|March 13, 2012|
Endeavour Mining Reports 2011 Financial Results And Demonstrates Significant Growth
(All figures in US dollars unless otherwise indicated)
Monaco, March 13, 2012 -- Endeavour Mining Corporation ("Endeavour" or the "Corporation") (TSX:EDV, ASX:EVR) today announced its financial and operational results for the fourth quarter and year ended December 31, 2011. On December 5, 2011 the merger between Endeavour and Adamus Resources Limited ("Adamus"), which owns 90% of the Nzema Gold Mine in Ghana, became effective. Adamus' results are included in Endeavour's financial results for the 26 day period from December 6, 2011 to December 31, 2011 ("26 day period"), which limits the comparability of the audited figures. Endeavour is a growth focused West African gold producer with two operating mines and an EPCM contract being tendered for its third mine, Agbaou. In addition, significant exploration programs to extend mine lives are being conducted on the mine lease areas.
2011 Financial and Corporate Highlights include:
Neil Woodyer, CEO stated: "We have completed a significant year of growth and are very pleased with the operating performance at our Nzema and Youga gold mines during 2011. At the end of 2011, we completed a significant financial restructuring and increased our exposure to gold through de-hedging and sale of non-core assets. We have successfully integrated our management teams and established a new operations centre in Accra, Ghana. The Nzema mine building team are advancing the Agbaou Project and they have commenced the EPCM tender process. Our growth profile also includes $24 million for 2012 near-mine exploration programs to extend mine lives and $6 million for regional programs. We will also be reviewing a number of acquisition opportunities."
Operational Highlights (unaudited) for the year ended December 31, 2011, adjusted to include the full year for the Youga Gold Mine and the Nzema Gold Mine:
Mark Connelly, COO stated "Endeavour's 2011 operating results demonstrate our solid operating platform. Endeavour is producing gold at 180,000 ounces per year from two steady-state operations and expects to produce gold at a rate of 250,000+ ounces per year by the end of 2013 through the development of Agbaou. With the financial strength to fully fund the entire Agbaou capital cost, we are positioned to initiate a fast start to construction activities and reach our 2013 production target."
Nzema Gold Mine, Ghana - Full Year 2011 Highlights and 2012 Production Guidance
2 Production guidance provided by Adamus Resources Limited was on a June year-end basis and is not comparable to a December year-end basis
3 Nzema declared commercial production on April 1, 2011
4 For the nine month period from April 1, 2011 to December 31, 2011
Youga Gold Mine, Burkina Faso -- Full Year 2011 Highlights and 2012 Production Guidance
Operational Highlights, as presented in the audited financial statements for the year ended December 31, 2011 and related MD&A, include the full year for the Youga Gold Mine and the Nzema Gold Mine for the 26 day period:
2012 Exploration Program
Endeavour has approved an exploration budget of $30 million for 2012. Approximately $16 million is directed towards increasing resources and reserves to extend mine lives at the Nzema and Youga operations, $6 million towards increasing resources and reserves at Agbaou, and the balance of $8 million towards delineating resources and conducting further metallurgical testing of the Nzema Sulphides in Ghana and advancing the exploration programs on key properties in Burkina Faso, Côte d'Ivoire, Ghana, Liberia, and Mali.
Conference Call Details
Management's discussion of the year end results will be webcast by V-Call on:
Wednesday, March 14, 2012 at 6:00 pm Toronto time or 3:00 pm Vancouver time
Equivalent to Thursday, March 15, 2012 at 9:00 am Sydney time or 6:00 am Perth time
The conference call will feature Neil Woodyer, Chief Executive Officer, Mark Connelly, Chief Operating Officer, and Christian Milau, Chief Financial Officer.
The conference call can be accessed from the Corporation's website at www.endeavourmining.com or by calling the operator prior to the scheduled start time at:
International +1 201 689 8565
North American toll-free +1 877 407 0778
Australian toll-free 0011 800 4626 6666
The call will be archived for later playback on Endeavour's website until March 14, 2013. Financial Statements and related MD&A will be available on SEDAR, the ASX, and in the Investor Relations section of Endeavour's website.
In order to access the Corporation's financial statements directly, please click the following URL: http://files.newswire.ca/910/EDVConsolidatedDec3111.pdf
Adriaan "Attie" Roux, Pr. Sci.Nat, Endeavour's Senior Vice President -- Operations, is a Qualified Person under NI 43-101, and has reviewed and approved the technical information related to mining operations in this news release.
K. Kirk Woodman, P.Geo., Endeavour's General Manager of Exploration, is the Qualified Person overseeing exploration projects in French West Africa and has reviewed and approved the technical information related to Mineral Resource Estimates at the Youga Mine contained in this news release.
Adrian de Freitas, MIMMM, C. Eng., Endeavour's General Manager, Youga Mine is a Qualified Person under NI 43-101, and has reviewed and approved the technical information related to mining operations at the Youga Mine contained in this news release.
About Endeavour Mining Corporation
Endeavour is a growth focused West African gold production and exploration company led by an accomplished management team. Endeavour is currently producing gold at a rate of 180,000 ounces per year from two operating mines (Nzema in Ghana and Youga in Burkina Faso) and has a near-term mine construction decision (Agbaou in Côte d'Ivoire) and an extensive 2012 exploration program underway. Endeavour's goal is to produce approximately 250,000 ounces of gold per year from the end of 2013 from existing properties. Endeavour also has an acquisition growth strategy focused on West Africa and is targeting the acquisition of additional gold production before the end of 2013.
Endeavour Mining Corporation is listed on the TSX (symbol EDV) and ASX (symbol EVR).
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.
For additional information, contact:
Stephen Roberts, Vice President -- Investor Relations, +1 604 609 6130, email@example.com
David Ikin, Professional Public Relations, +61 8 9388 0944, firstname.lastname@example.org
Florence Liberski, Renmark Financial Communications, +1 514 939 3989 or +1 416 644 2020, email@example.com
Mineral Reserves as of 31 December 2011
Mineral Resources including Reserves, at a 0.5g/t cut-off as of 31 December 2011
1 Technical Report Southern Ashanti Gold Project, Ghana, West Africa effective August 17, 2009, prepared by Ron Heeks (M.AusIMM), Technical Manager Adamus Resources Limited. Qualified Persons not independent of Endeavour Mining Corporation, Depleted as of December 31, 2011
2 2012 Mineral Resource update of the Salman Gold Deposit effective February 16 2012, prepared by Nic Johnson (M.AIG), MPR Geological Consultants.
3 2012 Mineral Resource update of the Aliva and Nfutu Gold Deposits effective February 17, 2012, prepared by Nic Johnson (M.AIG), MPR Geological Consultants.
4 Mineral Resource for the Akropon Gold Deposit, Internal Resource Estimate effective February 20, 2012, prepared by William Yeo, Qualified Persons not independent of Endeavour Mining Corporation.
5 Technical Report and Update of Mineral Resources and Mineral Reserves for the Youga Gold Mine, Burkina Faso, West Africa, effective December 31, 2010 and dated March 15, 2011, prepared by A. de Freitas and K. Woodman, Qualified Persons not independent of Endeavour Mining Corporation, Depleted as of December 31, 2011
6 Youga Satellite Deposits, Internal Resource Estimates, prepared by AMEC under supervision of K. Woodman Internal Reserve Estimates, prepared by SEMS under supervision of A. de Freitas Qualified Persons not independent of Endeavour Mining Corporation
7 Ouaré Deposit, Internal Resource Estimate, dated June 16 2009 prepared by A. Mouton under supervision of K. Woodman Qualified Persons not independent of Endeavour Mining Corporation
8 Feasibility Update Study Report on the Agbaou Gold Project, Cote d'Ivoire, West Africa for Etruscan Resources Inc, dated September 2009, prepared by MDM Engineering International Ltd. and Coffey Mining Pty Ltd.
9 Tabakoroni Feasibility Study Report, Tabakoroni Gold Deposit, Mali, West Africa, dated June 10, 2010, prepared by S. Stein and K. Woodman, Qualified Persons not independent of Endeavour Mining Corporation
You can view the Next News Releases item: Mon Apr 2, 2012, Endeavour Mining Commences Trading in the U.S. on OTCQX International
You can view the Previous News Releases item: Thu Mar 8, 2012, Endeavour Mining to Release Year End Results on March 13, 2012
You can return to the main News Releases page, or press the Back button on your browser.