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Press release from CNW Group

Endeavour Expands Nzema Sulphide Program and Initiates Preliminary Economic Assessment

Wednesday, May 02, 2012

Endeavour Expands Nzema Sulphide Program and Initiates Preliminary Economic Assessment14:56 EDT Wednesday, May 02, 2012EDV - Toronto Stock ExchangeEVR - Australian Securities ExchangeMONACO, May 2, 2012 /CNW/ - Endeavour Mining Corporation ("Endeavour") (TSX:EDV, ASX:EVR, OTCQX:EDVMF) is pleased to report the expansion of the sulphide drilling program at its 90% owned Nzema Gold Mine following review of drilling results to date, the delivery of the Conceptual Trade-off Study by AMEC Minproc Limited and initial metallurgical testwork completed at SGS Australia Mineral Services.Drilling has confirmed the presence of several sulphide ore shoots below the principal oxide pits at the Salman Trend.  Highlights include:TeberuSNRC1415  9 m @ 4.91 g/t Au  from 109 mSNRC1416  14 m @ 4.13 g/t Au  from 104 mSNRC1416 14 m @ 3.15 g/t Au  from 124 mSNRC1451 10 m @ 3.84 g/t Au  from 72 mSNRC1478 14 m @ 2.48 g/t Au  from 30 mSalman NorthSNRC1419 3 m @ 11.52 g/t Au  from 79 mSNRC1464 12 m @ 9.67 g/t Au  from 38 mNugget HillSNDD1446 10 m @ 3.75 g/t Au  from 108 mSNDD1447 16 m @ 2.04 g/t Au  from 62 mSalman SouthSNRC1378 14 m @ 1.94 g/t Au  from 63 mSNRC1474 8 m @ 1.67 g/t Au  from 88 mOn the basis of these encouraging results the Nzema exploration program was expanded to include a larger sulphide drilling program, metallurgical testwork, and completion of a preliminary economic assessment by the end of 2012.  The sulphide gold zones at Salman represent a target that Endeavour believes has the potential to significantly increase production at Nzema.The testwork will examine process alternatives currently being employed to treat refractory sulphide mineralization within West Africa.  The program budget was expanded from US$2.4 to US$6.4M for 2012 in order to accelerate the drilling and achieve the study objectives.Sulphide Drilling Program ResultsA total of 40 holes totalling 5,174 m have been completed thus far in the 2012 drilling campaign.  Significant results for 2011 and 2012 drill campaigns are provided in Table 1.RC and diamond drilling has targeted the sulphide zone between Salman North and Salman South (Figure 1).  Drilling traverses were initially spaced at 100 metres to provide systematic coverage of the sulphide zones and to highlight the location of higher grade shoots to a vertical depth of 100 metres.  At Teberu, Salman North and Salman South drilling results demonstrate the existence of wide zones of higher grade mineralization that represent ore shoots plunging shallowly to the south.  Closer-spaced drilling has commenced at the locations of the ore shoots (50 metre by 50 metre grid) to assess continuity and to provide sufficient data for the generation of an inferred resource.Shallower intercepts of oxide mineralization help to delineate the oxide resources and in a few cases have outlined zones that are not currently included in the resources. In some areas faults, possibly thrusts, have resulted in "doubled-up" portions of the mineralized horizons or have caused gaps or dislocations of an otherwise continuous mineralized body.Table 1: Significant Intercepts for the Salman Sulphide and Oxide Drilling (Holes in bold are located on Figure 1)HoleProspectFrom (m)To (m)Width(m)Grade(g/t)YearDrilledOx/SuSNRC1378Salman South6377141.942011SuSNRC1394Nugget Hill132071.462011OxSNRC1404Nugget Hill414542.862011OxSNRC1405Teberu121534.612011OxSNRC1411Teberu344172.252011SuSNRC1415Teberu293672.812011SuSNRC1415Teberu10911894.912011SuSNRC1416Teberu104118144.132011SuSNRC1416Teberu124138143.152011SuSNRC1419Salman North7982311.522012SuSNRC1421Nugget Hill252944.042012SuSNRC1435Salman South0553.922012OxSNDD1443Teberu606552.222012SuSNDD1443Teberu14514943.452012SuSNDD1444Teberu157172152.32012SuSNDD1446Nugget Hill108118103.752012SuSNDD1447Nugget Hill6278162.042012SuSNRC1451Teberu7282103.842012SuSNRC1453Teberu5471171.282012SuSNRC1455Teberu222861.812012SuSNRC1458Nugget Hill758272.232012SuSNRC1461Teberu969934.112012SuSNRC1464Salman North56131.432012SuSNRC1464Salman North212762.932012SuSNRC1464Salman North3850129.672012SuSNRC1465Salman North11412391.322012SuSNRC1474Salman South162264.652012OxSNRC1474Salman South889681.672012SuSNRC1476Teberu283684.212012OxSNRC1477Nugget Hill3344111.882012SuSNRC1478Teberu3044142.482012SuTo view Figure 1:  Plan map of the Salman Trend showing areas of Nzema Sulphide drilling program, click hereTo view Figure 2:  Teberu 04 cross section 553800N, click hereTo view Figure 3: Salman South cross section 551450N, click hereBackground of Salman Sulphide ProjectThe Nzema Mine commenced production in late 2010 based on mineral reserves from the Salman, Anwia and Bokrobo deposits.  The mineral reserve of the Salman Trend comprises oxide and some transitional ore contained within a string of open pits along the 9 kilometre trend that extends from Akango in the north to Salman South.  Although gold mineralization extends without a break from oxide through the transition horizon and into the unoxidized sulphide zone, gold within the sulphide zone is refractory and has a low recovery when treated by the existing conventional 'carbon in leach' plant at Nzema (Direct CIL recoveries ranging from 22.7% to 28.4% in lab testwork). Refractory gold deposits exist at other operations in Ghana and Côte d'Ivoire where the ore is treated using either BIOX or Leachox methods (ultra-fine grinding with intensive oxidation of the flotation concentrates).  The refractory gold mineralization of the Salman Sulphides represents a target that Endeavour believes has the potential to significantly increase production at Nzema.The lower transitional material has a low recovery with conventional carbon in leach and although it is scheduled to be processed through the Nzema oxide plant it may also be more economically processed with the sulphide material.Conceptual Trade-off StudyIn tandem with the resource drilling program in 2011, Endeavour engaged AMEC Minproc Limited to conduct a Conceptual Trade-off Study on the Nzema sulphide project.  The primary aim of the study was to investigate process options for the sulphide material and to assess the economic viability of the project prior to commitment to a resource definition program to convert the resource to reserve. Two potential process options were considered:Off-site toll treatment of  a sulphide concentrate generated on site, orConstruction of a concentrator and BIOX plant on site.The preliminary flotation testwork indicated that a high gold recovery with a small mass pull could be achieved (approximately 90-95% gold in about 5% mass).  This has obvious benefits in terms of capital and operating costs for subsequent treatment processes.  Assuming around 92% gold recovery by CIL of the oxidized concentrate an overall recovery of approximately 83% is indicated.Next StepsThe revised 2012 drill program includes 15,800 metres of diamond drilling (with RC pre-collars) plus 2,400 metres of RC drilling.  The program is planned to extend the drill coverage to 150 m vertical in anticipation of generating at least Inferred resources at the three main shoots and extend the delineation of the sulphide resource where possible.The results of this drill program will be assessed via a Preliminary Economic Assessment prior to commitment to a second drilling program to convert the Inferred resources to Measured and Indicated and progress to a Preliminary Feasibility Study.  Delivery of the Preliminary Economic Assessment is planned for the end of 2012.Qualified PersonsAdriaan Roux, (Pr.Sci.Nat.), Endeavour's Senior Vice President - Operations, is a Qualified Person under NI 43-101, and has reviewed and approved the technical information related to metallurgy and mining operations in this news release.Martin Bennett, MAIG, General Manager Exploration is the Qualified Person overseeing Endeavour's exploration projects in Ghana and Liberia and has reviewed and approved this press release.About Endeavour Mining CorporationEndeavour is a gold producer delivering growth.  Endeavour owns two gold mines producing approximately 180,000 oz per year in Ghana and Burkina Faso that are generating significant operating cash flows to fund exploration and development growth.  In addition to upside potential at its current operations, Endeavour's gold project in Côte d'Ivoire is ready for construction (mining permit submitted; currently negotiating EPCM contract) for an additional 100,000 oz per year.  Endeavour's strong financial base encourages investments in long-term operational growth, exploration to replace and increase reserves, and funding for acquisitions.Endeavour Mining Corporation is listed on the TSX (symbol EDV) and ASX (symbol EVR), and also trades on the OTCQX (symbol EDVMF).On behalf of Endeavour Mining CorporationNeil Woodyer Chief Executive OfficerThis news release contains "forward-looking statements" including but not limited to, statements with respect to Endeavour's plans and operating performance, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, and the success of exploration activities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts" and "anticipates". Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Endeavour operates. Although Endeavour has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Please refer to Endeavour's most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks affecting Endeavour and its business.Appendix of intercepts: HoleID From   To  Au ppmSNRC1378 63   64  2.43SNRC1378 64   65  0.07SNRC1378 65   66  8.20SNRC1378 66   67  1.08SNRC1378 67   68  1.09SNRC1378 68   69  0.05SNRC1378 69   70  0.36SNRC1378 70   71  0.51SNRC1378 71   72  0.43SNRC1378 72   73  0.70SNRC1378 73   74  0.64SNRC1378 74   75  2.48SNRC1378 75   76  0.69SNRC1378 76   77  8.40SNRC1384 1   2  2.76SNRC1384 2   3  2.27SNRC1384 3   4  0.66SNRC1394 13   14  1.74SNRC1394 14   15  0.04SNRC1394 15   16  2.70SNRC1394 16   17  0.05SNRC1394 17   18  2.28SNRC1394 18   19  2.36SNRC1394 19   20  1.02SNRC1404 41   42  1.31SNRC1404 42   43  5.57SNRC1404 43   44  3.54SNRC1404 44   45  1.00SNRC1405 12   13  2.35SNRC1405 13   14  5.02SNRC1405 14   15  6.45SNRC1411 34   35  0.66SNRC1411 35   36  10.54SNRC1411 36   37  0.75SNRC1411 37   38  0.60SNRC1411 38   39  0.28SNRC1411 39   40  1.07SNRC1411 40   41  1.87SNRC1415 29   30  0.56SNRC1415 30   31  0.01SNRC1415 31   32  0.02SNRC1415 32   33  1.21 HoleID From  To  Au ppm SNRC1415 33  34  5.11 SNRC1415 34  35  1.48 SNRC1415 35  36  11.25 SNRC1415 109  110  5.39 SNRC1415 110  111  4.72 SNRC1415 111  112  1.13 SNRC1415 112  113  6.44 SNRC1415 113  114  8.66 SNRC1415 114  115  9.45 SNRC1415 115  116  2.78 SNRC1415 116  117  4.95 SNRC1415 117  118  0.68 SNRC1416 104  105  4.50 SNRC1416 105  106  0.34 SNRC1416 106  107  6.65 SNRC1416 107  108  1.09 SNRC1416 108  109  4.01 SNRC1416 109  110  7.84 SNRC1416 110  111  19.2 SNRC1416 111  112  5.12 SNRC1416 112  113  1.30 SNRC1416 113  114  2.96 SNRC1416 114  115  1.00 SNRC1416 115  116  1.83 SNRC1416 116  117  1.24 SNRC1416 117  118  0.81 SNRC1416 124  125  2.59 SNRC1416 125  126  1.81 SNRC1416 126  127  0.89 SNRC1416 127  128  1.63 SNRC1416 128  129  8.82 SNRC1416 129  130  4.20 SNRC1416 130  131  1.70 SNRC1416 131  132  2.99 SNRC1416 132  133  9.57 SNRC1416 133  134  4.90 SNRC1416 134  135  2.58 SNRC1416 135  136  0.85 SNRC1416 136  137  1.06 SNRC1416 137  138  0.51 SNRC1419 79  80  2.00 SNRC1419 80  81  1.06  HoleID From   To  Au ppm SNRC1419 81   82  31.49 SNRC1421 25   26  0.59 SNRC1421 26   27  10.99 SNRC1421 27   28  3.82 SNRC1421 28   29  0.76 SNRC1435 0   1  5.24 SNRC1435 1   2  0.59 SNRC1435 2   3  2.39 SNRC1435 3   4  9.94 SNRC1435 4   5  1.46 SNDD1443 145   146  0.59 SNDD1443 146   147  3.42 SNDD1443 147   148  4.33 SNDD1443 148   149  5.47 SNDD1444 157   158  0.96 SNDD1444 158   159  0.94 SNDD1444 159   160  1.47 SNDD1444 160   161  0.53 SNDD1444 161   162  0.09 SNDD1444 162   163  0.99 SNDD1444 163   164  0.90 SNDD1444 164   165  8.04 SNDD1444 165   166  6.67 SNDD1444 166   167  7.40 SNDD1444 167   168  4.50 SNDD1444 168   169  1.09 SNDD1444 169   170  0.28 SNDD1444 170   171  0.17 SNDD1444 171   172  0.51 SNDD1446 108   109  1.76 SNDD1446 109   110  6.74 SNDD1446 110   111  3.84 SNDD1446 111   112  5.85 SNDD1446 112   113  2.85 SNDD1446 113   114  2.09 SNDD1446 114   115  1.99 SNDD1446 115   116  4.31 SNDD1446 116   117  7.40 SNDD1446 117   118  0.67 SNDD1447 62   63  0.53 SNDD1447 63   64  0.23 SNDD1447 64   65  1.13 HoleID From   To  Au ppmSNDD1447 65   66  0.71SNDD1447 66   67  1.98SNDD1447 67   68  0.50SNDD1447 68   69  0.38SNDD1447 69   70  3.53SNDD1447 70   71  3.62SNDD1447 71   72  2.69SNDD1447 72   73  3.67SNDD1447 73   74  2.31SNDD1447 74   75  3.13SNDD1447 75   76  3.67SNDD1447 76   77  3.37SNDD1447 77   78  1.15SNRC1451 72   73  0.57SNRC1451 73   74  2.27SNRC1451 74   75  6.78SNRC1451 75   76  15.72SNRC1451 76   77  7.86SNRC1451 77   78  2.54SNRC1451 78   79  0.52SNRC1451 79   80  0.96SNRC1451 80   81  0.61SNRC1451 81   82  0.58SNRC1453 54   55  1.00SNRC1453 55   56  3.19SNRC1453 56   57  0.47SNRC1453 57   58  0.14SNRC1453 58   59  0.68SNRC1453 59   60  0.46SNRC1453 60   61  2.39SNRC1453 61   62  0.59SNRC1453 62   63  0.61SNRC1453 63   64  1.83SNRC1453 64   65  1.85SNRC1453 65   66  5.33SNRC1453 66   67  1.22SNRC1453 67   68  0.76SNRC1453 68   69  0.15SNRC1453 69   70  0.60SNRC1453 70   71  0.53SNRC1455 22   23  2.78SNRC1455 23   24  2.72SNRC1455 24   25  0.77SNRC1455 25   26  1.23  HoleID From  To  Au ppm SNRC1455 26  27  1.98 SNRC1455 27  28  1.40 SNRC1458 75  76  0.92 SNRC1458 76  77  3.00 SNRC1458 77  78  6.94 SNRC1458 78  79  1.85 SNRC1458 79  80  0.61 SNRC1458 80  81  0.16 SNRC1458 81  82  2.12 SNRC1461 96  97  3.28 SNRC1461 97  98  2.81 SNRC1461 98  99  6.23 SNRC1464 5  6  31.43 SNRC1464 21  22  10.85 SNRC1464 22  23  3.07 SNRC1464 23  24  0.92 SNRC1464 24  25  1.69 SNRC1464 25  26  0.53 SNRC1464 26  27  0.53 SNRC1464 38  39  0.85 SNRC1464 39  40  31.98 SNRC1464 40  41  1.37 SNRC1464 41  42  0.31 SNRC1464 42  43  1.72 SNRC1464 43  44  0.79 SNRC1464 44  45  0.16 SNRC1464 45  46  0.54 SNRC1464 46  47  1.12 SNRC1464 47  48  73.0 SNRC1464 48  49  1.26 SNRC1464 49  50  2.89 SNRC1465 114  115  0.73 SNRC1465 115  116  1.50 SNRC1465 116  117  1.83 SNRC1465 117  118  0.57 SNRC1465 118  119  0.54 SNRC1465 119  120  0.39 SNRC1465 120  121  1.47 SNRC1465 121  122  4.00 SNRC1465 122  123  0.82 SNRC1474 16  17  2.32 SNRC1474 17  18  1.42 SNRC1474 18  19  19.16 SNRC1474 19  20  3.15  HoleID From   To  Au ppm SNRC1474 20   21  0.40 SNRC1474 21   22  1.44 SNRC1474 88   89  2.80 SNRC1474 89   90  1.74 SNRC1474 90   91  0.28 SNRC1474 91   92  0.96 SNRC1474 92   93  3.49 SNRC1474 93   94  0.45 SNRC1474 94   95  0.78 SNRC1474 95   96  2.87 SNRC1476 28   29  0.90 SNRC1476 29   30  1.45 SNRC1476 30   31  0.34 SNRC1476 31   32  0.38 SNRC1476 32   33  4.04 SNRC1476 33   34  4.79 SNRC1476 34   35  8.86 SNRC1476 35   36  2.92 SNRC1477 33   34  0.68 SNRC1477 34   35  0.39 SNRC1477 35   36  2.26 SNRC1477 36   37  0.56 SNRC1477 37   38  2.71 SNRC1477 38   39  0.10 SNRC1477 39   40  2.50 SNRC1477 40   41  0.08 SNRC1477 41   42  0.14 SNRC1477 42   43  1.20 SNRC1477 43   44  10.03 SNRC1478 30   31  4.93 SNRC1478 31   32  0.81 SNRC1478 32   33  0.50 SNRC1478 33   34  0.95 SNRC1478 34   35  4.28 SNRC1478 35   36  0.05 SNRC1478 36   37  1.97 SNRC1478 37   38  1.93 SNRC1478 38   39  0.01 SNRC1478 39   40  0.02 SNRC1478 40   41  2.08 SNRC1478 41   42  0.42 SNRC1478 42   43  15.57 SNRC1478 43   44  1.16  For further information: David Laing Senior Vice President - Technical Services +1 604 609 6133 dlaing@endeavourmining.com Bobby MorseJames Strong Buchanan +44 20 7466 5000 bobbym@buchanan.uk.com Florence Liberski Renmark Financial Communications +1 514 939 3989 or +1 416 644 2020 fliberski@renmarkfinancial.com David Ikin Professional Public Relations +61 8 9388 0944 david.ikin@ppr.com.au Endeavour Mining Corporation Cayman Corporate Centre 27 Hospital Road George Town, Grand Cayman, KY1 1109, Cayman Islands Tel: +1 345 946 7603 Fax: +1 345 946 7604 www.endeavourmining.com