Endeavour Announces Positive PFS Results FOR Assafou Project IN Côte D’Ivoire $1,526m NPV(5%) and IRR of 28% at $2,000/oz
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NEWS RELEASE – LSE & TSX: EDV
ENDEAVOUR ANNOUNCES POSITIVE PFS RESULTS FOR
ASSAFOU PROJECT IN CÔTE D’IVOIRE
$1,526m NPV(5%) and IRR of 28% at $2,000/oz • 329kozpa at AISC of $892/oz over first 10 years
HIGHLIGHTS:
• PFS confirms Assafou's potential to become a tier 1 asset for Endeavour
• PFS highlights 329kozpa production at AISC of $892/oz over first 10 years:
› 15-year mine life based on maiden reserve of 4.1Moz
› Robust project economics with after-tax NPV(5%) of $1,526m and IRR of 28%, at a $2,000/oz gold price
› Initial capital of $734m based on a 5Mtpa design nameplate capacity with a similar processing plant
configuration as the nearby Lafigué mine
• 90% resource to reserve conversion with defined maiden reserves of 72.8Mt at 1.76g/t for 4.1Moz
› Indicated resources of 73.6Mt at 1.95g/t for 4.6Moz based on a drilling cutoff in October 2023, with
over 70,000 metres of drilling completed subsequently
› Further resource expansion and definition at Assafou, and satellite deposits in close proximity to
Assafou, is expected to be incorporated into the DFS
• Given the high-quality project and attractive economics, the DFS will now commence with completion
expected between late 2025 and early 2026
Abidjan, 11 December 2024 – Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) (“Endeavour”, the
“Group” or the “Company”) is pleased to announce that it has recently completed a positive Pre-Feasibility Study
(“PFS”) for the Assafou-Dibibango (“Assafou”) project on the Tanda -Iguela property in Côte d’Ivoire. The PFS
results meet Endeavour’s strategic targets and confirm Assafou’s potential to be a tier 1 asset, which justifies
advancing the project to the Definitive Feasibility Study (“DFS”) stage.
Ian Cockerill, CEO, commented : “I am delighted with the results of this pre-feasibility study that highlight the
potential for Assafou to become a tier 1 asset for Endeavour.
We have defined a large, low-cost and long mine life project, capable of producing 3 30koz a year over the first
ten years, while remaining firmly in the lowest cost quartile. The attractive returns profile ensures this project
will remain a capital allocation priority for us and it demonstrates our ability to generate highly value accretive
projects, organically, through our pipeline.
Our exploration team discovered Assafou in late 2021 , and in less than three years we have defined a high-
quality project with close to 5 million ounces of high-grade Indicated resource endowment. We expect that we
will continue to grow the Assafou deposit’s resource, and delineate several exciting near-mine targets across the
wider Tanda-Iguela property.
Given the excellent project economics, we will now launch the Definitive Feasibility Study and simultaneously
advance the permitting process so that we are well positioned to potentially launch construction, with our best-
in-class projects team, in the second half of 2026.
With a robust pipeline of organic growth opportunities, we expect to continue to unlock value and deliver long-
term production growth towards our 1.5 million ounce target , from a diversified portfolio of assets, by the end
of the decade, while maintaining best-in-class margins. This underpins our capital allocation framework, and we
expect to continue to deliver supplemental shareholder returns in line with our existing policy, and maintain
attractive shareholder returns through this next growth phase.”
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Table 1: Assafou Project Highlights
ASSAFOU STRATEGIC TARGETS
P&P Reserve, Moz1 4.1 >2.0
Mine life, years 14.5 >10
Average annual production, kozpa First 10 years 329 >200 Life of mine 265
AISC, $/oz2 First 10 years 892 Best-in-class Life of mine 936
Post-tax NPV5%, $m2 1,526 n.a.
Post-tax IRR, %2 28 >20
1Based on a $1,500/oz reserve price. 2Based on a gold price of $2,000/oz
The key operational and economic highlights of the Assafou PFS are summarised in Tables 2 and 3 below.
Table 2: Assafou PFS Summary
OPERATION TYPE
Mine type Open Pit
Plant type 5.0Mtpa Gravity / CIL Plant
RESERVES & RESOURCES1
P&P reserves 72.8Mt at 1.76g/t Au for 4.1Moz
M&I resources (inclusive of reserves) 73.6Mt at 1.95g/t Au for 4.6Moz
Inferred resources 3.3Mt at 1.97g/t Au for 0.2Moz
LIFE OF MINE PRODUCTION
Mine life, years 14.5
Strip ratio, W:O 5.9
Tonnes processed, Mt 72.8
Grade processed, Au g/t 1.76
Gold contained processed, Moz 4.1
Average recovery rate, % 94
Gold production, Moz 3.9
Average annual production, kozpa 265
Cash costs, $/oz 863
AISC, $/oz2 936
AVERAGE FOR YEARS 1 TO 10
Production, kozpa 329
Cash costs, $/oz 812
AISC, $/oz2 892
CAPITAL COST
Upfront capital cost, $m 734
ENVIRONMENTAL DATA
GHG Emissions Intensity3, t CO2e/oz 0.55
Energy Intensity, GJ/oz 7.23
1Based on a reserves gold price of $1,500/oz and a resource gold price of $1,900/oz 2Based on a gold price of $2,000/oz
3GHG Emissions Intensity considers only Scope 1 and 2 emissions
Table 3: Assafou PFS Project Economics
Gold Price $1,500/oz $1,900/oz $2,000/oz $2,500/oz
PRE-TAX
NPV5%, $m 860 1,882 2,148 3,408
IRR, % 18 31 34 48
Payback Period, yr1 5.6 3.6 3.3 2.4
AFTER-TAX
NPV5%, $m 536 1,322 1,526 2,485
IRR, % 14 25 28 40
Payback Period, yr1 6.4 4.2 3.8 2.7
1Payback period calculated from the start of commercial production
Endeavour expects to file a Technical Report pursuant to National Instrument 43-101 – Standards of Disclosure
for Mineral Projects (“the NI 43-101”) in respect of the Assafou PFS within 45 days of this news release.
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Overview
The 100% owned Tanda and Iguela permits (“Tanda-Iguela”) are located in the east ern region of Côte d’Ivoire,
approximately 600km northeast of Abidjan , adjacent to the Ghana border. The northern permit, Tanda, was
added to Endeavour’s portfolio in late 2015 following Endeavour’s transaction with La Mancha. Endeavour
conducted an initial drill ing campaign in early 2016 that yielded positive results and quickly identified the
southern permit, Iguela, as having a high degree of geological prospectivity. The Iguela permit was award ed to
Endeavour in May 2017, through Côte d’Ivoire’s permitting application process.
Figure 1 : Tanda-Iguela Map
A maiden Indicated resource of 1.1Moz at 2.33 g/t Au was published on 21 November 2022 and was
subsequently increased to 4.5Moz at 1.97 g/t Au on 29 November 2023, based on a $1,500/oz gold price.
As shown in Figure 2 below, the PFS demonstrates Assafou’s ability to deliver 329kozpa at AISC of $892/oz over
the first ten years of operations, with average production exceeding 350kozpa over an 8-year period once the
operation is ramped up, and average production of 265kozpa and AISC of $936/oz over life of mine.
Figure 2: Assafou PFS Production and AISC Profile1,2
1Assafou PFS production is based on the 2024 Mineral Reserve Estimate, and does not incorporate drilling completed after November 2023, which provides significant upside to
the production profile from Y-10 onwards. 2AISC based on a gold price of $2,000/oz
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The PFS production profile is based on the mineral reserves only with an effective date of 31 August 2024, which
are constrained by a resource with a drilling cutoff of 31 October 2023. Significant exploration drilling has been
completed since this cutoff, which is expected to contribute to resource and reserve upside supporting higher
levels of production, particularly in years 10 to 15 of the production profile.
Reserves and Resources
As shown in Table 4 below, the PFS mineral resource is based on the 2023 Mineral Resource Estimate (“MRE”),
as published on 29 November 2023 , which has been restated using a $1,900/oz gold price, compared to the
$1,500/oz gold price used when it was published. The drilling cut-off for the 2023 MRE was 31 October 2023,
with the MRE constituting 183,000 metres of drilling at the Assafou deposit. Subsequently, a further 70,000
metres of drilling has been completed during late 2023 and year -to-date 2024 at the Assafou deposit and
satellite targets in close proximity to Assafou, which are expected to be incorporated into a future mineral
resource update that will underpin the DFS.
Table 4: Assafou Reserves and Resources
On a 100% basis
Tonnage Grade Content
(Mt) (Au g/t) (Au koz)
Proven Reserves - - -
Probable Reserves 72.8 1.76 4,115
P&P Reserves 72.8 1.76 4,115
Measured Resource (incl. reserves) - - -
Indicated Resources (incl. reserves) 73.6 1.95 4,604
M&I Resources 73.6 1.95 4,604
Inferred Resources 3.3 1.97 208
1Mineral Resource Estimate effective 30 June 2024. Mineral Reserve Estimate effective 31 August 2024. Mineral Resource and Res erve Estimates follow the Canadian Institute
of Mining, Metallurgy and Petroleum (“CIM”) Definitions Standards for Mineral Resources and Reserves and have been completed in accordance with the Standards of Disclosure
for Mineral Projects as defined by National Instrument 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 that are not Mineral Reserves do not have demonstrated economic viability.
Resources were constrained by MII Pit Shell based on a cut-off grade of 0.5g/t at a $1,900/oz gold price. Reserves are based on a cut-off grade of 0.4g/t for oxide ore and 0.5g/t
for fresh ore and $1,500/oz gold price.
The updated mineral resource estimate for the Assafou deposit comprises an Indicated resource of 73.6Mt at
1.95g/t for 4.6Moz and an Inferred resource of 3.3Mt at 1.97g/t for 0.2Moz, based on a cut-off grade of 0.5 g/t
Au and a $1, 900/oz gold price . The mineral resource at the Assafou deposit is robust, as it is high-grade and
hosted in thick, continuous lenses, as demonstrated by the sensitivity analysis presented in Table 5 below.
Inferred material within the pit design was treated as waste in the PFS.
Table 5: Assafou Mineral Resource Estimate Sensitivity1
TONNAGE GRADE CONTENT
(Mt) (Au g/t) (Au koz)
INDICATED RESOURCE
Based on a gold price of $1,500/oz 70.9 1.97 4,493
Based on a gold price of $1,700/oz 72.7 1.95 4,560
Based on a gold price of $1,900/oz 73.6 1.95 4,604
Based on a gold price of $2,000/oz 74.1 1.94 4,620
INFERRED RESOURCE
Based on a gold price of $1,500/oz 2.9 1.91 176
Based on a gold price of $1,700/oz 3.2 1.98 203
Based on a gold price of $1,900/oz 3.3 1.97 208
Based on a gold price of $2,000/oz 3.4 2.01 220
1 Mineral Resource is estimated effective 30 June 2024 . No Measured resources have been estimated. Mineral Resources estimates follow the Canadian Institute of Mining,
Metallurgy and Petroleum ("CIM") definitions standards for mineral resources and have been completed in accordance with the S tandards of Disclosure for Mine ral Projects as
defined by National Instrument 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 Reso urces that are not Mineral Reserves do not have demonstrated economic viability. Resources are
reported undiluted and were constrained by MII $1,900/oz Pit Shell and for sensitivity purpose by approximate MII at $1,500/oz and $1,700/oz and $2,000/oz pit shells and based
on a cut-off of 0.5 g/t Au.
For technical notes and drilling results from the Assafou drill programme, please see the Technical Notes section
below.
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Mining Operations
The Assafou deposit mineralisation extends from surface to depths in excess of 300 metres and is amenable to
conventional open -pit mining. The mine planning, resource and cost estimation for the PFS is based on a
contract mining operation with a maximum mining capacity of 62.5 Mt per year. Mining capacity is expected to
exceed processing capacity in order to accumulate stockpiles to allow high grade material to be preferentially
processed early in the mine life. During the pre-commercial production period approximately 36.5 Mt of pre -
stripping is expected to support an accelerated ramp up of the production profile. The DFS will review
opportunities to reduce the impact of pre-stripping at the Assafou deposit through supplementing the ore feed
with near-surface ore from the Pala Trend 3 deposit, located 1km away from Assafou.
Diesel excavators and trucks will be used for loading and haulage, with a contractor fleet expected to comprise
of 300-tonne and 200 -tonne class face excavators to load 140-tonne capacity dump trucks for waste mining,
and 200-tonne class excavators to load 140-tonne capacity dump trucks for ore mining.
Processing Operations
Ore will be processed via a 5.0 Mtpa processing plant. Over the life of mine, the plant will be fed with
approximately 89% fresh ore and 11% oxide and transitional ore.
Two-stage crushing followed by a high-pressure grinding roll and a ball milling circuit is planned. A primar y
gyratory crusher will crush ore to a coarse crush size, followed by dual secondary cone crushers. This will feed a
crushed ore stockpile that feeds into a high-pressure grinding roll circuit. Ore will then be passed through a
conventional ball mill and milled to 80% passing 106µm (microns).
The milled ore will pass through a gravity circuit comprising two Knelson concentrators for separation and
recovery of coarse free gold, to produce a gravity concentrate for cyanidation and electrowinning that can be
smelted to produce gold dor é. High gravity recovery of approximately 60% is estimated for fresh and
oxide/transitional ores at Assafou.
The remaining milled gravity tail will be screened and passed to a carbon-in-leach (“CIL”) circuit containing one
pre-leach tank and six CIL tanks in series for leaching and absorption. Leach residence time will be approximately
36 hours.
Following leaching and absorption, gold will be recovered from activated carbon by elution, electrowinning, and
gold smelting to produce gold doré.
Extensive and representative metallurgical testwork has indicated that gold is free milling with very high gravity
and leach extraction potential, with a projected gold recovery rate of 94% over the life of mine.
Operating Cost Summary
Mining operating cost estimates, prepared by Endeavour, are based on a contractor mining model. Process
operating cost estimates were prepared by Lycopodium, who have successfully supported Endeavour through
five engineering and construction projects in West Africa over the last ten years . General and Administration
(“G&A”) cost estimates were also prepared by Lycopodium with input from Endeavour, as summarised in the
table below.
Table 6: Assafou Life of Mine Operating Unit Costs (-15/+20%)
UNIT COSTS (US$)
Open Pit Mining & Rehandling $4.08/t mined
Processing $12.25/t processed
G&A $4.10/t processed
Based on estimates that exclude escalation
Operating costs have been based on a delivered diesel price of $0.92 per litre and are in line with current local
pricing. Power will be sourced from the grid supplying 90kV to site via a ring main system providing power from
two different sources of transmission to increase reliability, with power costs estimated at $0.16/kWh.
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Capital Cost and Infrastructure Summary
The project capital cost estimate was compiled by Lycopodium with input from Knight Piésold on the TSF, water
infrastructure, site access roads and airstrip, from Digby Wells on relocation, and from ECG Engineering on the
power infrastructure. Endeavour has provided project specific estimates for mine establishment, facilities and
owner’s costs.
The initial capital cost is summarized in the table below.
Table 7: Assafou Upfront Capital Cost Estimate Summary (-20/+25%)
CAPITAL COSTS (US$M)
Mining 156.3
Treatment Plant Costs 115.5
Reagents and Plant Services 34.9
Site Infrastructure 109.2
Offsite Infrastructure 79.7
Contractor Distributables 36.6
Indirect Costs 120.3
Subtotal 652.5
Contingency 79.0
Taxes and Duties 2.7
Total Upfront Capital Cost 734.2
Based on estimates that exclude escalation
The Assafou project capital cost estimate assumes a contractor mining model, selected due to the lower upfront
capital costs and the additional fleet flexibility that can accommodate the pre -production mining ramp -up.
Within the subsequent DFS, a hybrid approach to contract and owner mining may be considered to ensure
capital and operating costs are optimised, while the mining ramp-up is de-risked.
The Assafou project benefits from good surrounding infrastructure, including access to the 90kV power supply
within 14km of the project, and access to the A1 national road, which will be diverted around the operation and
provide access to the operation . An airstrip will be built 3.5 km from the permanent accommodation.
Resettlement of two villages, within close proximity to the project, is required and is included in the capital cost
estimate.
The tailings storage facility (“TSF”) is expected to be a cross-valley storage facility, utilising the natural
topography of the project area, that will be formed by multi-zoned earth fill embankments, with a total footprint
area (including the basin area) of approximately 252ha for the stage 1 TSF to 278ha for the final TSF. TSF
construction will benefit from the high availability of fresh waste rock from the mining pre -stripping activities.
The TSF is designed to a life-of-mine capacity accommodating a total of 73Mt of tailings, with the potential to
be expanded to 110Mt. The Stage 1 TSF is designed for 7.5Mt, approximately 18 months storage capacity, and
subsequently, downstream raise construction will be used to progressively increase capacity.
The recommendations from the Environmental Social Impact Assessment (“ESIA”) which is underway, will be
used to compile an Environmental and Social Management Plan (“ESMP”) which will guide Endeavour’s local
community engagement as well as ensuring it fulfils its environment obligations, minimising the mine’s impacts
where possible. The ESMP will be used to monitor and ensure compliance with environmental specifications,
monitoring and management measures and will be implemented from site preparation through to
decommissioning and closure.
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Figure 3 below highlights the proposed site and infrastructure layout.
Figure 3: Assafou Schematic Site Layout
Ownership, Permitting, Taxes and Royalties
Endeavour acquired the Tanda exploration permit in 201 5, subsequently acquiring the Iguela permit, which
contains the Assafou project, in 2017. Endeavour will retain full ownership of the Tanda-Iguela permits until the
permits are converted into a n exploitation permit. Based on the current 2014 Mining Convention, once the
exploitation permit is granted, Endeavour will be entitled to an 80% stake in the Assafou project, while SODEMI
(the Ivorian state-owned mining company) and the Government of Côte d’Ivoire will each have a 10% stake.
A corporate tax rate of 25% of gross profit has been applied in the PFS. A royalty of 5.0% and a community levy
royalty of 0.5% was applied to all sales. Gold royalties in Côte d’Ivoire are based on a sliding scale with the gold
price, and vary between 3.0% and 6.0%. A transport and refining charge of $4/oz Au was also applied.
The mining code is currently under review and if the proposed new mining code is passed into law before the
Assafou exploration permit is converted into an exploitation permit, then the fiscal terms applicable to the
Assafou project are expected to reflect those of the new mining code. If the new mining code is passed into law
in its current draft state, it is expected to include an increase in the Governments free-carried interest from 10%
to 15%. This would result in Endeavour’s potential stake in the Assafou project, once the exploration permit has
been converted into an exploitation permit, decreasing from 80% to 75%.
Geology
Mineralisation at the Assafou deposit is both disseminated and hosted in quartz veins within the Tarkwaian
Sandstones. The deposit appears to be monometallic containing no potentially penalising elements associated
with the gold. Mineralisation starts at surface , extending down to more than 300 metres in depth, and is
continuous along strike, along the prominent northwest trending structure that separates the Tarkwaian
Sandstones from the mafic Birimian Basement rocks. The deposit comprises a thick main (up to 60 metres)
continuous lens, appearing to be dipping at a low angle to the southwest, overlaid by a series of stacked lenses.
High grade mineralisation and the thickest mineralised intercepts are located adjacent to the structural contact
between the mafic Birimian Basement rocks and the Tarkwaian Sandstones along the northeast boundary of the
Assafou deposit. Mineralisation at Assafou remains open along strike towards the northwest and towards the
southeast, as well as at depth, where deep drilling below 250 metres intercepted mineralisation below the
existing resource pit shell and within the Birimian Basement rocks below the sedimentary basin.
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Assafou Exploration
The Assafou deposit was discovered in late 2021 and the maiden Indicated resource of 14.9Mt at 2.33g/t
containing 1.1Moz and an Inferred resource of 32.9Mt at 1.80g/t containing 1.9Moz was defined on 31 October
2022, less than one year after the initial discovery, based on 58,000 metres of drilling.
Subsequently, an updated Indicated resource of 70.9Mt at 1.97g/t containing 4.5Moz and an Inferred resource
of 2.9Mt at 1.91g/t containing 0.2Moz was defined on 14 November 2023, based on 183,000 metres of drilling.
Since the 14 November 2023 resource was defined, a further 44,000 metres of drilling has been completed at
the Assafou deposit, extending the mineralised trend by over 0.4km or 12%, to 3.7km, and 26,000 metres of
drilling has been completed at near-mine targets, within less than 5km of the Assafou deposit.
Mineralisation at Assafou remains open along strike along the 20km long structural corridor extending from
Koume Nangare in the northwest to Kongojdan in the southeas t, as well as at depth where mineralisation has
been identified below the current resource pit shell, and within the basement mafic Birimian volcanic rocks.
During the first nine months of 2024, 67, 000 metres of drilling has been completed for a total spend of $13.4
million, consisting of resource expansion and resource infill drilling at the Assafou deposit , resource definition
drilling at the Pala Trend 3 target and reconnaissance drilling at other satellite targets in close proximity to
Assafou.
Figure 4: Assafou Deposit Map
Figure 5 belo w highlights that 2024 drilling, that has not been included in the PFS reserves and resources
estimate, has identified mineralisation that extends towards the northwest of Assafou, outside of the existing