|June 13, 2011|
Endeavour Mining Reports Q1 2011 Cash Flow from Mine Operations of $6.6 Million and on Track to Produce 84,000 ozs in 2011
(All figures are in US dollars unless otherwise indicated)
George Town, Grand Cayman, June 13, 2011 - Endeavour Mining Corporation ("Endeavour" or the "Corporation") (TSX:EDV) today announces financial and operational results for the first quarter of 2011.
As required by applicable Canadian rules, effective Q1 2011, Endeavour has prepared its financial statements in accordance with International Financial Reporting Standards ("IFRS"), including the restatement of the comparative periods previously reported under Canadian generally accepted accounting principles.
The Corporation's Youga Mine in Burkina Faso produced 20,056 ounces of gold during Q1 2011 at cash cost of $664 per ounce sold1. Endeavour is pleased to reiterate its production guidance for 2011 with a production target of 84,000 ounces of gold at cash cost of approximately $600 per ounce sold1. At March 31, 2011, the Corporation had cash & equivalents and marketable securities of $196 million and was debt-free.
Financial Highlights from Q1 2011
During Q1 2011, the Corporation spent approximately $1.3 million of the 2011 budget amount of $10 million for Youga and Ouaré exploration, with promising results including:
During Q2 2011, the level of exploration activity has accelerated with 3 drilling rigs operating and a 4th rig being added. By mid-year 2011, the actual amount invested in the Youga and Ouaré programs will be close to $5 million.
During Q1 2011, 7,970 metres of infill and condemnation drilling were completed at Agbaou in Côte d'Ivoire. This drilling program was interrupted in late March 2011 due to political unrest in the country; however, results from the completed drilling work are currently being processed and evaluated. The Corporation intends to recommence the drilling program towards the end of Q2 2011 with our increasing confidence in the safety of employees and contractors. With drilling recommencing in late-June, the engineering studies supporting project development are anticipated in late Q4 2011.
Unlocking Value from Non-core Assets
Subsequent to Q1 2011, Endeavour is pleased that the inherent value of the Lofdal rare earths property in Namibia has been unlocked through a spin-out and IPO transaction. The Lofdal property was part of the Etruscan exploration portfolio acquired by Endeavour in September 2010. Endeavour has retained a 38.5% indirect ownership through a 30 million share holding of Namibia Rare Earths Inc., a newly-listed company on the TSX. On closing of the IPO (April 14, 2011), Endeavour's ownership was valued at CDN$24.3 million.
Conference Call Details
Management's discussion of the financial results will be webcast by V-Call on Monday, June 13, 2011 at 11:00 am Eastern Time or 8:00 am Pacific Time and can be accessed from the Corporation's website at www.endeavourmining.com or by calling the operator at 201-689-8565 or toll-free 1-877-407-0778 prior to the scheduled start time. The call will be archived for later playback on Endeavour's website until June 13, 2012.
In order to access the Corporation's financial statements directly, please click the following URL: http://files.newswire.ca/910/EDV_Q1_2011_FS_MD&A.pdf.
Financial Statements and related Management Discussion and Analysis will also be available on SEDAR.
K. Kirk Woodman, P. Geo, Head of Exploration is the Qualified Person overseeing Endeavour's exploration projects in West Africa and has reviewed and approved this press release.
Adrian De Freitas, C.Eng., General Manager, Youga Mine is the Qualified Person overseeing production and development in West Africa and has reviewed and approved this press release.
About Endeavour Mining Corporation
Endeavour is a gold producer. Endeavour also holds an extensive exploration land position and various advanced-stage development gold projects in West Africa. Endeavour has a global strategy, supported by financial resources and management's company building expertise, to grow into an intermediate gold producer through strategic acquisitions.
The common shares of Endeavour Mining Corporation are traded on the Toronto Stock Exchange under the symbol "EDV".
On behalf of Endeavour Mining Corporation
Executive Vice President & Chief Financial Officer
1 Cash Cost per Ounce is a non-GAAP financial performance measure with no standard meaning under IFRS. The amount presented is calculated on the basis of gold ounces sold and operating costs exclude royalties, refining, freight, and non-cash adjustments.
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.
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