Endeavour Silver Produces 1,458,448 oz Silver and 9,194 oz Gold for 2.2 Million oz Silver Equivalent in Q3 2022
11 October 2022 - 9:50PM
Endeavour Silver Corp.
(“Endeavour” or the
“Company”) (NYSE: EXK; TSX: EDR)
(“Endeavour” or the “Company”) is pleased to report third quarter
2022 production of 1,458,448 silver ounces (oz) and 9,194 gold oz,
for silver equivalent1 (“AgEq”) production of 2.2 million oz,
totalling 6.3 million AgEq oz for the 9 months ended September 30,
2022. Annual production is trending towards the upper end of the
guidance range for the year, forecasted at 7.6 to 8.0 million AgEq
oz.
“The ore grades processed at Guanacevi continue
to exceed plan, which has positioned the Company to meet the upper
end of our improved production guidance. The outperformance is well
timed, as we continue to face financial pressure from lower metal
prices and inflationary effects on inputs,” stated Dan Dickson,
Chief Executive Officer. “We announced impressive drill results
from our exploration program in the quarter at Guanacevi, where we
are extending and defining the vertical extents of the Porvenir Dos
orebody, which is near historic working areas.”
Q3 2022 Highlights
- Steady
Focus on Safety Improvement: Lost time injury frequency
and severity rates continue to trend down as employees keep focus
on our proactive safety orientated culture through the “Te Cuido”
safety philosophy.
-
Guanacevi Continued to Outperform: Silver and gold
production on plan, driven by higher grades.
-
Bolañitos Performance Remained Steady: Strong
silver production, higher silver grades and increased throughput
were offset by the impact of lower than expected gold production
and gold grades.
- Metal
Sales and Inventories: Sold 1,327,325 oz silver and 8,852
oz gold during the quarter. Held 1,527,548 oz silver and 3,210 oz
gold of bullion inventory and 2,769 oz silver and 144 oz gold in
concentrate inventory at quarter end.
-
Guanacevi Delivers Positive Drill Results: Further
exploration results from near mine drilling in easily accessible
areas are intersecting high-grade silver-gold mineralization on the
El Curso property (see News Release dated September 26, 2022).
-
Positive Exploration Results at Parral: Drilling
is intersecting some of the highest grades to date, with
significant widths along the Veta Colorada structure (see News
Release dated September 8, 2022).
-
Advancing the Terronera Project: The early works
program initiated last year continued, including detail
engineering, critical contracts and the procurement of long lead
items. Extensive due diligence work continued for project
financing. The Company intends to make a formal construction
decision subject to completion of a financing package and receipt
of additional amended permits in the coming months.
-
Completed the Acquisition of the Pitarrilla
Project: The world’s largest undeveloped silver project
that will form the cornerstone of the Company’s growth profile,
together with Terronera and Parral.
-
Divested the El Compas Property to Grupo ROSGO:
Completed the sale of the property and the plant for US$5 million
over five years (see News Release dated September 12, 2022).
Q3 2022 Mine Operations
Consolidated silver production increased 12% to
1,458,448 ounces in Q3 2022 compared to Q3 2021, primarily driven
by increased silver production at the Guanacevi mine. The high
grades at the El Curso orebody have led to improved production,
allowing for production targets to be met during a period of
decreased plant throughput. Local third-party ores continued to
supplement mine production, amounting to 12% of quarterly processed
tonnes and contributing to higher ore grades. Guanacevi throughput
was 4% higher than the prior quarter but lower than plan, due to
heavy rainfall in a short, concentrated period during September.
Management continues to review alternatives to further increase
throughput above the current 1,200 tpd capacity with changes in
grinding size and leach time.
Gold production decreased by 13% to 9,194 ounces
primarily due lower gold grades mined at the Bolañitos mine. The
increased gold production from Guanacevi offset the gold produced
from the El Compas mine, which suspended operations in Q3,
2021.
Bolañitos Q3 2022 throughput was 3% lower Q3
2021 with silver grades 5% higher and gold grades 5% lower. Silver
production increased by 2% while gold production decreased by 11%
at the Bolañitos mine. The change in grades were due to typical
variations in the ore body.
Production Highlights for the Three and Nine Months
Ended September 30, 2022
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
2022 |
2021 |
% Change |
|
2022 |
2021 |
% Change |
202,745 |
222,461 |
(9%) |
Throughput (tonnes) |
610,253 |
673,932 |
(9%) |
1,458,448 |
1,305,399 |
12% |
Silver ounces produced |
4,132,610 |
3,427,223 |
21% |
9,194 |
10,541 |
(13%) |
Gold ounces produced |
27,178 |
32,816 |
(17%) |
1,445,880 |
1,295,126 |
12% |
Payable silver ounces produced |
4,095,696 |
3,394,103 |
21% |
9,039 |
10,328 |
(12%) |
Payable gold ounces produced |
26,705 |
32,177 |
(17%) |
2,193,968 |
2,148,679 |
2% |
Silver equivalent ounces produced |
6,306,850 |
6,052,503 |
4% |
1,327,325 |
699,539 |
90% |
Silver ounces sold |
3,647,987 |
2,443,184 |
49% |
8,852 |
9,925 |
(11%) |
Gold ounces sold |
27,025 |
30,398 |
(11%) |
Mine-by-mine production in the third quarter and the nine months
ended September 30 was:
Production Tables for Q3 2022 by Mine
(1)
Production |
Tonnes |
Tonnes |
Grade |
Grade |
Recovery |
Recovery |
Silver |
Gold |
by mine |
Processed |
per day |
Ag gpt* |
Au gpt* |
Ag % |
Au % |
Oz |
Oz |
Guanaceví |
97,728 |
1,062 |
468 |
1.29 |
90.6% |
89.9% |
1,332,190 |
3,642 |
Bolañitos |
105,017 |
1,141 |
43 |
1.88 |
87.0% |
87.5% |
126,258 |
5,552 |
Consolidated |
202,745 |
2,204 |
248 |
1.60 |
90.3% |
88.4% |
1,458,448 |
9,194 |
*gpt = grams per tonne
Production Tables for the Nine Months Ended September
30, 2022 by Mine (1)
Production |
Tonnes |
Tonnes |
Grade |
Grade |
Recovery |
Recovery |
Silver |
Gold |
by mine |
Processed |
per day |
Ag gpt* |
Au gpt* |
Ag % |
Au % |
Oz |
Oz |
Guanaceví |
292,998 |
1,073 |
446 |
1.28 |
87.1% |
89.6% |
3,660,190 |
10,799 |
Bolañitos |
317,255 |
1,162 |
53 |
1.79 |
87.4% |
89.7% |
472,420 |
16,379 |
Consolidated |
610,253 |
2,235 |
242 |
1.55 |
87.1% |
89.6% |
4,132,610 |
27,178 |
*gpt = grams per tonne
Q3 2022 Financial Results and Conference
Call
The Company’s Q3 2022 financial results will be
released before markets open on Tuesday, November 8, 2022 and a
telephone conference call will be held the same day at 10:00 a.m.
PT / 1:00 p.m. ET. To participate in the conference call, please
dial the numbers below.
Date & Time: |
Tuesday,
November 8, 2022 at 10:00 a.m. PT / 1:00 p.m. ET |
Telephone: |
Toll-free in Canada and the US +1-800-319-4610 |
|
Local or International +1-604-638-5340 |
|
Please allow up to 10 minutes to be connected to the conference
call. |
|
|
Replay: |
A replay of the conference call will be available by dialing
(toll-free) +1-800-319-6413 in Canada and the US (toll-free) or
+1-604-638-9010 outside of Canada and the US. The replay passcode
is 9479#. The replay will also be available on the Company’s
website at www.edrsilver.com. |
|
|
About Endeavour Silver –
Endeavour is a mid-tier precious metals mining company that
operates two high-grade underground silver-gold mines in Mexico.
Endeavour is currently advancing the Terronera mine project towards
a development decision, pending financing and final permits and
exploring its portfolio of exploration and development projects in
Mexico, Chile and the United States to facilitate its goal to
become a premier senior silver producer. Our philosophy of
corporate social integrity creates value for all stakeholders.
Contact Information:Galina Meleger, VP,
Investor RelationsEmail: gmeleger@edrsilver.comWebsite:
www.edrsilver.com
Follow Endeavour on Facebook, Twitter,
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 (together, "forward-looking statements"). Such
forward-looking statements and information herein include but are
not limited to statements regarding future prospects of the
Company’s mines and projects. 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 to be materially different from
those expressed or implied by such forward-looking statements. Such
factors include but are not limited to the ultimate impact of the
COVID 19 pandemic on operations and results, changes in production
and costs guidance, 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 and 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 Securities
and Exchange Commission and available at www.sec.gov, and Canadian
securities regulatory authorities available at www.sedar.com.
Forward-looking statements are based on
assumptions management believes to be reasonable, including but not
limited to: the continued exploration and 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.
1 Silver equivalent calculated using an 80:1 silver:gold
ratio.
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