Endeavour Silver Corp.
(“Endeavour” or the
“Company”) (NYSE: EXK; TSX: EDR) is
pleased to report third quarter 2024 production of 874,717 silver
ounces and 9,290 gold ounces, for silver equivalent1 (“AgEq”)
production of 1.6 million ounces. Total year-to-date production of
6.0 million AgEq ounces is tracking towards the updated 2024
production guidance of 7.3 million to 7.6 million AgEq ounces. All
amounts are in U.S. dollars unless stated otherwise.
"The trunnion failure at the Guanaceví mine
poses a significant short-term challenge for the Company; however,
it's how we manage these difficult moments that often shapes our
long-term success.” said Dan Dickson, Chief Executive Officer. "The
ingenuity, commitment, and hard work of our team have been crucial
in reducing the impact on the mine and the surrounding community.
We remain focused on further mitigating the effects and look
forward to returning Guanaceví to full production capacity in
December.”
Q3 2024 Overview
-
Guanaceví Production
Impacted by the Trunnion Failure: Production decreased in
August and September due to a trunnion failure of the primary ball
mill (see news release from August 12, 2024). Production for Q3
2024 amounted to 768,905 silver ounces and 2,828 gold ounces.
Estimated fabrication timing remains at 15 weeks with the mine
being back to full operations in December 2024.
- Bolañitos Results Remain
Consistent: With throughput remaining steady, gold
production continues to be slightly above plan due to higher gold
grades. Silver production continues to be slightly below plan due
to lower silver grades. Processed ore grades are expected to have
similar variation for the fourth quarter.
- Metal Sales and
Inventories: Sold 1,017,392 silver ounces and 9,412 gold
ounces during the third quarter. A total of 109,719 silver ounces
and 401 gold ounces of bullion inventory and 8,202 silver ounces
and 560 gold ounces in concentrate inventory were held at quarter
end.
- Terronera Senior Secured
Debt Facility: Drawdowns totaling $25 million were made
during Q3 2024 to develop the Terronera mine, and a further and
final drawdown of $35 million subsequent to quarter end
(see news release dated April 10, 2024).
Q3 2024 Mine Operations
In August, the Company reported a primary ball
mill trunnion failure at the Guanaceví mine. Temporary
modifications were completed within the plant to re-purpose one of
the regrind mills as the primary ball mill. The temporary
modifications allowed throughput to average 565 tonnes per day
since re-start after the trunnion failure. The plant team is
closely monitoring the operation of the regrind mills to ensure
continued reliability and high mechanical availability, including
increased planned maintenance down days during this temporary
period.
______________________________
1 Silver equivalent (AgEq): AgEq is calculated using an 80:1
silver:gold ratio. Ounces are troy ounces.
During the 15-week period of reduced milling,
the preliminary estimate indicated a cash shortfall of less than $5
million with a fabrication cost of $0.5 million for a new trunnion.
The timeline for fabrication and installation remains on schedule
for December 2024.
Consolidated silver production decreased 24% to
874,717 ounces in Q3 2024 compared to Q3 2023, primarily driven by
reduced operating capacity at Guanaceví after the trunnion failure
in August. Gold production increased by 2% to 9,290 ounces in Q3
2024 compared to Q3 2023, primarily due to higher gold grades mined
at both Guanaceví and Bolañitos as well as higher gold content in
third-party feed processed at the Guanaceví mine.
Production Highlights for the Three and Nine Months
Ended September 30, 2024
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
2024 |
2023 |
% Change |
|
2024 |
2023 |
% Change |
175,065 |
214,270 |
(18%) |
Throughput (tonnes) |
615,848 |
653,918 |
(6%) |
874,717 |
1,148,735 |
(24%) |
Silver ounces produced |
3,647,295 |
4,266,280 |
(15%) |
9,290 |
9,089 |
2% |
Gold ounces produced |
29,971 |
28,250 |
6% |
867,293 |
1,140,597 |
(24%) |
Payable silver ounces produced |
3,621,062 |
4,231,064 |
(14%) |
9,112 |
8,929 |
2% |
Payable gold ounces produced |
29,429 |
27,749 |
6% |
1,617,917 |
1,875,855 |
(14%) |
Silver equivalent ounces produced1 |
6,045,055 |
6,526,280 |
(7%) |
1,017,392 |
1,370,032 |
(26%) |
Silver ounces sold |
3,991,055 |
4,337,112 |
(8%) |
9,412 |
8,760 |
7% |
Gold ounces sold |
30,179 |
27,769 |
9% |
|
|
|
|
|
|
|
Production Tables for the Three Months Ended September
30, 2024 by Mine
Production |
Tonnes |
Tonnes |
Grade |
Grade |
Recovery |
Recovery |
Silver |
Gold |
by mine |
Processed |
per day |
Ag gpt |
Au gpt |
Ag % |
Au % |
Ounces |
Ounces |
Guanaceví |
67,094 |
729 |
402 |
1.46 |
88.7% |
89.8% |
768,905 |
2,828 |
Bolañitos |
107,971 |
1,174 |
36 |
2.00 |
84.7% |
93.1% |
105,812 |
6,462 |
Consolidated |
175,065 |
1,924 |
176 |
1.79 |
88.2% |
92.1% |
874,717 |
9,290 |
|
|
|
|
|
|
|
|
|
Production Tables for the Nine Months Ended September
30, 2024 by Mine
Production |
Tonnes |
Tonnes |
Grade |
Grade |
Recovery |
Recovery |
Silver |
Gold |
by mine |
Processed |
per day |
Ag gpt |
Au gpt |
Ag % |
Au % |
Ounces |
Ounces |
Guanaceví |
294,995 |
1,077 |
388 |
1.32 |
89.7% |
89.4% |
3,300,400 |
11,195 |
Bolañitos |
320,853 |
1,171 |
40 |
1.99 |
84.1% |
91.5% |
346,895 |
18,777 |
Consolidated |
615,848 |
2,248 |
207 |
1.67 |
89.1% |
90.7% |
3,647,295 |
29,972 |
|
|
|
|
|
|
|
|
|
gpt = grams per tonne Totals may not add up due to rounding
About Endeavour Silver
Endeavour is a mid-tier precious metals company
with a strong commitment to sustainable and responsible mining
practices. With operations in Mexico and the development of the new
cornerstone mine in Jalisco state, the company aims to contribute
positively to the mining industry and the communities in which it
operates. In addition, Endeavour has a portfolio of exploration
projects in Mexico, Chile and the United States to facilitate its
goal to become a premier senior silver producer.
Qualified Person
Dale Mah, P.Geo., Vice President Corporate
Development, a qualified person under NI 43-101, has approved the
scientific and technical information related to operations matters
in this news release.
Q3 2024 Financial Results and Conference
Call
Q3 2024 financial results will be released
before market open on Tuesday November 5, 2024, and Management will
host a conference call the same day at 1:00 pm Eastern time to
discuss the results.
Date: |
Tuesday November 5, 2024 |
|
|
Time: |
10:00am Pacific / 1:00pm Eastern |
|
|
Telephone: |
Canada & US +1-844-763-8274 |
|
International +1-647-484-8814 |
|
|
Replay: |
Canada & US +1- 855-669-9658 |
|
International +1-412-317-0088 |
|
Access code is 1771202; audio replay will be available on
Company’s website |
|
|
Contact Information
Allison PettitDirector, Investor RelationsEmail:
apettit@edrsilver.com Website: www.edrsilver.com
Follow Endeavour Silver on Facebook, X,
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 2024 including changes in mining
operations and forecasts of production levels, timeline for
resumption of full operations at Guanacevi, 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, production
levels, 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 changes in
production and costs guidance; the ongoing effects of inflation and
supply chain issues on mine economics; 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;
fluctuations in the prices of silver and gold, fluctuations in the
currency markets (particularly the Mexican peso, Chilean peso,
Canadian dollar and U.S. dollar); 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, forecasted mine economics as of 2024, mining
operations will operate and the mining products will be completed
in accordance with management’s expectations and achieve their
stated production outcomes, timeline for resumption of full
operations at Guanacevi 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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