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Endeavour Digs Deeper, Brings Strong Gold Results from Youga
June 1, 2012 by prospectingjournal · Leave a Comment
ANALYSIS—ProspectingJournal.com—While the markets have been languishing, Endeavour Mining (TSX: EDV) has continued to forge ahead. Owning two gold mines that produce approximately 180,000 oz per year in Ghana and Burkina Faso, EDV is in the enviable position of generating positive cash flow while advancing exploration. The Company has thus developed a following among investors, as its growth strategy has led to two successful mines and a soon-to-be gold project in Côte d’Ivoire.
EDV’s latest press release from May 28, 2012 is a reminder that the gold producer is on the right track. As the release states, EDV has reported strong results from drilling beneath the Main Pit at the Youga Gold Mine. Highlight drill intercepts include hole A2-11-220 with 52.5m of 2.1 g/t Au, which included 2.6m of 5.2 g/t Au. The drilling underneath the main pit, as Endeavour points out, illustrates the continuation of the A2 Main deposit and “highlights potential for further pit expansion.”
Drilling results to date include 6 holes totaling 2,636m. The results are as follows:
Hole A2-11-220 intercepted mineralization “shallower and further east than anticipated,” with high-grade results as stated. Holes A2-22-235, 231 and 226 intersected the AS Main deposit up to 100m deeper than previous intercepts, with 231 showing the deepest intercept yet—425m below original surface and 260m below the final pit depth. Further, holes A2-11-236 and 238 tested a previously unexplored area and intersected 5.1m at 3.4 g/t Au and 10m at 2.3 g/t Au, respectively.
These results have encouraged Endeavour to push ahead with further exploration at Youga as the Company looks to capitalize on current momentum. Neil Woodyer, CEO, states “Building on the success of our 2011 exploration campaign at Youga, we committed additional funding to accelerate our exploration and resource delineation campaign as part of our overall US$34 million exploration program for 2012. These latest drilling results demonstrate we are now reaping the benefits of this commitment to exploration.”
EDV’s future plan is to drill 10 additional holes to test the mineralization at and below the “ultimate pit limits.” Through a process of deepening existing holes and reverse circulation, EDV aims to push 3,700m deeper into the ground, further testing the C1 and C2 faults (shown below).
We expect to hear more good news shortly from EDV as its three projects not only produce gold, but further expand the Company’s reserves. With an affordable stock price and a product that we expect will have explosive future demand, EDV has the hardest work behind it—they have already found gold, now they are just finding more.
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Prospecting Journal
Disclaimer: The Prospecting Journal does not currently hold any shares of any of the companies mentioned in the article. However, staff members reserve the right to purchase shares 36 hours after the publication of the article. Endeavour Mining is a sponsor of the Prospecting Journal.
