1. travel
2. tourist destinations
3. africa

Agbaou Gold Mine
February 2015
GOLD PRODUCER

WEST AFRICA

CASH FLOW
Disclaimer & Forward Looking Statements
This presentation 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
GOLD PRODUCER

WEST AFRICA

CASH FLOW
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 forwardlooking 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.
2
Table of Contents
•
Introduction
•
Operations
•
Project History
•
Geology
•
Exploration
•
CSR
•
Dekpa Forest Reserve
•
Summary
GOLD PRODUCER

WEST AFRICA

CASH FLOW
3
Introduction
•
Agbaou ownership is 85% Endeavour,
10% government of Côte d’Ivoire, 5%
SODEMI
•
Commercial production declared
January, 2014
•
Located 200 km from the port city of
Abidjan
•
Fourth gold mine in Côte d’Ivoire (others
are Tongon, Bonikro, Ity); Second
largest by production
•
Côte d’Ivoire:
–
Contains over 35% of Birimian greenstone belts
but less than 8% of gold reserves in West Africa
–
5th of 11 West African countries for gold
production
–
Gold production has doubled since 2010
–
Mining is currently 2% of GDP
–
Next election is in 2015
GOLD PRODUCER

WEST AFRICA

CASH FLOW
4
Agbaou Mine Operations
Agbaou Gold Mine (85% Endeavour, 10% Côte d’Ivoire, 5%
SODEMI)
Resources
(incl. of Reserves,
100%)
M&I: 13.9Mt @ 2.5 g/t for 1.109Moz
Inferred: 2.1Mt @ 2.3 g/t for 0.154Moz
Reserves (100%)
11.5Mt @ 2.5 g/t for 0.926Moz
Strip Ratio
8:1 (2015), 11:1 LOM
Processing Rate
Gravity/CIL plant up to 2.2 Mtpa oxide ore;
design is 1.34 Mtpa fresh rock
Gold Recovery
97% at present; 92.5% design
Mining Type
Open Pit – Contractor Mining (BCM)
Production
2013 – 6,132 ozs (during commissioning)
2014 – 146,757 ozs
2015 guidance – 150,000 to 155,000 ozs
Cash Costs
2014 – $523/oz estimated
AISC (mine-level)
2014 – $625/oz estimated
2015e – $690 – 740/oz
Expected Mine Life
8 years from current Reserves
Royalty
3% - 5% sliding scale
Corporate Tax
25% with 5 year corporate tax holiday
GOLD PRODUCER

WEST AFRICA

CASH FLOW
5
Site Layout and Infrastructure
Agbaou Site Plan
•
Accessed by 250 km paved highway
followed by 7 km graded road
•
3.5 hours drive from Abidjan
•
15km/91 kV electrical transmission
line and substation at site
•
Power cost is $0.085 per kWhr
•
Water supply is 71% recycled
process water; 29% from water
storage dam and/or from boreholes
•
Storage dam capacity;
– 1.01 million m3
– full = 18 months
•
Fuel tank farm operated by Total
with capacity of 500m3 (sufficient for
21 days)
GOLD PRODUCER

WEST AFRICA

CASH FLOW
6
Mining
•
3 open pits will reach depths of
– North - 300 m
– South - 175 m
– West - 150 m
•
Free dig for first 2 years
•
Liebherr 9350 (285t class) and Komatsu PC
1250 (110t class) hydraulic excavators
•
Cat 777D/E (100t class) rigid frame trucks
•
Contract mining with BCM International Ltd
Mining in North Pit
GOLD PRODUCER

WEST AFRICA

CASH FLOW
7
Process
•
SAG and ball mills design to 203 tph throughput
•
1.34 to 2.2 Mtpa (varies depending on harder
bedrock versus softer saprolite ore)
•
Conventional gravity circuit with Knelson
concentrators
•
AARL Elution Circuit
•
Currently achieving 97%; feasibility study used
92.5% recovery overall (93% in oxide, 91%
bedrock)
Agbaou Process Plant
GOLD PRODUCER

WEST AFRICA
Agbaou Conveyors

CASH FLOW
8
Flowsheet
GOLD PRODUCER

WEST AFRICA

CASH FLOW
9
Production and Guidance
Agbaou, Côte
d’Ivoire
Q1
Q2
Q3
Q4
2014
2015
Guidance
Ore Milled (ktpa)
489
520
603
630
2,242
2,200
Milled Grade (g/t
Au)
1.77
1.78
2.23
2.50
2.10
2.19
Gold Production
(ozs)
24,0861
31,878
43,428
47,365
146,757
150,000 to
155,000
All-in Sustaining
Cost (US$/oz)
Mine Level
647
728
590
580 est.
625 est.
690 to 740
1
GOLD PRODUCER

Includes 9,148 pre-production ounces from January 2014
WEST AFRICA

CASH FLOW
10
Employment
•
578 Personnel on-site (362 contractors, 216 AGO
employees)
•
86% of AGO employees are Ivorian (91% of total
work force is Ivorian)
•
~25% of work force is from local (impacted)
villages
•
Creation of indirect jobs – estimated at 10+
indirect jobs per direct job
•
Training in safety, machine and equipment
operating, maintenance and administration
Note: These statistics reflect current employment levels
and will change over time
GOLD PRODUCER

WEST AFRICA

CASH FLOW
11
Cash Costs and Operating Cost Estimates
•
Cash costs (excl. royalties) were forecast
at $730 to $780/oz for the year but is
estimated to be $523/oz benefitting from:
–
High recoveries
–
Free-dig ore
–
High throughput rates
–
Higher grades than anticipated
•
Free dig ore has low wear rates
•
Continued optimisation of reagents and
efficiencies in plant
•
Operating costs as of Q3:
•
–
Mining ~ 2.96/t mined
–
Process ~ 7.74/t milled
–
G&A ~ 3.70/t milled
Mill feed grade is scheduled to remain
over 2.0 g/t
GOLD PRODUCER

WEST AFRICA

CASH FLOW
12
Project History
Construction Highlights
•
Same owner’s team that built Nzema
•
Lycopodium was EPCM contractor
•
Capex budget of $159 million
•
Completed ahead of schedule and under budget
•
Excellent safety record
– No fatalities
– 2.8 million man-hours completed during
construction
– LTIFR = 0.7 (2 LTI’s)
GOLD PRODUCER

WEST AFRICA

CASH FLOW
Process Plant, January 2014
13
Process Commissioning
•
Poured first gold from CIL and gravity circuits
on November 29th, 2013
•
During commissioning:
– 6,132 ounces poured
– Performance test successful
– Achieved above design throughput within
1 month
ROM Ore to Crusher, November 2013
– Chemistry working well, >94% recoveries
– WAD values < international cyanide code
limits
First gold bar, November 2013
GOLD PRODUCER

WEST AFRICA

CASH FLOW
14
Geology
•
Meta-volcanics, schists
•
North-east trending
shear zone with NNE
faults and secondary
structures
•
Mineralization along
two key orientations
•
Multiple parallel
structures
•
Visually distinct
mineralization
GOLD PRODUCER

WEST AFRICA

CASH FLOW
15
Deposit Mineralization
•
Mineralization hosted within a shear zone
•
The shear zone is made up of 8 second
order brittle ductile shears, dipping 50-80
degrees to the SE
•
Two styles of mineralization occur at
Agbaou:
1. Second generation quartz veins
2. Disseminated sulphides in the
host rocks
•
Pyrite and pyrrhotite are the major
sulphides associated with mineralisation
GOLD PRODUCER

WEST AFRICA

CASH FLOW
16
Pre-2012, 2012 and 2013 Drilling
•
2010 to 2012
drilling programs
identified 12 targets
in the immediate
area of the current
pits
•
2013 drilling was to
infill and establish
additional
resources
•
125 RC holes
(9,898 m)
•
5 Core holes and 3
core tails (784 m)
•
Further on strike
opportunities
identified
GOLD PRODUCER

WEST AFRICA

CASH FLOW
17
2014 Drilling
•
Commenced in Q3
•
Objective was to infill
and establish additional
resources/reserves
•
Over 14,000 m drilled
•
Potential for extensions
of West pit and North pit
GOLD PRODUCER

WEST AFRICA

CASH FLOW
18
Cross Section A-A’ in P2 Area
GOLD PRODUCER

WEST AFRICA

CASH FLOW
19
Cross Section B-B’ in P6 Area
GOLD PRODUCER

WEST AFRICA

CASH FLOW
20
CSR – Community Projects
•
There are 5 impacted villages in the area;
Agbahou is closest
•
Drilled boreholes to provide water to Agbahou
and Zaroko
•
Renovated maternal health clinic in Zego
•
Refurbished classrooms in Agbahou
•
Refurbished teachers’ housing in Agbahou
•
Community centre constructed in Agbahou
•
Constructed local power line from the main grid
that has been given to CIE as infrastructure to
manage and provide local power as needed for
communities
•
Relocation village completed and residents
moved in advance of mining with 300 people
moved (30 families) and constructed 35 units
•
Refurbishing school in Daouville
Delivered Potable Water at Agbahou
Constructed Agbahou Community Centre
Constructed Agbahou Primary School
GOLD PRODUCER

WEST AFRICA

CASH FLOW
21
CSR – Social Partnership
•
Social programmes and funding incorporated
in mining convention:
– 0.5% of revenues annually1 to support a
social programme fund administered by
government, local and company
representatives
– An annual training fund contribution to
support scholarships for training Ivorian
students and engineers interested in
mining
•
Providing funding to support local work and
environmental rehabilitation during and after
the mine is in operation
•
Red Cross initiative on sanitation and health
program
1
Opening Agbahou Primary School
based on prior year; therefore in 2015 should be ~$1.2M
A GOLD PRODUCER GROWING IN CÔTE D’IVOIRE
22
Dekpa Forest Reserve
•
~9 hectares of forest reserve established by Agbaou Operations
•
358 plant and tree species of which 31 are classified as rare or
threatened1
•
Participation and interest from universities for research and
education
1
Vroh Bi Tra Aimé, Tiébré Marie-Solange, Ouattara Djakalia, and N'Guessan Kouakou Édouard,
Laboratoire de Botanique, UFR Biosciences, Université Félix Houphouët-Boigny, Côte d'Ivoire
GOLD PRODUCER

WEST AFRICA

CASH FLOW
23
Summary
• Started full commercial production January, 2014
• Performing above plan and demonstrating strong,
sustained performance:
− Produced 146,757 oz for 2014
− Cash cost of $523/oz1 for 2014
• Strong cash flow generator due to:
– Access to low cost grid power ($0.085/kWh)
– Free dig ore in first few years
Truck Fleet at Agbaou
• Resource definition program successful in extending
mine life
Mining on North Pit of Agbaou
1
Estimated, based on gold sold.
GOLD PRODUCER

WEST AFRICA

CASH FLOW
24
Notes
GOLD PRODUCER

WEST AFRICA

CASH FLOW
25
Agbaou Gold Operations S.A.
Telephone: (+225) 22 41 81 50
Email: [email protected]
GOLD PRODUCER

WEST AFRICA

CASH FLOW
26