Endeavour Silver Corp. (TSX:EDR) (NYSE:EXK)
reports 2017 production of 4.9 million ounces (oz) silver and
53,007 oz gold, meeting the company’s revised guidance on silver
and exceeding revised guidance on gold. Silver equivalent
production totaled 8.9 million oz at a 75:1 silver: gold ratio,
approaching the top end of revised guidance.
Silver production in the Fourth Quarter, 2017
was 1,436,962 oz and gold production was 14,577 oz, for silver
equivalent production of 2.5 million oz, marking the third
consecutive quarter of improved production and a 30% increase over
the Fourth Quarter, 2016. 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.
Production Highlights for Fourth
Quarter, 2017 (Compared to Fourth Quarter, 2016)
- Silver production increased 32% to 1,436,962 oz
- Gold production increased 28% to 14,577 oz
- Silver equivalent production was 2.5 million oz (at a 75:1
silver: gold ratio)
- Silver ounces sold totaled 1,392,518 oz
- Gold ounces sold totaled 14,117 oz
- Bullion inventory at year-end included 209,337 oz silver and
487 oz gold
- Concentrate inventory at year-end included 31,984 oz silver and
739 oz gold
Production Highlights for Fiscal 2017
(Compared to Fiscal 2016)
- Silver production decreased 9% year-on-year to 4,919,788
oz
- Gold production decreased 8% to 53,007 oz
- Silver equivalent production was 8.9 million oz (at a 75:1
silver: gold ratio)
- Silver ounces sold totaled 4,892,855 oz
- Gold ounces sold totaled 51,460 oz
Bradford Cooke, CEO, commented, “In 2017, silver
equivalent production met the low end of our original guidance and
the high end of our revised guidance, notwithstanding several
operating challenges at the Guanacevi mine. I am
pleased to say our operations team resolved many of those operating
issues and they have plans to complete Guanacevi’s recovery to
normal operations in 2018.
“After a tough start to the year in the first
quarter, Endeavour posted three consecutive quarters of improved
production, making the fourth quarter our best of the year.
Ore grades and throughput both improved in the second half. A
productivity optimization program is being launched at Guanacevi
this month and additional operational improvements are planned this
year at Bolanitos and El Cubo. As we advance our development
projects and continue optimizing our existing mines, we look
forward to delivering one of the best growth profiles in the silver
mining sector.
“The El Compas mine and plant development
project continues to move forward on time and budget, targeting
initial production in late March, 2018. Both the main mine
portal and the secondary ramp entrance infrastructure are now
complete; the main mine ramp has advanced 174 meters, and plant
refurbishment was 82% complete at the end of December. Management
is excited about the recent high grade drilling results at the
nearby Calicanto property and the other properties we acquired in
the Zacatecas district in 2017. Drilling will resume at Calicanto
this month.
“At Terronera, we received permits to build the
mine and plant and we await receipt of the dumps and tailings
permits. Several trade-off studies were completed in 2017 and
management expects to release a summary of an updated
pre-feasibility study in February. Assuming a positive
production decision in the first quarter, we plan to break ground
in the second quarter and target initial production by late 2019.
We are equally excited about the 2017 high grade drilling results
at Terronera and drilling will resume this month.
“In the third quarter, we appointed a new
Vice-President, Engineering, to oversee our technical services and
development projects. Over the past few months, we have built a
core engineering team, including managers of mining, construction,
permitting and resource estimation, to significantly expand our
internal capabilities to evaluate, design and build our new mines.
This group is responsible for the delivery of our development
projects, reaffirming our renewed focus on growth.”
Operating Highlights for
2017
Consolidated Production
Three Months Ended December 31 |
2017 Highlights |
Year Ended December 31 |
2017 |
2016 |
% Change |
2017 |
2016 |
% Change |
349,924 |
317,555 |
10% |
Throughput (tonnes) |
1,279,873 |
1,458,917 |
(12%) |
1,436,962 |
1,088,845 |
32% |
Silver
ounces produced |
4,919,788 |
5,435,407 |
(9%) |
14,577 |
11,402 |
28% |
Gold
ounces produced |
53,007 |
57,375 |
(8%) |
1,400,705 |
1,064,827 |
32% |
Payable silver ounces produced |
4,803,589 |
5,308,026 |
(10%) |
14,245 |
11,059 |
29% |
Payable gold ounces produced |
51,797 |
55,716 |
(7%) |
2,530,237 |
1,886,985 |
34% |
Silver
equivalent ounces produced(1) |
8,895,313 |
9,451,657 |
(6%) |
1,392,518 |
946,456 |
47% |
Silver
ounces sold |
4,892,855 |
5,152,031 |
(5%) |
14,117 |
11,004 |
28% |
Gold ounces sold |
51,460 |
55,851 |
(8%) |
|
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|
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 |
83,881 |
912 |
241 |
0.54 |
83.7% |
85.5% |
544,117 |
1,245 |
Bolañitos |
124,172 |
1,350 |
86 |
2.18 |
81.8% |
82.8% |
280,712 |
7,204 |
El Cubo |
141,871 |
1,542 |
157 |
1.61 |
85.5% |
83.4% |
612,133 |
6,128 |
Consolidated |
349,924 |
3,804 |
152 |
1.56 |
84.1% |
83.3% |
1,436,962 |
14,577 |
|
2017 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 |
321,113 |
880 |
230 |
0.53 |
87.0% |
86.6% |
2,066,448 |
4,740 |
Bolañitos |
446,924 |
1,224 |
80 |
2.24 |
81.3% |
83.6% |
934,238 |
26,910 |
El Cubo |
511,836 |
1,402 |
136 |
1.55 |
85.8% |
83.7% |
1,919,102 |
21,357 |
Consolidated |
1,279,873 |
3,507 |
140 |
1.54 |
85.4% |
83.9% |
4,919,788 |
53,007 |
1) 2017 silver equivalents based on a 75:1 gold:silver
ratio; 2016 silver equivalents based on a 70:1 gold:silver
ratio2) gpt = grams per tonne
Guanaceví Mine
- Silver equivalent production met revised guidance but was below
original guidance for 2017 due to lower throughput resulting from
mine flooding, related to an incursion of hot water and power
outages from power grid problems and a lightning strike that caused
pumps to fail. These problems were resolved in the 2nd half of
2017. Additionally, slower mine development due to narrower vein
widths than modeled also contributed to lower mine output. Initial
production from the Milache and Santa Cruz Sur orebodies in the 2nd
half of 2018 should help boost both throughput and grades
- Silver production met revised guidance, based on lower
throughput partly offset by higher silver recovery
- Gold production beat revised guidance, based on lower
throughput partly offset by higher gold grade
- Completed 10.5 kilometres (km) of underground mine
development
- Extended the Porvenir Centro and Santa Cruz mineralized
zones
Bolañitos Mine
- Silver equivalent production significantly exceeded guidance
for 2017
- Silver production met guidance due to higher throughput and
silver recovery, partly offset by lower silver grade
- Gold production beat guidance due to higher throughput, higher
gold grade and recovery
- Completed 3.6 km of underground mine development
- Extended the LL-Asuncion and Plateros orebodies
El Cubo Mine
- Silver equivalent production was below guidance for 2017
- Silver production met guidance, notwithstanding slightly lower
throughput and silver recovery
- Gold production was below guidance due to lower throughput and
gold grade
- Completed 9.2 km of underground mine development
- Explored several targets at El Cubo North
Sustainability Programs
- Endeavour was active once again investing in sustainability
programs for safety, health, education, environment and
community
- Bolanitos and El Cubo both received the annual “Socially
Responsible Company” Award
- The Company planted 43,939 trees and cacti to reclaim disturbed
ground in 2017
- The 2017 Annual Review and Sustainability Report will be
published in early May
Upcoming News
Over the next month, Endeavour expects to
release:
- Updated economics for the new El Compas mine
- Year-end reserve and resource estimates
- 2018 production and cost guidance
Summary results of an optimized pre-feasibility
study for Terronera are scheduled for release in mid-late
February.
Release of 2017 Financial Results and
Conference Call
The 2017 Fourth Quarter and year-end
consolidated financial results will be released before market on
Monday, February 26, 2018 and a telephone conference call will be
held the same day at 10:00am PDT (1:00pm EDT). 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 1979#. The audio replay and a written
transcript will also be made available on the Company's website at
www.edrsilver.com.
About Endeavour – Endeavour
Silver Corp. is a mid-tier precious metals mining company with
three high-grade, underground, silver‑gold mines in Mexico. Since
start‑up in 2004, Endeavour has grown its mining operations
organically to produce 8.9 million ounces of silver
equivalents in 2017. Development of Endeavour’s high-grade
discovery on the Terronera property in Jalisco state, the permitted
El Compas mine and plant in Zacatecas state, and the prospective
Parral properties in Chihuahua state, should facilitate the
Company’s goal to become a premier senior producer in the silver
mining sector.
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 and the timing and results of
various future 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, 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;
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.
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