AMN - BURKINA FASO: Houndé project development on target

Endeavour Mining Corp is making good progress at its Houndé gold project in Burkina Faso. Construction is progressing on-time and on-budget, with the first gold pour expected during the fourth quarter of 2017.

Endeavour Construction Services Group vice president Jeremy Langford says: "We are very pleased to have successfully achieved our first set of key project milestones safely, ahead of schedule and on-budget, despite the wet-season being upon us. Our employment statistics are extremely pleasing with more than 96% of our 1058 project staff and contractors being Burkinabe Nationals. I am proud that this project will deliver significant economic benefits to the local area and the whole of Burkina Faso, in addition to becoming Endeavour's flagship operating mine."

Key milestones achieved to date include:

• Procurement is approximately 45% complete, with total capital commitments amounting to $150 million

• CIL ring beam concrete pour achieved early-August, two weeks ahead of schedule.

• Mining fleet equipment financing agreement signed with Komatsu, with deliveries already on-site, machinery commissioned and operational

• Water harvest dam construction completed, with water already being pumped to the water storage dam, two months ahead of schedule

• Construction of the 300-person permanent accommodation village is 30% complete and on-schedule for completion during the first quarter of 2017

• Crusher civil earthworks started late August

• Following the signing of the power offtake agreement with Sonabel, the national electricity provider, procurement has been completed for the 38 km 91kV overhead power line with construction scheduled to start in October 2016

• Detailed engineering of the processing facility is expected for completion at this time

• 1058 personnel including contractors are currently employed on-site, of which over 96% are Burkinabe, exceeding Endeavour's objectives

• Strong safety record with over 400,000 man-hours worked without a Lost Time Injury (LTI) or Medical Treatment Injury (MTI)

• Land compensation process has been successfully completed and resettlement is under way, with all approvals in place.

Once in production, Endeavour's 90%-owned Houndé will become the company's flagship low-cost mine, ranking amongst West Africa's top tier cash generating mines, with an average annual production of 190,000 oz at an All-In Sustaining Cost (AISC) of $709/oz over an initial 10-year mine life based on reserves. In its first four years, the average annual production is expected to be 235,000 oz at an AISC of $610/oz.

The project is an open pit mine with a 3.0 million tonnes/year gravity circuit/CIL plant. The initial capital cost is estimated at $328 million, inclusive of $46 million for the owner-mining fleet. Construction began in April 2016 and is progressing on-time and on-budget with the first gold pour expected during the fourth quarter of 2017.

www.EndeavourMining.com

News courtesy of International Mining