Endeavour Mining Delivers 102,691 Oz of Gold Production in First Half of 2012 and Updates Guidance

    




 VANCOUVER, July 16, 2012 /CNW/ - Endeavour Mining Corporation ("Endeavour")   announces total production of 102,691 ounces of gold in  the first half of 2012, including 4,813 ounces produced at Nzema from  ore purchased from an independent producer ("purchased ore").  As a  result of the strong H1 performance, the Company is updating its full  year 2012 production guidance to between 187,000 and 202,000 ounces of  gold (see Table 2).  Endeavour anticipates releasing its full quarterly  results in early August. 

 Production results for the second quarter ending June 30, 2012 include  27,863 ounces from the Nzema mine and 22,865 ounces from the Youga mine  for total gold production of 50,728 ounces (see Table 1). Nzema cash  costs (excluding purchased ore ounces) were in the range of $620-640  per ounce and Youga's cash costs were in the range of $590-610 per  ounce. Costs were at the lower end of guidance for both mines, due in  part to successful cost containment initiatives. At Nzema, the number  of employees has been reduced by restructuring some positions and  continuing efforts to optimize throughput at the plant are reducing  unit costs. Both Youga and Nzema have reduced inventory levels as well  as supply costs through bulk buying and improved sourcing.   

 Neil Woodyer, CEO, stated "We are pleased to deliver above-guidance production results from our two mines for  the first half of 2012. Our strong performance to date has allowed us to increase our production guidance for  the year by about 8%. Given our focus on growth, the most important  result of expanding production is increasing cash flow, which funds  exploration, potential acquisitions and development, including  construction of our third mine, now underway." 

 Table 1: Gold production from the first two quarters of 2012  

  




     ____________________________________________
    |                      |   Q1 |   Q2 |   H1  |
    |     Ounces Produced  |______|______|_______|
    |                      | (oz) | (oz) |  (oz) |
    |______________________|______|______|_______|
    |Youga                 |23,988|22,865| 46,853|
    |______________________|______|______|_______|
    |Nzema                 |25,543|25,482| 51,025|
    |______________________|______|______|_______|
    |Sub-total             |49,531|48,347| 97,878|
    |______________________|______|______|_______|
    |Purchased Ore at Nzema| 2,432| 2,381|  4,813|
    |______________________|______|______|_______|
    |Total                 |51,963|50,728|102,691|
    |______________________|______|______|_______|





  

  

 Table 2:  Full year 2012 Gold Production Guidance, Updated to between  187,000 and 202,000 ounces  

  




     ________________________________________________________________
    |             |Gold Production (Ounces)|Total Cash Cost ($/ounce)|
    |      Mine   |________________________|_________________________|
    |             | New guidance |Previous |New guidance|   Previous |
    |             |              |guidance |            |   guidance |
    |_____________|______________|_________|____________|____________|
    |Nzema        |    95,000 -  |92,000 - |$680 - $700 |$630 - $670 |
    |             |    102,000   | 102,000 |            |            |
    |_____________|______________|_________|____________|____________|
    |Youga        |    85,000 -  |78,000 - |$655 - $675 |$660 - $700 |
    |             |     90,000   | 88,000  |            |            |
    |_____________|______________|_________|____________|____________|
    |Sub-total    |   180,000 -  |170,000 -|$670 - $690 |$645 - $685 |
    |             |    192,000   | 190,000 |            |            |
    |_____________|______________|_________|____________|____________|
    |Nzema        |7,000 - 10,000|   N.A.  |see Note 11 |      N.A.  |
    |Purchased Ore|              |         |            |            |
    |_____________|______________|_________|____________|____________|
    |Total        |   187,000 -  |         |            |            |
    |             |    202,000   |         |            |            |
    |_____________|______________|_________|____________|____________|





  

 Note 1: Effective July 1, 2012, Nzema formally agreed on terms for a two  year contract to purchase on average 4,000 tonnes of material per month  (less than 2% of overall throughput at Nzema) at a minimum grade of 6  g/t.  Ore purchase cost is 60% of the recoverable gold at spot gold  prices, the incremental processing costs are negligible and the ore  supplier pays 50% of the 5% royalty on recovered ounces. At a gold  price of $1,600 per ounce, purchased ore milling is expected to add  approximately $5 million to operating cash flow on an annualized basis 

 Qualified Persons 

 Adriaan "Attie" Roux, Pr. Sci. Nat, Endeavour's Senior Vice President -  Operations, is a Qualified Person under NI 43-101 and has reviewed and  approved the technical information related to mining operations in this  news release. 

 About Endeavour Mining Corporation 

 Endeavour is a gold producer delivering growth.  Endeavour owns two gold  mines producing approximately 180,000 oz per year in Ghana and Burkina  Faso that are generating significant operating cash flows to fund  exploration and development growth. In addition to upside potential at  its current operations, Endeavour's third gold mine, Agbaou in Côte  d'Ivoire has entered the construction phase for an additional 100,000  oz per year during Q1 2014. Endeavour's strong financial base  encourages investments in long-term operational growth, exploration to  replace and increase reserves, and funding for acquisitions. 

 Endeavour Mining Corporation is listed on the TSX (symbol EDV) and ASX  (symbol EVR), and also trades on the OTCQX (symbol EDVMF). 

 On behalf of Endeavour Mining Corporation 

 Neil Woodyer  Chief Executive Officer 

 This news release 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 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 forward-looking  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. 

   

Endeavour Mining Corporation


CONTACT:  Marla GaleVice President - Investor Relations+1 604 609 [e-mail] Mining CorporationCayman Corporate Centre27 Hospital RoadGeorge Town, Grand Cayman,KY1 1109, Cayman IslandsTel: [phone]Fax: [phone]www.endeavourmining.comA Cayman Islands exempted company with limited liability.ARBN 153 067 639 


    

Copyright