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Endeavour Mining Corporation
("Endeavour" or the "Corporation") is pleased to report
it produced 82,400 ounces of gold in 2010 at its Youga
Mine, Burkina Faso and has fully repaid the
US$27.9 million Youga project debt facility in
2010.
Highlights
- 82,400 ounces of gold production at the Youga
Mine in 2010
- Youga Mine gold production forecast to increase to 84,000 ounces in
2011
- Cash cost in 2011 expected to be approximately US$600 per ounce
- Corporation fully repaid the outstanding US$27.9 million Youga project debt facility
- Corporation is effectively debt-free and has cash and marketable
securities of approximately US$200 million (including cash component of
approximately US$165 million) and an undrawn acquisition credit facility
of an additional US$100 million
- Youga is forecast to generate US$32 million of free operating cash
flow during 2011
- US$10 million budgeted in 2011 for accelerated exploration
campaign at Youga
Gold Production Guidance 2011
In 2010 Endeavour produced 82,400 ounces
of gold. The Corporation is targeting 84,000 ounces of gold production
in 2011 with cash costs expected to be approximately US$600 per ounce
(excludes royalties).
Based on a US$1,350 gold price, the
Corporation expects the Youga Mine to generate free
operating cash flow in excess of US$32 million. This cash flow estimate
takes into account both the hedge book (35,736 ounces to be delivered in
2011) and approximately US$4 million in capital improvements and sustaining
capital at the Youga Mine.
Prior to December
31, 2010 the Corporation fully repaid the outstanding US$27.9 million Youga project debt facility with RMB Australia Holdings Limited and Macquarie Bank
Limited.
Accelerated Exploration Campaign at Youga Mine and Youga Gold Belt
in 2011
After a successful exploration campaign
within the Youga Mine Permit and along the Youga Gold Belt in 2010, Endeavour will commit a further
US$10 million in 2011 to accelerate its exploration and resource delineation
campaign with the objective of increasing mineral resources and reserves that
will extend the mine life. The 2011 program will exceed 50,000m in a
combination of both RC and Core drilling.
The focused 2010 campaign has already
led to the generation of new drill targets including extensions to the A2NE
and Zergoré deposits as well as the newly
intersected Triple 'A' Zone which is located to the east of the Main
pit.
Follow-up and infill drilling is
currently underway on these new drill targets and additional mineral
resources will be reported in early 2011.
Financial Year End Change
The Corporation has changed its fiscal
year end to December 31 from the current June 30 to align its financial reporting and operating
results. Therefore, financial results for the period ended December 31, 2010 will be the year-end results and will
be reported in March 2011.
Qualified Persons
K. Kirk Woodman,
P.Geo.,
Head of Exploration is the Qualified Person overseeing Endeavour's
exploration projects in West Africa and has
reviewed this press release.
Adrian De Freitas,
C.Eng., General Manager, Youga
Mine is the Qualified Person overseeing production and development in West Africa and has reviewed and approved this press
release.
About Endeavour Mining Corporation
Endeavour is a gold producer.
Endeavour also holds an extensive exploration land position and various
advanced-stage development gold projects in West Africa. Endeavour has
a global strategy, supported by financial resources and management's company
building expertise, to grow into an intermediate gold producer through
strategic acquisitions.
The common shares of Endeavour Mining
Corporation are traded on the Toronto Stock
Exchange under the symbol "EDV".
For additional information, please visit
our corporate website at www.endeavourmining.com.
On behalf of Endeavour Mining
Corporation
"Bill Koutsouras"
Bill Koutsouras
Executive Vice President & CFO
The Toronto
Stock Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release. The foregoing information may contain
forward-looking information relating to the future performance of Endeavour
Mining Corporation. Forward-looking information, specifically, that
concerning future performance, is subject to certain risks and uncertainties,
and actual results may differ materially. These risks and uncertainties are
detailed from time to time in the Corporation's filings with the appropriate
securities commissions.
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