Endeavour's Agbaou Gold Project enters construction with planned 103,000 ozs/yr at $635/oz cash cost

About this update from Endeavour Mining Plc

[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, June 11, 2012 /CNW/ - Endeavour Mining Corporation\n (\"Endeavour\") (TSX:EDV, ASX:EVR, OTCQX:EDVMF) announces its 85% owned\n Agbaou Gold Project in Côte d'Ivoire has entered the construction phase\n of its development.  An updated NI 43-101 compliant technical report\n (the \"SENET Report\") has also been completed that incorporates updated\n mineral resources & reserves, project optimizations and updated capital\n & operating costs.\n\n\n(All amounts in US dollars unless otherwise indicated)\n\n\nHighlights from the SENET Report, on a 100% basis, include:\n\n\nMeasured and Indicated resource of 1.157 million ounces comprised of\n 14.970 million tonnes at 2.43 g/t (at 0.5 g/t cut-off). See Table 1.\n\n\nProven and Probable reserves of 0.905 million ounces comprised of 11.075\n million tonnes at 2.54 g/t.  See Table 4.\n\n\nOpen pit mine and gold plant designed to treat 1.6 Mtpa saprolite ore or\n 1.34 Mtpa bedrock ore.  The plant design incorporates a conventional\n gravity and CIL circuit for a recovery rate of 92.5%.\n\n\nAverage gold production of 103,000 ounces per year over an 8 year mine\n life.\n\n\nA construction capital cost of $121 million, plus pre-production mining\n costs, working capital and contingencies of $38 million for a total\n upfront funding requirement of $159 million.\n\n\nForecast life of mine direct cash cost of $635 per ounce, using\n contractor mining.\n\n\nThe project yields, on an after-tax basis:\n\n\n \n\n\nAt $1,250 Gold Price\n\n\nAt $1,625 Gold Price\n\n\nNPV 0%\n\n\n$274 million\n\n\n$549 million\n\n\nNPV 5%\n\n\n$184 million\n\n\n$401 million\n\n\nIRR\n\n\n28%\n\n\n48%\n\n\n\n\n\nNeil Woodyer, CEO, stated\n\n\n\"Our Agbaou Gold Project is a robust project with attractive economics. \n By our assessment, Agbaou stands in the top quartile of all potential\n new gold projects being developed on a global basis.  Our engineering\n optimizations include a 12% increase in plant capacity when processing\n bedrock ore and an updated mineral resource estimate which increased\n the proven and probable reserve grade by 21% to 2.5 g/t and contained\n ounces to 905,000.  These improvements have allowed us to increase the\n average annual gold production by 40% to 103,000 ounces from 73,000\n ounces.  With our financial strength a...

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