surface
- Preliminary metallurgical tests indicate high gold recovery rates of above 95% with a significant portion recoverable by gravity
- At least 30,000m of additional drilling is scheduled to begin in Q4-2019 with an updated resource expected to be published in Q2-2020
Abidjan, September 3, 2019 - Endeavour Mining (TSX:EDV)(OTCQX:EDVMF) is pleased to announce that it has increased Indicated resources for the Ivorian Fetekro greenfield exploration property by 141% to 1.2Moz, boosting confidence in its ability to achieve its objective of discovering a standalone project through exploration.
Sebastien de Montessus, President and CEO stated: "We are excited at the value we have created through exploration as we have effectively deployed circa $10 million to generate a resource in excess of one million ounces of gold at an attractive grade of over 2.5 g/t. Fetekro's resource scale has reached an important milestone as it is now similar in size and grade to that of our Agbaou mine when it started production in 2014. We are therefore eager to advance our exploration efforts to continue to grow the resource base while initiating various environmental and technical studies.
From a broader perspective, while our immediate focus is on cash flow generation, we are very excited with the internal growth optionality being generated in parallel through our exploration success as it leaves us well poised for future growth."
Endeavour began exploration on the Fetekro property in March 2017, following a strategic assessment of its exploration tenements which ranked the property as a top priority target. The majority of drilling to-date has focused on the Lafigue target where a maiden resource was published on October 29, 2018, based on 32,000 meters drilled. Since then approximately 35,000 meters have been drilled to infill and extend the Lafigue deposit, which led to a 0.7Moz increase in Indicated resources while increasing the average grade by 13% to 2.54 g/t Au, as presented in Table 1 below.
The Lafigue resource estimate now encompasses a mineralized area extending 2.2 km long by 0.6 km wide which remains open at depth and towards the southeast. At least 30,000 meters of additional drilling is scheduled to begin in Q4-2019 with an updated resource expected to be published in Q2-2020.
Table 1: Lafigue Mineral Resource Estimate Evolution
AS AT DECEMBER 31, 2018 AS AT AUGUST 31, 2019 D
AU CONTENT
On a 100% basis Tonnage Grade Content Tonnage Grade Content
(Mt) (Au g/t) (Au koz) (Mt) (Au g/t) (Au koz)
Measured Resource - - - - - - n.a.
Indicated Resources 6.8 2.25 494 14.6 2.54 1,190 +141%
M&I Resources 6.8 2.25 494 14.6 2.54 1,190 +141%
Inferred Resources 3.0 2.25 225 0.9 2.17 60 (73%)
Mineral Reserve Estimates follow the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definitions standards for mineral resources and reserves and have been completed in accordance with the Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101. 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. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Resources were constrained by MII Pit Shell and based on a cut-off of 0.5 g/t Au.
Patrick Bouisset, Executive Vice President Exploration and Growth stated: "We are very pleased with the significant increase in resource at the Lafigue deposit, as we continue to advance and evaluate its potential as a stand-alone project. Moreover, we are proud to have exceeded the one-million-ounce mark at very low discovery costs and within a very short timeframe.
Due to its attractive grade, thickness and continuity, we consider the Lafigue resource to be of high quality and believe it is amenable to open pit mining as the mineralization starts at surface. We therefore look forward to continuing exploration at the Lafigue deposit as it remains open to the southeast and at depth."
ABOUT THE LAFIGUE DEPOSIT
As shown in Figure 1 below, Fetekro is located in north-central Cote d'Ivoire, approximately 500km from Abidjan, within the northern-end of the Oume-Fetekro greenstone belt.
Figure 1: Simplified Map of the Fetekro Property Showing Lafigue
The majority of drilling to date has focused on the Lafigue target where a maiden resource was published on October 29, 2018, based on drilling 312 Reverse Circulation ("RC") and Diamond Drilling ("DD") holes totaling 32,000 meters. Due to the high quality of these initial exploration results, 201 additional RC and DD holes totaling approximately 35,000 meters were drilled between Q4-2018 and the end of Q2-2019. The program comprised of 187 RC holes totaling 32,335 meters, 4 DD holes totaling 85 meters, 10 RC/DD holes totaling 2,597 meters (of which 2,253 meters RC and 344 meters DD). In addition, 58 RC reconnaissance holes totaling 7,050 meters were drilled at several nearby targets to define geology and test the occurrence of mineralization.
The recently completed Lafigue infill and extension drilling campaign was very successful as more than 90% of the drill holes encountered at least 2 meters of greater than 0.5 g/t Au mineralization which led to the significant resource increase as shown in Table 1 above. A sensitivity analysis performed at a gold price of $1,250/oz demonstrates the robustness of the Lafigue resource model due to its relative high-grade and continuous mineralization, as shown in Table 2 below.
Table 2: Lafigue August 2019 Mineral Resource Estimate
Tonnage Grade Content
(Mt) (Au g/t) (Au koz)
INDICATED RESOURCE
Based on a gold price of $1,500/oz 14.6 2.54 1,190
Based on a gold price of $1,250/oz 13.2 2.64 1,123
INFERRED RESOURCE
Based on a gold price of $1,500/oz 0.9 2.17 60
Based on a gold price of $1,250/oz 0.7 2.29 53
No Measured resources have been estimated. Mineral Reserve Estimates follow the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definitions standards for mineral resources and reserves and have been completed in accordance with the Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101. 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. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Resources were constrained by MII $1,500/oz Pit Shell and for sensitivity purpose by MII $1,250/oz pit shell and based on a cut-off of 0.5 g/t Au.
As shown in Figure 2 below, three main mineralized zones have been confirmed at the Lafigue deposit (Lafigue South, Center, and North), with Lafigue Center and North remaining open at depth and towards the south and southeast. Step out drilling located at 200 meters to the south and east from the present-day defined resources demonstrate the Lafigue upside potential and suggest that the mineralized area could be significantly larger.
Figure 2: Lafigue Geological Interpretation and Selected Best Intercepts Per Area
Selected best intercepts since November 2018 include (true width uncapped):
- LFRC18-419: 3.9m at 3.57g/t Au, and 5.9m at 5.19g/t Au, including 1.00m at 17.98 g/t Au, And 7.9m at 10.64 g/t Au, including 1.00m at 32.93 g/t Au, including 1.00m at 29.64 g/t Au, and 3.9m at 5.20 g/t Au, including 1.00m at 17.62 g/t Au, And 15.7m at 2.77 g/t Au
- LFRC18-429: 7.9m at 11.79 g/t Au, including 1.00m at 51.99 g/t Au, and 4.9m at 7.42 g/t Au, including 1.00m at 33.45 g/t Au
- LFRCDD19-439: 3.9m at 4.37 g/t Au, and 8.9m at 2.92 g/t Au, including 1.00m at 17.43 g/t and 14.8m at 9.12 g/t Au, including 1.00m at 65.10 g/t Au, including 1.00m at 46.70 g/t Au
- LFRC19-446: 4.9m at 4.00 g/t Au, and 12.8m at 6.23 g/t Au, including 1.00m at 61.00 g/t Au, and 10.82m at 5.85 g/t Au, including 1.00m at 40.70 g/t Au, and 16.7 m at 6.59 g/t Au, including 1m at 37 g/t Au
- LFRC19-493: 32.5m at 13.38 g/t Au, including 1.00m at 46.30 g/t Au, including 1.00m at 54.90 g/t Au, including 1.00m at 21.20 g/t Au, including 1.00m at 103.70 g/t Au, including 1.00m at 48.00 g/t Au, including 1.00m at 39.00 g/t Au, and including 1.00m at 21.23 g/t Au, and 12.8m at 2.80 g/t Au
- LFRC19-497: 6.9m at 2.93 g/t Au, and 10.8m at 7.12 g/t Au, including 1.00m at 50.90 g/t Au, and 8.9m at 2.65 g/t Au.
- LFRC19-500: 13.8m at 5.83 g/t Au, including 1.00m at 10.20 g/t Au, including 1.00m at 23.09 g/t Au, including 1.00m at 17.09 g/t Au
- LFRC19-510: 11.8m at 11.27 g/t Au, including 1.00m at 66.20 g/t Au, including 1.00m at 31.80 g/t Au, including 1.00m at 24.23 g/t Au
- LFRC19-583: 16.7m at 3.65 g/t Au, including 1.00m at 12.09 g/t Au
- LFRC19-600: 7.9m at 28.22 g/t Au, including 1.00m at 170.70 g/t Au, including 1.00m at 18.73 g/t Au, including 1.00m at 22.23 g/t Au
- LFRCDD19-609: 5.90m at 12.81 g/t Au, and 24.6m at 3.17g/t Au, including 1.00m at 24.46 g/t Au, and 5.3m at 6.49 g/t Au, and 3.5m at 3.75 g/t Au
- LFRC19-610: 8.9m at 15.30 g/t Au, including 1.00m at 109.00 g/t Au
- LFRC19-615: 18.7m at 4.78 g/t Au, including 1.00m at 13.93 g/t Au, including 1.00m at 30.30 g/t Au
- LFRC19-617: 36.4m at 8.66 g/t Au, including 1.00m at 32.60 g/t Au, , including 1.00m at 20.61 g/t Au, including 1.00m at 16.24 g/t Au, including 1.00m at 20.50 g/t Au, including 1.00m at 37.10 g/t Au, including 1.00m at 38.90 g/t Au, including 1.00m at 21.91 g/t Au
- LFRC19-619: 6.9m at 3.74 g/t Au, including 1.00m at 14.52 g/t Au, and 7.9m at 11.02 g/t Au, including 1.00m at 71.30 g/t Au
- LFRC19-634: 11.8m at 11.42 g/t Au, including 1.00m at 24.50 g/t Au, including 1.00m at 37.30 g/t Au, including 1.00m at 54.60 g/t Au, and 11.8m at 17.79 g/t Au, including 1.00m at 76.70 g/t Au, including 1.00m at 41.00 g/t Au, including 1.00m at 48.90 g/t Au
- LFRC19-666: 11.3m at 32.05 g/t Au, including 1.00m at 53.00 g/t Au, including 1.00m at 115.50 g/t Au, including 1.00m at 133.90 g/t Au, including 1.00m at 34.60 g/t Au, including 1.00m at 27.31 g/t Au
Integration of the available geophysical and geological data over the Fetekro permit indicates that the geology of the Lafigue domain comprises a series of west/southwest and east/northeast trending folds that are offset and buckled by a series of well-developed northeast trending shear zones and northeast trending folds. This domain comprises a well-developed series of south to southeast dipping shear zones that are folded and sheared by the northeast trending shear zones creating an overall ductile sinistral shear band network at the deposit to the km-scale.
The current interpretation of the Lafigue deposit suggests it is hosted within an early shear zone that has been subsequently modified by folding and shear events. Locally, the Lafigue deposit is focused within a felsic intrusive hosted within an east/northeast and west/southwest striking, moderately southeast-dipping sinistral shear zone. Based on the mapping of the main mineralized intercepts, the lodes appear to reflect a sinistral extensional vein network system comprising planar shear lode and link-lode style system. Overall, the mineralization is mainly developed within the hanging-wall of a possible basal thrust east/northeast and west/southwest striking, which is either located at the contact between a mafic volcanics sequence and a mafic intrusive or between a mafic intrusive and a felsic intrusive, as shown in the Lafigue North cross-sections in Figure 3 and 4 below.
Figure 3: Lafigue North Cross-Section (Eastern part)
Figure 4: Lafigue North Cross-Section (Western part)
LAFIGUE DEPOSIT UPSIDE
The Lafigue deposit clearly remains open in various directions, specially towards South and South East.
As shown in Figures 2 and 4 above, hole LFRC19-666 which was drilled 200 meters away from the current resource boundary and intercepted very high mineralization (11.3m at 32.05 g/t, including 1.0m at 53.00 g/t Au, 1.0m at 115.50 g/t Au, 1.0m at 10.27 g/t Au, 1.0m at 133.90 g/t Au, 1.0m at 34.60 g/t Au, 1.0m @ 27.31 g/t Au) suggests that the mineralized area could be significantly larger. Very high-grade mineralization that were intercepted with step out drilling follow the same general structural and lithological model as observed at Lafigue North and Center.
Structural and intrusive control along N60°-80° gently south dipping structures, intersection of NNE30° trending major shear zones with the N60-80° structures and, intersection of Northeast and Northwest trending faults, tend to strongly promote the presence of mineralization at South of Lafigue North. At this triple intersection points encountered grade are generally higher than 3g/t Au over a thickness wider than 10 meters, with visible gold observed.
To date, drill spacing in South and South East area is insufficient to demonstrate the continuity of mineralization and to estimate resources. Exploration drilling will therefore resume in Q4-2019 with the aim of delineating additional resources and testing at-depth potential.
As exploration efforts of the 2019 campaign were mostly concentrated in the Lafigue North area to quickly delineate resources, some other areas remain under-explored, such as the junctions between Lafigue North/Center and Lafigue Center/South. Due to the attractive results recently obtained (such as hole LFRC19-622 shown in Figure 5 below), additional drilling has been planned in this area with the aim of delineating resources.
Figure 5: Lafigue Center Cross-Section
OTHER NEARBY TARGETS
The November 2018 to end of Q2-2019 drilling campaign was mostly focused on resources delineation drilling over the Lafigue deposit. As such, limited activity (only 58 RC reconnaissance holes totaling 7,050 meters) was conducted on nearby several nearby targets to define geology and test the occurrence of mineralization.
Approximately 35% of the reconnaissance drilling program was dedicated to the larger Western Anomalies ("WA"), WA 2 and 6 targets following the positive results obtained over WA1 and WA3 targets last year. As shown in Figure 6 below, drill results over these large gold in soil anomalies successful identified mineralization associated with a network of subparallel N020° directed steep shear zones hosting both subvertical and shallow quartz veins of different nature, and strong hydrothermal alteration.
Figure 6: Fetekro new Gold in Soil Map and Selected Gold Intercepts over WA 02 and 06 (Apparent width uncapped)
New gold in soil anomalies (some over 500 ppb) have also been outlined during the last geochemical campaign (4,861 samples collected), mainly in the western and central sector of the Fetekro license where geophysics indicate possible contrasted lithologies, folding to the north and a major sinistral shear zone occurring between the western and eastern domains.
The Western Anomalies, in addition to the other successfully tested targets, are expected to be further explored during the 2020 drilling campaign.
METALLURGY
Preliminary tests included ten Lafigue variability samples representative of the ore resource. Testwork focussed on gravity gold recovery with cyanidation of the gravity tail. Gold recoveries were high from all facies with between 30 and 60% gravity gold recovery and overall gold extractions above 95%.
Further metallurgical tests are underway based on the recently completed drilling. The composites were received by ALS Metallurgy Services, Australia, in August 2019 and results are expected by year-end.
NEXT STEPS
- A 10,000 meter extension drilling program will be initiated in Q4-2019 over Lafigue North and Center to increase the Lafigue resource base, and to evaluate the continuity, grade and thickness at depth.
- An updated resource for the Lafigue deposit is expected to be published in Q2-2020.
- A 20,000 meter drilling program is expected to be launched in early 2020 over the nearby Fetekro targets.
LAFIGUE RESOURCE MODELLING
The statistical analysis, geological modelling and resource estimation were prepared by Kevin Harris, CPG. Mr. Harris is Endeavour Mining's V.P. Resource Manager and a Qualified Person as defined by NI 43-101.
The Fetekro Lafigue resource model was developed in Geovia's Surpac software. A total of 14 mineralized zones were defined from the current drilling data and geologic interpretations across Lafigue South, Center, and North areas. The gold assays from the drill holes were composited to 1.0 meter intervals within the mineralized wireframes and capped from 15 g/t to 30 g/t Au. Spatial analysis of the gold distribution within the mineralized zone using variograms indicated a good continuity of the grades along strike and down dip of the mineralized zones.
Density was measured in 726 core samples within the various rock types then averaged within the model by the weathered zones. The laterite-saprolite density is 1.80, the transition is 2.2, and the fresh rock is 2.80.
The gold grade was estimated using ordinary kriging constrained within the mineralized domains. The grade was estimated in multiple passes to define the higher confidence areas and extend the grade to the interpreted mineralized zone extents.
The grade estimation was validated with visual analysis and comparison with the drilling data on sections and with swath plots comparing the block grades with the composites.
The mineralized domains were classified into indicated and inferred resource classifications, depending on the sample spacing, number samples, confidence in mineralized zone continuity, and geostatistical analysis. The indicated classification was generally applied to blocks within the mineralized zoned defined by a minimum of seven samples from at least three drill holes with a 50-meter search. The inferred classification is defined by a minimum of three samples within a 75-meter search from two drill holes.
The resource was constrained by a $1,500 pit shell and 0.50 g/t cut-off. The Whittle pit shell optimization assumed a base mining cost of $2.50/t, $3.00/t for transition ore and $3.50/t for fresh rock ore, mining recovery of 95%, mining dilution of 15%, pit slope of 40o, recovery of 92% of the gold, and processing and G&A cost of $25/t.
ASSAYS AND QUALITY ASSURANCE / QUALITY CONTROL / DRILLING AND ASSAY PROCEDURES
The Reverse Circulation drill program samples were collected on a 1-meter interval using dual tube, a percussion hammer and drop centre bit. The material passes through a cyclone which is thoroughly cleaned after every sample by flushing the hole. Samples were split at the drill site using a 3-tier riffle splitter with both bulk and laboratory sample weights and moisture recorded. Representative samples for each interval were collected with a spear, sieved into chip trays and retained for reference.
Drill core (PQ, HQ and NQ size) samples are selected by LMCI geologists and sawn in half with a diamond blade at the project site. Half of the core is retained at the site for reference purposes. Sample intervals are generally 1 meter in length.
All samples are transported by road to Bureau Veritas (BV) in Abidjan (Cote d'Ivoire). Each laboratory sample is secured in poly-woven bags ensuring that there is a clear record of the chain of custody. On arrival samples are weighed and crushed to 2mm (70% passing), pulverize entire sample to 75m (85% passing). Samples are analyzed for gold using standard fire assay technique with a 50-gram charge and an Atomic Absorption (AA) finish. Blanks, field duplicates and certified reference material (CRM's) are inserted by LMCI geologists in the sample sequence for quality control and to ensure there are a suite of QC samples in each fire assay batch.
The sampling and assaying at Lafigue is monitored through the implementation of a quality assurance - quality control (QA-QC) program. This QA-QC program was audited by International mining consultant in 2019 and consequently designed to follow industry best practices.
Full drill results are available by clicking here.
QUALIFIED PERSONS
The scientific and technical content of this news release has been reviewed, verified and compiled by Silvia Bottero, Professional Natural Scientist, Cote d'Ivoire regional Exploration Manager. Silvia Bottero has more than 15 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"). The resource estimation was completed by Kevin Harris, CPG, VP Resources for Endeavour Mining and "Qualified Person" as defined by National Instrument 43-101.
CONTACT INFORMATION
Martino De Ciccio Brunswick Group LLP in London
VP - Strategy & Investor Relations Carole Cable, Partner
+44 203 640 8665 +44 7974 982 458
[email protected] [email protected]
ABOUT ENDEAVOUR MINING CORPORATION
Endeavour Mining is a TSX listed intermediate African gold producer with a solid track record of operational excellence, project development and exploration in the highly prospective Birimian greenstone belt in West Africa. Endeavour is focused on offering both near-term and long-term growth opportunities with its project pipeline and its exploration strategy, while generating immediate cash flow from its operations.
Endeavour operates 4 mines across Cote d'Ivoire (Agbaou and Ity) and Burkina Faso (Hounde, Karma) which are expected to produce 615-695koz in 2019 at an AISC of $760-810/oz.
For more information, please visit www.endeavourmining.com.
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 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 availabi lity, 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 oth er 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. AISC, all-in sustaining costs at the mine level, cash costs, operating EBITDA, all-in sustaining margin, free cash flow, net free cash flow, free cash flow per share, net debt, and adjusted earnings are non-GAAP financial performance measures with no standard meaning under IFRS, further discussed in the section Non-GAAP Measures in the most recently filed Management Discussion and Analysis.
Attachments
- Fetekro Drill Results
- Figure 1 - Simplified Map of the Fetekro Property Showing Lafigué
- Figure 2 - Lafigué Geological Interpretation and Selected Best Intercepts Per Area
- Figure 3 - Lafigué North Cross-Section (Eastern part)
- Figure 4 - Lafigué North Cross-Section (Western part)
- Figure 5 - Lafigué Center Cross-Section
- Figure 6 - Fetekro new Gold in Soil Map and Selected Gold Intercepts over WA 02 and 06 (Apparent width uncapped)
- View News Release in PDF Format
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