Endeavour Silver Corp. (“Endeavour” or the
“Company”) (TSX: EDR, NYSE: EXK)
announces that it has filed on SEDAR (www.sedar.com) a technical
report (as defined in National Instrument 43-101) for the Company’s
recently acquired Pitarrilla project in Durango state, Mexico. The
Technical Report dated November 21, 2022 and entitled “Mineral
Resource Estimate for the Pitarrilla Ag-Pb-Zn Project, Durango
State, Mexico” (the “2022 Pitarrilla Report”) provides an
independent estimate of the Mineral Resources identified at
Pitarrilla as of October 6, 2022. The 2022 Pitarrilla Report was
prepared on behalf of the Company by SGS Geological Services
Inc.(“SGS”), an international firm specializing in mining and
mineral estimation, engineering and evaluation services.
Dan Dickson, Chief Executive Officer, stated
“With a verified current resource of nearly 600 million ounces of
silver, the 2022 Pitarrilla Report validates the merits of
acquiring one of the world’s largest undeveloped silver deposits.
Through historic drilling, the Pitarrilla project has benefitted
from over 225,000 metres of drilling and was advanced to a
prefeasibility study of an underground operation and an open pit
feasibility study in 2009 and 2012, respectively. The comprehensive
work done to date, combined with the size and the scale of the
deposit, provide flexibility and versatility for various mining
scenarios. We will use the data collected to guide our exploration
path going forward, with the potential to add significant value to
the Company.”
The following information is derived from the
2022 Pitarrilla Report:
The total Indicated Mineral Resources (open pit
and underground) at Pitarrilla totals 158.6 million tonnes
containing 491.6 million ounces (oz) silver (Ag) grading 96.4 grams
per tonne (gpt), 1.1 million pounds (lbs) of lead (Pb) grading
0.31%, 2.6 million pounds of Zinc (Zn) grading 0.74% for a total of
693.9 million ounces of silver equivalent (AgEq) grading 136
gpt.
The Inferred Mineral Resource (open pit and
underground) totals 35.4 million tonnes containing 99.4 million oz
Ag grading of 87.2 gpt, 281 million lbs Pb grading 0.36%, 661
million lbs Zn grading 0.85% for a total of 151.2 million ounces
AgEq grading 132.7 gpt.
Silver equivalent grades are calculated using
this formula: Ag (gpt) + [Pb (%) X 2204.6 X Pb Price / Ag Price X
31.1] + [Zn (%) X 2204.6 X Zn Price / Ag Price X 31.1] with price
assumptions of Pb $1.00, Zn $1.30 and Ag $22.00.
Pitarrilla Mineral Resources Summary (effective
as of October 6, 2022):
|
|
Grade |
Contained Metal |
Cut-off Grade (AgEq g/t) |
Tonnes (Mt) |
Ag (gpt) |
Pb (%) |
Zn (%) |
AgEq (gpt) |
Ag (Moz) |
Pb (Mlb) |
Zn (Mlb) |
AgEq (Moz) |
In Pit (Oxide and Transition) |
Indicated |
50 |
133.9 |
87.1 |
0.19 |
0.48 |
112.3 |
375.1 |
547 |
1,409 |
483.2 |
Inferred |
50 |
25.6 |
76.4 |
0.14 |
0.48 |
100.2 |
63.0 |
80 |
272 |
82.7 |
Underground (Sulphide) |
Indicated |
150 |
24.8 |
146.1 |
1.01 |
2.14 |
264.4 |
116.5 |
551 |
1,172 |
210.7 |
Inferred |
150 |
9.8 |
115.5 |
0.93 |
1.80 |
217.5 |
36.4 |
202 |
389 |
68.6 |
Total In-pit and Underground (Oxide, Transition and
Sulphide) |
Indicated |
50 and 150 |
158.6 |
96.4 |
0.31 |
0.74 |
136.0 |
491.6 |
1,098 |
2,580 |
693.9 |
Inferred |
50 and 150 |
35.4 |
87.2 |
0.36 |
0.85 |
132.7 |
99.4 |
281 |
661 |
151.2 |
Notes:
(1) The classification of the
current Mineral Resource Estimate into Indicated and Inferred
Mineral Resources is consistent with current 2014 CIM Definition
Standards - For Mineral Resources and Mineral Reserves.
(2) All figures are rounded to
reflect the relative accuracy of the estimate and numbers may not
add due to rounding.
(3) All Mineral Resources are
presented undiluted and in situ, constrained by continuous 3D
wireframe models, and are considered to have reasonable prospects
for eventual economic extraction.
(4) Mineral Resources which are
not mineral reserves do not have demonstrated economic viability.
An Inferred Mineral Resource has a lower level of confidence than
that applying to an Indicated Mineral Resource and must not be
converted to a Mineral Reserve. It is reasonably expected that the
majority of Inferred Mineral Resources could be upgraded to
Indicated Mineral Resources with continued exploration.
(5) It is envisioned that parts
of the Pitarrilla deposit (oxide and transition mineralization) may
be mined using open pit mining methods. In-pit mineral resources
are reported at a cut-off grade of 50 g/t AgEq within a conceptual
pit shell, which has been limited to the base of the transition
mineralization.
(6) The results from the pit
optimization are used solely for the purpose of testing the
“reasonable prospects for economic extraction” by an open pit and
do not represent an attempt to estimate mineral reserves. There are
no mineral reserves on the Property. The results are used as a
guide to assist in the preparation of a Mineral Resource statement
and to select an appropriate resource reporting cut-off grade.
(7) It is envisioned that parts
of the Pitarrilla deposit (sulphide mineralization) may be mined
using underground mining methods. Underground (below-pit) Mineral
Resources are estimated from the bottom of the pit (base of
transition mineralization) and are reported at a base case cut-off
grade of 150 g/t AgEq. The underground Mineral Resource grade
blocks were quantified above the base case cut-off grade, below the
constraining pit shell and within the constraining mineralized
wireframes. At this base case cut-off grade the deposit shows good
deposit continuity with limited orphaned blocks. Any orphaned
blocks are connected within the models by lower grade blocks and
are included in the Mineral Resource estimate.
(8) Based on the size, shape,
location and orientation of the Pitarrilla deposit, it is
envisioned that the deposit may be mined using low cost underground
bulk mining methods (i.e. longhole mining).
(9) High grade capping of Ag,
Pb and Zn was done on 1.50 metre composite data.
(10) Bulk density values were
determined based on physical test work from each deposit model and
waste model.
(11) AgEq Cut-off grades
consider metal prices of $22.00/oz Ag, $1.00/lb Pb and $1.30/lb Zn
and considers variable metal recoveries for Ag, Pb and Zn: oxide
and transition mineralization - 75% for silver, 70% for Pb and 65%
for Zn; sulphide mineralization - 86% for silver, 91% for Pb and
85% for Zn.
(12) The pit optimization and
in-pit base case cut-off grade of 50 g/t AgEq considers a mining
cost of US$2.50/t rock and processing, treatment and refining,
transportation and G&A cost of US$22.40/t mineralized material,
an overall pit slope of 42° for oxide and 48° for transition and
metal recoveries. The below-pit base case cut-off grade of 150 g/t
AgEq considers a mining cost of US$46.50/t rock and processing,
treatment and refining, transportation and G&A cost of
US$30.90/t mineralized material.
(13) The estimate of Mineral
Resources may be materially affected by environmental, permitting,
legal, title, taxation, socio-political, marketing, or other
relevant issues.
The database used for the current mineral
resource estimate comprises data for 804 surface reverse
circulation and diamond drill holes completed in the deposit area,
which total 254,386 metres. The database totals 134,441 assay
intervals for 188,816 metres.
The mineral resource estimate is based on 19
three-dimensional (“3D”) resource models representing oxide,
transition and sulphide mineralization, as well as 9 lithological
3D solids and a digital elevation surface model. The main
Pitarrilla deposit generally strikes 330° to 335° and dips/plunges
steeply east-northeast (-60° to -65°). The oxide mineralization in
the Cordon Colorado and Javelina Creek Zones extend for 700 to 900
metres southwest and northeast of the main Breccia Ridge Zone.
Silver, lead and zinc were estimated for each
mineralization domain in the Pitarrilla deposit. Blocks within each
mineralized domain were interpolated using 1.5 metres capped
composites assigned to that domain. To generate grade within the
blocks, the inverse distance squared (ID2) interpolation method was
used for all domains.
Project Description
Pitarrilla is a large undeveloped silver, lead,
and zinc project located 160 kilometres north of Durango City, in
northern Mexico. The project is within the Municipality of Santa
María del Oro and Indé on the eastern flank of the Sierra Madre
Occidental mountain range. The property comprises 4,950 hectares
across five concessions and has significant infrastructure in place
with direct access to utilities.
As a grassroots discovery in 2002 by SSR Mining
Inc. (NASDAQ/TSX: SSRM; ASX: SSR) ("SSR Mining"), the project was
held and owned by its subsidiary, SSR Durango, S.A. de C.V. From
2003 to 2012, SSR Mining conducted extensive drill campaigns on the
project. Concurrently, SSR Mining published two technical reports,
consisting of a prefeasibility study in 2009 focused on a
high-grade underground mine scenario and a feasibility study in
2012 which evaluated an open-pit concept. In September of 2020, SSR
Mining merged with Alacer Gold, whereby the resulting entity became
a gold focused company.
Endeavour completed the purchase of the
Pitarrilla Project from SSR Mining in July 2022, for total
consideration of US$70 million and a 1.25% net smelter returns
royalty. The acquisition is an excellent fit for Endeavour’s
regional team in Mexico and enhances the Company’s growth pipeline
together with the Terronera and Parral projects. Endeavour agreed
to incur a minimum of US$10 million in exploration expenditures on
Pitarrilla over the next five years. Endeavour plans to evaluate
various production alternatives, including an underground option,
which would strengthen the long-term production profile of the
Company and provide significant value to shareholders.
National Instrument 43-101
Disclosure
The 2022 Pitarrilla NI 43-101 technical report
is authored by Allan Armitage, Ph.D., P. Geo., (“Armitage”) of SGS
Geological Services, and the Mineral Resource Estimate presented in
the report was estimated by Armitage. Armitage is an independent
Qualified Person as defined by NI 43-101 and is responsible for the
Mineral Resource Estimate and all sections of the technical report.
Armitage has reviewed and approved the contents of this news
release.
The Technical Report is available for download
under the Company's profile on SEDAR (www.sedar.com) and on the
Company's website (www.edrsilver.com). There are no material
differences in the Technical Report from the information disclosed
in the News Release and the date of filing.
About Endeavour SilverEndeavour
Silver 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. The Company’s
philosophy of corporate social integrity creates value for all
stakeholders.
SOURCE Endeavour Silver Corp.
Contact Information Galina Meleger, Vice
President of Investor RelationsTel: (604) 685-9775Email:
gmeleger@edrsilver.com Website: www.edrsilver.com
Follow Endeavour Silver 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 herein include but are not limited to
statements regarding Mineral Resource and Reserve Estimates, future
plans and objectives of the Company, proposed operations of the
Company at Pitarrilla including mine development and future events
and conditions that are not historical facts. 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 but are not limited to 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; the reliability of Mineral Resource and Reserve
Estimates 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 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 operation of the Company’s mining
operations, no material adverse change in the market price of
commodities, the reliability of Mineral Resource and Reserve
Estimates, 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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