Endeavour Receives Encouraging Drill Results from PEA-Stage Ouaré Project
NEWS — Endeavour Mining — Vancouver, August 27, 2012 – Endeavour Mining Corporation (“Endeavour”) (TSX:EDV, ASX:EVR, OTCQX:EDVMF) has received the final drill results from core and reverse circulation (RC) drilling on the Ouaré gold deposit in Burkina Faso. An update of the resource estimate is underway and will be incorporated into a Preliminary Economic Assessment (PEA) due at the end of 2012.
Drilling along the 2.5 km long Ouaré trend was to infill, test extensions and extend mineralization to 150 metres depth in selected areas. Highlights of the core drilling on Ouaré Main include (Table 1);
- BITDDH-12-55 with 18.7m @ 2.0g/t gold at 163.6 metres
including 0.8m @ 12.3g/t gold
- BITDDH-12-31 with 9.6m of 1.6g/t from 85 metres
and 8.3m @ 13.9g/t gold at 115.0 metres
including 0.8m @ 33.5g/t gold
Results from core drilling on Ouaré East include (Table 1);
- BITDDH-12-048 with 8.8m @ 14.2g/t gold at 96.0 metres
including 5m @ 23.3g/t gold
and 13.6m of 5.3 g/t from 138 metres
- BITDDH-12-56 with 12.7m @ 3.9g/t gold at 143.1 metres
including 2m @ 16.9g/t gold
Step-out RC drilling was completed along the Warba trend which is a parallel structure, 700 metres southwest of Ouaré (Figure 1). This drilling has also yielded positive results including (Table 2);
- BITRC-12-393 with 5m @ 2.9g/t at 50.0 metres
including 2m @ 6.0g/t gold
- BITRC-12-406 with 18m @ 3.7g/t at 16.0 metres
including 4m @ 11.8g/t gold
and 8m @ 7.3g/t gold
including 1m @ 53.8g/t gold
Doug Reddy, SVP Technical Services, stated:
“We are pleased that drilling results from the Ouaré deposit continue to be consistent and provide extensions to known mineralization. Based on the results of our 2011/2012 program, we see good potential for increasing the level of certainty in the resource as well as increasing the overall size. Once the resource is updated we will get our first look at the economics of this deposit with the PEA, which is expected to be completed by year-end. Positive results from other targets within several kilometres of Ouaré such as the Warba Trend and also the targets to the east and northeast demonstrate the prospectivity of the area.”
The Ouaré gold deposit is located 40 kilometres northeast of Endeavour’s Youga plant, which currently produces in excess of 80,000 ounces of gold annually. Ouaré 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 a 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, upgrading the resource classification, extending the mineralization to depth and along strike. In addition, step-out drilling was undertaken on the Warba trend. Results have now been received for all holes and an independent update to the resource estimation is underway.
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.
Several of the highlighted core intersections are from deeper holes which provide for potential increases to the resource down-dip. Based on the RC drilling there is also potential to add resources in the area between Ouaré Main and Ouaré East.
Warba Trend Step-out Drilling
Step-out RC drilling along a parallel trend that is 700 metres to the southwest of the Ouaré trend has yielded positive results in several locations that are not fully delineated. The eastern portion of the Warba zone has been drilled at between 50 m and 100 m spacing over a 500 meter strike length while the far west portion has yielded some very significant intersections that require additional testing (Figure 1).
The region surrounding Ouaré shows good potential for discovery of additional gold mineralization. Accordingly, the program included drilling two targets on the Bitou Est permit and two targets on the Bitou Nord permit. All four targets are within six kilometres of Ouaré Main (Figure 3) deposit. Results from this drill program are still being received.
Figure 1: Ouaré Deposits and Warba Zone
Click to Enlarge
Figure 2: Ouaré Main and Ouaré East Drill Plan on IP Chargeability
Click to Enlarge
Figure 3: Ouaré Zone and Other Bitou Targets overlain on Contoured Gold in Soil Geochemistry
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Table 1: Ouaré Main Infill Core and RC Drilling Highlights
|Ouaré Main (NW)||BITDDH-12-034||Core||29||52||23||18.4||1.44|
Table 2: Exploration RC Drilling Highlights (True widths unknown at this time)
|Ouaré West (N)||BITRC-12-389||RC||7||12||5||2.57|
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 200,000 ounces 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, Agbaou in Côte d’Ivoire, has entered the construction phase for an additional 100,000 ounces per year starting in Q1 2014. Endeavour has a strong financial base from which to invest in long-term operational growth, exploration to replace and increase reserves, and funding for acquisitions.
On August 7, 2012, Endeavour announced a definitive agreement to acquire Avion Gold (TSX:AVR) to become one of the largest West African gold mining companies with three producing mines, a fourth mine currently in construction, and an attractive pipeline of exploration and resource development properties. The Avion transaction is expected to close in October 2012.
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
(Northing and Easting reported in WGS 84 UTM Zone 30N)