Endeavour Silvers Sells Its El Compas Project

Endeavour Silver announced that it has reached an agreement: its subsidiary, Minera Oro Silver de México, is to sell the El Compas property in Zacatecas to Grupo ROSGO. The El Compas project is focused on high-grade gold and silver mineralization. Endeavour noted that the sale will allow it to focus on advancing its key silver assets in Mexico.

Under the sale agreement, Grupo ROSGO will pay Endeavour US$5 million in cash over five years and make an initial payment of US$250,000 when the agreement is signed. The company will then receive payments of US$500,000 every six months. However, the third payment will be US$750,000.

“We are pleased with the sale of El Compas to Grupo ROSGO as it streamlines our project portfolio and frees up management time to focus on advancing our extensive growth pipeline, including the Terronera project and Pitarrilla,” said Dan Dickson, CEO, Endeavour Silver.

In a previous press release, the company highlighted that the acquisition of the Pitarrilla project in Durango from SSR Mining enhanced the company's growth opportunities and allows it to continue to focus on silver assets. “The addition of the Pitarrilla project elevates our portfolio as a leading mid-tier silver producer with high-quality silver exposure and significant growth. We look forward to bringing our regional expertise to generate long-term value for our shareholders,” said Dickson.

Meanwhile, the Terronera project has continued with its engineering, contracting and financing works. Endeavour explained that it will make a final decision once the financing package and additional permits are received. As of June 30, 2022, the company has spent US$18 million and expects to spend another US$23 million through the end of October of this year.

Recently, the company reported its 2Q22 financial and operating results, highlighting that due to its positive performance, its 2022 production guidance has been increased. According to its press release, the company had a solid production of 1,359,207oz of silver during 2Q22, which represents an increase of 27 percent compared to 2Q21. In addition, the company produced 9,289oz of gold for 2.1Moz of silver equivalent. Endeavour highlighted that with the results of 2Q22, it is all but certain to reach strong production in 2022.

Considering the strong 2Q22 results, the company raised its production forecast from 6.7-7.6Moz to between 7.6 and 8Moz. Endeavour explained the increase in its 2022 production guidance is primarily due to higher-than-expected ore grades at Guanacevi. Meanwhile, production at Bolañitos remains strong due to high silver grades and increased production. However, these results were offset by lower gold grades and production.