Endeavour Mining delivers 310,000 Oz gold production exceeding 2012 guidance and provides 2013 forecast
Wednesday, Jan 23, 2013
VANCOUVER, Jan. 22, 2013 /CNW/ - Endeavour Mining Corporation ("Endeavour" or the "Corporation") (TSX:EDV, ASX:EVR, OTCQX:EDVMF) announces total annualproduction for 2012 of 310,778 ounces of gold exceeding the 2012 production guidance range of 282,000 to 304,000 ounces. For 2013, Endeavour expects gold production in the range of 310,000 to 345,000 ounces at a cash cost per ounce (excluding royalties) of $790 to $830, with all gold sold at spot prices due to recent de-hedging transactions. Additional near-term production growth of over 100,000 ozs per year is expected from the Agbaou Gold Mine which is currently in construction (Q1 2014 completion). A recently completed Preliminary Economic Assessment (PEA) shows potential for 160,000 ozs per year from the Houndé Gold Project (Burkina Faso) in 2016.
2012 was a strong year of growth for your company. We continued to increase the scale of the business with the successful acquisition of Avion in October 2012, and we delivered above guidance gold production for the quarter and the year.
Agbaou construction is on schedule for completion in Q1 2014 with commitments to date on-track at 46% of budget. Expansion of the Tabakoto mill is progressing on schedule for completion by the end of Q1 2013, with ramp-up in the following quarter.
We are also pleased to be rapidly advancing the Houndé Gold Project with a significant increase in the Indicated mineral resource to 1.46 million ounces and Inferred mineral resource of 749,000 ounces, the positive PEA announced today, and the anticipated completion of a Feasibility Study led by Lycopodium in Q4 2013.
Endeavour is now producing gold at a rate of over 300,000 ounces per year from three mines - a significant increase compared to 82,400 ounces produced from only one mine in 2010. The expansion of Tabakoto and start of production at Agbaou are anticipated to add an additional approximately 150,000 ounces per year, with Houndé potentially adding a further 160,000 ounces of production per year, bringing Endeavour to over 550,000 ounces from five mines in 2016.
During 2013 we will be focused on realizing this growth from our existing assets with a $195 million capital program, and $32 million of exploration and feasibility study programs. In addition to Agbaou construction, the Tabakoto expansion, and the capital needs of Nzema and Youga, this will include the completion of a cost reduction and profit improvement plan at Tabakoto, completion of the access development at Segala, and focused exploration on Tabakoto and Kofi.
We anticipate that, at current market prices, we can fund our planned capital expenditure program over the next 3 to 4 years, including Houndé, from current financial resources. In view of changing market conditions, and changes and updates to our project development and implementation plans as they evolve and mature, we must maintain our financial flexibility and liquidity. We believe that this can and should be achieved by expanding our bank credit facilities rather than accessing the equity markets We have also maximized the company's exposure to the gold price in 2013 by eliminating the 2013 hedge positions at Tabakoto and Nzema in December 2012."
Tabakoto production guidance provided by Avion Gold Corporation, July 4, 2012 news release Full year 2012 gold production totalled 310,778 ounces, and cash operating costs are estimated to be in line with 2012 guidance. Endeavour anticipates providing the Q4 2012 and full year 2012 cash operating costs with the audited financial statements to be released in March 2013.
The preliminary Q4 2012 production and other financial information provided in this news release are approximate figures and may differ from the final results included in the 2012 annual audited statements and MD&A. In addition, as Endeavour completed its acquisition of Avion Gold Corporation effective October 18, 2012 the consolidated financial statements will only include results from the Tabakoto Gold Mine for the 75 day period of October 18 to December 31, 2012.
Endeavour's 2013 gold production is forecast to be 310,000 to 345,000 ounces at a cash cost per ounce (excluding royalties) of $790 to $830.
SOURCE Endeavour Mining Corporation