Slide 1: Analyst Tour: Youga Mine, Burkina Faso
Analyst Tour Youga Mine, Burkina Faso November 12, 2011 ENDEAVOUR MINING CORPORATION Endeavour Mining November 20, 2011 :: 1
Slide 2: Cautionary Statement
Cautionary Statement • Forward looking information • Non‐GAAP financial measures This presentation may contain forward‐looking information relating to the future performance of Endeavour Mining. Forward‐looking information, specifically those concerning future performance, are subject to certain ris
Slide 3: Presentation Overview
Presentation Overview • Introduction • Operations ‐ Youga Mine • Exploration – Youga Belt • Development ‐ Agbaou • Exploration – Agbaou • Development – Finkolo • Exploration ‐ Regional Endeavour Mining :: 3
Slide 4: Your Hosts
Your Hosts David Laing ‐ Senior Vice President Operations Mr. Laing has over 37 years experience in production, operation, project development and construction of base and precious metals projects, including 10 years providing consulting services to the mining industry globally. Mr. Laing has extens
Slide 5: Youga Mine, Burkina Faso
Youga Mine, Burkina Faso • 2008 started production • Endeavour 90% and 10% Burkina Faso Government • Open pit mine, current reserves 4.5Mt at 2.5 g/t (to Dec. 31, 2010) • Mineralization is structurally controlled and hosted in Tarkwa arkosic sediments View of A2Main pit facing north Endeavour Mining
Slide 6: Youga Mine
Youga Mine • Currently 360 employees with 25 foreign nationals plus 300 mining and services contractors • Current mine production of 8.6Mtpa in 2011 • Approximately LOM strip ratio 5:1 • Current LOM is based on 4 pits ‐ Main pit, East pit and West2&3 pits • Historically approximately 60% of gold pro
Slide 7: Youga Mine - Site layout
Youga Mine ‐ Site layout • Mine running smoothly; expanding resources & extending mine life Endeavour Mining :: 7
Slide 8: Youga Mill – Flowsheet
Youga Mill – Flowsheet • 1Mtpa standard gravity/CIL circuit • 93‐94% total recovery with 40% to the gravity circuit • Investigating mill throughput increase to +1.1Mtpa – classification & grind • MDM commissioned to examine expansion scenarios Endeavour Mining :: 8
Slide 9: Youga Mill
Youga Mill • At steady state but always room for improvement • Recent enhancements and ongoing projects include: • Improved crusher availability and throughput • Replaced screen to reduce recirculating load • Improved supply of warehouse parts and critical spares • Improved maintenance facilities, t
Slide 10: LOM Production Forecast
LOM Production Forecast • 2010 production of 82,400oz • 2011e production of 84,000oz • LOM target 80,000oz/y at LOM average cash costs of $650/oz • Ounce additions to come from resource generation, and conversion to mineable ounces 100,000 Historic Production Current Reserves Resource Conversion* 90
Slide 11: Youga Mine – Proposed Pit Expansion
Youga Mine – Proposed Pit Expansion • Preliminary Main pit and East pit design with Triple A and A2EHW • Potential to add 1‐2 years of production from these two areas Proposed pit cutbacks Endeavour Mining :: 11
Slide 12: Youga Mine
Youga Mine • Triple A: 8 DH 1,333m; 27 RC 3,148m • A2EHW: 10 DH 1,069m; 40 RC 4,434m • Resource estimation underway • Up to 6 parallel horizons Plan view of Triple A and HW solids Isometric view facing west of Triple A and HW solids Endeavour Mining :: 12
Slide 13: Triple A, Hanging Wall, A2M Deep, Gap, East Extension
Triple A, Hanging Wall, A2M Deep, Gap, East Extension • Drilling A2Main & A2East identified parallel zones (Triple A & A2E HW) • Deep drilling is planned for A2Main zone down plunge to N and NW • Gap drilling testing connection between A2Main & A2East: 11 RC 1,054m • Drill testing for East extension
Slide 14: Youga Mine – Triple A
Youga Mine – Triple A • East side of A2Main deposit, potential impact on pit design • Parallel horizons, lithologic influence or control Cross section 7675N facing north Endeavour Mining :: 14
Slide 15: Youga Mine – A2East Hanging wall
Youga Mine – A2East Hanging wall • Parallel zones on hanging wall side of A2East, will impact pit design • Distinct association with fine pyrite mineralization Cross section 7350E facing west Endeavour Mining :: 15
Slide 16: Youga Mine Geology
Youga Mine Geology • Birimian volcanics, volcaniclastics and sediments of the Bole‐Navrongo Belt, which extends from Ghana into Burkina Faso • Tarkwaian rocks unconformably overly Birimian • All reserves hosted by Tarkwa sediments; predominantly arkosic sandstones with subordinate chloritic‐schist •
Slide 17: Exploration Activity Update – Youga targets and resources
Exploration Activity Update – Youga targets and resources Endeavour Mining :: 17
Slide 18: 2011 Exploration and Resource Delineation Program
2011 Exploration and Resource Delineation Program • $12.6M program including 73,500 m drilling • 17 targets within 3 km of Youga mill and inside the mining permit • Another 5 targets along the Youga Gold Belt • Mineralization found in east wall of Main pit and north wall of East pit provide opportun
Slide 19: Youga Greenstone Belt: $12.6M Program - Targets
Youga Greenstone Belt: $12.6M Program ‐ 22 Targets Ouaré Zerbogo Permits 2 drill targets Bitou Permits 3 drill targets Youga Mine Permit 17 drill targets Endeavour Mining :: 19
Slide 20: 2011 Drilling Program to October 31, 2011
2011 Drilling Program to October 31, 2011 Core Completed Planned Holes m RC Holes m Holes m m Youga 80 8,630 264 23,743 344 32,373 48,104 Ouare 16 1,950 104 11,487 120 13,437 25,420 Total 96 10,579 368 35,230 464 45,810 73,524 Drill rig schedule by week. DH=core rig, MPR=multi‐purpose rig, RC=revers
Slide 21: Youga Mining Permit Resources & Exploration Targets
Youga Mining Permit Resources & Exploration Targets Gassore Gassore A2NE TMF West of A2NE Beaufort A2Main Triple A A2West3 Deep Castel A2Main Village A2E HW A2West2 Village A2East Zergore Tail Laforge A2West1 Nanga Leduc Leduc LeducEast East Endeavour Mining :: 21
Slide 22: Zergore
Zergore • Structurally controlled, south plunging anticline • Over 850 m strike • Four higher grade centres • Open at depth on high grade centres • 38 DH 3,633m, 68 RC 5,290m Endeavour Mining :: 22
Slide 23: Zergore
Zergore • Resource* of 95,000 oz Inferred • 2.304Mt @ 1.3 gpt • Upgrading classification • Update in expected Q4 2011 * 0.5 g/t cut off Isometric view facing north of Zergore resource pits. Blocks >1g/t only. Endeavour Mining :: 23
Slide 24: A2NE
A2NE • Current Resource of 0.709Mt @ 1.32 gpt for 30koz (Ind.) 0.205Mt @ 1.3gpt for 8koz (Inf.) ‐ Estimated on 350m of strike • 2011 Campaign included 9 DH 971.5m, 13 RC 1,020 m • Now over 680m strike length, open on strike and to depth • Initial resource estimate completed • Recent resource work su
Slide 25: A2NE
A2NE • Consistent parallel horizons hosted in sericitic schist Cross section 780060E facing west of A2NE resource. Endeavour Mining :: 25
Slide 26: A2NE Extensions
A2NE Extensions • Drilling to west and east extensions has been successful and requires follow‐up Endeavour Mining :: 26
Slide 27: Nanga-Tail-Village
Nanga‐Tail‐Village • Indicated 131,000 oz (3.70Mt @ 1.10 gpt) • Inferred 62,000 oz (2.30 Mt @ 0.95 gpt) • Nanga initial resource estimate*: • 2.5Mt @ 1.0gpt for 77koz (Ind.) • 1.3Mt @ 0.8gpt for 33koz (Inf.) • Infill drilling included 5 DH 525m • Tail initial resource estimate*: • 1.2Mt @ 1.3gpt for
Slide 28: Brasserie Trend – Zergore, Laforge, Beaufort, Castel Zones
Brasserie Trend – Zergore, Laforge, Beaufort, Castel Zones • Laforge to Beaufort could be one continuous trend • Beaufort is an area of recent alluvial gold workings • Beaufort 37 RC 1,925m completed (awaiting results) • Castel is a possible continuation of Zergore • Castel 9 RC 900m planned • Lafor
Slide 29: Other Targets within Mine Permit
Other Targets within Mine Permit • Leduc • 1 DH 160m • 27 RC 2,861m • Gassore • RC deferred to 2012 • Completed: • SRK Structural study • Satellite images by from NPA Fugro • Geophysics re‐interp • Infill geochem Isometric view facing west. Showing Tarkwa sediments in brown. Structural interpretatio
Slide 30: Bougre and Zerbogo
Bougre and Zerbogo • Two additional Tarkwaian Basins with minimal exploration • Additional soil geochemistry and ground geophysics planned • RC drilling to follow up on initial work Endeavour Mining :: 30
Slide 31: Ouaré Area
Ouaré Area • Ouaré 2011 exploration and resource delineation program • Deposit approximately 40km from Youga mill • Drilled 21 RC 2,248m as follow up on previous good results BITRC‐11‐342 4.3g/t over 11m Endeavour Mining :: 31
Slide 32: Ouaré Deposit – Bitou Property in the Youga Belt
Ouaré Deposit – Bitou Property in the Youga Belt • Current Inferred mineral resource* 4.7Mt at 2.1gpt • Drilling to increase resource and upgrade classification • Exploration drilling to extend strike and depth of deposit • Metallurgical testwork: • To confirm amenability to agitation leaching • To
Slide 33: Ouaré Deposit – Bitou Property in the Youga Belt
Ouaré Deposit – Bitou Property in the Youga Belt • 2011 Campaign designed to In‐fill and test extensions • 16 DH 1,950m • 83 RC 9,239m Endeavour Mining :: 33
Slide 34: Agbaou Gold Project, Côte d'Ivoire
Agbaou Gold Project, Côte d’Ivoire • One of largest undeveloped deposits in Côte d’Ivoire • Located ~200 km NW of Abidjan • 85% Endeavour, 10% State, 5% SODEMI • Open pit operation with a 1.2Mtpa CIL plant • Principal land package in eastern sedimentary basin ‐ exploration permits granted (red) & pe
Slide 35: Agbaou Gold Project - History
Agbaou Gold Project ‐ History 2004 to 2007 : Exploration and drilling work 2007 : Field work for Feasibility and Environmental Studies 2008 : FS and ESIA completed • Pit optimization @ 750$/oz : 7.4Mt of 2.37gpt Au ore : 566 Koz • Financial model @ 850$/oz : IRR 9.6% ‐ NPV 48.2 M$ ‐ LoM 6.3 years 20
Slide 36: Agbaou Gold Project – Project Details Current FS
Agbaou Gold Project – Project Details Current FS RESOURCES AND MINING • Resources 10.5 Mt @ 2.6 gpt = 872,000 oz Au (1gpt cut off grade – inferred excluded) • Reserves 10.9 Mt @ 2.1gpt = 732,000 oz Au • Material breakdown for ore : 5% laterite, 50% saprolite, 10% transition, 35% fresh rock • Average
Slide 37: Agbaou Gold Project – Process Plant Flowsheet
Agbaou Gold Project – Process Plant Flowsheet • Simple flow sheet with similarities to Youga and Nzema • Opportunity to transfer knowledge to construction and design Endeavour Mining :: 37
Slide 38: Agbaou Gold Project – LOM Schedule 2009
Agbaou Gold Project – LOM Schedule 2009 • Objective is to increase reserves and production in the early years to 100koz per year Endeavour Mining :: 38
Slide 39: Agbaou Gold Project – Site layout being optimized
Agbaou Gold Project – Site layout being optimized • Site layout will be finalized once condemnation drilling is complete Endeavour Mining :: 39
Slide 40: Agbaou Gold Project – Condemnation and Exploration
Agbaou Gold Project – Condemnation and Exploration • Exploration opportunities within site layout under proposed waste dump, TMF and plant site • Alternate sites selected • 12 priority targets being assessed • Initial targets were based on RC results on 2 sections 300 m apart • Follow up on 100 m sp
Slide 41: Agbaou Gold Project – Exploration Opportunities
Agbaou Gold Project – Exploration Opportunities • Gold soil anomalies and drilling success along ridges Zego Gold Target Isometric view facing north. Showing mineralized along ridges Endeavour Mining :: 41
Slide 42: Agbaou Property Exploration Targets
Agbaou Property Exploration Targets • Gold geochemical anomalies within mine permit: • Zego • Niafouta • Agbaou South • Zehiri • Geochem, geophysics, drilling in 2012 Endeavour Mining :: 42
Slide 43: Finkolo Property – Tabakoroni Deposit
Finkolo Property – Tabakoroni Deposit • Mali; 300 km southeast of Bamako; 35 km south of Syama • 60/40 JV with Resolute and Endeavour • Currently planned as additional feed for the Syama plant • Deposit open at depth and along strike • Reserves of 2.4 Mt of ore at 3.05 gpt for 237,000 oz (100% proje
Slide 44: Regional Exploration
Regional Exploration • Burkina Faso 1,462 km2 • Boulounga Minima • Côte d’Ivoire 3,969 km2 • Daoukro • Agnibilikrou • Allangoua • Permit applications • Mali 1,208 km2 • Mali west • Mali south Endeavour Mining :: 44
Slide 45: Burkina Faso - Boulounga Minima
Burkina Faso ‐Boulounga Minima • Follow up VTEM Data with soil sampling, auger, then RC • 1,600 soil samples on Boulounga • program extended to cover portion of Minima Permit • initial results are low; clusters and trends of low values may be significant due to the sand cover. • 7000 Auger holes pla
Slide 46: Côte d'Ivoire
Côte d’Ivoire • Airborne geophysics planned for Daoukro, Agnibilikrou, Allangoua • Prospective greenstone belt Daoukro – Dietekro Hill Agnibilikrou Allangoua Endeavour Mining :: 46
Slide 47: Mali West
Mali West • Sadiola Trend Endeavour Mining :: 47
Slide 48: Appendix 1: Resource Summary
Appendix 1: Resource Summary Resources (including reserves, 0.5g/t lower cutoff) Project Measured Indicated Measured & Indicated Inferred Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Mt Au g/t Mt Au g/t Mt Au g/t Mt Au g/t Youga1 ‐ Total 3.518 2.7 303,000 7.641 1.7
Slide 49: Appendix 2: Reserve Summary
Appendix 2: Reserve Summary Reserves Project Proven Probable Proven & Probable Gold Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Mt g/t Mt g/t Mt g/t Price Youga1 ‐ Total 2.414 2.8 216,000 2.062 2.2 146,000 4.477 2.5 362,000 US$1000 Attributable ‐ 90% ‐ ‐ 194,400 ‐ ‐ 131,400 ‐ ‐ 325,8