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 May 02, 2012
Endeavour Expands Nzema Sulphide Program And Initiates Preliminary Economic Assessment

 
Monaco, May 2, 2012 -- Endeavour Mining Corporation ("Endeavour") (TSX:EDV, ASX:EVR, OTCQX:EDVMF) is pleased to report the expansion of the sulphide drilling program at its 90% owned Nzema Gold Mine following review of drilling results to date, the delivery of the Conceptual Trade-off Study by AMEC Minproc Limited and initial metallurgical testwork completed at SGS Australia Mineral Services.

Drilling has confirmed the presence of several sulphide ore shoots below the principal oxide pits at the Salman Trend. Highlights include:

Teberu
  • SNRC1415    9 m @ 4.91 g/t Au    from 109 m
  • SNRC1416    14 m @ 4.13 g/t Au    from 104 m
  • SNRC1416    14 m @ 3.15 g/t Au    from 124 m
  • SNRC1451    10 m @ 3.84 g/t Au    from 72 m
  • SNRC1478    14 m @ 2.48 g/t Au    from 30 m
Salman North
  • SNRC1419    3 m @ 11.52 g/t Au    from 79 m
  • SNRC1464    12 m @ 9.67 g/t Au    from 38 m
Nugget Hill
  • SNDD1446    10 m @ 3.75 g/t Au    from 108 m
  • SNDD1447    16 m @ 2.04 g/t Au    from 62 m
Salman South
  • SNRC1378    14 m @ 1.94 g/t Au    from 63 m
  • SNRC1474    8 m @ 1.67 g/t Au    from 88 m
On the basis of these encouraging results the Nzema exploration program was expanded to include a larger sulphide drilling program, metallurgical testwork, and completion of a preliminary economic assessment by the end of 2012. The sulphide gold zones at Salman represent a target that Endeavour believes has the potential to significantly increase production at Nzema.

The testwork will examine process alternatives currently being employed to treat refractory sulphide mineralization within West Africa. The program budget was expanded from US$2.4 to US$6.4M for 2012 in order to accelerate the drilling and achieve the study objectives.

Sulphide Drilling Program Results

A total of 40 holes totalling 5,174 m have been completed thus far in the 2012 drilling campaign. Significant results for 2011 and 2012 drill campaigns are provided in Table 1.

RC and diamond drilling has targeted the sulphide zone between Salman North and Salman South (Figure 1). Drilling traverses were initially spaced at 100 metres to provide systematic coverage of the sulphide zones and to highlight the location of higher grade shoots to a vertical depth of 100 metres. At Teberu, Salman North and Salman South drilling results demonstrate the existence of wide zones of higher grade mineralization that represent ore shoots plunging shallowly to the south. Closer-spaced drilling has commenced at the locations of the ore shoots (50 metre by 50 metre grid) to assess continuity and to provide sufficient data for the generation of an inferred resource.

Shallower intercepts of oxide mineralization help to delineate the oxide resources and in a few cases have outlined zones that are not currently included in the resources. In some areas faults, possibly thrusts, have resulted in "doubled-up" portions of the mineralized horizons or have caused gaps or dislocations of an otherwise continuous mineralized body.

Table 1: Significant Intercepts for the Salman Sulphide and Oxide Drilling (Holes in bold are located on Figure 1)
Hole Prospect From (m) To (m) Width (m) Grade (g/t) Year Drilled Ox/Su
SNRC1378
Salman South
63
77
14
1.94
2011
Su
SNRC1394
Nugget Hill
13
20
7
1.46
2011
Ox
SNRC1404
Nugget Hill
41
45
4
2.86
2011
Ox
SNRC1405
Teberu
12
15
3
4.61
2011
Ox
SNRC1411
Teberu
34
41
7
2.25
2011
Su
SNRC1415
Teberu
29
36
7
2.81
2011
Su
SNRC1415
Teberu
109
118
9
4.91
2011
Su
SNRC1416
Teberu
104
118
14
4.13
2011
Su
SNRC1416
Teberu
124
138
14
3.15
2011
Su
SNRC1419
Salman North
79
82
3
11.52
2012
Su
SNRC1421
Nugget Hill
25
29
4
4.04
2012
Su
SNRC1435
Salman South
0
5
5
3.92
2012
Ox
SNDD1443
Teberu
60
65
5
2.22
2012
Su
SNDD1443
Teberu
145
149
4
3.45
2012
Su
SNDD1444
Teberu
157
172
15
2.3
2012
Su
SNDD1446
Nugget Hill
108
118
10
3.75
2012
Su
SNDD1447
Nugget Hill
62
78
16
2.04
2012
Su
SNRC1451
Teberu
72
82
10
3.84
2012
Su
SNRC1453
Teberu
54
71
17
1.28
2012
Su
SNRC1455
Teberu
22
28
6
1.81
2012
Su
SNRC1458
Nugget Hill
75
82
7
2.23
2012
Su
SNRC1461
Teberu
96
99
3
4.11
2012
Su
SNRC1464
Salman North
5
6
1
31.43
2012
Su
SNRC1464
Salman North
21
27
6
2.93
2012
Su
SNRC1464
Salman North
38
50
12
9.67
2012
Su
SNRC1465
Salman North
114
123
9
1.32
2012
Su
SNRC1474
Salman South
16
22
6
4.65
2012
Ox
SNRC1474
Salman South
88
96
8
1.67
2012
Su
SNRC1476
Teberu
28
36
8
4.21
2012
Ox
SNRC1477
Nugget Hill
33
44
11
1.88
2012
Su
SNRC1478
Teberu
30
44
14
2.48
2012
Su



Figure 1: Plan map of the Salman Trend showing areas of Nzema Sulphide drilling program



Figure 2: Teberu 04 cross section 553800N



Figure 3: Salman South cross section 551450N



Background of Salman Sulphide Project

The Nzema Mine commenced production in late 2010 based on mineral reserves from the Salman, Anwia and Bokrobo deposits. The mineral reserve of the Salman Trend comprises oxide and some transitional ore contained within a string of open pits along the 9 kilometre trend that extends from Akango in the north to Salman South. Although gold mineralization extends without a break from oxide through the transition horizon and into the unoxidized sulphide zone, gold within the sulphide zone is refractory and has a low recovery when treated by the existing conventional 'carbon in leach' plant at Nzema (Direct CIL recoveries ranging from 22.7% to 28.4% in lab testwork). Refractory gold deposits exist at other operations in Ghana and Côte d'Ivoire where the ore is treated using either BIOX or Leachox methods (ultra-fine grinding with intensive oxidation of the flotation concentrates). The refractory gold mineralization of the Salman Sulphides represents a target that Endeavour believes has the potential to significantly increase production at Nzema.

The lower transitional material has a low recovery with conventional carbon in leach and although it is scheduled to be processed through the Nzema oxide plant it may also be more economically processed with the sulphide material.

Conceptual Trade-off Study

In tandem with the resource drilling program in 2011, Endeavour engaged AMEC Minproc Limited to conduct a Conceptual Trade-off Study on the Nzema sulphide project. The primary aim of the study was to investigate process options for the sulphide material and to assess the economic viability of the project prior to commitment to a resource definition program to convert the resource to reserve. Two potential process options were considered:
  1. Off-site toll treatment of a sulphide concentrate generated on site, or
  2. Construction of a concentrator and BIOX plant on site.
The preliminary flotation testwork indicated that a high gold recovery with a small mass pull could be achieved (approximately 90-95% gold in about 5% mass). This has obvious benefits in terms of capital and operating costs for subsequent treatment processes. Assuming around 92% gold recovery by CIL of the oxidized concentrate an overall recovery of approximately 83% is indicated.

Next Steps

The revised 2012 drill program includes 15,800 metres of diamond drilling (with RC pre-collars) plus 2,400 metres of RC drilling. The program is planned to extend the drill coverage to 150 m vertical in anticipation of generating at least Inferred resources at the three main shoots and extend the delineation of the sulphide resource where possible.

The results of this drill program will be assessed via a Preliminary Economic Assessment prior to commitment to a second drilling program to convert the Inferred resources to Measured and Indicated and progress to a Preliminary Feasibility Study. Delivery of the Preliminary Economic Assessment is planned for the end of 2012.

Qualified Persons

Adriaan 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 metallurgy and mining operations in this news release.

Martin Bennett, MAIG, General Manager Exploration is the Qualified Person overseeing Endeavour's exploration projects in Ghana and Liberia and has reviewed and approved this press release.

About Endeavour Mining Corporation

Endeavour is a gold producer delivering growth. Endeavour owns two gold mines producing approximately 180,000 oz per year in Ghana and Burkina Faso that are generating significant operating cash flows to fund exploration and development growth. In addition to upside potential at its current operations, Endeavour's gold project in Côte d'Ivoire is ready for construction (mining permit submitted; currently negotiating EPCM contract) for an additional 100,000 oz per year. Endeavour's strong financial base encourages investments in long-term operational growth, exploration to replace and increase reserves, and funding for acquisitions.

Endeavour Mining Corporation is listed on the TSX (symbol EDV) and ASX (symbol EVR), and also trades on the OTCQX (symbol EDVMF).

On behalf of Endeavour Mining Corporation
Neil Woodyer
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:

David Laing
Senior Vice President - Technical Services
+1 604 609 6133
dlaing@endeavourmining.com

Bobby Morse
James Strong

Buchanan
+44 20 7466 5000
bobbym@buchanan.uk.com

Florence Liberski
Renmark Financial Communications
+1 514 939 3989
or +1 416 644 2020
fliberski@renmarkfinancial.com

David Ikin
Professional Public Relations
+61 8 9388 0944
david.ikin@ppr.com.au

Endeavour Mining Corporation
Cayman Corporate Centre
27 Hospital Road
George Town, Grand Cayman,
KY1 1109, Cayman Islands
Tel: +1 345 946 7603
Fax: +1 345 946 7604
www.endeavourmining.com

A Cayman Islands exempted company with limited liability.
ARBN 153 067 639

Appendix of intercepts:

HoleID
From
To
Au ppm
SNRC1378
63
64
2.43
SNRC1378
64
65
0.07
SNRC1378
65
66
8.20
SNRC1378
66
67
1.08
SNRC1378
67
68
1.09
SNRC1378
68
69
0.05
SNRC1378
69
70
0.36
SNRC1378
70
71
0.51
SNRC1378
71
72
0.43
SNRC1378
72
73
0.70
SNRC1378
73
74
0.64
SNRC1378
74
75
2.48
SNRC1378
75
76
0.69
SNRC1378
76
77
8.40
SNRC1384
1
2
2.76
SNRC1384
2
3
2.27
SNRC1384
3
4
0.66
SNRC1394
13
14
1.74
SNRC1394
14
15
0.04
SNRC1394
15
16
2.70
SNRC1394
16
17
0.05
SNRC1394
17
18
2.28
SNRC1394
18
19
2.36
SNRC1394
19
20
1.02
SNRC1404
41
42
1.31
SNRC1404
42
43
5.57
SNRC1404
43
44
3.54
SNRC1404
44
45
1.00
SNRC1405
12
13
2.35
SNRC1405
13
14
5.02
SNRC1405
14
15
6.45
SNRC1411
34
35
0.66
SNRC1411
35
36
10.54
SNRC1411
36
37
0.75
SNRC1411
37
38
0.60
SNRC1411
38
39
0.28
SNRC1411
39
40
1.07
SNRC1411
40
41
1.87
SNRC1415
29
30
0.56
SNRC1415
30
31
0.01
SNRC1415
31
32
0.02
SNRC1415
32
33
1.21
SNRC1415
33
34
5.11
SNRC1415
34
35
1.48
SNRC1415
35
36
11.25
SNRC1415
109
110
5.39
SNRC1415
110
111
4.72
SNRC1415
111
112
1.13
SNRC1415
112
113
6.44
SNRC1415
113
114
8.66
SNRC1415
114
115
9.45
SNRC1415
115
116
2.78
SNRC1415
116
117
4.95
SNRC1415
117
118
0.68
SNRC1416
104
105
4.50
SNRC1416
105
106
0.34
SNRC1416
106
107
6.65
SNRC1416
107
108
1.09
SNRC1416
108
109
4.01
SNRC1416
109
110
7.84
SNRC1416
110
111
19.2
SNRC1416
111
112
5.12
SNRC1416
112
113
1.30
SNRC1416
113
114
2.96
SNRC1416
114
115
1.00
SNRC1416
115
116
1.83
SNRC1416
116
117
1.24
SNRC1416
117
118
0.81
SNRC1416
124
125
2.59
SNRC1416
125
126
1.81
SNRC1416
126
127
0.89
SNRC1416
127
128
1.63
SNRC1416
128
129
8.82
SNRC1416
129
130
4.20
SNRC1416
130
131
1.70
SNRC1416
131
132
2.99
SNRC1416
132
133
9.57
SNRC1416
133
134
4.90
SNRC1416
134
135
2.58
SNRC1416
135
136
0.85
SNRC1416
136
137
1.06
SNRC1416
137
138
0.51
SNRC1419
79
80
2.00
SNRC1419
80
81
1.06
SNRC1419
81
82
31.49
SNRC1421
25
26
0.59
SNRC1421
26
27
10.99
SNRC1421
27
28
3.82
SNRC1421
28
29
0.76
SNRC1435
0
1
5.24
SNRC1435
1
2
0.59
SNRC1435
2
3
2.39
SNRC1435
3
4
9.94
SNRC1435
4
5
1.46
SNDD1443
145
146
0.59
SNDD1443
146
147
3.42
SNDD1443
147
148
4.33
SNDD1443
148
149
5.47
SNDD1444
157
158
0.96
SNDD1444
158
159
0.94
SNDD1444
159
160
1.47
SNDD1444
160
161
0.53
SNDD1444
161
162
0.09
SNDD1444
162
163
0.99
SNDD1444
163
164
0.90
SNDD1444
164
165
8.04
SNDD1444
165
166
6.67
SNDD1444
166
167
7.40
SNDD1444
167
168
4.50
SNDD1444
168
169
1.09
SNDD1444
169
170
0.28
SNDD1444
170
171
0.17
SNDD1444
171
172
0.51
SNDD1446
108
109
1.76
SNDD1446
109
110
6.74
SNDD1446
110
111
3.84
SNDD1446
111
112
5.85
SNDD1446
112
113
2.85
SNDD1446
113
114
2.09
SNDD1446
114
115
1.99
SNDD1446
115
116
4.31
SNDD1446
116
117
7.40
SNDD1446
117
118
0.67
SNDD1447
62
63
0.53
SNDD1447
63
64
0.23
SNDD1447
64
65
1.13
SNDD1447
65
66
0.71
SNDD1447
66
67
1.98
SNDD1447
67
68
0.50
SNDD1447
68
69
0.38
SNDD1447
69
70
3.53
SNDD1447
70
71
3.62
SNDD1447
71
72
2.69
SNDD1447
72
73
3.67
SNDD1447
73
74
2.31
SNDD1447
74
75
3.13
SNDD1447
75
76
3.67
SNDD1447
76
77
3.37
SNDD1447
77
78
1.15
SNRC1451
72
73
0.57
SNRC1451
73
74
2.27
SNRC1451
74
75
6.78
SNRC1451
75
76
15.72
SNRC1451
76
77
7.86
SNRC1451
77
78
2.54
SNRC1451
78
79
0.52
SNRC1451
79
80
0.96
SNRC1451
80
81
0.61
SNRC1451
81
82
0.58
SNRC1453
54
55
1.00
SNRC1453
55
56
3.19
SNRC1453
56
57
0.47
SNRC1453
57
58
0.14
SNRC1453
58
59
0.68
SNRC1453
59
60
0.46
SNRC1453
60
61
2.39
SNRC1453
61
62
0.59
SNRC1453
62
63
0.61
SNRC1453
63
64
1.83
SNRC1453
64
65
1.85
SNRC1453
65
66
5.33
SNRC1453
66
67
1.22
SNRC1453
67
68
0.76
SNRC1453
68
69
0.15
SNRC1453
69
70
0.60
SNRC1453
70
71
0.53
SNRC1455
22
23
2.78
SNRC1455
23
24
2.72
SNRC1455
24
25
0.77
SNRC1455
25
26
1.23
SNRC1455
26
27
1.98
SNRC1455
27
28
1.40
SNRC1458
75
76
0.92
SNRC1458
76
77
3.00
SNRC1458
77
78
6.94
SNRC1458
78
79
1.85
SNRC1458
79
80
0.61
SNRC1458
80
81
0.16
SNRC1458
81
82
2.12
SNRC1461
96
97
3.28
SNRC1461
97
98
2.81
SNRC1461
98
99
6.23
SNRC1464
5
6
31.43
SNRC1464
21
22
10.85
SNRC1464
22
23
3.07
SNRC1464
23
24
0.92
SNRC1464
24
25
1.69
SNRC1464
25
26
0.53
SNRC1464
26
27
0.53
SNRC1464
38
39
0.85
SNRC1464
39
40
31.98
SNRC1464
40
41
1.37
SNRC1464
41
42
0.31
SNRC1464
42
43
1.72
SNRC1464
43
44
0.79
SNRC1464
44
45
0.16
SNRC1464
45
46
0.54
SNRC1464
46
47
1.12
SNRC1464
47
48
73.0
SNRC1464
48
49
1.26
SNRC1464
49
50
2.89
SNRC1465
114
115
0.73
SNRC1465
115
116
1.50
SNRC1465
116
117
1.83
SNRC1465
117
118
0.57
SNRC1465
118
119
0.54
SNRC1465
119
120
0.39
SNRC1465
120
121
1.47
SNRC1465
121
122
4.00
SNRC1465
122
123
0.82
SNRC1474
16
17
2.32
SNRC1474
17
18
1.42
SNRC1474
18
19
19.16
SNRC1474
19
20
3.15
SNRC1474
20
21
0.40
SNRC1474
21
22
1.44
SNRC1474
88
89
2.80
SNRC1474
89
90
1.74
SNRC1474
90
91
0.28
SNRC1474
91
92
0.96
SNRC1474
92
93
3.49
SNRC1474
93
94
0.45
SNRC1474
94
95
0.78
SNRC1474
95
96
2.87
SNRC1476
28
29
0.90
SNRC1476
29
30
1.45
SNRC1476
30
31
0.34
SNRC1476
31
32
0.38
SNRC1476
32
33
4.04
SNRC1476
33
34
4.79
SNRC1476
34
35
8.86
SNRC1476
35
36
2.92
SNRC1477
33
34
0.68
SNRC1477
34
35
0.39
SNRC1477
35
36
2.26
SNRC1477
36
37
0.56
SNRC1477
37
38
2.71
SNRC1477
38
39
0.10
SNRC1477
39
40
2.50
SNRC1477
40
41
0.08
SNRC1477
41
42
0.14
SNRC1477
42
43
1.20
SNRC1477
43
44
10.03
SNRC1478
30
31
4.93
SNRC1478
31
32
0.81
SNRC1478
32
33
0.50
SNRC1478
33
34
0.95
SNRC1478
34
35
4.28
SNRC1478
35
36
0.05
SNRC1478
36
37
1.97
SNRC1478
37
38
1.93
SNRC1478
38
39
0.01
SNRC1478
39
40
0.02
SNRC1478
40
41
2.08
SNRC1478
41
42
0.42
SNRC1478
42
43
15.57
SNRC1478
43
44
1.16
 
 
 
 
 
 

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