Image credits: Clemens van Lay
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News Article

Endeavour Silver Has High Hopes for Its Terronera Project

By Antonio Trujillo | Tue, 09/14/2021 - 09:41

Canada-based Endeavour Silver Corporation has announced the completion of their Feasibility Study for the Terronera project highlighting favorable development.

Endeavour Silver made the announcement last Thursday. The Feasibility Studio (FS) was completed on their wholly-owned Terronera project in the state of Jalisco. The study shed light on “robust economic prospects,” high annual production, and a long mine life, all of them higher and more promising than 2020’s Pre-Feasibility Studio, carried out last year in July.

Results indicate possibilities for high-grade underground operations, with an average forecasted annual production of over 3.3 million payable ounces of silver and about 33 thousand payable ounces of gold over the course of 12 years. The company invested greatly in the study, including extensive designs, operation and cost reviews, to instill confidence in the project, both in its potential and capacity to remain on budget and on schedule.

Endeavour has already begun with initial earthworks on site and hopes to make formal construction decisions as soon as a financial package and permits are ready later this year. A US$13 million budget was allocated and approved for these initial earthworks, alongside site clearance, and temporary storage. The intended final budget for 2021 is expected to be US$21 million. The study is assuming a base price of US$20 per silver ounce, and US$1575 per gold ounce, on basis of a 79:1 ratio between gold and silver, and a ratio of 20:1 between the US Dollar and the Mexican Peso.

Dan Dickinson, Endeavour Silver CEO, stated that “with the feasibility study completed, the Terronera project is now moving rapidly towards funding and construction. The results presented today support the construction of our largest, most affordable mine. We believe there are more ways to optimize the project and increase mineral resources. Should drilling continue, there is potential to significantly increase ounces of production and the life of the Terronera mine.”

Dickinson also commented that there are few silver projects in the mining industry that are as low-risk and in such favorable jurisdictions as Terronera. Further infrastructure construction onsite is pending approval from the Board of Directors, as they are planning the official groundbreaking ceremony later this year. Terronera is located about 50 kilometers northeast of beach destination Puerto Vallarta, and consists of about 25 concessions spanning over 20 thousand hectares.

Earlier this year, Endeavour Silver recorded its highest quarter since 2018, with 1.11 million ounces of silver and nearly 13,000 ounces of gold, specifically in their three underground mines in the country: Guanacevi in Durango, Bolañitos in Guanajuato, and El Compás in Zacatecas. Output increases in the mines range from 8 to 15 percent.

The data used in this article was sourced from:  
Mining, Resource Capital
Photo by:   Clemens van Lay, Unsplash
Antonio Trujillo Antonio Trujillo Junior Journalist & Industry Analyst