Endeavour Holds Groundbreaking Ceremony to Mark the Start of Houndé Construction with President of Burkina Faso - Seite 2

Sébastien de Montessus, CEO of Endeavour, stated:

"We are honored to share this important event with President Kaboré, his Prime Minister, his Minister of Energy, Mines and Carriers, and the numerous government representatives here in support of the Houndé project. This strong governmental presence demonstrates Houndé's importance for both Endeavour and the country. The partnership between Endeavour and every level of government in Burkina Faso exemplifies our collaborative and local approach to building mines in West Africa. Burkina Faso is a key focus for Endeavour, and we are proud to be a contributor to the economy and to our communities."

About the Houndé Project

Once in production, Endeavour's 90%-owned Houndé Project 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 ounces at an All-In Sustaining Cost ("AISC") of US$709/oz over an initial 10-year mine life based on reserves. Moreover, in its first 4 years, the average annual production is expected to be 235,000 ounces at an AISC of US$610/oz.  

The project is an open pit mine with a 3.0Mtpa gravity circuit/ Carbon-In-Leach 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 tzhe first gold pour expected during the fourth quarter of 2017.

Endeavour will employ up to 1,800 people during Houndé's construction phase and 470 once the project reaches commercial production, with an objective of employing 90% Burkinabe nationals and a focus on increasing female employment in the region.

Significant achievements to date:

• Construction is progressing on-time and on-budget; procurement is approximately 30% complete with total capital commitments incurred amounting to $105 million
• Mining fleet equipment financing, amounting to approximately $38 million (for equipment valued at $46 million), has been signed with Komatsu Ltd.; deliveries commence in Q4-2016. A further $6 million of equipment financing for the balance of mining and construction equipment is anticipated to be engaged with a third party in the near term
• Long lead-time capital items have been ordered, including the Ball and Sag mill which will be manufactured by Outotec (who previously successfully supplied Endeavour's Nzema and Agbaou projects) with delivery of the mills expected in April 2017
• The grid power offtake agreement with Sonabel, the national electricity provider, has recently been signed, with a 38km 91kv overhead power line and a dedicated 91/11kv substation scheduled  to be operational  in Q3-2017
• Infrastructure and Bulk Earthworks have commenced, notably with the clearing and preparation of the process plant area, the Water Storage Dam, and the Water Harvest Dam; construction of roads within the project footprint; and construction of the 300-person permanent accommodation camp
• First concrete in the process plant is scheduled for August 2016
• Land compensation process was successfully completed and resettlement is underway, with all approvals in place
• Endeavour is in line with its objective of employing 90% Burkinabe nationals at Houndé and community investment program initiatives have commenced