Tectonic Metals gets funding for gold exploration in Alaska
The company's Flat gold project is located 40 km north of the giant Donlin gold project.
Endeavour Mining Corporation (“Endeavour” or the “Corporation”) (TSX: EDV) today announces financial and operational results for the first quarter of 2011.
As required by applicable Canadian rules, effective Q1 2011, Endeavour has prepared its financial statements in accordance with International Financial Reporting Standards (“IFRS”), including the restatement of the comparative periods previously reported under Canadian generally accepted accounting principles.
The Corporation’s Youga Mine in Burkina Faso produced 20,056 ounces of gold during Q1 2011 at cash cost of $664 per ounce sold1. Endeavour is pleased to reiterate its production guidance for 2011 with a production target of 84,000 ounces of gold at cash cost of approximately $600 per ounce sold1. At March 31, 2011, the Corporation had cash & equivalents and marketable securities of $196 million and was debt-free.
Financial Highlights from Q1 2011
Neil Woodyer, Chief Executive Officer commented: “At our Youga Mine, Q1 2011 gold production was up 13% over the same period last year. With operating performance achieved in April and May, we are on track for our full year 2011 targets. During the quarter, we successfully completed negotiations with our Labour Union with a new 3 year agreement. We are fortunate to have positive relationships with the mine employees, surrounding communities and government that allowed us to remain fully operational throughout the negotiation period. The momentum established through our focussed exploration program has accelerated further in Q2 2011.”
Youga Growth
During Q1 2011, the Corporation spent approximately $1.3 million of the 2011 budget amount of $10 million for Youga and Ouaré exploration, with promising results including:
At Ouaré, the Exploration Camp was constructed during Q1 2011 and drilling commenced in Q2 2011. The objectives of the drilling campaign include increasing the size of the deposit whilst upgrading the resource classifications and converting resource to reserves. In addition, metallurgical samples will be taken to assist in evaluating Ouaré as a potential heap leach operation.
During Q2 2011, the level of exploration activity has accelerated with 3 drilling rigs operating and a 4th rig being added. By mid-year 2011, the actual amount invested in the Youga and Ouaré programs will be close to $5 million.
Agbaou Development
During Q1 2011, 7,970 metres of infill and condemnation drilling were completed at Agbaou in Côte d’Ivoire. This drilling program was interrupted in late March 2011 due to political unrest in the country; however, results from the completed drilling work are currently being processed and evaluated. The Corporation intends to recommence the drilling program towards the end of Q2 2011 with our increasing confidence in the safety of employees and contractors. With drilling recommencing in late-June, the engineering studies supporting project development are anticipated in late Q4 2011.
Unlocking Value from Non-core Assets
Subsequent to Q1 2011, Endeavour is pleased that the inherent value of the Lofdal rare earths property in Namibia has been unlocked through a spin-out and IPO transaction. The Lofdal property was part of the Etruscan exploration portfolio acquired by Endeavour in September 2010. Endeavour has retained a 38.5% indirect ownership through a 30 million share holding of Namibia Rare Earths Inc., a newly-listed company on the TSX. On closing of the IPO (April 14, 2011), Endeavour’s ownership was valued at CDN$24.3 million.
