Photo by: Bloomberg
TORONTO (miningweekly.com) – TSX- and NYSE-listed Endeavour Silver on Thursday reported that it had agreed to buy the La Bufa exploration property, next to its existing exploration properties in the Guadalupe y Calvo gold/silver district, in Chihuahua, Mexico, from explorer Lincoln Mining.
To consummate the deal, Endeavour would issue 90 000 common shares before September 19, less that number of shares equal to $19 000 and 5% interest advanced by Endeavour on July 29.
The property would also be subject to a 2% net smelter return royalty on mineral output payable to a subsidiary of explorer Almaden Minerals.
The agreement was subject to a due diligence period ending September 12 and the common shares of Endeavour would be under a four-month hold period from the date of issue.
The La Bufa property covers 2 311 ha over a length of 9 km along the north-west-trending El Rosario vein system, which produced about two-million ounces of gold and 28-million ounces of silver according to Mexican government records. La Bufa surrounds the El Rosario historic mine owned by Endeavour and is, in turn, surrounded by additional Endeavour properties of 54 872 ha.
“The acquisition of the La Bufa property completes Endeavour's consolidation of historic mining properties within the prospective Guadalupe y Calvo gold/silver district. We can now turn our focus in 2015 to more advanced exploration of this prospective, high-grade gold/silver vein district to expand the resources,” Endeavour VP of corporate development Terry Chandler said.
Lincoln had invested more than $5.3-million to acquire and explore the property since 2008.
Previous exploration work by Lincoln and others at La Bufa over the past ten years included 37 drill holes comprising 10 569 m of core. Drilling highlights included 4.1 g/t gold and 281 g/t silver over a 2.5-m-core length, and 10.7 g/t gold and 516 g/t silver over a 1.5-m-core length.
These drill intersections were within 400 m of Endeavour's El Rosario property, where Endeavour reported indicated resources of 1.86-million tonnes, grading 119 g/t silver and 2.38 g/t gold for 7.15-million ounces of silver and 142 500 oz of gold, or 15.7-million ounces of silver equivalent. Inferred resources stood at 154 000 t, grading 94 g/t silver and 2.14 g/t gold for 464 600 oz of silver and 10 600 oz gold.
Endeavour’s TSX-listed stock fell 4.7% on Thursday, or C$0.23 a share, to C$5.93 apiece, having gained 51.53% since the start of the year.