Endeavour Silver Produces 1,898,999 oz Silver and 18,519 oz Gold (3.0 Million oz Silver Equivalents) in the First Quarter, 2014
April 09 2014 - 7:30AM
Marketwired Canada
Endeavour Silver Corp. (TSX:EDR)(NYSE:EXK) posted strong silver and gold
production results in the First Quarter, 2014 from the Company's three operating
silver mines in Mexico: the Guanacevi mine in Durango State and the Bolanitos
and El Cubo mines in Guanajuato State.
Silver production in the First Quarter, 2014 was up 27% to 1,898,999 ounces (oz)
and gold production was up 23% to 18,519 oz compared to the First Quarter, 2013.
Silver equivalent production rose 26% to 3.0 million oz using a 60:1 silver gold
ratio.
Production Highlights for First Quarter, 2014 (Compared to First Quarter, 2013)
-- Silver production increased 27% to 1,898,999 oz
-- Gold production jumped 23% to 18,519 oz
-- Silver equivalent production rose 26% to 3.0 million oz (at a 60:1
silver: gold ratio)
-- Silver oz sold up 1% to 1,537,665 oz
-- Gold oz sold up 5% to 16,445 oz
-- Bullion inventory at quarter-end included 295,839 oz silver and 421 oz
gold
-- Concentrate inventory at quarter-end included 60,512 oz silver and 1,113
oz gold
Endeavour CEO Bradford Cooke commented, "Although we did not forecast any
production growth in 2014, we are already ahead of our production plan for the
year as our operations team continues to perform well. Management is also intent
on improving our safety, financial and exploration performance in 2014 as we get
ready for the next leg up in the precious metal cycle.
"The recent fatal accidents at Guanacevi and El Cubo prompted management to
immediately implement a full safety retraining program at all three mines. Each
mine will shut down for two days so each shift can receive a two-day refresher
course on safety policies and practices. In addition, Endeavour will retain an
underground mine safety specialist to review the company's safety programs and
implement any recommended improvements.
"We continue to try and optimize our operating costs and improve our profit
margins given the current low silver and gold prices. Brownfields exploration
and development programs funded by cash flow are underway at all three mines to
replace reserves, expand resources and extend mine lives. Drilling will resume
shortly at our exciting high grade silver-gold discovery in the Terronera vein
on the San Sebastian property in Jalisco State, currently in the mine permitting
process."
At Guanacevi, higher grades and recoveries related to ore from the Porvenir
Cuatro mine helped deliver record quarterly production in the First Quarter,
2014. However, plant throughput in the month of April will be reduced by 100 tpd
as the FIMSA mill is down for repair and maintenance. Plant grades are expected
to return to plan over the rest of the year through blending of the higher grade
ores with the ore stockpile.
At Bolanitos, the mine continued to operate at the plant capacity in the First
Quarter, 2014 and gold grades continue to exceed the estimated reserve grades.
At El Cubo, the capital investments and operational changes implemented since
acquisition appear to have gained traction but there are still a few months of
accelerated mine development needed in order to make the progress sustainable
over the longer term. Production grades improved in the First Quarter, 2014 but
mine output declined due to development initiatives and a change of mine
manager. The mine is now back on plan to fill the plant capacity by year-end and
start building an ore stockpile.
Endeavour has enjoyed a multi-year track record of continuous improvement in
safety performance, and these latest accidents were a harsh reminder of the
risks inherent in the mining industry. The Company has historically introduced
new safety initiatives on a regular basis to keep employees and contractors
focused on safe practices in the workplace. The Company conducts mine rescue
training continuously and uses multiple safety strategies including the 5 point
system, Dupont STOP program, and My Brother's Keeper, among others, in addition
to thousands of hours of safety training, regular safety audits, extensive
safety signage and job-specific training such as barring down.
Management is very focused on safety performance and the recent initiatives to
completely retrain the workforce should help get the Company's safety
performance back on track to reflect a culture of excellence. Endeavour has
previously won National Safety Awards for its safety programs and Company mine
rescue teams have captured multiple individual and team awards in mine rescue
competitions.
Production Tables for First Quarter, 2014
----------------------------------------------------------------------------
Grade Grade
Tonnes Ag Au
Production Tonnes per gpt gpt Recovery Recovery Silver Gold
by mine Produced day (1) (1) Ag % Au % Oz Oz
----------------------------------------------------------------------------
Guanacevi 106,813 1,187 350 0.77 83.7% 86.0% 1,005,781 2,273
Bolanitos 142,412 1,582 144 2.72 86.9% 85.4% 572,851 10,640
El Cubo 97,300 1,081 110 2.01 93.1% 89.2% 320,367 5,606
----------------------------------------------------------------------------
Consolidated 346,525 3,850 198 1.92 86.1% 86.6% 1,898,999 18,519
----------------------------------------------------------------------------
(1) gpt = grams per tonnes
----------------------------------------------------------------------------
Period Ended March 31
Q1 2014 Highlights 2014 2013 % Change
----------------------------------------------------------------------------
Throughput (tonnes) 346,525 376,344 -8%
Silver ounces produced 1,898,999 1,489,716 27%
Gold ounces produced 18,519 15,032 23%
Payable silver ounces produced 1,844,165 1,459,706 26%
Payable gold ounces produced 17,796 14,787 20%
Silver equivalent ounces
produced (1) 3,010,139 2,391,636 26%
Silver ounces sold 1,537,665 1,515,077 1%
Gold ounces sold 16,445 15,724 5%
(1) Silver equivalent ounces calculated using 60:1 ratio
(2) Revenue from the sale of concentrates is subject to adjustments upon
final settlement. Concentrate sales are subject to mark-to-market
accounting treatments resulting in quarterly closing prices used for a
significant portion of metal sales. Furthermore, reported revenue and
realized prices include adjustments to prior quarter sales on final
settlement.
Release of First Quarter, 2014 Financial Results and Conference Call
The First Quarter, 2014 financial results will be released after market on
Monday, May 12, 2014 and a telephone conference call will be held at 10:00am PDT
(1:00pm EDT) on Tuesday, May 13, 2014.
Annual General Meeting
The Company will host its annual general meeting on Thursday, May 8, 2014 in
Vancouver at the Terminal City Club, 837 West Hastings at 10:00am PDT and has
posted its annual general meeting materials on its website. All shareholders can
receive a hard copy of the Company's annual general meeting materials free of
charge upon request. To receive this material in hard copy, please contact
Meghan Brown, Director Investor Relations at (604) 640-4804 or toll free (877)
685-9775.
About Endeavour Silver - Endeavour is a mid-tier silver mining company focused
on growing its production, reserves and resources in Mexico. Since start-up in
2004, Endeavour has posted nine consecutive years of accretive growth of its
silver mining operations. The organic expansion programs now underway at
Endeavour's three silver-gold mines in Mexico combined with its strategic
acquisition and exploration programs should facilitate Endeavour's goal to
become a premier senior silver producer.
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 2014 and the timing and results of exploration drill programs.
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, among others, 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; fluctuations in the prices
of commodities and their impact on reserves and resources 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Meghan Brown
Director Investor Relations
Toll free: (877) 685-9775
Tel: (604) 640-4804
(604) 685-9744 (FAX)
Email: mbrown@edrsilver.com
Website: www.edrsilver.com
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