Endeavour Mining Aims for Significant Resource Expansion, Targeting 12-15 Million Ounces

Endeavour Mining plc (LON:EDV, TSX:EDV) has announced an ambitious five-year exploration outlook, setting its sights on discovering 12 to 15 million ounces of mineral resources between 2026 and 2030.

The company's strategy involves a dual approach: near-mine brownfield exploration and greenfield exploration in West Africa and other prospective regions. Endeavour intends to allocate over $100 million annually to exploration activities to achieve its goals. The company aims to keep its discovery costs below $40 per ounce.

A significant portion of the targeted discoveries, 6 to 9 million ounces, will come from brownfield exploration near existing operations. This strategy aims to extend mine lives beyond a 10-year target and maintain high ore quality.

Endeavour is also focusing on greenfield exploration, targeting the discovery of 6 million ounces, including two to three new standalone cornerstone projects. These projects will be prioritized in West Africa and three additional tier 1 gold provinces.

Endeavour's confidence stems from its successful exploration campaigns between 2016 and 2025. These efforts yielded 20.7 million ounces of measured and indicated (M&I) resources at a discovery cost of less than $25 per ounce. This equates to 2.4 times the company's production depletion during that period.

Notably, the company discovered two cornerstone greenfield projects, Lafigué and Assafou, at discovery costs of $12/oz and $11/oz respectively. This demonstrates Endeavour's ability to generate value through strategic exploration.

The exploration program will focus on specific targets at existing mines and projects. At the Ity mine, the company aims to discover 1.0 to 1.5 million ounces, focusing on targets along the Ity trend. The Houndé mine targets 1.5 to 2.0 million ounces, primarily at the Vindaloo Deeps deposit.

Within the Sabodala-Massawa property, Endeavour seeks to discover 1.5 to 2.0 million ounces, prioritizing targets that can support the mine plan. At Lafigué, the target is 1.0 to 1.5 million ounces, with exploration focused on targets surrounding the Lafigué deposit. The Mana mine aims for up to 0.5 million ounces, while the Assafou project targets 1.0 to 1.5 million ounces.

Ian Cockerill, Chief Executive Officer of Endeavour Mining, emphasized the company's track record of value creation through exploration.

“Since 2016 we have consistently generated significant value through the drill bit,” Cockerill stated. “We have replaced more than double our production depletion with high-quality, high-grade ounces allowing us to extend mine lives and improve our asset quality.”

Cockerill further highlighted the company's commitment to organic growth and shareholder returns. The exploration program seeks to extend mine lives at core assets and discover new greenfield projects, both within current land packages and in new gold provinces.

Endeavour's ambitious exploration targets could significantly impact its resource base and long-term production profile. Successful execution of the program could lead to increased investor confidence and a higher valuation for the company. However, the inherent risks associated with exploration, including geological uncertainty and permitting challenges, should be considered.

The company's focus on low-cost discoveries is a key factor in maintaining its competitive advantage. If Endeavour can consistently discover resources at less than $40 per ounce, it will be well-positioned to generate strong returns on its exploration investments.