Endeavour Silver updates mineral reserve and mineral resource estimates for its new Parral Properties, Mexico
Friday, Feb 09, 2018
Endeavour Silver Corp. reports updated NI 43-101 Mineral Reserve and Resource Estimates for its three operating mines and two development projects and an initial Mineral Resource Estimate for its new Parral Properties, all in Mexico.  

2017 Mineral Reserve and Resource Estimate Highlights (Compared to December 31, 2016)

  • Silver Proven and Probable Mineral Reserves increased 217% to 33.5 million ounces (oz)
  • Gold Proven and Probable Mineral Reserves increased 246% to 315,300 oz
  • Silver equivalent Proven and Probable Mineral Reserves increased 228% to 57.1 million oz (75:1 silver:gold ratio)
  • Silver Measured and Indicated Mineral Resources decreased 46% to 36.7 million oz
  • Gold Measured and Indicated Mineral Resources decreased 35% to 362,900 oz
  • Silver equivalent Measured and Indicated Mineral Resources decreased 42% to 63.9 million oz
  • Silver Inferred Mineral Resources increased 44% to 53.1 million oz
  • Gold Inferred Mineral Resources decreased 12% to 300,800 oz
  • Silver equivalent Inferred Mineral Resources increased 22% to 75.7 million oz
Bradford Cooke, CEO of Endeavour, stated, “We enjoyed solid development and exploration success in 2017, more than replacing our Mineral Reserves and growing our silver Mineral Resources.  We also published a Pre-Feasibility Study (“PFS”) for Terronera, a Preliminary Economic Assessment (“PEA”) for El Compas, and an initial silver Mineral Resource Estimate for the new Parral Properties. The substantial growth of our Mineral Reserves and Mineral Resources is a testament to our exploration and acquisition teams.  We now have a strong pipeline of exploration and development projects to drive our next phase of organic growth.

“Looking forward to 2018, we plan to invest US$11.1 million on exploration, the majority of which will target organic growth opportunities, including brownfields targets around our operating mines and development projects and greenfields targets such as Parral. This year, Parral will be our largest exploration expenditure, as we continue testing new silver vein targets and enhance our geological understanding of the historic Mineral Resource areas. At Terronera, we will test the southeast extension of mineralization in the high grade Terronera Vein and drill other vein targets. At El Compas, further testing of the Misie-Karla-Karla HW and Calicanto Veins and new zones will be key priorities.”

2017 Mineral Reserve and Resource Estimate Summaries

Proven and Probable silver and gold Mineral Reserves increased year over year by 217% and 246% respectively to 33.5 million ounces of silver and 315,000 ounces of gold. On a silver equivalent basis, Mineral Reserves totalled 57.1 million ounces (at a silver to gold ratio of 75:1). These significant increases in Mineral Reserves are mainly due to the reclassification of Mineral Resources into Mineral Reserves pursuant to the NI 43-101 Technical Report, Preliminary Feasibility Study for the Terronera Project, Jalisco State Mexico dated May 18, 2017. The PFS Report estimated 4.06 million tonnes of Probable Mineral Reserves grading 207 g/t silver and 1.95 g/t gold containing 27 million silver ounces and 255,000 gold ounces at Terronera. When the Terronera Mineral Reserves are excluded from the new estimate, silver and gold Mineral Reserves at the three mines decreased by 11% and 9% respectively.

Measured and Indicated silver and gold Mineral Resources declined by 46% and 35% respectively to 31.6 million ounces of silver and 312,600 ounces of gold.   The decrease in Measured and Indicated Mineral Resources was mainly the result of conversion into Mineral Reserves at the Terronera project and at the existing operations. When the conversion of Terronera Indicated Mineral Resources to Mineral Reserves are excluded from the Measured and Indicated Mineral Resource Estimate,  Measured and Indicated silver and gold Mineral Resources declined 20% and 14%, respectively at the three mines.

Inferred silver Mineral Resources increased by 44% due to the initial Mineral Resource Estimate for the new Parral Properties. At Parral, forty-one drill holes totalling 11,300 metres were completed, primarily to verify a part of the historic Mineral Resource in the Veta Colorada mine area and to test one of the targets within the Palmilla Mine area.  The initial estimate consists of an Indicated Mineral Resource of 216,000 silver ounces and an Inferred Mineral Resource of 19.2 million silver ounces and 18,100 gold ounces. A Technical Report prepared in accordance with NI 43-101 for the Parral Properties will be completed and filed on SEDAR in March 2018.

Last year, the Company completed an NI 43-101 Technical Report for a Preliminary Economic Assessment for the El Compas Project, Zacatecas State, Mexico dated May 11, 2017.  The Technical Report estimated an initial Mineral Resource of 495,000 silver ounces and 34,900 gold ounces in the Indicated category; and 465,000 silver ounces and 10,600 gold ounces in the Inferred category. The El Compas Mineral Resource is a shallow high grade epithermal vein system that is estimated to provide a robust after tax return on investment (IRR) of 42% (Endeavour News Release dated March 27, 2017). Due to the positive economics, low initial capital requirements, and management’s experience in having successfully developed similar mines in Mexico, a decision was made to proceed with the mine development in Q3, 2017. The Company expects to reach commercial production at El Compas in July 2018 (Endeavour News Release dated January 25, 2018).

Mineral Reserve and Resource Estimates at December 31, 2017(1-16)


Silver-Gold Proven and Probable Mineral Reserves
 TonnesAg g/tAu g/tAg Eq g/tAg ozAu ozAg Eq oz
Proven
Guanaceví82,0002240.49261591,0001,300688,500
Bolañitos154,000872.48273431,00012,3001,353,500
El Cubo171,0001841.803191,010,0009,9001,752,500
Total Proven407,0001551.802902,032,00023,5003,794,500
Probable
Guanaceví224,0002520.582961,812,0004,2002,127,000
Bolañitos258,000861.87226714,00015,5001,876,500
El Cubo317,0001861.683121,894,00017,1003,176,500
Terronera4,061,0002071.9535327,027,000255,00046,152,000
Total Probable4,860,0002011.8734131,447,000291,80053,332,000
Total P&P5,267,0001981.8633733,479,400315,30057,126,500
    
Silver-Gold Measured and Indicated Mineral Resources
 TonnesAg g/tAu g/tAg Eq g/tAg ozAu ozAg Eq oz
Measured
Guanaceví17,0002990.38328167,000200182,000
Bolañitos31,0001182.28289118,0002,300290,500
El Cubo207,0001842.904021,225,00019,3002,672,500
Total Measured255,0001842.663841,510,00021,8003,145,000
Indicated
Guanaceví1,650,0003100.8037016,449,00042,40019,629,000
Bolañitos763,0001521.842903,727,00045,1007,109,500
El Cubo404,0001651.983142,143,00025,7004,070,500
El Compas148,0001047.31652495,00034,9003,112,500
Guadalupe y Calvo1,861,0001192.382987,120,000142,40017,800,000
Parral (new)37,0001840.27204216,000300238,500
Total Indicated4,863,0001931.8633230,150,000290,80051,960,000
Total M&I5,118,0001921.9033531,660,000312,60055,105,000
 
Silver-Gold Inferred Mineral Resources
 TonnesAg g/tAu g/tAg Eq g/tAg ozAu ozAg Eq oz
Inferred
Guanaceví761,0003140.783737,684,00019,1009,116,500
Bolañitos945,0001501.952964,556,00059,2008,996,000
El Cubo1,100,0001432.072985,058,00073,20010,548,000
Terronera1,174,0002881.1637510,848,00043,70014,125,500
El Compas217,000765.38480530,00037,5003,342,500
Guadalupe y Calvo154,000942.14255465,00010,6001,260,000
Parral (new)2,283,0002620.2528119,215,00018,10020,572,500
Total Inferred6,634,0002271.2331948,356,000261,40067,961,000

 

Silver-Gold-Lead-Zinc Mineral Resources
  Tonnes Ag g/tAu g/tAg Eq g/t(1)Ag ozAu ozAg Eq oz(1)Pb%Zn%
Indicated               
Guanacevi363,0002080.263022,420,5003,1002,653,0000.781.32
Parral (Cometa)1,631,000490.901172,589,90047,2006,129,9002.872.86
Total Indicated1,994,000780.781515,010,40050,3008,782,9002.492.58
Inferred
Guanacevi488,0001320.162932,076,0002,5002,263,5001.362.54
Parral (Cometa)1,303,000630.881292,658,90036,9005,426,4002.552.28
Total Inferred1,791,000820.681744,734,90039,4007,689,9002.232.35

Godfrey Walton, M.Sc., P.Geo., President and COO of Endeavour, is the Qualified Person who reviewed and approved the technical information contained in these Mineral Reserve and Resource Estimates. A Quality Control sampling program of reference standards, blanks and duplicates has been instituted to monitor the integrity of all assay results. All samples are split at the local field office and shipped to ALS-Chemex Labs, where they are dried, crushed, split and 50 gram pulp samples are prepared for analysis. Gold and silver are determined by fire assay with an atomic absorption (AA) finish.

The Mineral Resource Estimates for Terronera, El Compas and Parral were undertaken by Independent Qualified Persons Eugene Puritch, P.Eng., FEC, CET, Yungang Wu, P.Geo., and David Burga, P.Geo of P&E Mining Consultants Inc. Mr. Puritch has reviewed and approved the technical content of this press release with respect to the Terronera vein area, El Compas and new Parral.

The Cometa property in Parral which is part of the Lead-Zinc portion of the table is based on a Technical report titled NI 43-101 Technical Report audit of the Mineral Resource Estimate for the Parral Project, Chuhuahua State, Mexico and filed Dec 15, 2010 and authored by William Lewis, B.Sc., Charley Z. Murahwi M.Sc. MAusIMM and Dibya Kanti Mukhopadhyay M.Sc. MAusIMM. This report is separate from the Parral Properties described by P&E Mining Consultants Inc.

The resources on the veins (Animas-Negros, Tajo and Real) from the Terronera property were estimated as part of a 43-101 report authored by Michael J. Munroe dated March 27th 2014 and titled NI 43-101 Technical Report audit of the Mineral Resource estimate for the San Sebastian Project, Jalisco State, Mexico.  The San Sebastian project was renamed the Terronera project.

About Endeavour – Endeavour Silver Corp. is a mid-tier precious metals mining company that operates three high-grade, underground, silver-gold mines in Mexico. The Company is forecasting a 20% increase in production to 10.2-11.2 million oz silver equivalent in 2018. Endeavour has a compelling pipeline of exploration and development projects to facilitate its goal to become a premier senior silver producer.  The Company’s fourth mine,  El Compas in Zacatecas state, will be in production this year and the Terronera Project in Jalisco state is awaiting final permits and a production decision to become Endeavour’s fifth producing mine. Our philosophy of corporate social integrity creates value for all stakeholders.

For more information, please visit: http://www.edrsilver.com

Featured Profile

Featured Videos

Featured Case Studies