Endeavour Silver delivers solid FY18 silver, gold production

11th January 2019 By: Marleny Arnoldi - Deputy Editor Online

TSX- and NYSE-listed Endeavour Silver Corporation has reported consolidated silver production of 5.5-million ounces and gold production of 52 967 oz of gold for 2018.

The company reported silver-equivalent production of 9.5-million ounces at a 75:1 silver to gold ratio.

Endeavour owns and operates three silver mines in Mexico – Guanacevi, El Cubo and Bolañitos. The company is also commissioning a fourth mine, El Compas.

The company reported a 7% overall improvement in production in 2018, compared with 2017, owing to higher mine output, silver and gold grades and recoveries at El Cubo mine.

However, output was lower than guidance, owing to lower mine output and silver grades at Guanacevi, lower gold grades at Bolañitos and delays in achieving commercial production at El Compas.

For 2018, Endeavour sold 5.4-million ounces of silver and 51 318 oz of gold.

CEO Bradford Cooke said in a statement on Thursday that, all in all, 2018 had been a transition year for the company, where it saw improved performance from El Cubo, but declining performance at Bolañitos, where new mineralised zones were discovered and at Guanaceví, where two new orebodies are being developed.

Initial mine development at El Compas has been completed, but plant commissioning issues have delayed production. In October, Nick Shakesby was appointed operations VP to help make a positive difference in mining operations.

“We also, in May, appointed Manuel Echevarria new projects VP to oversee the engineering and development of our new mines. Additionally, the Terronera project advanced to an expanded reserve and resource estimate and a new and improved prefeasibility study was released in August.

“At Parral, drilling intersected multiple high-grade intersections in the San Patricio vein and significant silver mineralisation was mapped and sampled underground at the Veta Colorada mine,” Cooke explained.

The company expects the performance of the Guanaceví and Bolañitos mines to improve this year, while it plans to make the most of the declining reserves at the El Cubo mine and deliver the first year of commercial production at El Compas.

Further, upon receiving a positive board decision, it will start the development of a fifth mine at Terronera.