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 by the end of 2018. 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. Construction is expected to begin in mid-2019 following the completion of the Ity CIL project.

The Kalana permit, covering 387km², has significant exploration potential and hosts several exploration prospects. Two of the most advanced prospects are Kalanako and Djirila, which have both been drill-tested and are both within a reasonable trucking distance. Endeavour is currently working on integrating Kalana into its 5-year exploration strategy, following the transaction close.