Endeavour Mining Boosts Economics at Hounde Project

Endeavour Mining Corp. (TSX:EDV,ASX:EVR,OTCQX:EDVMF) announced that at the end of 2014, mineral reserves at its Hounde project sat at 2.1 million ounces, up 34 percent. The rise follows positive exploration efforts, and the project’s economics have improved as a result.

Highlights include:

• The Houndé drilling program began in June 2014 and was completed in November 2014. It included 57,978 metres drilled with 110 diamond holes (22,780 metres) and 358 reverse-circulation holes (35,198 metres) completed (Figure 1).

• Drilling along the Vindaloo trend had two objectives: (1) test the extents of the Vindaloo Main mineralization at depth and on strike; and (2) convert Inferred mineral resources to Indicated category (Figure 2). Drilling on the Vindaloo West and Vindaloo Main zone targeted Inferred resource blocks and was successful in confirming mineralization. Upgrading of Inferred mineral resources not only provided additions to mineral reserves but also reduced strip ratios in the Vindaloo Main zone.

• Bouéré is located 12 km west of the Houndé process plant site and the drilling program was successful in extending the mineralization over a 600 metre strike length with widths of mineralization varying from 2 to 25 metres and generally 80 degree dip to the northwest.

• Dohoun is located approximately 14 km northwest of the Houndé process plant site and the drill program aimed at improving confidence in grade and continuity to enable resource estimation. The Dohoun mineralization is 500 metres along strike and dips steeply northwest in the main ore zone.

Neil Woodyer, CEO of Endeavour, commented:

We are very pleased to report on the exploration success at Houndé during 2014. We invested $6.7 million in the Houndé program during 2014 while we progressed through the mine permitting phase. This has resulted in a 523,000 ounce addition to Proven and Probable reserves, or a 34% increase, for a cost of approximately $13 per discovered reserve ounce.

The reserve additions have enhanced the after-tax project IRR to between 28% and 35%, with a gold price range of $1,200 to $1,300/oz. At a $1,250/oz gold price the 5% NPV is $359 million.

Click here to read the full Endeavour Mining Corp. (TSX:EDV,ASX:EVR,OTCQX:EDVMF) press release.