Precious metals miner Endeavour Silver has completed the acquisition of the Pitarrilla project from SSR Mining and will immediately work on verifying historical data to prepare a current mineral resource estimate, CEO Dan Dickson reported on Wednesday.
A $1.8-million budget is set aside for drilling and exploration activities to verify the historical data and define a current resource in 2022.
Other immediate plans for the project – said to be one of the biggest undeveloped deposits in the world – include drilling high-priority exploration targets and defining regional targets.
“The transition process has already begun, and we look forward to building on the successes achieved by SSR Mining,” said Dickson.
Endeavour purchased Pitarrilla by acquiring all the issued and outstanding shares of SSR Durango from SSR Mining and Silver Standard Ventures for total consideration of about $70-million, comprising $35-million in Endeavour common shares, $35-million in cash, and a 1.25% net smelter returns royalty on Pitarrilla.
SSR Mining owns 4.52% of the issued and outstanding common shares of Endeavour.
Pitarrilla has an underground measured and indicated resource of 496.5-million tonnes, containing 28.8-million ounces of silver. A 2012 feasibility study estimated that the project would have a mine life of 32 years, producing an average 15-million ounces of silver a year during the first 18 years of production.