The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from CNW Group

Endeavour receives encouraging drill results from PEA-stage Ouaré project

Monday, August 27, 2012

Endeavour receives encouraging drill results from PEA-stage Ouaré project16:30 EDT Monday, August 27, 2012VANCOUVER, Aug. 27, 2012 /CNW/ - Endeavour Mining Corporation ("Endeavour") (TSX:EDV, ASX:EVR, OTCQX:EDVMF) has received the final drill results from core and reverse circulation (RC) drilling on the Ouaré gold deposit in Burkina Faso. An update of the resource estimate is underway and will be incorporated into a Preliminary Economic Assessment (PEA) due at the end of 2012. Drilling along the 2.5 km long Ouaré trend was to infill, test extensions and extend mineralization to 150 metres depth in selected areas. Highlights of the core drilling on Ouaré Main include (Table 1);BITDDH-12-55 with 18.7m @ 2.0g/t gold at 163.6 metres including 0.8m @ 12.3g/t goldBITDDH-12-31 with 9.6m of 1.6g/t from 85 metres and 8.3m @ 13.9g/t gold at 115.0 metres including 0.8m @ 33.5g/t goldResults from core drilling on Ouaré East include (Table 1);BITDDH-12-048 with 8.8m @ 14.2g/t gold at 96.0 metres including 5m @ 23.3g/t gold and 13.6m of 5.3 g/t from 138 metresBITDDH-12-56 with 12.7m @ 3.9g/t gold at 143.1 metres including 2m @ 16.9g/t goldStep-out RC drilling was completed along the Warba trend which is a parallel structure, 700 metres southwest of Ouaré (Figure 1).  This drilling has also yielded positive results including (Table 2);BITRC-12-393 with 5m @ 2.9g/t at 50.0 metres including 2m @ 6.0g/t goldBITRC-12-406 with 18m @ 3.7g/t at 16.0 metres including 4m @ 11.8g/t gold and 8m @ 7.3g/t gold including 1m @ 53.8g/t goldDoug Reddy, SVP Technical Services, stated:"We are pleased that drilling results from the Ouaré deposit continue to be consistent and provide extensions to known mineralization. Based on the results of our 2011/2012 program, we see good potential for increasing the level of certainty in the resource as well as increasing the overall size. Once the resource is updated we will get our first look at the economics of this deposit with the PEA, which is expected to be completed by year-end. Positive results from other targets within several kilometres of Ouaré such as the Warba Trend and also the targets to the east and northeast demonstrate the prospectivity of the area."The Ouaré gold deposit is located 40 kilometres northeast of Endeavour's Youga plant, which currently produces in excess of 80,000 ounces of gold annually. Ouaré has an inferred mineral resource of 4.738 Mt at 2.1 g/t gold for 323,000 ounces at a 0.5 g/t gold cut-off (K. Woodman, 2009).  During 2011 and the first four months of 2012 a drilling program was undertaken on the Ouaré gold deposit that included 56 core holes (6,968 metres) and 192 reverse-circulation (RC) holes (21,759 metres). This drilling consists of both RC and core on the Ouaré Main and Ouaré East zones with the objective of improving the geological model, upgrading the resource classification, extending the mineralization to depth and along strike. In addition, step-out drilling was undertaken on the Warba trend. Results have now been received for all holes and an independent update to the resource estimation is underway.Ouaré Main and East Infill DrillingThe deposit is over two kilometres long and had been nominally tested on 50 metre spaced sections to a maximum depth of 100 metres.  The current program has reduced the drill hole spacing to 25 by 20 metres (Figure 2) and tested depths down to at least 150 metres depth on selected sections of the Ouaré Main and Ouaré East zones.Several of the highlighted core intersections are from deeper holes which provide for potential increases to the resource down-dip. Based on the RC drilling there is also potential to add resources in the area between Ouaré Main and Ouaré East.Warba Trend Step-out DrillingStep-out RC drilling along a parallel trend that is 700 metres to the southwest of the Ouaré trend has yielded positive results in several locations that are not fully delineated. The eastern portion of the Warba zone has been drilled at between 50 m and 100 m spacing over a 500 meter strike length while the far west portion has yielded some very significant intersections that require additional testing (Figure 1).New TargetsThe region surrounding Ouaré shows good potential for discovery of additional gold mineralization. Accordingly, the program included drilling two targets on the Bitou Est permit and two targets on the Bitou Nord permit.  All four targets are within six kilometres of Ouaré Main (Figure 3) deposit. Results from this drill program are still being received.In order to access Figure 1 (Ouaré Deposits and Warba Zone) click on the following URL http://files.newswire.ca/910/Figure_1.pdfIn order to access Figure 2 (Ouaré Main and Ouaré East Drill Plan on IP Chargeability) click on the following URL http://files.newswire.ca/910/Figure_2.pdfIn order to access Figure 3 (Ouaré Zone and other Bitou Targets overlain on Contoured Gold in Soil Geochemistry) click on the following URL http://files.newswire.ca/910/Figure_3.pdfTable 1: Ouaré Main Infill Core and RC Drilling HighlightsDepositAreaHole ID Drill Type From(m)To(m) Length (m) True Width (m)Au Grade (g/t) Ouaré Main (NW) BITDDH-12-034Core29522318.41.44including 414321.64.02BITDDH-12-035Core59771814.41.24including 757610.86.50BITDDH-12-036Core129  136.657.656.12.81including 12913010.84.39BITDDH-12-043Core48772923.21.44including 545510.86.15BITDDH-12-046Core8231512.02.04including 8.8112.21.87.08and 132.8140.127.325.93.31including 136138.72.72.27.61BITDDH-12-055Core  163.618723.418.71.98including 17918010.812.30Ouaré MainBITDDH-12-030Core56.356710.658.54.54including 6063.43.42.712.13BITDDH-12-031Core8597129.61.61including 87.4891.61.35.78and 115125.410.48.313.88including 1231241.00.833.50BITDDH-12-037Core99.51055.54.43.23including 10110210.810.40BITDDH-12-038Core01.11.10.95.90and 57711411.24.12including 606110.821.50and 9610043.22.05including 9910010.84.96Ouaré EastBITDDH-12-048Core96107118.814.23including 97103.26.25.023.34and 1381551713.65.30including 145.21504.83.813.65BITDDH-12-049Core344397.22.94including 394121.610.45BITDDH-12-050Core90.4954.63.73.06including 91.2920.80.614.30BITDDH-12-052Core99120.221.217.02.22including 11211421.614.74BITDDH-12-056Core143.115915.912.73.92including 153155.52.52.016.90and 173184.1511.158.92.92including 179181.42.41.97.69BITRC-12-440RC192343.22.48including 192010.88.12Table 2: Exploration RC Drilling Highlights (True widths unknown at this time)TargetAreaHole ID Drill  Type   From (m)To(m) Length (m) Au Grade (g/t) Ouaré West (N) BITRC-12-389RC71252.57including 78111.30and 2831310.92including 2829131.00BITRC-12-392RC95    10161.43including 10010112.96BITRC-12-393RC505552.93including 505225.96WarbaBITRC-12-406RC1634183.69including 3034411.80and 414987.31including 4243153.80and 5160910.16including 5254233.50Qualified PersonsK. Kirk Woodman, P.Geo., General Manager Exploration is the Qualified Person overseeing Endeavour's exploration projects in Burkina Faso, Cote d'Ivoire and Mali has reviewed and approved this press release.All Ouaré sample preparations and standard 50 gram gold fire assays were performed by SGS Laboratories, Ouagadougou, Burkina Faso. Endeavour consistently employs a rigorous quality control and assurance program comprising regular insertion of certified reference standards, blanks and duplicates.About Endeavour Mining CorporationEndeavour is a gold producer delivering growth. Endeavour owns two gold mines producing approximately 200,000 ounces 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 third gold mine, Agbaou in Côte d'Ivoire, has entered the construction phase for an additional 100,000 ounces per year starting in Q1 2014. Endeavour has a strong financial base from which to invest in long-term operational growth, exploration to replace and increase reserves, and funding for acquisitions.On August 7, 2012, Endeavour announced a definitive agreement to acquire Avion Gold (TSX:AVR) to become one of the largest West African gold mining companies with three producing mines, a fourth mine currently in construction, and an attractive pipeline of exploration and resource development properties. The Avion transaction is expected to close in October 2012.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 Collar Locations for Reported HolesHoleID Easting mNorthingm Elevation mAzimuth degrees Dip degrees  Final-Depth mBITDDH-12-030808,800 1,247,605 215180-50100BITDDH-12-031808,8001,247,670216180-50176BITDDH-12-034808,2301,247,505220220-5094BITDDH-12-035808,2501,247,520220220-50100BITDDH-12-036808,2801,247,565220220-50140BITDDH-12-037808,8501,247,605215180-50110BITDDH-12-038808,8501,247,640215180-50125BITDDH-12-043808,3101,247,535220220-50140BITDDH-12-046808,2051,247,625220220-50140BITDDH-12-048809,6001,247,605214360-50155BITDDH-12-049809,6001,247,550214360-50151BITDDH-12-050809,5001,247,630214360-50122BITDDH-12-052809,6001,247,750213180-60120BITDDH-12-055808,3151,247,700220220-50225BITDDH-12-056809,6251,247,575214360-50199BITRC-12-389807,7301,247,775222180-50109BITRC-12-392807,7301,247,850222180-50106BITRC-12-393807,6801,247,740222360-50115BITRC-12-406806,5551,247,200228360-50101BITRC-12-440809,2001,247,580214180-50100(Northing and Easting reported in WGS 84 UTM Zone 30N)PDF available at: http://stream1.newswire.ca/media/2012/08/27/20120827_C9826_DOC_EN_17242.pdfPDF available at: http://stream1.newswire.ca/media/2012/08/27/20120827_C9826_DOC_EN_17243.pdfPDF available at: http://stream1.newswire.ca/media/2012/08/27/20120827_C9826_DOC_EN_17244.pdfSOURCE: Endeavour Mining CorporationFor further information: Marla Gale Vice President - Investor Relations +1 604 609 6117 mgale@endeavourmining.com 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 A Cayman Islands exempted company with limited liability. ARBN 153 067 639