Endeavour aims for 15M oz in 5-year exploration push

Endeavour Mining (TSX: EDV, LSE: EDV) plans to discover 12–15 million oz. of new mineral resources between 2026 and 2030 at a projected cost of less than $40 per oz., it said on Tuesday.

The company set a total exploration budget of about $540 million for the next five years at existing operations while adding another 6 million oz. through greenfield work, including two to three prospects with the potential to become cornerstone assets. That increase marks a 57% rise in spending from the $69 million annual average spent for the 2016-2025 period. 

“While an aggressive target, we believe the company is well-positioned to deliver, given the prospectivity of its focus areas,” BMO Capital Markets analyst Raj Ray said in a note on Tuesday.

Prime gold provinces

Its greenfield exploration targets tier 1 gold provinces with low exploration maturity and limited above ground risk, Endeavour said. They include such provinces as the West African Birimian Greenstone Belt, the Guiana Shield, the Central Asian Orogenic Belt and the West Tethyan Metallogenic Belt.

The plan expands on the miner’s 2016–2025 campaigns, which delivered 20.7 million oz. of measured and indicated resources at a discovery cost below $25 per ounce. 

CEO Ian Cockerill said Endeavour has replaced more than double its production depletion since 2016, adding that high-quality ounces have extended mine lives and strengthened the portfolio. The company expects to spend more than $100 million a year on exploration through 2030, as it maintains a focus on organic growth.

At an asset by asset level, Endeavour expects the largest additions to its overall production to come from Burkina Faso’s Houndé and Senegal’s Sabodala-Massawa, each targeting 1.5-2 million oz. compared with 2.8 million oz. and 1.7 million oz. in the 2016-2025 campaign. Côte d’Ivoire’s Ity, Lafigué, and Assafou each aim for 1-1.5 million oz., down from 5.4 million oz., 3.2 million oz., and 4.6 million oz. respectively. Burkina Faso’s Mana is forecast to contribute up to 500,000 oz., up from 300,000 ounces.

Analysts at Jefferies said Endeavour Mining’s goal stands out in a market starved of new quality discoveries, underscoring the miner’s commitment to organic growth.

“With a proven track record of delivering Tier 1 discoveries at low cost, we see this strategy as a strong long-term value driver for shareholders,” they wrote.

Near-mine potential

As part of the new plan, Endeavour is testing about 50 targets across 7,000 sq. km in Côte d’Ivoire, Senegal and Burkina Faso. The company says the brownfield program is meant to replace mined ounces, keep grades strong, and support long-term mine planning by tightening the pipeline of drill-ready prospects near its operations.

In a separate announcement, East Star Resources (LSE: EST) secured a £1.8 million strategic investment from Endeavour, including a convertible loan note, the company said on Monday. The funding will support East Star’s gold and copper exploration in Kazakhstan and deepen its partnership with Endeavour, which the companies say underscores the region’s potential.

Endeavour shares fell 2.9% to $63.52 at mid-day Tuesday in Toronto, valuing the company at $15.3 billion. The stock has traded in a 12-month range of $25.07 to $67.02.