Endeavour Silver Provides Update on Guanacevi Trunnion Failure
August 19 2024 - 6:50AM
Endeavour Silver Corp. (“Endeavour” or the
“Company”) (NYSE: EXK; TSX: EDR) provides
an update to the Guanacevi primary ball mill trunnion failure that
was reported on August 12, 2024.
Processing has resumed at the Guanacevi mine
site. Temporary modifications have been completed within the plant
to re-purpose one of the regrind mills as the primary ball mill
which is currently milling at a rate of 400 tonnes per day (tpd).
While the grinding circuit is being closely monitored, there is
potential for the plant to operate near 500 tpd or close to half of
its planned production capacity of 1,200 tpd during this temporary
phase.
During this time, mining operations will
continue at a reduced rate without comprising safety or the
long-term viability of the ore body. The operations will focus on
feeding the highest-grade ore to the mill and stockpiling the
remaining material. Contract mining activities and local
third-party material purchases will cease until the process plant
operations have returned to full capacity. These temporary
solutions are intended to manage cash flows until the primary mill
is fully operational. Using current metal prices, the preliminary
estimate indicates a cash shortfall could be limited to during this
period of reduced processing is less than US$5 million over an
estimated 15-week period. This cash outflow includes accumulating
ore stockpile with self-mining activities.
Constructive discussions have been held with our
workforce, communities and suppliers to address the potential
implications and broader social impact of these temporary
measures.
Initial quotes for the trunnion fabrication and
installation have been obtained with an estimated fabrication cost
of US$0.5 million and a period of 16-weeks to installation.
Management is assessing several alternatives to shorten the
estimated downtime of the primary ball mill.
During this reduced processing period, Guanacevi
production is estimated to decrease by 0.9 million to 1.1 million
silver ounces and by 2,000 to 3,000 gold ounces compared to its
original operating plan. Annual consolidated silver production for
2024 is expected to range from 4.4 to 4.6 million ounces, and gold
production is expected to be between 36,000 ounces and 38,000
ounces. Silver equivalent production for 2024 is now forecast to
total between 7.3 million and 7.6 million ounces. We achieved 4.4
million silver equivalent ounces in the first half of the year.
Due to the reduced operating capacity for 15
weeks, operating costs and all in sustaining cost metrics will be
higher than originally guided for 2024. Due to the number of
variables, estimates and remaining uncertainties, management is
withdrawing its cost guidance at this time.
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.
Contact InformationAllison Pettit, Director
Investor Relations Tel: (877) 685 - 9775Email:
apettit@edrsilver.com Website: www.edrsilver.com
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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 the suspension
of processing at Guanacevi, timing for completion of repairs at the
Guanacevi mill, the availability and assessment of alternative
processing methods, the impact on Q3 production and annual
production and cost guidance, and Endeavour’s anticipated
performance in 2024 including changes in mining operations and
forecasts of production levels, anticipated production costs and
all-in sustaining costs. 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 to the ability
to complete repairs at the Guanacevi mill in a timely manner, the
availability of alternative processing methods, changes in
production and costs guidance; and satisfaction of conditions
precedent to drawdown under the Debt Facility; 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 ability to complete repairs at the Guanacevi mill
in a timely manner, the availability of alternative processing
methods, 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, 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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