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Endeavour Increases Indicated Resources at Fetekro by 141% to 1.2Moz

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ENDEAVOUR INCREASES INDICATED RESOURCES AT FETEKRO BY 141% TO 1.2MOZ

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FETEKRO HIGHLIGHTS:                              

  • 35,000m were drilled on the Lafigué target following the maiden resource published in October 2018 which was based on only 32,000m of drilling
  • Lafigué deposit Indicated resource has grown by 141% while grade increased by 13%
    • Indicated resource of 14.6 million tonnes at 2.54 g/t Au for 1,190Koz
    • Inferred resource of 0.9 million tonnes at 2.17 g/t Au for 60Koz
  • Low discovery cost of $9 per Indicated resource ounce
  • 95% of the resource has been classified to the Indicated category  
  • The Lafigué deposit extends over an area 2.2 km long by 0.6 km wide and remains open at depth and towards the Southeast and South
  • Amenable to open pit mining as mineralization starts at surface  
  • Preliminary metallurgical tests indicate high gold recovery rates of above 95% with a significant portion recoverable by gravity 
  • At least 30,000m of additional drilling is scheduled to begin in Q4-2019 with an updated resource expected to be published in Q2-2020

Abidjan, September 3, 2019 – Endeavour Mining (TSX:EDV)(OTCQX:EDVMF) is pleased to announce that it has increased Indicated resources for the Ivorian Fetekro greenfield exploration property by 141% to 1.2Moz, boosting confidence in its ability to achieve its objective of discovering a standalone project through exploration.

Sébastien de Montessus, President and CEO stated: "We are excited at the value we have created through exploration as we have effectively deployed circa $10 million to generate a resource in excess of one million ounces of gold at an attractive grade of over 2.5 g/t. Fetekro's resource scale has reached an important milestone as it is now similar in size and grade to that of our Agbaou mine when it started production in 2014. We are therefore eager to advance our exploration efforts to continue to grow the resource base while initiating various environmental and technical studies.

From a broader perspective, while our immediate focus is on cash flow generation, we are very excited with the internal growth optionality being generated in parallel through our exploration success as it leaves us well poised for future growth."

Endeavour began exploration on the Fetekro property in March 2017, following a strategic assessment of its exploration tenements which ranked the property as a top priority target. The majority of drilling to-date has focused on the Lafigué target where a maiden resource was published on October 29, 2018, based on 32,000 meters drilled. Since then approximately 35,000 meters have been drilled to infill and extend the Lafigué deposit, which led to a 0.7Moz increase in Indicated resources while increasing the average grade by 13% to 2.54 g/t Au, as presented in Table 1 below.

The Lafigué resource estimate now encompasses a mineralized area extending 2.2 km long by 0.6 km wide which remains open at depth and towards the southeast. At least 30,000 meters of additional drilling is scheduled to begin in Q4-2019 with an updated resource expected to be published in Q2-2020.  

Table 1: Lafigué Mineral Resource Estimate Evolution

  AS AT DECEMBER 31, 2018   AS AT AUGUST 31, 2019 Δ
AU CONTENT
On a 100% basis Tonnage Grade Content   Tonnage Grade Content
(Mt) (Au g/t) (Au koz) (Mt) (Au g/t) (Au koz)
Measured Resource - - -   - - - n.a.
Indicated Resources 6.8 2.25 494   14.6 2.54 1,190 +141%
M&I Resources 6.8 2.25 494   14.6 2.54 1,190 +141%
Inferred Resources 3.0 2.25 225   0.9 2.17 60 (73%)

Mineral Reserve Estimates follow the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definitions standards for mineral resources and reserves and have been completed in accordance with the Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101. Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Resources were constrained by MII Pit Shell and based on a cut-off of 0.5 g/t Au.

Patrick Bouisset, Executive Vice President Exploration and Growth stated: "We are very pleased with the significant increase in resource at the Lafigué deposit, as we continue to advance and evaluate its potential as a stand-alone project. Moreover, we are proud to have exceeded the one-million-ounce mark at very low discovery costs and within a very short timeframe.

Due to its attractive grade, thickness and continuity, we consider the Lafigué resource to be of high quality and believe it is amenable to open pit mining as the mineralization starts at surface. We therefore look forward to continuing exploration at the Lafigué deposit as it remains open to the southeast and at depth."

ABOUT THE LAFIGUÉ DEPOSIT

As shown in Figure 1 below, Fetekro is located in north-central Côte d'Ivoire, approximately 500km from Abidjan, within the northern-end of the Oumé-Fetekro greenstone belt.

Figure 1: Simplified Map of the Fetekro Property Showing Lafigué

The majority of drilling to date has focused on the Lafigué target where a maiden resource was published on October 29, 2018, based on drilling 312 Reverse Circulation ("RC") and Diamond Drilling ("DD") holes totaling 32,000 meters. Due to the high quality of these initial exploration results, 201 additional RC and DD holes totaling approximately 35,000 meters were drilled between Q4-2018 and the end of Q2-2019. The program comprised of 187 RC holes totaling 32,335 meters, 4 DD holes totaling 85 meters, 10 RC/DD holes totaling 2,597 meters (of which 2,253 meters RC and 344 meters DD). In addition, 58 RC reconnaissance holes totaling 7,050 meters were drilled at several nearby targets to define geology and test the occurrence of mineralization.

The recently completed Lafigué infill and extension drilling campaign was very successful as more than 90% of the drill holes encountered at least 2 meters of greater than 0.5 g/t Au mineralization which led to the significant resource increase as shown in Table 1 above. A sensitivity analysis performed at a gold price of $1,250/oz demonstrates the robustness of the Lafigué resource model due to its relative high-grade and continuous mineralization, as shown in Table 2 below.

Table 2: Lafigué August 2019 Mineral Resource Estimate

  Tonnage Grade Content
  (Mt) (Au g/t) (Au koz)
INDICATED RESOURCE      
  Based on a gold price of $1,500/oz  14.6 2.54 1,190
  Based on a gold price of $1,250/oz  13.2 2.64 1,123
       
INFERRED RESOURCE      
  Based on a gold price of $1,500/oz  0.9 2.17 60
  Based on a gold price of $1,250/oz  0.7 2.29 53

No Measured resources have been estimated. Mineral Reserve Estimates follow the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definitions standards for mineral resources and reserves and have been completed in accordance with the Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101. Reported tonnage and grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Resources were constrained by MII $1,500/oz Pit Shell and for sensitivity purpose by MII $1,250/oz pit shell and based on a cut-off of 0.5 g/t Au.

As shown in Figure 2 below, three main mineralized zones have been confirmed at the Lafigué deposit (Lafigué South, Center, and North), with Lafigué Center and North remaining open at depth and towards the south and southeast. Step out drilling located at 200 meters to the south and east from the present-day defined resources demonstrate the Lafigué upside potential and suggest that the mineralized area could be significantly larger.

Figure 2: Lafigué Geological Interpretation and Selected Best Intercepts Per Area


 

Selected best intercepts since November 2018 include (true width uncapped):

  • LFRC18-419: 3.9m at 3.57g/t Au, and 5.9m at 5.19g/t Au, including 1.00m at 17.98 g/t Au, And 7.9m at 10.64 g/t Au, including 1.00m at 32.93 g/t Au, including 1.00m at 29.64 g/t Au, and 3.9m at 5.20 g/t Au, including 1.00m at 17.62 g/t Au, And 15.7m at 2.77 g/t Au
  • LFRC18-429: 7.9m at 11.79 g/t Au, including 1.00m at 51.99 g/t Au, and 4.9m at 7.42 g/t Au, including 1.00m at 33.45 g/t Au
  • LFRCDD19-439: 3.9m at 4.37 g/t Au, and 8.9m at 2.92 g/t Au, including 1.00m at 17.43 g/t and 14.8m at 9.12 g/t Au, including 1.00m at 65.10 g/t Au, including 1.00m at 46.70 g/t Au
  • LFRC19-446: 4.9m at 4.00 g/t Au, and 12.8m at 6.23 g/t Au, including 1.00m at 61.00 g/t Au, and 10.82m at 5.85 g/t Au, including 1.00m at 40.70 g/t Au, and 16.7 m at 6.59 g/t Au, including 1m at 37 g/t Au
  • LFRC19-493: 32.5m at 13.38 g/t Au, including 1.00m at 46.30 g/t Au, including 1.00m at 54.90 g/t Au, including 1.00m at 21.20 g/t Au, including 1.00m at 103.70 g/t Au, including 1.00m at 48.00 g/t Au, including 1.00m at 39.00 g/t Au, and including 1.00m at 21.23 g/t Au, and 12.8m at 2.80 g/t Au
  • LFRC19-497: 6.9m at 2.93 g/t Au, and 10.8m at 7.12 g/t Au, including 1.00m at 50.90 g/t Au, and 8.9m at 2.65 g/t Au.
  • LFRC19-500: 13.8m at 5.83 g/t Au, including 1.00m at 10.20 g/t Au, including 1.00m at 23.09 g/t Au, including 1.00m at 17.09 g/t Au
  • LFRC19-510: 11.8m at 11.27 g/t Au, including 1.00m at 66.20 g/t Au, including 1.00m at 31.80 g/t Au, including 1.00m at 24.23 g/t Au
  • LFRC19-583: 16.7m at 3.65 g/t Au, including 1.00m at 12.09 g/t Au
  • LFRC19-600: 7.9m at 28.22 g/t Au, including 1.00m at 170.70 g/t Au, including 1.00m at 18.73 g/t Au, including 1.00m at 22.23 g/t Au
  • LFRCDD19-609: 5.90m at 12.81 g/t Au, and 24.6m at 3.17g/t Au, including 1.00m at 24.46 g/t Au, and 5.3m at 6.49 g/t Au, and 3.5m at 3.75 g/t Au
  • LFRC19-610: 8.9m at 15.30 g/t Au, including 1.00m at 109.00 g/t Au
  • LFRC19-615: 18.7m at 4.78 g/t Au, including 1.00m at 13.93 g/t Au, including 1.00m at 30.30 g/t Au
  • LFRC19-617: 36.4m at 8.66 g/t Au, including 1.00m at 32.60 g/t Au, , including 1.00m at 20.61 g/t Au, including 1.00m at 16.24 g/t Au, including 1.00m at 20.50 g/t Au, including 1.00m at 37.10 g/t Au, including 1.00m at 38.90 g/t Au, including 1.00m at 21.91 g/t Au
  • LFRC19-619: 6.9m at 3.74 g/t Au, including 1.00m at 14.52 g/t Au, and 7.9m at 11.02 g/t Au, including 1.00m at 71.30 g/t Au
  • LFRC19-634: 11.8m at 11.42 g/t Au, including 1.00m at 24.50 g/t Au, including 1.00m at 37.30 g/t Au, including 1.00m at 54.60 g/t Au, and 11.8m at 17.79 g/t Au, including 1.00m at 76.70 g/t Au, including 1.00m at 41.00 g/t Au, including 1.00m at 48.90 g/t Au
  • LFRC19-666: 11.3m at 32.05 g/t Au, including 1.00m at 53.00 g/t Au, including 1.00m at 115.50 g/t Au, including 1.00m at 133.90 g/t Au, including 1.00m at 34.60 g/t Au, including 1.00m at 27.31 g/t Au

Integration of the available geophysical and geological data over the Fetekro permit indicates that the geology of the Lafigué domain comprises a series of west/southwest and east/northeast trending folds that are offset and buckled by a series of well-developed northeast trending shear zones and northeast trending folds. This domain comprises a well-developed series of south to southeast dipping shear zones that are folded and sheared by the northeast trending shear zones creating an overall ductile sinistral shear band network at the deposit to the km-scale.

The current interpretation of the Lafigué deposit suggests it is hosted within an early shear zone that has been subsequently modified by folding and shear events. Locally, the Lafigué deposit is focused within a felsic intrusive hosted within an east/northeast and west/southwest striking, moderately southeast-dipping sinistral shear zone. Based on the mapping of the main mineralized intercepts, the lodes appear to reflect a sinistral extensional vein network system comprising planar shear lode and link-lode style system. Overall, the mineralization is mainly developed within the hanging-wall of a possible basal thrust east/northeast and west/southwest striking, which is either located at the contact between a mafic volcanics sequence and a mafic intrusive or between a mafic intrusive and a felsic intrusive, as shown in the Lafigué North cross-sections in Figure 3 and 4 below.

Figure 3:  Lafigué North Cross-Section (Eastern part)

Figure 4: Lafigué North Cross-Section (Western part)

LAFIGUÉ DEPOSIT UPSIDE

The Lafigué deposit clearly remains open in various directions, specially towards South and South East.    

As shown in Figures 2 and 4 above, hole LFRC19-666 which was drilled 200 meters away from the current resource boundary and intercepted very high mineralization (11.3m at 32.05 g/t, including 1.0m at 53.00 g/t Au, 1.0m at 115.50 g/t Au, 1.0m at 10.27 g/t Au, 1.0m at 133.90 g/t Au, 1.0m at 34.60 g/t Au, 1.0m @ 27.31 g/t Au) suggests that the mineralized area could be significantly larger. Very high-grade mineralization that were intercepted with step out drilling follow the same general structural and lithological model as observed at Lafigué North and Center.

Structural and intrusive control along N60°-80° gently south dipping structures, intersection of NNE30° trending major shear zones with the N60-80° structures and, intersection of Northeast and Northwest trending faults, tend to strongly promote the presence of mineralization at South of Lafigué North. At this triple intersection points encountered grade are generally higher than 3g/t Au over a thickness wider than 10 meters, with visible gold observed.

To date, drill spacing in South and South East area is insufficient to demonstrate the continuity of mineralization and to estimate resources. Exploration drilling will therefore resume in Q4-2019 with the aim of delineating additional resources and testing at-depth potential.

As exploration efforts of the 2019 campaign were mostly concentrated in the Lafigué North area to quickly delineate resources, some other areas remain under-explored, such as the junctions between Lafigué North/Center and Lafigué Center/South. Due to the attractive results recently obtained (such as hole LFRC19-622 shown in Figure 5 below), additional drilling has been planned in this area with the aim of delineating resources.

Figure 5: Lafigué Center Cross-Section

OTHER NEARBY TARGETS

The November 2018 to end of Q2-2019 drilling campaign was mostly focused on resources delineation drilling over the Lafigué deposit. As such, limited activity (only 58 RC reconnaissance holes totaling 7,050 meters) was conducted on nearby several nearby targets to define geology and test the occurrence of mineralization.

Approximately 35% of the reconnaissance drilling program was dedicated to the larger Western Anomalies ("WA"), WA 2 and 6 targets following the positive results obtained over WA1 and WA3 targets last year. As shown in Figure 6 below, drill results over these large gold in soil anomalies successful identified mineralization associated with a network of subparallel N020° directed steep shear zones hosting both subvertical and shallow quartz veins of different nature, and strong hydrothermal alteration.

Figure 6: Fetekro new Gold in Soil Map and Selected Gold Intercepts over WA 02 and 06 (Apparent width uncapped)

New gold in soil anomalies (some over 500 ppb) have also been outlined during the last geochemical campaign (4,861 samples collected), mainly in the western and central sector of the Fetekro license where geophysics indicate possible contrasted lithologies, folding to the north and a major sinistral shear zone occurring between the western and eastern domains.

The Western Anomalies, in addition to the other successfully tested targets, are expected to be further explored during the 2020 drilling campaign.

METALLURGY

Preliminary tests included ten Lafigué variability samples representative of the ore resource. Testwork focussed on gravity gold recovery with cyanidation of the gravity tail. Gold recoveries were high from all facies with between 30 and 60% gravity gold recovery and overall gold extractions above 95%.

Further metallurgical tests are underway based on the recently completed drilling. The composites were received by ALS Metallurgy Services, Australia, in August 2019 and results are expected by year-end.

NEXT STEPS

  • A 10,000 meter extension drilling program will be initiated in Q4-2019 over Lafigué North and Center to increase the Lafigué resource base, and to evaluate the continuity, grade and thickness at depth.
  • An updated resource for the Lafigué deposit is expected to be published in Q2-2020.
  • A 20,000 meter drilling program is expected to be launched in early 2020 over the nearby Fetekro targets.  

LAFIGUE RESOURCE MODELLING

The statistical analysis, geological modelling and resource estimation were prepared by Kevin Harris, CPG. Mr. Harris is Endeavour Mining's V.P. Resource Manager and a Qualified Person as defined by NI 43-101.

The Fetekro Lafigué resource model was developed in Geovia's Surpac software.  A total of 14 mineralized zones were defined from the current drilling data and geologic interpretations across Lafigué South, Center, and North areas. The gold assays from the drill holes were composited to 1.0 meter intervals within the mineralized wireframes and capped from 15 g/t to 30 g/t Au. Spatial analysis of the gold distribution within the mineralized zone using variograms indicated a good continuity of the grades along strike and down dip of the mineralized zones.

Density was measured in 726 core samples within the various rock types then averaged within the model by the weathered zones. The laterite-saprolite density is 1.80, the transition is 2.2, and the fresh rock is 2.80.

The gold grade was estimated using ordinary kriging constrained within the mineralized domains. The grade was estimated in multiple passes to define the higher confidence areas and extend the grade to the interpreted mineralized zone extents. 

The grade estimation was validated with visual ana

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