Gold producer Endeavour Mining Corporation (TSE:EDV) (OTCMKTS:EDVMF) has released a maiden reserve for its La Plaque deposit at the Ity mine in Ivory Coast, which shows a high grade, and told investors that estimates are likely to further increase in the second half of this year due to drilling.
A further 194 holes have been sunk for 25,695 m in the second half of last year and since the July 2019 resource, on which this reserve is based.
La Plaque has a maiden proved and probable reserve of 5.5 million tonnes (Mt) at 2.34 grams per ton (g/t) of gold for 415,000 ounces. The higher confidence measured and indicated resource shows 476,000 ounces of the precious metal at 3.20 g/t gold from 4.63 Mt.
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This is an impressive 51% higher than the Ity mine reserve grade of 1.55 g/t of the yellow metal.
"Once again, the exploration team has demonstrated their ability to swiftly unlock exploration value by moving from discovery to production in under three years," said Endeavour's president and CEO.
"We are currently updating the Ity mine plan to incorporate both the Le Plaque maiden reserve as well as the 25% increase in plant capacity, following last year’s volumetric upgrades," he added.
"We expect the updated technical report to be published in Q2-2020, with the goal of demonstrating that Ity has a +10 year mine life at an average production of circa 250kozpa."
The permitting process is underway for La Plaque with a mining license expected to be received in the second half of 2020, said the miner.
Meanwhile, a new 14,000 m and 27,000 m drilling program has been launched earlier this year over the greater Le Plaque deposit, with the aim of converting all the defined extensions into resources.
Further drilling is planned at nearby Le Plaque targets with the goal of advancing them towards the resource stage during the second half of this year.
The La Plaque deposit remains open in various directions and at depth with a significant extension delineated to the south
"The Ity area continues to be highly prospective and we’re planning a further $14 million exploration program totaling approximately 100,000 meters in 2020 to grow the Le Plaque, Bakatouo, extend the Daapleu deposits and test other high priority targets such as Floleu and Samuel," the company summarized.
West Africa-focused Endeavour offers both near-term and long-term growth with its mines and exploration while generating immediate cash flow from operations.
The firm operates four mines across Côte d’Ivoire (Agbaou and Ity) and Burkina Faso (Houndé, Karma).
Shares in Endeavour in Toronto advanced 6.06% to C$28.89 each.
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Contact the author at giles@proactiveinvestors.com