In a July 8 research note, Haywood analyst Geordie Mark reported that Endeavour Mining Corp. (EDV:TSX; EVR:ASX) release an updated resource estimate for its Le Plaque deposit in Côte d'Ivoire.
Specifically, Le Plaque's newly calculated resource totals 4.63 million tons (4.63 Mt) containing 476,000 ounces (476 Koz) of gold at a grade of 3.2 grams per ton (3.2 g/t). A gold price of $1,500 per ounce and a grade cutoff of 0.5 g/t were used. "The update showcases the progress Endeavour has made at Le Plaque, which now offers a significant improvement from the previous iteration that outlined 0.97 Mt containing 84 Koz of gold grading 2.7 g/t," Mark noted.
The analyst described the news as "slightly positive." He added that the greater resource at Le Plaque improves the outlook at its existing Ity mine there as it increases the total contained ounces at Ity by 11% and the average gold grade by 5%. The Le Plaque resource could be incorporated into the Ity mine plan, as early as 2021, and enhance the life of mine, with potentially even further growth upside resulting from further drilling and metallurgical and geotechnical work.
Another potential benefit of the Le Plaque resource, wrote Mark, is that it could enhance mill head grades and recoveries. This is due to Le Plaque's closeness to the processing plant, a 6 kilometer distance, along with the deposit's shallowness and high grades.
"Mining at Le Plaque may commence as early as 2021," Mark highlighted, "bolstering front-end project economics through preferential grade processing or a blended stockpile processing strategy."
A maiden reserve estimate for Le Plaque is expected in Q4/19 or Q1/20 after another at least 20,000 meters of drilling is completed there.
Haywood has a Buy rating and a CA$32 per share price target on Endeavour Mining, whose current share price is around CA$23.02. "Endeavour's shares continue to offer compelling shareholder value in a higher gold price environment," indicated Mark.
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Disclosures from Haywood Securities, Endeavour Mining Corp., July 8, 2019
Analyst Certification: I, Geordie Mark, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.
Important Disclosures
Important Disclosures:
▪ Haywood Securities, Inc. has reviewed lead projects of Endeavour Mining Corp., Alamos Gold Inc., B2Gold Corp., Barrick Gold Corp., OceanaGold Corp. and SEMAFO Inc. and a portion of the expenses for this travel have been reimbursed by the issuer.
Other material conflict of interest of the research analyst of which the research analyst or Haywood Securities Inc. knows or has reason to know at the time of publication or at the time of public appearance: n/a.
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