Endeavour Silver Restores Processing Operations at Guanacevi Mine

Endeavour Silver has resumed processing operations at its Guanacevi mine in Durango after the failure of the primary ball mill trunnion. The company announced that the milling rate will temporarily operate at about half its capacity.

The failure was initially reported on Aug. 12, 2024. At the time, the company implemented temporary modifications at the plant, repurposing one of the regrind mills as the primary ball mill. This reconfigured grinding circuit is currently processing ore at a rate of 400t/d, with potential for approximately 500t/d during this interim period. This represents nearly half of the planned production capacity of 1,200t/d.

Mining operations at Guanacevi will continue at a reduced rate during this period, focusing on processing the highest-grade ore available while stockpiling lower-grade material. Contract mining and local third-party material purchases have been temporarily halted in response to the reduced processing capacity. The company has emphasized that these adjustments are intended to manage cash flows until full processing capacity is restored.

Endeavour Silver has estimated that the cash shortfall during this period of reduced processing could be limited to less than US$5 million over an estimated 15-week timeframe. This figure includes the costs associated with the ore stockpiling from self-mining activities. The company is currently engaged in discussions with its workforce, communities, and suppliers to address the broader social and operational impacts of these temporary measures.

Initial quotes for the fabrication and installation of a new trunnion have been received, with the cost estimated at US$500,000 and an installation period of approximately 16 weeks. Management is currently exploring alternatives to reduce the downtime of the primary ball mill.

During the reduced processing period, production at Guanacevi is expected to decrease by 900,000oz to 1.1Moz of silver and by 2,000oz to 3,000oz of gold compared to the original operating plan. Consequently, Endeavour Silver has revised its annual consolidated production forecast for 2024, now estimating silver production to range between 4.4Moz and 4.6Moz, and gold production between 36,000oz and 38,000oz. Silver equivalent production for the year is forecast to total between 7.3Moz and 7.6Moz.

Due to the reduced operating capacity and the associated variables and uncertainties, Endeavour Silver has withdrawn its cost guidance for 2024. The company acknowledges that operating costs and all-in-sustaining costs (AISC) will likely exceed the original estimates for the year.