PDF - Endeavour Mining Corporation
Transcription
PDF - Endeavour Mining Corporation
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