• Endeavor Silver forecasts ‘better performance’ in 2020 from silver mines
  • Company anticipates production of 3 to 3.5 million ounces of silver and 38,000 to 44,000oz of gold.
  • CAD$5.4 million wet aside to drill 18,500m of core samples across mineral portfolios
  • CAD$32.6 million for capital works at Guanacevi, Bolanitos and El Compas
  • Shares were up CAD$0.06 (2.19%) and trading at CAD$2.80

Direct operating costs were estimated to be within the range of CAD$85.00 to CAD$90.00 per tonne, with all-in sustaining costs – in accordance with the World Gold Council standard – was estimated to be CAD$17.00 to CAD$18.00 per oz of silver produced and CAD$16.50 to CAD$17.50 when non-cash items, like stock-based compensation, are excluded.

The company also said plans to invest CAD$32.6 million at the three mines – Guanacevi, Bolanitos and El Compas – via capital projects, as well as CAD$1.8 million in growth capital to maintain the Parral, Lourdes and Guadalupe y Calvo exploration concessions and cover corporate infrastructure.

CAD$15 million was earmarked for Guanacevi and will be used to develop 8.4km of mine access at the Milache, SCS and P4E orebodies; CAD$13.6 million will go to developing access to the Plateros-La Luz, Lucero-Karina and Bolanitos-San Miguel vein systems at Bolanitos and upgrading the site’s mining fleet, raise the tailing damns and support site infrastructure;  CAD$1.4 million will be used on mine development and tailings expansion at El Compas.

Endeavour Silver is preparing a final update of a pre-feasibility study for its Terronera development site which will include additional engineering studies and revised cost estimates.    

Although no commitments have been received the company will continue to examine its debt financing alternatives and consider whether to proceed to a full feasibility study. Management will release a revised program and budget for the project once the pre-feasibility study gets board approval.

The company also plans to spend CAD$5.4 million to drill 18,500m of core samples and on engineering developments across its portfolio, with 10,500m to be drilled at the three operating silver mines at a cost of CAD$2 million. This aims to replace the reserves and expand resources on the mine sites.

The remaining CAD$3.4 million will be used to fund 8,000m of core drilling and advance engineering studies at the Terronera and Parral sites, and the Paloma gold project in Chile. The latter’s exploration results have been described as ‘very encouraging’, with the company scheduling a live webinar in the first quarter of this year to review growth strategy, exploration and development plans.

Endeavor Silver also said it will release the 2019 fourth quarter and year-end consolidated financial results on February 24 and hold a conference call on the same day.

At the time of writing Endevour Silver’s shares were up CAD$0.06 (2.19%) and trading at CAD$2.80. It has a market capitalization of CAD$391.7 million.

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