Endeavour Mining Corporation : Endeavour's Ity CIL Project Construction is Tracking Ahead of Schedule and On-Budget
October 17 2018 - 6:11AM
ENDEAVOUR'S ITY CIL PROJECT CONSTRUCTION IS
TRACKING AHEAD OF SCHEDULE AND ON-BUDGET
View News Release in PDF
Abidjan, October 17, 2018 - Endeavour
Mining Corporation (TSX:EDV)(OTCQX:EDVMF) is pleased to announce
that the construction of its Ity Carbon-in-Leach ("CIL") Project in
Côte d'Ivoire is tracking two months ahead of schedule and remains
on-budget. The first gold pour is now expected to occur in early
Q2-2019 rather than mid-2019 as previously planned.
Sébastien de Montessus, President & CEO,
stated: "I'd like to thank the construction team for their hard
work and excellent progress achieved so far. Completing the
construction sooner is expected to result in material improvement
to our 2019 free-cash flow generation potential as Ity CIL will be
a low-cost operation with AISC expected to be below $500/oz over
its first 5 years."
Jeremy Langford, COO & Executive
Vice-President Projects added: "The experience that our in-house
construction team has gained from our previous builds in the
region, the early installation of the Ball and SAG mills, combined
with the excellent progress made during the rainy season, have been
key factors which have helped advance the Ity CIL construction
ahead of schedule. We are also particularly pleased with the
continued strong safety track record with zero lost-time incidents
to date."
KEY MILESTONES ACHIEVED TO DATE INCLUDE:
- More than 6 million man-hours worked with zero lost-time
injuries.
- Overall project completion stands at over 75%, tracking
approximately 2 months ahead of schedule.
- Nearly all of the $412 million initial capital cost has been
committed and approximately 65% has been spent (inclusive of drawn
equipment financing).
- The process plant construction is over 70% complete, tracking
ahead of schedule as the Ball and SAG mill installation commenced
three months earlier than initially planned. Structural,
mechanical, piping and electrical installation work is well
underway.
Picture 1: Process Plant
- Tailings storage facility (TSF) earthworks are progressing well
against schedule with over 70% completed. Rubber lining has
commenced.
Picture 2: Tailings Storage Facility
- The 90kv transmission line and 29MW power station construction
are progressing well against schedule with over 70% completed.
First power drawdown is expected to in Q1-2019.
Picture 3: Power Station
- The haul road bridge, to access the Daapleau pit, is 92%
complete, with substructure concrete completed.
Picture 4: Haul Road Bridge
- Employee permanent camp construction is complete with all 312
rooms available for occupation.
- The resettlement program is progressing well against schedule
with over 90% completed.
Picture 5: Resettlement
- More than 2,800 personnel, including contractors, are currently
employed on-site, approximately 90% of which are locals.
- The main upcoming milestones are presented in the figure
below:
Figure 1: Ity CIL Construction Milestones
ABOUT THE ITY CIL PROJECT
The Ity CIL project commenced construction in
September 2017, and is being carried out by Endeavour's in-house
team following their successful completion of the Houndé and Agbaou
constructions. The Optimized study, published in September 2017,
demonstrated the significant potential for Ity, which has already
been in operation for more than 20 years, to become another
flagship asset for Endeavour. The Ity CIL project is expected to
produce approximately 204,000 ounces annually for the first 10
years, at a low AISC of $549/oz with robust economics which
includes an after-tax NPV5% of $710m based on a gold price of
$1,250/oz.
QUALIFIED PERSONS
Jeremy Langford, Endeavour's Chief Operating
Officer - Fellow of the Australasian Institute of Mining and
Metallurgy - FAusIMM, is a Qualified Person under NI 43-101, and
has reviewed and approved the technical information in this news
release.
CONTACT INFORMATION
Martino De Ciccio VP - Strategy & Investor Relations +44
203 011 2719 mdeciccio@endeavourmining.com |
Brunswick Group LLP in London Carole Cable, Partner +44 7974
982 458 ccable@brunswickgroup.com |
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 5 mines across Côte d'Ivoire
(Agbaou and Ity), Burkina Faso (Houndé, Karma), and Mali (Tabakoto)
which are expected to produce 670-720koz in 2018 at an AISC of
$840-890/oz. Endeavour's high-quality development projects
(recently commissioned Houndé, Ity CIL and Kalana) have the
combined potential to deliver an additional 600koz per year at an
AISC well below $700/oz between 2018 and 2020. In addition, its
exploration program aims to discover 10-15Moz of gold between 2017
and 2021 which represents more than twice the reserve depletion
during the period. 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 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. 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.
- Picture 5: Resettlement.png
- View Press Release in PDF.pdf
- Picture 3: Power Station.jpg
- Figure 1: Ity CIL Construction Milestones.jpg
- Picture 1: Process Plant.jpg
- Picture 2: Tailings Storage Facility.jpg
- Picture 4: Haul Road Bridge.png
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