Endeavour Silver Corp.
(“Endeavour” or the
“Company”) (NYSE: EXK; TSX: EDR)
(“Endeavour” or the “Company”) is pleased to report full year 2022
production of 5,963,445 silver ounces (oz) and 37,548 gold oz, for
silver equivalent1 (“AgEq”) production of 9.0 million oz. Fourth
quarter production was 1,830,835 silver oz and 10,370 gold oz, for
silver equivalent production of 2.7 million oz.
The Company’s 2022 full year production exceeded
the upper range of its guidance of between 7.6 million oz and 8.0
million oz AgEq (revised upwards in August) due to continuing
strong performance at Guanacevi. Annual silver and gold production
exceeded the upper range of guidance by 17% and 4%
respectively.
“We are very pleased to have exceeded the top
end of the 2022 production guidance, with full year silver
equivalent production improving by 9% year over year and fourth
quarter silver equivalent production up 21% over the prior year
period. Fourth quarter throughput and grades at Guanaceví exceeded
plan, contributing to the significant out-performance of the
Guanaceví operations during 2022,” stated Dan Dickson, Chief
Executive Officer. “I am extremely proud of the operations group
collective desire to deliver safe production on a daily basis. The
results over the past 2 years is a reflection of a dynamic team
that is engaged and committed. Again, I am very proud of our
team.”
Q4 Highlights
-
Exceeded Production Guidance: Consolidated
production remained strong as silver and gold production at each
mine met or exceeded revised 2022 guidance and exceeded plan.
-
Guanaceví Continued to Outperform: Silver and gold
grades continued to deliver well above plan. Additionally,
throughput exceeded plan as plant modifications and refurbishment
completed in 2022 increased plant capacity to enable throughput to
average 1,297 tpd during Q4, 2022.
-
Bolañitos Performance Remained Steady: Increased
silver production from higher silver grades and increased
throughput were offset by the impact of lower than expected gold
production due to lower gold grades.
- Sold
Majority of Withheld Metal Inventory: Management took
advantage of the rebound in silver prices during Q4, 2022 by
reducing held inventory to 525,485 oz silver and 1,512 oz gold of
bullion inventory and 4,766 oz silver and 195 oz gold in
concentrate inventory at quarter end. Sold 2,816,881 oz silver and
11,843 oz gold during the quarter.
-
Construction Preparation Advances at the Terronera
Project: Progress on predevelopment activities include
onsite delivery of mobile mining equipment, procurement of major
equipment purchases, and assembly of initial project infrastructure
such as the temporary mine maintenance shop and a permanent camp
facility. Earthworks included site clearing, road upgrades and
underground mine access development, near portal #2.
-
Financial Due Diligence Continues on Financing the
Terronera Project: 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.
-
Published Initial Mineral Resource Estimate for the
Pitarrilla Project: One of the world’s largest undeveloped
silver projects, Pitarrilla will form the cornerstone of the
Company’s growth profile, together with Terronera and Parral. The
Indicated Mineral Resources totals 158.6 million tonnes containing
491.6 million oz Ag grading 96.4 gpt, 1.1 billion pounds (lbs) of
lead (Pb) grading 0.31%, and 2.6 billion pounds of zinc (Zn)
grading 0.74%. The inferred Mineral Resource 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% (see
News Release dated December 8, 2022).
Q4 2022 Mine Operations
Consolidated silver production increased 27% to
1,830,835 ounces in Q4 2022 compared to Q4 2021, primarily driven
by increased silver production at the Guanaceví mine. The high
grades at El Curso have led to improved production, allowing for
production targets to be exceeded. Local, third-party mill feed
continued to supplement mine production, amounting to 16% of
quarterly processed tonnes and contributing to higher processed
grades. Guanaceví throughput was 22% higher than Q3, 2022 and 11%
higher than plan as modifications to the plant increased
capacity.
Consolidated gold production increased by 10% to
10,370 ounces primarily due higher gold grades mined at the
Guanaceví mine. The increased gold production from Guanaceví more
than offset the reduced gold produced from the Bolañitos mine.
Guanaceví Q4 2022 throughput was 10% higher than
Q4 2021 with silver grades 23% higher and gold grades 19% higher
resulting in increased silver and gold production of 29% and 27%
respectively. The change in grades were due to accessing
higher-grade areas of the mine.
Bolañitos Q4 2022 throughput was consistent with
Q4 2021 with silver grades 4% higher and gold grades 6% lower.
Silver production increased by 7% while gold production decreased
by 1% at the Bolañitos mine. An increase in gold recoveries
partially offset the reduction in gold grades. The change in grades
were due to typical variations in the mineralized body.
Production Highlights for the Three and Twelve Months
Ended December 31, 2022
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
2022 |
2021 |
% Change |
|
2022 |
2021 |
% Change |
224,289 |
213,492 |
5% |
|
Throughput (tonnes) |
834,542 |
887,424 |
(6%) |
|
1,830,835 |
1,443,564 |
27% |
|
Silver ounces produced |
5,963,445 |
4,870,787 |
22% |
|
10,370 |
9,446 |
10% |
|
Gold ounces produced |
37,548 |
42,262 |
(11%) |
|
1,816,813 |
1,432,578 |
27% |
|
Payable silver ounces produced |
5,912,509 |
4,826,681 |
22% |
|
10,196 |
9,261 |
10% |
|
Payable gold ounces produced |
36,901 |
41,438 |
(11%) |
|
2,660,435 |
2,199,244 |
21% |
|
Silver equivalent ounces produced |
8,967,285 |
8,251,747 |
9% |
|
2,816,882 |
1,413,699 |
99% |
|
Silver ounces sold |
6,464,869 |
3,856,883 |
68% |
|
11,843 |
8,715 |
36% |
|
Gold ounces sold |
38,868 |
39,113 |
(1%) |
|
Mine-by-mine production in the fourth quarter and the year ended
December 31, 2022 was:
Q4 2022 Production by Mine
Production |
Tonnes |
Tonnes |
Grade |
Grade |
Recovery |
Recovery |
Silver |
Gold |
by mine |
Processed |
per day |
Ag gpt* |
Au gpt* |
Ag % |
Au % |
Oz |
Oz |
Guanaceví |
119,305 |
1,297 |
512 |
1.44 |
85.6% |
89.4% |
1,680,363 |
4,936 |
Bolañitos |
104,984 |
1,141 |
50 |
1.72 |
89.2% |
93.6% |
150,472 |
5,434 |
Consolidated |
224,289 |
2,438 |
296 |
1.57 |
85.8% |
91.5% |
1,830,835 |
10,370 |
*gpt = grams per tonne
2022 Production by Mine
Production |
Tonnes |
Tonnes |
Grade |
Grade |
Recovery |
Recovery |
Silver |
Gold |
by mine |
Processed |
per day |
Ag gpt* |
Au gpt* |
Ag % |
Au % |
Oz |
Oz |
Guanaceví |
412,303 |
1,130 |
465 |
1.33 |
86.6% |
89.2% |
5,340,553 |
15,735 |
Bolañitos |
422,239 |
1,157 |
52 |
1.77 |
88.2% |
90.8% |
622,892 |
21,813 |
Consolidated |
834,542 |
2,286 |
256 |
1.55 |
86.8% |
90.1% |
5,963,445 |
37,548 |
*gpt = grams per tonne
Qualified Person
Dale Mah, Vice President Corporate Development,
a qualified person under NI 43-101, has approved the scientific and
technical information related to operations matters contained in
this news release.
2022 Financial Results and Conference
Call
The Company’s annual 2022 financial results will
be released before markets open on Thursday, March 2, 2023 and a
telephone conference call will be held the same day at 9:00 a.m. PT
/ 12:00 p.m. ET. To participate in the conference call, please dial
the numbers below.
Date & Time: |
Thursday, March 2, 2023 at 9:00 a.m. PT / 12:00 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 9734#. 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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