Endeavour Mining announces DFS results for Assafou project

HIGHLIGHTS: Definitive Feasibility Study confirms Assafou’s potential to become a cornerstore asset for Endeavour highlighting: 320kozpa production at AISC of $1,026/oz over first 8 years. 16-year mine life based on P&P reserves of 4.4Moz; M&I resources of 5.0Moz. Robust project economics with after-tax NPV of $2.1bn and 28% IRR at a gold price of $2,500/oz, increasing to $5.1bn and 55% at a gold price of $4,000/oz. Upfront capital of $1,061m based on a scalable 5Mtpa design nameplate capacity gravity / CIL processing plant; increased upfront capital reflects changes to site infrastructure, plant optimisations to de-risk ramp-up and to enable seamless plant expansion in the future. Significant exploration potential with over 20 highly prospective targets defined: Assafou deposit mineralisation is open along strike and at depth; Pala Trend 3 satellite located 1km away is mineralised from surface. Assafou is the first discovery in a highly prospective and underexplored belt. Early works launched including long-lead orders, detailed engineering and design, and key tenders. Final investment decision targeted before end-2026, with subsequent 24 – 30 month construction. Assafou underpins the Group’s sector-leading organic growth outlook to 1.5Moz, at first quartile AISC, by 2030. Ian Cockerill, CEO, commented: “We are pleased with the results of the Assafou project DFS, which confirms the quality and scale of the asset that will underpin the next phase of Endeavour’s organic growth. Assafou has the potential to become another cornerstone asset for Endeavour, adding 320koz of production per year at a first quartile AISC of $1,026/oz, over the first eight years of its 16-year mine life. It will be our lowest-cost and longest-life mine, further improving our portfolio quality while bolstering the resilience of the business. The impressive project economics demonstrate our ability to rapidly generate value through the drill bit. Assafou was discovered for $13M in 2022 and only four years later has a value of $5.1B at a $4,000/oz gold price. As we continue to de-risk the project and grow its resource base through exploration, we expect to unlock even more value. Since its discovery, the Assafou M&I resource has grown 470%, to over 5M ounces, and we are increasingly excited by more than 20 highly prospective satellite targets, in close proximity to the deposit. Working closely with our supportive in-country stakeholders, we are advancing the project’s mining convention, and we are targeting a final investment decision before the end of the year. Simultaneously, we have launched early works, detailed engineering and design, key tenders and long-lead orders to expedite construction. As we advance Assafou, we will remain disciplined and prioritise maximising free cash flow from every ounce of gold we produce, ensuring that we continue to deliver sector leading shareholder returns, while we organically grow production to 1.5M ounces by 2030.”