Endeavour Silver Corp TSX:EDR announced drill results from its Guanajuato Mines project in Guanajuato State, Mexico. Highlights include
1.71 g/t gold and 244.1 g/t silver over 5.8 metres
1.35 g/t gold and 105.9 g/t silver over 2.1 metres
2.03 g/t gold and 205.1 g/t silver over 1.3 metres
0.93 g/t gold and 244 g/t silver over 2 metres
(including 8.65 g/t gold and 2,260 g/t silver over 0.2 metres)
0.68 g/t gold and 119 g/t silver over 5 metres
11.42 g/t gold and 323.1 g/t silver over 2 metres
190.3 g/t silver over 3.5 metres
6.83 g/t gold and 462.7 g/t silver over 2.6 metres
(including 21.1 g/t gold and 725 g/t silver over 0.6 metres)
0.7 g/t gold and 251 g/t silver over 1.8 metres
1.96 g/t gold and 72 g/t silver over 6.6 metres
1.73 g/t gold and 105 g/t silver over 2.2 metres
2.51 g/t gold and 116 g/t silver over 4.5 metres
The company has two producing mines in Mexico, Guanajuato and Guanacevi, in addition to its exploration projects.
VP of Corporate Communications Hugh Clarke tells ResourceClips.com, “We’re really pleased with these results. For the last few years in the Guanajuato district we’ve just had one hit after another where we discovered new vein systems, like we have today, or extensions of existing veins. The silver grades are pretty good, but we keep getting these enriched and enhanced gold values too.
Our finances are in great shape; our resources and reserves keep growing; our production keeps growing; and our cash costs keep dropping—Hugh Clarke
“Results like these will lead to a whole bunch of things,” he continues. “You’ll see an expansion of our reserves and resources. Every year we update them as of the end of the calendar year, and they’re published towards the end of February or early March. You’ll also see a continued expansion of production at our Guanajuato operation. In September, we increased the processing capacity at our plant from 600 tonnes to 1,600 tonnes a day. Right now we’re operating at about 1,000 tonnes a day, and we can get that up to 1,600 with these new discoveries and extensions that we’ve found over the last 18 months or so.
“Each year we focus on expanding one operation, then we go back and expand the other. Guanacevi has been a steady 1,000-tonne-a-day operation for 2011, and it’s performed really well. It had a major expansion in 2010. You’ll see some expansion and capital plans for both operations come out probably in the early new year. That’s when we announce our budgets, including exploration and capital budgets, for the coming year,” Clarke says.
“Obviously, with almost all our properties in Mexico, we like working that country. But we’re looking at other countries too—Canada, the US, Argentina, Peru. We acquired our first Chilean exploration properties a few months back, and we continue to look in these other jurisdictions for more properties, hopefully producers or well-developed exploration projects. We’re considering another acquisition in Mexico in the coming weeks. So there’s lots of opportunities for us.
“Our finances are in great shape; our resources and reserves keep growing; our production keeps growing; and our cash costs keep dropping,” he adds. “We’re hoping to get them in the $5 to $5.50 range. The lower costs result from a few factors. We get to use the gold as a credit against our silver costs. Also, as you continue to ramp up production, it introduces economies of scale. So there’s a lot of good news coming from our company.”
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by Greg Klein and Ted Niles