Endeavour Silver to Begin Production in 2024

Endeavour Silver made significant progress on the construction of its Terronera Project in Jalisco in 2023, highlighting it is on schedule to start production in 4Q24. Although the company has experienced some cost issues in 2023, it is confident that the project will continue to progress successfully in 2024.

Advanced concrete and vertical construction works are currently underway. Following a risk analysis in 2023, the company has revised its initial capital cost, schedule, and execution plan. Despite facing challenges, such as a stronger Mexican peso, inflation, and tight markets for materials such as steel, piping, and electrical supplies, Endeavour remains confident in the project's initial production schedule for 4Q24.

"Comprehensive reviews completed by the Project team and third-party consultants have greatly improved visibility toward initial production at Terronera later this year. Given the trends that we have seen at our existing Mexican operations, Terronera is being advanced against headwinds ... After undergoing an in-depth process, we remain confident in our commissioning schedule, our updated capital cost estimate, and our ability to address these challenges as we advance the project for the benefit of all stakeholders,” Dan Dickson, CEO, Endeavour Silver. 

The Board of Directors approved an optimized construction scenario for the Terronera Project, with a process plant with a capacity of 2,000t/d and an initial capital cost of US$230 million. However, due to current inflation, foreign exchange pressures and supply constraints, the team increased capital costs by 18% to US$271 million. The company explained that it had successfully secured pricing for much of the mine and plant equipment through advance purchases, but market trends required this adjustment to properly account for cost pressures.

In 1Q24, the focus of surface construction will be on key elements such as steel structures, mechanical installations, and initial electrical work in various areas including crushing, coarse-ore stockpile, grinding, flotation, and tailing thickener. By the end of 1Q24, excavation is anticipated to be nearing completion for the LNG and power generation areas, as well as the concentrate and tailing filtration areas. 

Regarding the mine development, ongoing efforts include the continued development of Portals 1, 2, and 4, with the expectation of first ore development in 2Q24. Long-hole mining is scheduled for 3Q23 and cut-and-fill mining is set to commence in 4Q24, coinciding with the accumulation of the stockpile during this period. Activities at La Luz are scheduled for the 3Q24, involving portal construction and ramp advancement toward ore access in the 4Q23.

Endeavour highlighted that the project remains on track for mill commissioning and the initiation of production at the end of the year. The critical path for the project includes the ongoing progress in underground mine development and the construction of the Tailings Storage Facility (TSF).