Slide 1: Ity CIL Project Feasibility Study
CREATING A PREMIER AFRICAN GOLD PRODUCER Ity CIL Project Feasibility Study November 10, 2016 0
Slide 2: Disclaimer & Forward Looking Statements
Disclaimer & Forward Looking Statements Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP market prices of mining consumables, possible variations in ore reserves, performance measures with no standard meaning under IFRS. This grade or recovery rates; failure of plant, equip
Slide 3: Speakers and Table of Contents
Speakers Table of Contents Sébastien de Montessus 1. Ity CIL Project Overview President & CEO 2. Ity CIL Project Details Jeremy Langford EVP – Construction Services 3. Appendix Adriaan "Attie" Roux COO Patrick Bouisset EVP – Exploration & Growth Vincent Benoit EVP – CFO & Corporate Development CREAT
Slide 4: Long-life Low Cost Project
Strong CIL Feasibility Study results demonstrate potential for the Ity to become another flagship asset Long-life Low Cost Project Endeavour is Côte d’Ivoire’s largest gold producer • Long 14-year reserves mine life • Low AISC of $507/oz over first 9 years Tongon • Solid production of 144kozpa over
Slide 5: Summary of Independent Feasibility Study for CIL Project
Summary of Independent Feasibility Study for CIL Project Independent CIL Feasibility Study prepared by: Ity CIL Project DFS highlights Lead Consultant: Life of Mine Production Strip ratio, w:o 2.1 Tonnes of ore processed, Mt 41.0 Mt Grade processed, Au g/t 1.42 g/t Contributions from: Gold content p
Slide 6: 165kozpa at AISC of US$507/oz
Long-life Low-cost Project : AISC of US$603/oz on average over 14-year mine life 165kozpa at AISC of US$507/oz on average over the first 5 years 193koz 185koz 163koz 150koz 134koz 133koz 124koz 109koz 103koz $898/oz $608/oz $622/oz $608/oz $638/oz $582/oz $554/oz 53koz $477/oz $500/oz $409/oz Year 1
Slide 7: Robust Project Economics: High NPV and Quick Payback
Robust Project Economics: High NPV and Quick Payback 2 year payback period After-tax NPV of $411m 36% After-ax IRR NPV5% / IRR 850 20month 25month 14year Cumulative after-tax free cash flow, US$m build payback mine life $1,350/oz $500m / 42% 650 period $1,250/oz $411m / 36% $1,150/oz $315m / 30% 450
Slide 8: Significant Improvement Expected in Updated Feasibility Study
Significant Improvement Expected in Updated Feasibility Study H1-2017 update expected to include: • Recent high-grade Bakatouo and Colline Sud discoveries • Verse Ouest following recently completed infill drilling program • Additional Resource conversion at Daapleu and Mont Ity based planned infill
Slide 9: Significant Exploration Update With Several New Targets Identified
Significant Exploration Update With Several New Targets Identified Key drilling targets • Auger drilling program outlined large and highly anomalous clusters, identifying several new near-mine high priority exploration targets: • Bakatouo Northeast area • Vavoua area • Morgan/Yacetouo area • Le Plaq
Slide 10: CIL DFS and Exploration Potential Demonstrate Ity's Potential
CIL DFS and Exploration Potential Demonstrate Ity’s Potential To Become Another Flagship Asset AISC, US$/oz $1,200/oz $1,150/oz Decreased costs from >1,300/oz $1,100/oz $1,050/oz Nzema $1,000/oz (90-100koz) Optimization Tabakoto + exploration Cut-back (155-175koz) $950/oz $900/oz Possibility Ity HL
Slide 11: Key upcoming project milestones
Key upcoming project milestones • Completion of ownership discussions to increase Endeavour’s stake of the Ity asset • Award of mining permits for the Gbeitouo and Daapleu deposits • Commencement of the pre-project optimization phase and completion of the Sulphide processing investigation • Update o
Slide 12: Ity CIL Project Demonstrates Potential To Lower Group AISC
Ity CIL Project Demonstrates Potential To Continue To Lower Group AISC To <$800/Oz +900koz Strategic Milestones Ity for 2018-2020 $1,137 CIL + 900 koz ANNUAL PRODUCTION 575-610koz $1,010 ≤ 800$/oz 462koz 517koz ALL IN CASH COST $922 10+ year 317koz $870-920 MINE LIFE IN OUR CORE ASSETS 220koz 167koz
Slide 13: Ity CIL Project Technical Details
CREATING A PREMIER AFRICAN GOLD PRODUCER Ity CIL Project Technical Details
Slide 14: Ity CIL Project Provides Second Life To Ity Mine
Ity CIL Project Provides Second Life To Ity Mine • Ity already produced +1.2Moz to-date Ity Mine Gold Production vs. Grades Gold Production, koz Grade milled, g/t Au • Over $30m spent in exploration since 2013, increasing M+I resources from 0.2Moz to 165kozpa 2.8Moz, generating CIL project • Resourc
Slide 15: Heap Leach to CIL Process
Heap Leach to CIL Process Heap Leaching Process CIL Process CREATING A PREMIER AFRICAN GOLD PRODUCER 14
Slide 16: Project Improvements compared to PFS
Project Improvements compared to PFS Feasibility Study Improvements compared to PFS Rapid Project Expansion due to Exploration Success • 31% increase in reserves LOM Gold Production, Moz CIL mill size, Mtpa • Increased mill size from 2.0Mtpa to 3.0Mtpa FS 3.0 • Optimized Tailings Storage Facility an
Slide 17: Feasibility Study Reserves Increased By 31% From PFS
Feasibility Study Reserves Increased By 31% From PFS +31% (16koz) 1,880koz +97koz +8koz +5koz (12koz) (4koz) +224koz +149koz 1,429koz 2015 PFS Daapleu Mont Ity Gbeitouo Walter Zia NE Aires Teckraie Stockpiles 2016 DFS Reseves / Ity Flat Reserves CREATING A PREMIER AFRICAN GOLD PRODUCER 16
Slide 18: Additional Potential for Resource Conversion
Additional Potential for Resource Conversion Probable Reserves Indicated Resources Inferred Resources Potential includes: Deposits on a 100% basis. Resources are • The recently discovered inclusive of reserves. Tonnage Grade Content Tonnage Grade Content Tonnage Grade Content Bakatouo and Colline Su
Slide 19: Site Layout and Infrastructure
Site Layout and Infrastructure CREATING A PREMIER AFRICAN GOLD PRODUCER 18
Slide 20: Mining
Mining Low Grade Stockpiling Strategy • Owner operated mining selected using 90-tonne haul trucks. Total ore mined, Mt Stripping ratio, w:o • Mining is scheduled to commence three 6.2Mt months before the start of the processing plant to pre-strip the pits and stockpile 5.4Mt ore. 5.0Mt • Low Life of
Slide 21: 3.0 Mtpa Conventional Gravity Circuit/Carbon-In-leach Plant
3.0 Mtpa Conventional Gravity Circuit/Carbon-In-leach Plant • The conventional gravity circuit/Carbon-In-Leach plant is designed to process a nominal capacity of 3.0 Mtpa based on a constant ore blend of approximately 60% primary and 40% oxide. • The process plant will compose of: ‒ A vibrating griz
Slide 22: Metallurgy
Metallurgy • It is expected that overall gold recovery rates for the life of mine will be 83%, varying between 60% and 97% amongst deposits and mineralization • The gravity testwork has indicated that a portion of the Gold in CIL feed can be recovered by gravity gold recovery methods • Metallurgical
Slide 23: Flowsheet
Flowsheet CREATING A PREMIER AFRICAN GOLD PRODUCER 22
Slide 24: Capital Cost Estimate
Capital Cost Estimate • The initial capital cost has been estimated at $307 Initial Capital Cost Estimate Summary in US$m, ± 15% million, inclusive of $26 million for contingencies Treatment Plant 63 Reagents and Services 9 • The upfront capital is expected to be $282 million as a $25 million lease
Slide 25: Endeavour Experienced Construction Team
Endeavour Experienced Construction Team Significant Construction track record 6 West-African projects built by Endeavour’s core construction team • Endeavour’s core construction Built by Endeavour’s construction team for Endeavour team has been together for +10 SENEGAL Built by Endeavour’s construct
Slide 26: CSR – Social Partnership
CSR – Social Partnership Environmental Baseline studies for the ESIA from 2013 to 2016 have been completed and an ESIA report was published in March 2016 and a Resettlement Action Plan (“RAP”) has been completed. Three environmental permits have been granted covering the mining and process plant
Slide 27: Questions and Answers
CREATING A PREMIER AFRICAN GOLD PRODUCER Questions and Answers
Slide 28: Technical Report QPs
Technical Report QPs The complete NI 43-101 Technical Report pertaining to the Feasibility Study will be filed will be available on Endeavour’s website and on www.sedar.com. The technical information contained in the Feasibility Study was carried out, reviewed and approved by the following companies
Slide 29: Feasibility study reserves increased by 31% from PFS
Feasibility study reserves increased by 31% from PFS Pre-Feasibility Study Feasibility Study Reserves, Reserves, Deposits Variance as at October 1, 2016 as at September 30, 2015 on a 100% basis (koz) Tonnage Grade Content Tonnage Grade Content (Mt) (Au g/t) (Au koz) (Mt) (Au g/t) (Au koz) Open Pits
Slide 30: Life of Mine Plan
Life of Mine Plan Pre- Total/ Average Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 prod Mining schedule Total material moved, kt 128,564 3,116 15,501 15,332 17,394 16,064 15,740 15,727 12,454 11,626 5,610 0 0 0 0 0 0 Total waste moved