Endeavour to Launch Expansion of Sabodala-Massawa; DFS Confirms Its Potential to Become Top Tier GOLD MINE
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NEWS RELEASE – LSE & TSX: EDV
All amounts in US$
ENDEAVOUR TO LAUNCH EXPANSION OF SABODALA-MASSAWA;
DFS CONFIRMS ITS POTENTIAL TO BECOME TOP TIER GOLD MINE
HIGHLIGHTS:
• Robust DFS economics support the expansion of Sabodala-Massawa by supplementing the current 4.2Mtpa
CIL plant with a 1.2Mtpa BIOX® plant to process the high-grade refractory ore from the Massawa deposits
• Expansion is expected to yield incremental production of 1.35Moz at a low AISC of $576/oz over the life of
the BIOX® Expansion Project
• Lifts Sabodala-Massawa to top tier status with an expected average annual production of 373koz per year
over the next 5 years at an average AISC of $745/oz
• Low-capex intensive brownfield expansion given upfront capital requirement of $290m, expected to be self
funded by the existing Sabodala-Massawa operation
• Robust after-tax IRR of 72% and NPV5% of $861m with a quick 1.4-year payback period, as the expansion
generates $200m of incremental annual free cash flow during its first 5 years, at $1,700/oz gold
• Construction will commence in Q2-2022 with first gold pour from the BIOX® plant expected in early 2024
• Significant upside potential as the DFS does not include the conversion of the previously announced
discovery of 709koz of M&I resources
• Endeavour remains on track to discover its target of 2.3 Moz to 2.7Moz of Indicated resources at Sabodala-
Massawa over the 2021-2025 period
London, 4 April, 2022 Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) ("Endeavour" or the "Group" or the
"Company") is pleased to announce that it will soon launch the construct ion of its Sabodala-Massawa expansion in
Senegal, supported by the recently completed Definitive-Feasibility Study (“DFS”).
The DFS recommends the expansion of the Sabodala -Massawa co mplex by supplementing the current 4. 2Mtpa
Carbon-in-leach (“CIL”) plant with a 1.2Mtpa BIOX® plant to process the high-grade refractory ores from the Massawa
Central Zone and Massawa North Zone deposits (“Expansion Project”), with first gold production expected in early
2024.
Sébastien de Montessus, President and CEO of Endeavour Mining, said: “We are extremely pleased with both the
current performance of Sabodala-Massawa and the Definitive Feasibility Study results announced today, as they
demonstrate the asset’s potential to be a top tier mine capable of producing in excess of 400,000 ounces per year at
an industry-leading AISC.
Given the robust project economics, which significantly exceed our investment criteria, and the strong exploration
upside potential, we are excited to launch this low-capex intensive brownfield expansion project as it will continue to
improve the quality of our operating portfolio and contribute to driving the Group’s return on capital employed above
our 20% target. In line with our capital allocation framework, we are very pleased to be able to pursue this organic
growth opportunity while maintaining a healthy balance sheet and the financial flexibility to continue to deliver strong
capital returns to shareholders.
We believe we are well positioned to unlock the full value of the Sabodala-Massawa complex as we have significantly
de-risked the project by integrating key changes into the DFS, based on experience gained from operating the asset
and the results o f further technical analysis , and we have highly experienced operating and construction team s
already in place.”
As shown in Tables 1 and 2 below, the Expansion Project is expected to yield an incremental production of 1.35Moz
of gold at a low AISC of $ 576/oz over the life of mine and boasts robust economics with an after-tax IRR of 72%,
NPV5% of $861 million and a quick 1.4-year payback period at a gold price of $1,700/oz.
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Table 1: Sabodala-Massawa Expansion Project Highlights (excludes current CIL operation)
FIRST FIVE YEARS
(2024-2028)
LIFE OF MINE
(2024-2033)
OPERATING SUMMARY
Tonnes processed, Mt 5.7 10.8
Strip ratio, W:O 7.7 8.5
Grade processed, Au g/t 6.07 4.43
Gold contained processed, koz 1,110 1,538
Average recovery rate, % 86 88
Gold production, koz 971 1,350
ANNUAL OPERATING METRICS
Average annual production, koz/a 194 135
Average Total Cash Costs, $/oz 504 553
Average AISC, $/oz 531 576
MINE FREE CASH FLOW
Based on $1,500/oz gold price
Total mine free cash flow, $m 743 1,018
Annual mine free cash flow, $m 149 102
Based on $1,700/oz gold price
Total mine free cash flow, $m 999 1,439
Annual mine free cash flow, $m 200 144
Table 2: Sabodala-Massawa Expansion Project Economics (excludes current CIL operation)
GOLD PRICE $1,300/oz $1,500/oz $1,700/oz $1,900/oz
PRE-TAX ECONOMICS
NPV0%, $m 385 957 1,530 2,102
NPV5%, $m 260 696 1,132 1,568
IRR, % 28 57 83 108
Payback years1 2.6 1.7 1.3 1.1
AFTER-TAX ECONOMICS
NPV0%, $m 316 742 1,164 1,585
NPV5%, $m 211 538 861 1,184
IRR, % 26 51 72 94
Payback years1 2.6 1.7 1.4 1.1
1Payback period calculated starting from start of commercial production
As shown in Figure 1 below, the Expansion Project is expected to add an incremental average production of 194koz
per year, over its first five years of operations (2 024 – 2028) at an average AISC of $531/oz. As such, the Expansion
Project is expected to lift the Sabodala -Massawa complex to top tier status with an expected avera ge annual
production of 373koz per year over the next 5 years at an average AISC of $745/oz for the combined CIL and BIOX®
operation, as shown in Table 3 below.
Strong upside potential exists as the DFS does not include the conversion of the previously announced discovery of
709koz of M&I resources, which is expected to notably boost 2023 production.
Figure 1: Production Profile (next 10 years) for Sabodala-Massawa Combined CIL and BIOX® Operation
600
700
800
900
1,000
1,100
1,200
0
100
200
300
400
500
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
AISC ($/oz)Prod (koz)
CIL Production (koz) BIOX® Production (koz) Combined AISC ($/oz)
Targeted Production: +400koz/yr
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Table 3: Sabodala-Massawa Combined CIL and BIOX® Operation Summary
NEXT 5 YEARS
(2022-2026)
NEXT 10 YEARS
(2022-2031)
LIFE OF MINE
(2022-2036)
PRODUCTION SUMMARY
Tonnes processed, Mt 24.3 51.0 66.4
Strip ratio, W:O 7.5 7.4 6.7
Grade processed, Au g/t 2.71 2.39 2.08
Gold contained processed, koz 2,117 3,913 4,440
Average recovery rate, % 88 89 89
Total gold production, koz 1,865 3,475 3,945
Average annual production, koz/a 373 347 282
COST SUMMARY
Average Total Cash Costs, $/oz 630 693 747
Average All-In-Sustaining Costs, $/oz 745 775 825
FINANCIAL SUMMARY
Mine free cash flow at $1,500/oz, $m 698 1,473 1,489
Mine free cash flow at $1,700/oz, $m 966 1,956 2,029
As shown in Table 4 below, the mine is capable of self-funding the Expansion Project given the robust cumulative
cash flow expected to be generated from the existing CIL operation in 2022 and 2023.
Table 4: Sabodala-Massawa Combined CIL and BIOX® Operation – Next 5 years profile
2022 2023 2024 2025 2026 TOTAL
(2022-2026)
AVERAGE
(2022-2026)
OPERATING SUMMARY
Tonnes processed, Mt 4.2 4.5 5.0 5.3 5.3 24.3 4.9
Strip ratio, W:O 8.2 9.5 4.9 9.3 4.9 7.5 7.5
Grade processed, Au g/t 3.00 2.37 2.90 2.69 2.61 2.71 2.71
Gold contained processed, koz 409 343 463 454 448 2,117 423
Average recovery rate, % 88 87 87 89 89 88 88
Gold production, koz 360 299 403 402 401 1,865 373
Total Cash Costs, $/oz 605 651 601 618 680 630 630
AISC, $/oz 725 777 776 690 766 745 745
FREE CASH FLOW
(including expansion capex)
Based on $1,500/oz gold price 30 (42) 221 238 251 698 140
Based on $1,700/oz gold price 89 (4) 281 294 306 966 193
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Leveraging Endeavour’s construction and operating experience, several key changes have been incorporated in the
DFS, compared to Teranga’s 2020 PFS, to significantly de-risk the project, as summarized in Table 5 below.
Table 5: Key Changes in DFS vs. PFS
AREA DESCRIPTION OF CHANGE EXPECTED RESULT
Geometallurgical
Additional geometallurgical work has reclassified fresh
and transitional ore from the Massawa Central Zone
and Massawa North Zone as more amenable to
processing through the refractory plant adding an
additional 3.8Mt at 2.02g/t gold for 248koz into the
refractory ore reserves
Removes risk associated with blending transitional and
fresh ore with oxide ore into the CIL circuit.
Improves mining efficiency due to lower need for selective
mining.
Improves overall recoveries and provides supplemental
ore feed into the BIOX® plant.
Processing
Addition of a standalone ROM pad and crusher Reduces the risk of cross-contamination and improves
blending optionality
Addition of a surge bin Improves capacity when processing softer ore and
provides a supplemental feed to cover crusher outages
Addition of a gravity circuit within the milling circuit Improves recoveries from the high-grade ores containing
free-milling gold
Addition of a flotation cleaner circuit Controls the sulphur and carbonate grades in the
concentrate and manages acid consumption in the BIOX®
circuit
Reduced the number of BIOX® reactors from nine to
seven following further metallurgical tests which
showed lower sulphur content for the Massawa
Central Zone and North Zone deposits
Reduced BIOX® reactors and reduced associated blower air
and cooling requirements reduced the upfront cost of the
BIOX® circuit component
Tailings
Addition of a separate high-density polyethylene
(“HDPE”) fully lined tailings storage facility (“TSF 1B”)
into the initial scope which will host the neutralised
product and the BIOX® CIL tailings while the existing
tailings storage facility (“TSF 1”) will host the flotation
tailings
Allows the clean supernatant water from TSF 1 to be
recirculated into either processing plant without
treatment
Infrastructure
18MW expansion of the existing HFO power plant,
adding three 6MW HFO generators and two back up
diesel generators, with the option to add-in solar to
the infrastructure in the future
De-risks power supply by increasing the capacity of the
existing power plant by 50% to ensure sufficient power
supply and back-up supply to maintain stable conditions
for the BIOX® reactors
Additional infrastructure including roads, water and
administrative buildings
Improves access and infrastructure at the Massawa
Central Zone and Massawa North Zone pits
Construction
management
Endeavour managed EPCM compared to contracted
3rd-party
Allows for flexibility in defining scope, contractor selection
and procurement ensuring that the projects’ team
leverages off the existing operation
DEFINITIVE-FEASIBILITY STUDY DETAILS
Background
Endeavour acquired the Sabodala -Massawa mine from Teranga Gold on 10 February 2021, prior to which Teranga
Gold acquired the Massawa project from Barrick G old on 4 March 2020, combining the Sabodala mill and deposits
with the nearby Massawa deposits. As su ch, the Sabodala-Massawa mine consists of two mining licenses, the
Sabodala exploitation permit (“Sabodala licence”) and the Massawa exploitation permit (“ Massawa licence”) and
two further exploration permits. The Sabodala licence is held by Sabod ala Gold Operations SA (“SGO”) while the
Massawa license is held by Massawa SA (“Massawa”). Endeavour holds indirectly through its subsidiaries a 90 percent
stake in each of SGO and Massawa with the Government of Senegal holding the remaining interest.
In August 2020, Teranga Gold filed a Preliminary Feasibility Study (“PFS”) for the phased expansion of Sabodala -
Massawa. In 2021, Endeavour expedited the completion of the initial upgrades at the existing Sabodala-Massawa CIL
plant and simultaneously advanc ed the DFS for the addition of a refractory ore processing plant to confirm the
economic viability of processing the high-grade refractory ores from the Massawa Central Zone and Massawa North
Zone deposits.
Lycopodium Minerals Pty Ltd (“Lycopodium”) was responsible for the compilation of the report and delivery of the
DFS to Endeavour. Orelogy completed the mine design for the DFS. Minescope Services are consulting on the Process
Plant, while Metso-Outotec, who own the BIOX® technology, are providing the BIOX® and milling technology. Land
and Marine Geological Services Pty Ltd (“L&MGSPL”) will be designing and executing the Tailings Storage Facility
(“TSF”) design. QGE Pty Ltd (“QGE”) will be providing the power station expansion engineering services and managing
the delivery of the power station expansion by an Original Equipment Manufacturer on a lump sum turn key basis.
Endeavour expects to file a Technical Report p ursuant to National Instrument 43-101 – Standards of Disclosure for
Mineral Projects in respect of the Sabodala-Massawa DFS within the following 45-day period.
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Geology
At the Sabodala-Massawa Complex, all of the defined mineral resources are within the S abodala and Massawa
exploitation permit areas. The permit areas are transected by two promin ent, first order shear zones, the Main
Transcurrent Shear Zone (“MTZ”) and the Sabod ala-Sofia Zone (“SSZ”) both trending north -northeast. Existing
deposits and exploration targets are closely associated with these first order structures.
Figure 2: Sabodala-Massawa Geology Map
Within the Sabodala licence, lithologies generally trend north-northeast to northeast with steep dips. The sequence
is dominated by mafic volcanics, with intercalated interflow sediment horizons.
On the Massawa licence, the stratigraphy is dominated by a package of volcaniclastic rocks to the west, and a package
of greywackes to the east. Bedding typically strikes to the north-northeast with a steep dip of between 75° to 80°
toward the west. Several igneous rocks including sills of g abbro, felsic intrusion s, and feldspar (and/or quartz -
feldspar) porphyries intrude this dominantly clastic sequence.
The deposits at the Sabodala-Massawa Complex are classified as orogenic gold deposits. The mineralisation is often
associated with quartz shear veins, extension vein arrays, shear zones, and disseminated sulphides. Mineralisation is
typically associated with greenschist metamorphic grade and vein domi nated styles. The typical mineralogy of the
gold-bearing mineralisation is quartz -carbonate ± albite ± K -feldspar veins with up to 10% (pyrite ± arsenopyrite ±
base metals) sulphides. Alteration assemblages are typically dominated by iron -rich carbonate, a lbite, chlorite,
scheelite, fuchsite and tourmaline. High grades are more commonly associate d with high strain envi ronments, and
with the presence of arsenopyrite. The continuity of the gold grade is associated with alteration style, deformation
intensity, and the presence of intrusive contacts. Gold is often hosted in brecciated zones, along wit h extensional
and shear veins. Typically, moderate to strong silica-carbonate alteration and sulphides are present.
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Reserves and Resources
As shown in Table 6 below, the mineral reserves and resources for the Sabodala-Massawa complex (Combined CIL
and BIOX® operation) stand at 4.44Moz and 6.88Moz respectively. The current resource to reserve conversion ratio
is temporarily low, at 65%, as the previously announced discovery of 709koz of M&I resources are yet to be reflected
in Reserves.
Table 6: Sabodala-Massawa (Combined CIL and BIOX® Operation) Mineral Reserves and Resources
On a 100% basis.
M&I Resources shown inclusive of Reserves.
Tonnage Grade Content
(Mt) (Au g/t) (Au Moz)
Proven Reserves 19.9 1.36 0.87
Probable Reserves 46.5 2.39 3.57
P&P Reserves 66.4 2.08 4.44
Measured Resources (incl. reserves) 21.2 1.32 0.90
Indicated Resources (incl. reserves) 88.9 2.09 5.98
M&I Resources (incl. reserves) 110.1 1.94 6.88
Inferred Resources 24.3 2.16 1.68
The mineral Reserves and Resources were estimated as at 31 December 2021 in accordance with the provisions adopted by the Canadian Institute of Mining Metallurgy and Petroleum
(CIM) and incorporated into the NI 43-101. Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor variations
may occur during the addition of rounded numbers. Mineral Resources t hat are not Mineral Reserves do not have demonst rated economic viability. Resources were constrained by MII
Pit Shell and based on a n open-pit cut-off of grade range of 0.50 g/t Au to 1.00 g/t Au and an Underground cut -off grade range of 2.00g/t Au to 2.84 g/t Au. Reserves are based on a
gold price of $1,300/oz and resources are based on a gold price of $1,500/oz.
The DFS economics for the Expansion Project is based on the r efractory ore reserves, which represent 35% of the
mine’s reserves, as detailed in Table 7 below.
Table 7: Sabodala-Massawa (Combined CIL and BIOX® Operation) Mineral Reserves by Ore Type
OXIDE TRANSITIONAL FRESH TOTAL
On a 100% Basis Tonnage Grade Content Tonnage Grade Content Tonnage Grade Content Au Content
(Mt) (g/t) (Au koz) (Mt) (g/t) (Au koz) (Mt) (g/t) (Au koz) (Au koz)
Whole Ore
Leach
Proven Reserves 1.2 2.55 99 0.8 1.89 47 6.7 1.76 382 529
Probable Reserves 7.8 1.95 488 4.0 1.83 236 22.0 1.39 983 1,708
P&P Reserves 9.0 2.03 588 4.8 1.84 283 28.8 1.48 1,366 2,236
Refractory
Ore
Proven Reserves - - - 0.1 5.56 14 0.0 2.83 1 15
Probable Reserves - - - 1.5 4.18 198 9.2 4.46 1,325 1,523
P&P Reserves - - - 1.6 4.25 212 9.3 4.46 1,326 1,538
Underground
Ore
Proven Reserves - - - - - - - - - -
Probable Reserves - - - - - - 2.0 5.33 343 343
P&P Reserves - - - - - - 1.4 5.33 242 242
Stockpiled
Ore
Proven Reserves 4.4 0.87 124 - - - 6.6 0.93 198 323
Probable Reserves - - - - - - - - - -
P&P Reserves 4.4 0.87 124 - - - 6.6 0.93 198 323
Total
Proven Reserves 5.6 1.23 224 0.9 2.23 61 13.4 1.35 582 866
Probable Reserves 7.8 1.95 488 5.5 2.46 434 33.3 2.48 2651 3,574
P&P Reserves 13.4 1.65 712 6.3 2.43 495 46.6 2.16 3,233 4,440
The mineral Reserves and Resources were estimated as at 31 December 2021 in accordance with the pro visions adopted by the Canadian Institute of Mining Metallurgy and Petroleum
(CIM) and incorporated into the NI 43-101. Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor variations
may occur during the addition of rounded numbers. Res erves are based on a gold price of $1,300/oz.
Compared to the PFS, additional geometallurgical work has reclassified 3.8Mt at 2.02g/t gold for 248koz of fresh and
transitional ore from the Massawa Central Zone and Massawa North Zone as refractory ore reserves, given it is more
amenable to processing through the refractory plant. This removes the risk associated with blending transitional and
fresh ore with oxide ore into the CIL circuit , improves mining efficiency due to lower need for selective mi ning and
improves the overall recoveries.
Mining operations
At the Sabodala-Massawa complex the open pit mining method used is conventional drill and blast, truck and shovel
and is conducted with Endeavour’s own fleet. The current fleet includes a total of 70 mobile mining equipment units.
The mine operates using 10-meter blast benches mined in 5-meter flitches for waste and two 2.5-meter flitches for
ore. Open pit mining operations assume selective mining with respect to both weathering type, process route and
grade categories. The current mining strategy assumes the selective mining of the higher -grade material to enable
separate processing of the high-grade fresh refractory and non-refractory components.
In addition to the open pit mining, underground reserves defined at Sabodala-Massawa will be mined by two 500tpd
underground mining operations at the Golouma and Kerekounda deposits located on the Sabodala Licence , with a
combined 1,000tpd nominal rate. The selected mining method adopted for the operations will be cut and fill with
mining operations projected to commence in 2028 and continue through to depletion in 2033.
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All surface ore haulage and supply of explosives is outsourced to a specialist contractor . Grade control drilling is
carried out by a combined owner and contractor drilling fleet.
Processing operations
The process plant at Sabodala has been operating since 2009, processing over 50 million tonnes of free-milling gold
ores from the Sabodala property, via a conventional 4.2Mt per annum SABC/CIL circuit since its first production.
Ore from the Massawa property, will be transported approximately 27 to 32km by road to the Sabodala Whole Ore
Leach and Refractory ROM pads for subsequent processing. Or e classified as Whole Ore Leach will be processed
through the conventional SABC/CIL circuit while Refractory ore will be processed via a 1.2 Mtpa BIOX® processing
plant, as illustrated in the site layout in Figure 3.
Figure 3: Sabodala-Massawa Expansion Project Site Layout
Refractory ore will be blended on the dedicated ROM pad to optimize the sulphur content before being fed to the
crusher. A primary jaw crusher wil l produce a coarse crushed product which will be supplemented by the use of a
surge bin conveyor, together the crusher and the surge bin will feed a crushed ore surge bin which will feed a crushed
ore stockpile capable of supporting the mil l for upto 16 hours . Ore will be mi lled thro ugh a conventional SABC
configuration with a SAG and Ball mill grinding ore down to 90µ m. The milled ore will be passed through a gravity
circuit to recover any free-milling gold before being floated through a rougher-scavenger-cleaner circuit to produce
a sulphide concentrate.
The sulphide concentrate will be ground down to 45µm and then passed thro ugh seven BIOX® reactors with a
minimum retention time of approximately 5.4 days. The resulting oxidised sulphide concentrate will be neutralized
and processed through six BIOX® CIL tanks in series with a minimum retention time of 36 hours. The BIOX® process
is a biological oxidation process designed to liberate refractory gold , or gold hosted within the mineral lattice ;
typically of sulphide minerals. Bacteria oxidise the sulphide minerals exposing occluded gold from within the sulphide
minerals allowing the gold to be readily leached by conventional CIL.
Gold will be recovered from loaded carbon in a AARL elution circuit by elution, electrowinning and gold smelting to
produce doré. Extensive metallurgical testwork has indicated that overall gold recovery from the refractory ore plant
is expected to be over 88% over the life of mine.
Infrastructure
At the existing Sabodala -Massawa complex, power is provided via a dedicated power station comprising six
generators running on Heavy Fuel Oil (“HFO”) and rated a t 6MW each. In addition, two smaller diesel generators
provide back-up capacity. As part of the Expansion Project, an additional three 6MW HFO generators will add 18MW
of power capacity to provide sufficient capacity for the refractory plant. A further two 1.6MW diesel generators will
Grinding
BIOX CIL
Counter Current Decantation (CCD)
Flotation
Neutralization
BIOX Reactors
Elution & Regeneration
Reagent Store
Crushing and Stockpile
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be added as backup capacity. The upgraded power infrastructure is being adapted so that it can be fed by solar power
sources in the future.
TSF 1B has been added to the initial scope and will be constructed as part of the Expansion Project. TSF 1B will be a
fully HDPE lined storage facility designed to host the neutralised product from the BIOX® reactors and the BIOX® CIL
tailings. It is designed to accommodate a total of 1.0Mt of tailings. The benign tailings from the flotation circuit will
be deposited into the existing upstream TSF 1, and the supernatant water from the TSF can continue to be reused in
the CIL and Refractory process plants. The TSF is designed to accommodate a total of 49.5Mt of tailings.
Operating cost summary
Mining operating cost estimates are derived from a combination of current costs achieved by the owner’s team ,
where possible, and first principles calculations. Processing operating cost estimates were prepared by Lycopodium
(BIOX® Expansion Project) and Endeavour (existing CIL plant) and General and Administration (“G&A”) cost estimates
were prepared by Endeavour, as summarised in the table below.
Table 8: Sabodala-Massawa Complex Operating Unit Costs
UNIT COSTS, $/t
Open Pit Mining & Rehandling, $/t mined 2.43
Underground Mining, $/t mined 76.99
Processing – Whole Ore Leach, $/t processed 12.43
Processing – Refractory, $/t processed 33.06
G&A, $/t processed 5.57
Operating costs have been based on a HFO price of $ 0.54 per litre, a delivered diesel price of $0.90 per litre and
generated power cost of $0.133 KWh and are in line with local pricing . Foreign exchange rates for the Expansion
Project have been assumed as follows: EUR:USD of 1.18, USD:XOF of 555, USD:AUD of 1.40 and USD:CAD of 1.30.
A corporate tax rate of 25% of gross profi t has been applied in the DFS and a 5% gold royalty is payable on gold
production.
Capital cost summary
The Expansion Project capital cost estimate was compiled with input from Lycopodium Minerals, Orelogy, Metso-
Outotec, and QGE with input from L&MGSPL and Endeavour on the TSF. The capital costs have been developed with
significant engineering and design and reinforced with Material Take Offs and Budget Quotations from reputable
vendors, who Endeavour is familiar with from ongoing operations.
The Expansion Project will be executed through partnersh ip between Endeavour , Engineering, Procurement and
Construction Management (“EPCM”) contractors, and Engineering, Procurement and Construction (“EPC”)
contractors. Endeavour has successfully executed several builds over the past decade using EPCM, which allows for
flexibility in defining scope, contractor selection and procurement ensuring that the projects’ team leverages off the
existing operation.
A construction period of up to 24-months is projected with the initial capital cost summarized in the table below,
which includes an average contingency of 13%.
Table 9: Expansion Project Capital Cost Estimate Summary (+15 / -5 %)
CAPITAL COSTS, $M
Treatment Plant 106
Reagents and Services 35
Infrastructure 55
Construction Distributables 27
SUBTOTAL 223
Management Costs 33
Owners Project Costs 34
TOTAL 290
While capital costs increased from $219 million in the PFS (as published by Teranga) to $290 million in th e DFS, the
Expansion Project remains a low-capex intensive brownfield expansion. As shown in the table below, scope additions
(which were summarized in the above section) represent an increase of approximately $37 million while the majority
of the $7 million in savings are associated with self-managing the earthworks using the existing Endeavour team. The
cost inflation impact of steel (65% increase) and concrete (50% increase) pricing accounts for an increase of
approximately $33 million.