Kalana is a high-quality project with current reserves of 2.0 million ounces within a single open pit. The present feasibility study, prepared by Avnel, anticipates a 1.2Mtpa CIL plant, producing an average of 101koz per year at an AISC of $730/oz over an 18-year mine life. Endeavour expects to take advantage of its construction expertise, operating synergies and exploration experience to re-design and optimize the current feasibility study. With an expanded plant capacity, Endeavour believes that Kalana has the potential to increase its annual production profile to more than 150,000 ounces per year and become another high-quality asset within Endeavour’s portfolio.

In 2019, a $2 million reconnaissance drilling campaign comprising approximately 20,500 meters, was conducted on targets located in proximity to the Kalana Main deposit with results currently being analyzed. In 2020, an exploration budget of up to $2 million has been planned to follow-up on nearby targets once the 2019 drill results have been analyzed.

The Avnel FS is being updated to incorporate the updated resource for the Kalana Main deposit and the new Kalanako deposit (as published in March 2019), in addition to reviewing the size of the plant and all other assumptions. This is expected to be published in H2-2020.