Endeavour Silver Corp. (TSX: EDR, NYSE:
EXK) reports 2018 consolidated production of 5.5 million
ounces (oz) silver and 52,967 oz gold, for silver equivalent
production of 9.5 million oz at a 75:1 silver: gold ratio. Silver
production in the Fourth Quarter, 2018 was 1,386,505 oz and gold
production was 13,117 oz, for silver equivalent production of 2.4
million oz.
Endeavour owns and operates three silver mines
in Mexico, the Guanaceví mine in Durango state and the Bolañitos
and El Cubo mines in Guanajuato state. Last year, the Company
developed and is now commissioning a fourth mine, the El Compas
mine in Zacatecas state. Production from the three mines was higher
in 2018 compared to 2017 but fell short of the Company’s 2018
production guidance.
The 7% improved production performance in 2018
compared to 2017 was due to higher mine output, silver and gold
grades and recoveries at the El Cubo mine. The 7% production
shortfall in 2018 compared to guidance was due to lower mine output
and silver grades at Guanaceví, lower gold grades at Bolañitos and
delays in achieving commercial production at El Compas.
Highlights for Fourth Quarter, 2018
(Compared to Fourth Quarter, 2017)
- Silver production decreased 4% to 1,386,505 oz
- Gold production decreased 10% to 13,117 oz
- Silver equivalent production was 2.4 million oz (at a 75:1
silver: gold ratio)
- Silver ounces sold totaled 1,264,340 oz
- Gold ounces sold totaled 11,819 oz
- Bullion inventory at year-end included 101,146 oz silver and
218 oz gold
- Concentrate inventory at year-end included 96,614 oz silver and
1,517 oz gold
- Nick Shakesby was appointed as new Vice President,
Operations
- Bolañitos drilling returned multiple high-grade intersections
including 1,415 grams per tonne (gpt) silver and 2.25 gpt gold over
a 1.1 metre (m) true width in the San Miguel vein
- Parral drilling and underground sampling returned multiple
high-grade intersections including 934 gpt silver, 0.21 gpt gold,
3.0% lead and 5.9% zinc over 4.2 m true width and excellent
metallurgical recoveries by flotation and leaching
- El Compas commissioning has been delayed due to several issues
including excess clay in ore that caused a recovery issue in the
plant (metallurgical studies ongoing), a water issue in the
tailings facilities (now resolved), and a ball mill equipment
failure in late December (to be rectified by late January) that
halted plant operations while the mine continues operating (ore
stockpile now exceeds 10,000 tonnes)
Highlights for Fiscal 2018 (Compared to
Fiscal 2017)
- Silver production increased 12% year-on-year to 5,522,068
oz
- Gold production was flat with 52,967 oz
- Silver equivalent production was 9.5 million oz (at a 75:1
silver:gold ratio)
- Silver ounces sold totaled 5,461,197 oz
- Gold ounces sold totaled 51,318 oz
- Manuel Echevarria was appointed as Vice President, New
Projects
- El Cubo mine output, grades, recoveries and production were
significantly higher than 2017
- El Compas mine development was completed and plant
commissioning is ongoing
- Terronera reserves and resources increased and an updated
pre-feasibility study was completed
Bradford Cooke, CEO, commented, "All in all,
2018 was quite a transition year for Endeavour Silver. We saw
improved performance from El Cubo, but declining performance at
Bolañitos, where new mineralized zones were discovered and at
Guanaceví, where two new orebodies are being developed. The
new El Compas mine completed its initial mine development but plant
commissioning issues have delayed production. In October,
Nick Shakesby was appointed new VP Operations to help make a
positive difference in our mining operations.
“We also appointed Manuel Echevarria in May as
VP New Projects to oversee the engineering and development of our
new mines. The Terronera project advanced to an expanded
reserve and resource estimate and a new and improved
pre-feasibility study was released in August. At Parral,
drilling intersected multiple high-grade intersections in the San
Patricio vein and significant silver mineralization was mapped and
sampled underground at the Veta Colorada mine.
“In 2019, we anticipate improving the
performance of the Guanaceví and Bolañitos mines, making the most
of our declining reserves at the El Cubo mine, delivering our first
year of commercial production at El Compas and upon receiving a
positive board decision, commencing the development of our fifth
mine at Terronera. Endeavour is fortunate to have a
compelling pipeline of development projects to replace old mines
and fuel our future growth.”
Operating Highlights for
2018
|
Consolidated Production |
Three Months Ended December 31 |
|
Year Ended December 31 |
2018 |
2017 |
%Change |
2018 |
2017 |
%Change |
309,036 |
349,924 |
(12%) |
Throughput (tonnes) |
1,266,831 |
1,279,873 |
(1%) |
1,386,505 |
1,436,962 |
(4%) |
Silver
ounces produced |
5,522,068 |
4,919,788 |
12% |
13,117 |
14,577 |
(10%) |
Gold
ounces produced |
52,967 |
53,007 |
(0%) |
1,359,256 |
1,400,705 |
(3%) |
Payable silver ounces produced |
5,417,633 |
4,803,589 |
13% |
12,821 |
14,245 |
(10%) |
Payable gold ounces produced |
51,826 |
51,797 |
0% |
2,370,280 |
2,530,237 |
(6%) |
Silver
equivalent ounces produced(1) |
9,494,593 |
8,895,313 |
7% |
1,264,340 |
1,392,518 |
(9%) |
Silver
ounces sold |
5,461,197 |
4,892,855 |
12% |
11,819 |
14,117 |
(16%) |
Gold ounces sold |
51,318 |
51,460 |
(0%) |
Fourth Quarter
Production by Mine |
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 |
75,528 |
821 |
222 |
0.58 |
89.8% |
88.0% |
484,197 |
1,240 |
Bolañitos |
105,768 |
1,150 |
82 |
1.77 |
84.4% |
85.8% |
235,326 |
5,166 |
El Cubo |
127,740 |
1,388 |
181 |
1.93 |
89.7% |
84.7% |
666,982 |
6,711 |
Consolidated |
309,036 |
3,359 |
157 |
1.55 |
88.8% |
85.4% |
1,386,505 |
13,117 |
2018 Production
by Mine |
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 |
307,042 |
841 |
222 |
0.59 |
89.6% |
89.7% |
1,963,773 |
5,224 |
Bolañitos |
439,005 |
1,203 |
86 |
1.79 |
80.4% |
83.6% |
975,555 |
21,127 |
El Cubo |
520,784 |
1,427 |
176 |
1.87 |
87.6% |
85.0% |
2,582,740 |
26,616 |
Consolidated |
1,266,831 |
3,471 |
156 |
1.53 |
86.9% |
84.9% |
5,522,068 |
52,967 |
|
1) 2018 & 2017 silver equivalents based on a
75:1 gold:silver ratio; |
2) gpt = grams per tonne |
Guanaceví Mine
In 2018, Guanaceví continued to face operational
challenges. The remaining reserves at the two operating mines,
Porvenir Norte and Santa Cruz, are now deeper, narrower and lower
grade compared to prior years, resulting in lower production from
these areas. The permitting and development of two new
shallower, wider, higher grade orebodies, Milache and SCS, suffered
delays which resulted in a shortfall of both tonnes and grades to
the plant. At year-end, the Milache orebody had three underground
levels open and advancing in lower grade ore with grades increasing
with depth as modeled. A new adit was collared late in the
year to develop the SCS orebody. Management expects both new
orebodies will reach their planned production rates during
2019.
- Silver production was 11% below guidance, based on lower
throughput and lower silver grades partly offset by higher silver
recovery
- Gold production met the low end of guidance, as the lower
throughput was partly offset by higher gold recovery
- Silver equivalent production was 8% below guidance due to the
shortfall in silver production
- Completed 9.0 kilometres (km) of underground mine development
compared to planned 12.1km
- Expanded the Porvenir Norte and Santa Cruz mineralized zones by
drilling
- Commenced development of the Milache and SCS orebodies
Bolañitos
Mine
In 2018, Bolañitos throughput exceeded plan
however grades were below the mine plan, which was modified to
include new but lower grade resources along the margins of the
LL-Asuncion and Plateros veins to extend the mine life, resulting
in lower production grades and metal production compared to
guidance. Ore grades are expected to increase modestly in
2019, in line with the new mine plan.
- Silver production fell 3% short of guidance, based lower grades
and slightly lower recoveries
- Gold production was 10% below guidance, based on lower grades
and lower recoveries
- Silver equivalent production was 7% below guidance
- Completed 3.3 km of underground mine development
- Extended the LL-Asuncion and Plateros orebodies by
drilling
- Drilling outlined several new mineralized areas and extensions
to known areas, with potential for new resources to extend the mine
life at Bolañitos
El Cubo Mine
In 2018, El Cubo had a good year, with both
throughput and grades coming in above the mine plan.
Variations in the V-Asuncion orebody resulted in higher gold
grades, offset by lower silver grades than planned. The higher
throughput resulted in silver production meeting the low range of
guidance and gold production exceeding guidance. However,
exploration was not able to replace the depleted resources so the
Company plans to reduce the production rate in 2019 to
approximately half its 1500 tonne per day capacity, which will
result in higher operating costs compared to 2018, while continuing
to explore for new resources to extend the mine life.
Accordingly, the Company has initiated layoffs of
approximately 240 employees to reflect the lower production rate in
2019. The mine will continue to run at three shifts per day
but the plant will move to one shift per day. Some idled mining
equipment at El Cubo was transferred to the El Compas mine in
Zacatecas to facilitate their mine plan in 2019.
- Silver production met guidance based on slightly higher
throughput offset by slightly lower grade
- Gold production exceeded guidance by 9% based on slightly
higher throughput and significantly higher grade
- Silver equivalent production exceeded the midpoint of guidance
by 5%
- Completed 6.7 km of underground mine development
- Drilling on new targets did not intersect any economic
mineralization
El Compas Mine
Mining of lower grade development ore and
commissioning of the El Compas plant was initiated in the 2nd
quarter. A total of 6,500 tonnes was processed to test all
the plant circuits through the middle of August. Excess clay
in the ore created recovery issues so various plant circuits were
modified to resolve the clay and other normal start-up
issues. In mid-August 2018, based on an independent
engineering review, commissioning of the plant was temporarily
halted to allow the tailings area to be dewatered and excess clay
to be removed for improved drainage. A second fine
tailings area was excavated in September 2018 to improve overall
settling of the fine tailings and allow the coarse tailings storage
area to form a solid beach. The plant commissioning re-commenced in
mid-October, 2018. In late December, the ball mill pinion failed
which brought plant operations to a halt (mine still operating and
ore stockpile now exceeds 10,000 tonnes). Management expects to
recommence plant operations after a new pinion is installed in late
January.
- Completed 2.6 km of underground mine development
- Drilling on the Calicanto property intersected high grade
silver-gold mineralization in two veins
Sustainability
- We continued to focus our sustainability efforts on safety
& health, our people, the environment, local communities and
positive economic impacts
- Endeavour decreased the reportable injury frequency rate by 33%
during 2018
- Endeavour Silver was ranked by Corporate Knights as one of the
2018 “Future 40 - Responsible Corporate Leaders in Canada” for
mid-sized corporations for the way we conduct our business
- Bolañitos and El Cubo both received the annual “Socially
Responsible Company” distinction from CEMEFI (Mexican Philanthropy
Center)
- The community relations team at Terronera carried out a social
impact study for the proposed new mine to identify and address
topics of importance to the local communities
- Each operating mine, Guanaceví, Cubo and Bolañitos, developed a
Post-Mining Sustainability Plan, which identifies the main actions
needed to ensure the sustainability of the communities after each
mine ceases to operate
- We continue to invest in the scholarship program in Bolañitos,
benefiting about 50 students from high school and university
levels, some through a partnership with the University of
Guanajuato
- The Company planted 53,410 trees and cacti to reclaim disturbed
ground at all of our mines and projects
- The 2018 Annual Review and Sustainability Report will be
published in early May
Upcoming News
Over the next month, Endeavour expects to
release the following:
- Year-end Mineral Reserve and Resource Estimates
- 2019 production and cost guidance
- 2019 exploration and development plans and a “Growth Strategy”
webinar presentation
Release of 2018 Financial Results and
Conference CallThe 2018 Fourth Quarter and year-end
consolidated financial results will be released before market on
Monday, February 25, 2019 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 2873#. The audio replay and a written
transcript will also be made available on the Company's website at
www.edrsilver.com.
About Endeavour Silver –
Endeavour Silver Corp. is a mid-tier precious metals mining company
that owns and operates three high-grade, underground, silver-gold
mines in Mexico. Endeavour is currently commissioning its fourth
mine at El Compas, advancing a possible fifth mine at the Terronera
mine project and exploring its 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 Galina
Meleger, Director Investor RelationsToll free: (877) 685-9775Tel:
(604) 640-4804Fax: (604) 685-9744Email:
gmeleger@edrsilver.com Website: www.edrsilver.com
Follow Endeavour Silver on Facebook, Twitter,
Instagram and LinkedIn
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 2019 including changes in mining and
operations and the timing and results of various activities. 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.
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 but are not limited to changes in national and
local governments, legislation, taxation, controls, regulations and
political or economic developments in Canada and Mexico; financial
risks due to precious metals prices, 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 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.
Endeavour Silver (NYSE:EXK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Endeavour Silver (NYSE:EXK)
Historical Stock Chart
From Apr 2023 to Apr 2024