|June 27, 2012|
Endeavour Completes Ouaré Drilling and Commences Resource Update for PEA
Vancouver, June 27, 2012 -- Endeavour Mining Corporation ("Endeavour") (TSX:EDV, ASX:EVR, OTCQX:EDVMF) today announced drill results from its recently concluded program on its Ouaré gold deposit in Burkina Faso and commencement of an updated resource estimate in preparation for a Preliminary Economic Assessment (PEA). The Ouaré gold deposit is located 40 kilometres northwest of Endeavour's Youga plant (Figure 1), which currently produces in excess of 80,000 ozs of gold annually.
Highlights of the infill drilling program on Ouaré Main include (Table 1);
Results from infill RC drilling on Ouaré East include (Table 2);
Step-out RC drilling along the western extension of the Ouaré trend has also yielded positive results including (Table 3);
Ouaré currently has an inferred mineral resource of 4.738 Mt at 2.1 g/t gold for 323,000 ounces at a 0.5 g/t gold cut-off (K. Woodman, 2009). During 2011 and the first four months of 2012 an infill and step-out drilling program was undertaken on the Ouaré gold deposit that included 56 core holes (6,968 metres) and 192 reverse-circulation (RC) holes (21,759 metres). This drilling consists of both RC and core on the Ouaré Main and Ouaré East zones with the objective of improving the geological model and upgrading the resource classification. In addition, step-out drilling was undertaken on three targets in the Ouaré West zone. Results are pending for approximately 40% of these holes.
Figure 1: Youga Belt Location Map
Ouaré Main and East Infill Drilling
The deposit is over two kilometres long and had been nominally tested on 50 metre spaced sections to a maximum depth of 100 metres. The current program has reduced the drill hole spacing to 25 by 20 metres (Figure 2) and tested depths down to at least 150 metres depth on selected sections of the Ouaré Main and Ouaré East zones.
Based on the RC drilling there is also potential to add resources in the area between Ouaré Main and Ouaré East, which was not included in the 2009 estimate.
The completion of the core drilling has led to a much better understanding of the style and controls on mineralization at Ouaré. Gold is intimately associated with fine pyrite, although the sulphide content is relatively low and rarely exceeds 2%. Mineralization is also associated with quartz-veining, silicification and a pervasive carbonate alteration. The host rock varies between fine-grained sedimentary and volcanic rocks. A petrographic study has been initiated to improve the understanding of the character of the gold and the controls on the mineralization.
Soil geochemistry (Figure 2) and ground geophysics (IP) supports the known mineralized trends and highlights several of the structural features that control mineralization or displace the deposit (Figure 3).
Figure 2: Ouaré Drill Plan on Gold in Soil Geochemistry
Figure 3: Ouaré Main and Ouaré East Drill Plan on IP Chargeability
Table 1: Ouaré Main Infill Core and RC Drilling Highlights
Table 2: Ouaré East Infill RC Drilling Highlights
Ouaré West Step-out Drilling
Step-out RC drilling along western extensions of the Ouaré trend has yielded positive results in several locations that are not fully delineated. The southern-western zone is over is over 1.5 km long and has been drilled at a wide spacing; portions of the mineralization is this area will be included in the upcoming resource estimate while the other areas require additional drilling.
Table 3: Ouaré West Exploration RC Drilling Highlights (True widths unknown at this time)
The region surrounding Ouaré shows good potential for discovery of additional gold mineralization. Accordingly, the drill program included stepping out and testing zones located on two adjacent permits, two targets on Bitou Est and two targets on Bitou Nord. All four targets are within six kilometres of Ouaré Main (Figure 1).
Airborne Geophysical Survey
An airborne geophysical survey was recently completed over the Youga greenstone belt, northeast of the Nakambe River, covering the Bitou 2 permit and the adjacent Endeavour permits. The coverage includes both aeromagnetic and radiometric data using a flight line spacing of 100 metres with a tie-line spacing of 500 metres at a nominal altitude of 45 metres. The survey was flown by Terrascan Airborne with the purpose of providing the same level of information that has proven useful over the Youga permits.
The new data will be utilized in conjunction with soil geochemistry and prospecting to follow up structural and geochemical targets for the remainder of the Youga belt.
Drilling is now complete and work is underway to complete logging, sampling, assaying, data compilation and QAQC review to prepare for an independent resource estimation by AMEC Americas Limited (AMEC), a leading international engineering and project management company. This resource estimate is planned to begin in early July, following the receipt of the remainder of the assay results.
Initial metallurgical studies were completed on 6 composites from three areas of the Ouaré Main and Ouaré East zones. The testwork was carried out by SGS Vancouver ("SGS") in preparation for commencement of the PEA. The results were reviewed by AMEC process specialists. The composites include oxidized and fresh mineralization as well as sedimentary and volcanics as host rock to mineralization. Testwork included screen metallics, work indices (Crusher Work Index, Bond ball mill, Bond rod mill), gravity recoverable gold, and leachability by bottle rolls. The samples were prepared to P80 of 150 micron and the recovery of gold to gravity concentrate ranged from 2 to 37%. Bottle roll leach results yielded recoveries of 75 to 90% of the gravity tails gold content. A second round of samples was reground to P80 of 75 micron and the calculated recovery was 84 to 95% of the gravity tails gold content. The preliminary interpretation of the testwork indicates the amenability of the mineralization as a feed to a conventional gravity/CIL plant such as at Youga. Leach tests on coarse material suggest that the mineralization is not amenable to heap leaching.
Additional testwork is underway to examine use of High Pressure Grinding Rolls (HPGR) to improve the leaching of gold from coarse material.
A PEA will be contracted shortly and is planned for completion by late 2012. The updated resource estimate and the metallurgical testwork will be used in the PEA.
Lynton Gormely, P.Eng. Principal Process Engineer with AMEC has reviewed and approved the technical information related to metallurgy included in this news release.
K. Kirk Woodman, P.Geo., General Manager Exploration is the Qualified Person overseeing Endeavour's exploration projects in Burkina Faso, Cote d'Ivoire and Mali has reviewed and approved this press release.
All Ouaré sample preparations and standard 50 gram gold fire assays were performed by SGS Laboratories, Ouagadougou, Burkina Faso. Endeavour consistently employs a rigorous quality control and assurance program comprising regular insertion of certified reference standards, blanks and duplicates.
About Endeavour Mining Corporation
Endeavour is a gold producer delivering growth. Endeavour owns two gold mines producing approximately 180,000 ozs 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 third gold mine has entered the construction phase for an additional 100,000 ozs per year starting in Q1 2014. 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
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.
Appendix of Collar Locations for Reported Holes
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