Endeavour Silver Provides Construction Update on the Terronera Project
20 April 2023 - 8:50PM
Endeavour Silver Corp.
(“Endeavour” or the
“Company”) (NYSE: EXK; TSX: EDR) is
pleased to provide a construction update for its Terronera Project
in Jalisco state, Mexico, along with the launch of a photo gallery
that will be updated as activity on site progresses. The photo
gallery presentation can be found
here or on the
company website at
Terronera Project Progress
Photos. All references to dollars ($) in this news release
are to United States dollars.
“Having secured a project financing commitment
from Societe Generale and ING Bank N.V, we are rapidly advancing
detailed engineering, procurement and construction of the project
with initial production scheduled for Q4, 2024”, commented Dan
Dickson, CEO. “The project is fully permitted to advance major
construction and mine development activities and will provide over
750 jobs during the development phase in addition to significant
opportunities for indirect and direct business support in the
region. With several major contracts now in place, we look forward
to regularly updating investors on our achievements at Terronera as
construction advances.”
Don Gray, Chief Operating Officer, stated:
“Given Terronera’s importance in achieving our goal of advancing
industry-leading silver-focused growth, we actively undergo
in-depth risk analysis with our technical teams to ensure the
project stays on time and on budget. As part of your focus to
minimize risk over the next three months, we will initiate concrete
work for the mill foundations before the rainy season’s onset, as
major mill equipment will start arriving by mid-year.”
Construction and Development
Highlights
Early works have been underway since the first
quarter of 2022, with more than $58 million of the budget spent to
date. As at March 31, 2023, site works and activities to date have
been, but are not limited to:
- Personnel – Onsite personnel has increased to 160 employees and
contractors. As site activities ramp up, the Company continues to
further advance its Health and Safety practices and protocols by
harmonizing the “Te Cuido” safety culture across the Company. The
Company has expanded its technical and finance teams at the project
while ramping up engineering and construction activities.
- Detail engineering – The contract has been awarded to M3
Engineering & Technology and is expected to be completed in Q3
2023.
- Mobile mining equipment – The Company has received 30 mobile
mining units including development jumbos, bolters, scoops, dump
trucks, scissor lifts and other support equipment such as pallets
and cranes, which the Company plans to use to self-perform mine
development.
- Plant equipment purchases – Major equipment has been ordered
with the majority of the items scheduled to arrive in Q2 2023,
including the full grinding circuit. The remaining items, including
the flash floatation, rougher/ cleaner float cells and filter
press, will arrive in Q4, 2023. The ball mill, purchased earlier in
the project, is awaiting transport to site from the Company's
warehouse facilities in Puerto Vallarta, Mexico.
- Access road construction – Significant road upgrade work
totalling over 7 km, primarily involving slope stabilization and
drainage, has been completed for access to the mill site and mine
portals. Completion of this work is planned for Q3 2023 prior to
the significant increase in equipment and materials deliveries as
major construction begins on the mill.
- Permanent camp construction – Installation is underway for
facilities that will accommodate 550 personnel. It is expected that
the permanent camp will be operational in H1 2023. Installed to
date: training room, clinic, dining room/ kitchen/ gym, laundry and
2 out of 5 living modules.
- Plant site preparation – Ongoing work includes excavation and
site levelling prior to mobilizing for concrete work. Work is well
advanced and on track to allow other major construction activities
to start before the rainy season.
- Underground Development – Portal #2 Site preparation has been
completed and underground development is advancing. In addition,
mine support modules have been mobilized at site as the project
moves forward with ramping up development. Portal #1 site
preparation will commence in Q2, 2023 with underground advancement
expected in Q3, 2023.
- Initial project infrastructure – The temporary mine maintenance
shop is operational and field offices have been installed at the
mill site for improved construction oversight.
Project Timeline and Next
Steps
The Company is focused on advancing its
Terronera Project for achieving initial production in Q4 2024.
Upcoming major milestones include:
- Completing detail engineering and expediting mill and
infrastructure procurement;
- Finalizing earthworks and beginning concrete work prior to
starting mechanical, piping and electrical work;
- Completing permanent camp and initiating site infrastructure
construction including warehouse, assay lab, and mill, mine and
admin offices;
- Commencing construction of engineering tailing storage facility
and liquefied natural gas (LNG) vaporization plant along with
gas-fired gensets; and
- Advancing mine development and underground infrastructure
installations.
Community Activities
In tandem with project development, the Company
continues to maintain an active community relations program to
foster the social and economic well-being of local communities.
There are three local communities in the area: San Sebastian del
Oeste, Santiago de los Pinos and La Estancia. Recent social
investment consultations with the local communities have resulted
in several projects being proposed. These projects included
restoring public spaces in Santiago de los Pinos, the awarding of
scholarships, a tablet donation program that was implemented during
the pandemic to allow students to keep up with online learning, and
donation of a garbage collection vehicle to the municipality of San
Sebastian del Oeste.
Over the course of this year, the Company is
committing to provide additional community support in the following
ways:
- Implementing a scholarship program as we have done at our other
operating projects, which supports families with continued
education;
- Developing a program for local and regional suppliers in order
to generate employment opportunities and improve economic activity
in the region;
- Training for tourism initiatives that can promote economic
activity in the region;
- Through the operation of the Terronera Community House,
offering activities that promote local participation, which could
be educational, sports or culture related, with a focus of
inclusion and diversity;
- In partnership with the Health Centre of Santiago de los Pinos,
supporting health campaigns for the community members; and
- Improving transportation routes for our operations and the
community to improve the safety of regional roads.
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 advancing construction of the Terronera Project and
exploring its portfolio of exploration 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.
SOURCE Endeavour Silver Corp.
Contact InformationGalina
Meleger, VP, Investor RelationsEmail:
gmeleger@edrsilver.comWebsite: www.edrsilver.comFollow 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. Such forward-looking statements and information herein
include but are not limited to statements regarding the development
and financing of the Terronera Project, including anticipated
Project progress and timeline 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 to the
completion of Societe Generale’s and ING Bank N.V.’s due diligence
requirements in connection with the Terronera Project financing;
the final terms of the financing and the Company’s ability to
successfully drawdown funds thereunder; the ongoing effects of
inflation and supply chain issues on Project 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; 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 ability of the Company to successfully secure a
debt facility, the continued operation of the Company’s mining
operations, no material adverse change in the market price of
commodities, the Project’s forecasted economics as of 2023, 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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