ANNUAL INFORMATION FORM ENDEAVOUR MINING CORPORATION

More documents

Recommendations

Info

The three members of the SAB have a broad range of experience: Ian Cockerill is a seasoned senior gold mining executive with African expertise; Frank Giustra is a successful natural resource company financier; and Miguel Rodriguez is an economist and a former Economic Minister of the Republic of Venezuela and President of the Central Bank of Venezuela, with international finance and policy decision making experience with the IMF and World Bank. Other Aspects of the Business Gold Market The gold market is relatively deep and liquid, with the price of gold generally quoted in US dollars. The demand for gold is primarily for jewellery fabrication purposes and bullion investment. Gold is traded on a world-wide basis. The use of gold as a store of value (the tendency of gold to retain its value in relative terms against basic goods and in times of inflation and monetary crisis) and the large quantities of gold held for this purpose in relation to annual mine production, has meant that historically the potential total supply of gold has been far greater than demand. Thus, while current supply and demand plays some part in determining the price of gold, this does not occur to the same extent as for other commodities. Gold prices have, in addition, been significantly affected by macro-economic factors such as expectations of inflation, interest rates, exchange rates, changes in reserve policy by central banks and global or regional political and economic crises. The Corporation’s revenue and earnings are generated predominantly from the sale of gold. The gold price fluctuates continually due to factors beyond Endeavour’s control. Specialized Skills and Knowledge All aspects of Endeavour’s business require specialized skills and knowledge. Such skills and knowledge include, but are not limited to, the areas of strategic development and planning, geology, drilling, mine planning, engineering, construction, regulatory compliance, legal and finance and accounting. Endeavour relies on skilled and experienced personnel to fulfill these requirements. As at December 31, 2012, the Corporation employed approximately 2,000 employees and approximately 2,500 contractors and consultants. Competitive Conditions The mining industry is competitive, particularly in the acquisition of Mineral Reserves and Mineral Resources. The continued growth of Endeavour under the Gold Strategy relies of the acquisition and development of gold projects. Although Endeavour has acquired such assets in the past, there can be no assurance that its acquisition efforts will succeed in the future. Endeavour believes that the experience of its executives in financing and implementing growth plans and in developing and building mines provide it with a significant competitive advantage over other mining companies. 8
Changes to Contracts The term of the mining contracts for Nzema and Youga will expire in late 2013 and early 2014. Endeavour intends to either retender these contracts on a competitive basis or self-perform the mining operations. Environmental Protection Endeavour’s mining, exploration and development activities are subject to various local laws and regulations relating to the protection of the environment, including requirements for closure and reclamation of mining properties. In all jurisdictions where Endeavour operates, specific statutory and regulatory requirements and standards must be met throughout the exploration, development and operations stages of a mining property with regard to, among other things, air quality, water quality, solid and hazardous waste management and disposal, land use and reclamation. The financial and operational effects of environmental protection requirements on the capital expenditures and earnings for each of the Corporation’s mines is not significantly different than that of similar sized mines, and therefore are not expected to significantly impact Endeavour’s competitive position in the future. Community Relations Endeavour strives to maintain strong relationships and provide long-term benefits to the local communities where it operates. Endeavour’s growth profile is enhanced by the success of its community-based partnerships and it acts with the following principles: • Committed to strong and pragmatic relationships with local communities, regional and national government; • Committed to ensuring operations provide long term positive benefits to our local communities; • Committed to conservation and environmental best practice; • Committed to developing our workforce through continuous training and promotion of nationals to senior management positions; and • Committed to investing in local economic development, health and education. Endeavour sees itself as an integral part of the communities in which we operate and as a responsible development partner. Endeavour works in collaboration with and engages government, local communities and outside organizations to ensure it supports economic sustainability and social development, with projects including skills training and educational scholarship, healthcare, water and sanitation, public infrastructure maintenance, institutional capacity building and livelihood programs. MINERAL PROPERTIES OF THE <strong>CORPORATION</strong> Endeavour’s operating assets are the Nzema Gold Mine in Ghana (“Nzema”), the Youga Gold Mine in Burkina Faso (“Youga”) and the Tabakoto Gold Mine in Mali (“Tabakoto”), which together produced 9
Page 1 and 2: ANNUAL INFORMATION FORM for the fin
Page 3 and 4: Date of Information PRELIMINARY NOT
Page 5 and 6: at the offices of Intertrust Corpor
Page 7 and 8: Under the Avion Arrangement, each o
Page 9: Divestiture of Non-Core Assets Fink
Page 13 and 14: Mine / Project Table 2 - Mineral Re
Page 15 and 16: 1.2 Geology The mineralization at t
Page 17 and 18: 1.4 Exploration Exploration activit
Page 19 and 20: Table 1.1: Total Mineral Resource E
Page 21 and 22: Table 1.4: Nzema Gold Mine Mineral
Page 23 and 24: Table 1.5: Main Parameters of Nzema
Page 25 and 26: Table 1.6 represents an example of
Page 27 and 28: Environmental Permit EPA/EIA/278. T
Page 29 and 30: The 2013 exploration program is $2.
Page 31 and 32: Table 1.1 Youga Mineral Resources a
Page 33 and 34: Tabakoto Gold Mine, Mali, West Afri
Page 35 and 36: Air access to the Tabakoto property
Page 37 and 38: Nevsun conducted soil sampling, geo
Page 39 and 40: place during the Paleozoic. One suc
Page 41 and 42: The Ségala SW Zone is associated w
Page 43 and 44: The core is described and logged in
Page 45 and 46: Total Tabakoto Resources Dec. 31, 2
Page 47 and 48: Metallurgical Process (i) Existing
Page 49 and 50: It should be noted that the followi
Page 51 and 52: Metallurgical Testwork Consultants
Page 53 and 54: 1.6 DATA VERIFICATION The reliabili
Page 55 and 56: EOS Testwork Results Head Assays an
Page 57 and 58: Thickening, Rheology and Viscosity
Page 59 and 60: In order to determine the quantitie
Page 61 and 62:
design, scheduling process, options
Page 63 and 64:
washed and rinsed prior to elution.
Page 65 and 66:
Table 1.8: Capital Cost Summary US$
Page 67 and 68:
Table 1.11: Summary of Financial An
Page 69 and 70:
esources are reported above a 0.3g/
Page 71 and 72:
esources can be converted to Indica
Page 73 and 74:
Mineral Resource Estimate The Vinda
Page 75 and 76:
Item Unit Geotechnical Parameters S
Page 77 and 78:
Waste Management Waste rock from mi
Page 79 and 80:
A discount rate of 5% was selected
Page 81 and 82:
such as lack of scientific informat
Page 83 and 84:
Finkolo Gold Project, Mali The Fink
Page 85 and 86:
under financing arrangements relate
Page 87 and 88:
Endeavour will be successful in ove
Page 89 and 90:
adequacy of water supply; availabi
Page 91 and 92:
Title to Mineral Holdings Mining co
Page 93 and 94:
Competition The mining industry is
Page 95 and 96:
MARKET FOR SECURITIES Price Range a
Page 97 and 98:
Name and Residence of Director/Offi
Page 99 and 100:
imposed by a court relating to Cana
Page 101 and 102:
(1) “Audit Fees” are the aggreg
Page 103 and 104:
(b) The Youga Report entitled “Te
Page 105 and 106:
2. OPERATION OF THE COMMITTEE Respo
Page 107:
Approve any permissible non-audit e
show all

ANNUAL INFORMATION FORM ENDEAVOUR MINING CORPORATION

Create successful ePaper yourself

Delete template?

Save as template?