Endeavour Silver Corp. (TSX:EDR) (NYSE:EXK)
reports its production results for the Second Quarter, 2018 from
the Company’s three silver-gold mines in Mexico: the Guanaceví mine
in Durango state and the Bolañitos and El Cubo mines in Guanajuato
state.
Silver production in the Second Quarter, 2018
increased 19% to 1,355,895 ounces (oz) compared to 1,143,788 oz
silver in Q2, 2017 and gold production rose 5% to 13,674 oz
compared to 13,058 oz gold in Q2, 2017, resulting in silver
equivalent production of 2.4 million oz using a 75:1 silver-gold
ratio.
Silver production was higher in Q2, 2018
compared to Q2, 2017 primarily due to higher mine output and ore
grades at El Cubo. The Guanacevi mine continued in recovery mode as
production was flat but mine development increased in Q2,
2018. Gold production in Q2, 2018 compared to Q2, 2017 was
higher at El Cubo and Guanacevi and lower at Bolanitos due to
variations in gold grades at each mine.
Production Highlights for Second
Quarter, 2018 (Compared to Second Quarter, 2017)
- Silver production increased 19% to 1,355,895 oz
- Gold production increased 5% to 13,674 oz
- Silver equivalent production was 2.4 million oz (at a 75:1
silver: gold ratio)
- Silver oz sold increased 27% to 1,258,617 oz
- Gold oz sold increased 12% to 13,800 oz
- Bullion inventory at quarter-end included 176,452 oz silver and
265 oz gold
- Concentrate inventory at quarter-end included 53,810 oz silver
and 827 oz gold
Bradford Cooke, Endeavour CEO, commented, “Our
Second Quarter, 2018 production was much improved over Q2, 2017,
continuing the trend established in the First Quarter 2018.
As a result, we are on track to meet our guidance of higher
production and lower costs in 2018 thanks to improved operating
performance at the El Cubo and the development of our fourth mine
at El Compas.
“El Cubo is currently performing ahead of plan
and Guanacevi is still lagging behind plan but with mine
development up in Q2, 2018, and the Milache orebody coming into
production, Guanacevi mine output should improve in Q3, 2018.
Our fourth and newest mine at El Compas should also achieve
commercial production by the end of July, and be the main driver of
increased production in the Second Half of 2018.
“Several catalysts are expected in Q3, 2018 to
move our fifth and largest mine project at Terronera towards a
development decision. An optimized pre-feasibility study is
forthcoming, the final two government environmental permits (mine
dumps and tailings facilities) are anticipated shortly and an
initial debt facility to help fund the new Terronera silver-gold
mine is currently being prepared.”
Operations Summary for Second Quarter,
2018
At Guanacevi, mine output was lower in Q2, 2018
compared to Q2, 2017 due to restricted ore access related to
certain operating issues that slowed mine development in 2017, and
the reallocation of mine personnel to implement a productivity
optimization program in 2018. However, ore grades and metal
recoveries were both higher in Q2, 2018 due to better dilution
control, normal grade variations and lower throughput in the
plant. As a result, silver production was down slightly and
gold production was up significantly, resulting in higher silver
equivalent production. Management anticipates silver production
will improve in Q3, 2018 due to increased mine development in Q2,
2018, completion of the productivity optimization program and
commencement of production of development ore from the Milache ore
body in Q3, 2018.
At Bolañitos, mine output and gold grades were
lower but silver grades were higher in Q2, 2018 compared to Q2,
2017. The grade fluctuations are due to variations of geology and
the access within the LL-Asunción vein impacted the mine
output. Silver equivalent production in Q2, 2018 was lower
than Q2, 2017 due primarily to the lower gold grades. Gold grades
are expected to return to plan during the year.
At El Cubo, mine output, silver grades and gold
grades were all higher, Q2, 2018 compared to Q2, 2017, which
resulted in a sharp increase in production in Q2, 2018. The
higher grades are according to plan and expected to continue
throughout 2018.
The El Compas mine development project remains
on track for commercial production by the end of July. Mining and
stockpiling of ore commenced and commissioning of the plant was
initiated in Q2, 2018 using low grade ore. A total of 4,900
tonnes of run-of-mine ore were stockpiled in Q2, 2018 but only
1,023 tonnes were processed to test all the plant circuits as of
June 30th. As expected, plant circuits are being modified,
configured and fine-tuned to resolve normal start up issues.
Both mine and plant are now ramping up throughput to achieve
commercial production at the PEA target capacity of 250 tonnes per
day by the end of July.
Production Tables for Second Quarter, 2018 |
Production |
Tonnes |
Tonnes |
Grade |
Grade |
Recovery |
Recovery |
Silver |
Gold |
by mine |
Produced |
per day |
Ag gpt(1) |
Au gpt(1) |
Ag % |
Au % |
Oz |
Oz |
Guanaceví |
71,275 |
783 |
225 |
0.67 |
90.2% |
92.7% |
464,929 |
1,423 |
Bolañitos |
108,495 |
1,192 |
91 |
1.82 |
78.3% |
82.3% |
248,591 |
5,222 |
El Cubo |
134,535 |
1,478 |
171 |
1.92 |
86.8% |
84.6% |
642,375 |
7,029 |
Consolidated |
314,305 |
3,454 |
156 |
1.60 |
86.2% |
84.5% |
1,355,895 |
13,674 |
(1) gpt = grams per tonne |
Production Tables for Six Months Ended June 30,
2018 |
Production |
Tonnes |
Tonnes |
Grade |
Grade |
Recovery |
Recovery |
Silver |
Gold |
by mine |
Produced |
per day |
Ag gpt(1) |
Au gpt(1) |
Ag % |
Au % |
Oz |
Oz |
Guanaceví |
150,246 |
830 |
224 |
0.65 |
88.8% |
91.4% |
961,258 |
2,870 |
Bolañitos |
223,509 |
1,235 |
88 |
1.86 |
79.7% |
83.3% |
504,032 |
11,129 |
El Cubo |
266,219 |
1,471 |
168 |
1.78 |
86.3% |
84.6% |
1,241,445 |
12,883 |
Consolidated |
639,974 |
3,536 |
153 |
1.54 |
85.9% |
84.7% |
2,706,735 |
26,882 |
(1) gpt = grams per tonne |
Three Months Ended June 30 |
Q2 2018 Highlights |
Six Months Ended June 30 |
2018 |
2017 |
% Change |
2018 |
2017 |
% Change |
314,305 |
303,943 |
3% |
Throughput (tonnes) |
639,974 |
607,165 |
5% |
1,355,895 |
1,143,788 |
19% |
Silver
ounces produced |
2,706,735 |
2,220,762 |
22% |
13,674 |
13,058 |
5% |
Gold
ounces produced |
26,882 |
24,782 |
8% |
1,328,844 |
1,116,799 |
19% |
Payable silver ounces produced |
2,653,700 |
2,170,909 |
22% |
13,396 |
12,756 |
5% |
Payable gold ounces produced |
26,340 |
24,215 |
9% |
2,381,445 |
2,123,138 |
12% |
Silver
equivalent ounces produced(1) |
4,722,885 |
4,079,412 |
16% |
1,258,617 |
988,821 |
27% |
Silver
ounces sold |
2,664,760 |
2,224,415 |
20% |
13,800 |
12,294 |
12% |
Gold ounces sold |
26,474 |
23,584 |
12% |
(1) Silver equivalent ounces calculated using 75:1
ratio. |
Release of Second Quarter, 2018
Financial Results and Conference Call
The 2018 Second Quarter Financial Results will
be released before market on Thursday, August 2, 2018 and a
telephone conference call will be held the same day at 10:00am PT
(1:00pm ET). To participate in the conference call, please dial the
numbers below. No pass-code is necessary.
Toll-free in Canada and the US: 1-800-319-4610 Local Vancouver:
604-638-5340 Outside of Canada and the US: +604-638-5340
A replay of the conference call will be
available by dialing 1-800-319-6413 in Canada and the US
(toll-free) or +604-638-9010 outside of Canada and the US. The
required pass-code is 2443#. The audio replay and a written
transcript will be available on the Company's website
at www.edrsilver.com under the Investor Relations, Events
section.
About Endeavour Silver –
Endeavour Silver Corp. is a mid-tier precious metals mining company
with three high-grade, underground, silver-gold mines in Mexico.
The Company is forecasting 20% production growth to 10.2-11.2
million oz silver equivalent in 2018. Endeavour is currently
developing its fourth mine at El Compas, permitting its fifth mine
at Terronera and exploring its organic portfolio of exploration and
development projects in Mexico and Chile to facilitate its goal to
become a premier senior silver producer. Our philosophy of
corporate social integrity creates value for all stakeholders.
SOURCE Endeavour Silver Corp.
Contact Information - For more information, please
contact: Galina Meleger, Director, Investor RelationsToll free:
(877) 685-9775 Tel: (604) 640-4804 Fax: (604) 685-9744 Email:
gmeleger@edrsilver.com Website: www.edrsilver.com
Cautionary Note Regarding
Forward-Looking Statements
This news release contains “forward-looking
statements” within the meaning of the United States private
securities litigation reform act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities
legislation. Such forward‑looking statements and information herein
include but are not limited to statements regarding Endeavour’s
anticipated performance in 2018, the timing and results of various
future activities, the reliability of Mineral Reserve and Resource
estimates, the economic analysis and proposed development new
mines.
Forward-looking statements or information
involve known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance
or achievements of Endeavour and its operations to be materially
different from those expressed or implied by such statements. Such
factors include, among others, the reliability of Mineral Reserve
and Resource estimates, operational plans and economic analysis,
changes in national and local governments, legislation, taxation,
controls, regulations and political or economic developments in
Canada and Mexico, operating or technical difficulties in mineral
exploration, development and mining activities, risks and hazards
of mineral exploration, development and mining, the speculative
nature of mineral exploration and development, risks in obtaining
necessary licenses and permits, and challenges to the Company’s
title to properties, as well as those factors described in the
section “risk factors” contained in the Company’s most recent form
40F/Annual Information Form filed with the S.E.C. and Canadian
securities regulatory authorities.
Forward-looking statements are based on
assumptions management believes to be reasonable, including, but
not limited to, the reliability of Mineral Reserve and Resource
estimates, operational plans and economic analysis, the continued
operation of the Company’s mining operations, no material adverse
change in the market price of commodities, mining operations will
operate and the mining products will be completed in accordance
with management’s expectations and achieve their stated production
outcomes, and such other assumptions and factors as set out herein.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements or information, there may
be other factors that cause results to be materially different from
those anticipated, described, estimated, assessed or intended.
There can be no assurance that any forward-looking statements or
information will prove to be accurate as actual results and future
events could differ materially from those anticipated in such
statements or information. Accordingly, readers should not place
undue reliance on forward-looking statements or information. The
Company does not intend to, and does not assume any obligation to
update such forward-looking statements or information, other than
as required by applicable law.
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