Endeavour reports first concentrates production at Mexico silver mine
Endeavour Silver Corp. (EDR-TSX, EXK-NYSE) a silver producer in Mexico for 20 years, said it is producing the first batch of concentrate at the Terronera mine in Jalisco State. The company said it remains on track for wet commissioning in early second quarter of 2025, and will provide further operational guidance after wet commissioning commences.
On Tuesday, Endeavour shares eased 8.3% or 51 cents to $5.63. The shares trade in a 52-week range of $7.87 and $3.27.
Endeavour is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico. They include the Guanacevi Mine in Durango and the Bolanitos Mine in Guanajuato. The company reported 7.6 million ounces of silver equivalent production (AgEq) in 2024.
Endeavour has said the new Terronera mine is expected to transform the company by roughly doubling its production while cutting costs in half.
Once up and running, the Terronera mine is expected to provide jobs for 550 in Jalisco State, Mexico and deliver US$170 million in tax payments over its lifespan.
Endeavour Silver CEO Dan Dickson described the new Terronera mine as “a very important strategic asset for our company and our stakeholders,” boasting an expected 10-year mine life and nearly 90 million silver equivalent ounces in reserves.
Located about 50 kilometres from the Mexican port city of Puerto Vallarta, it is expected to produce 4.0 million ounces of silver and 38,000 ounces of gold per year (7.0 million ounces of AgEq) over its lifespan.
In its latest update the company said advances to date are as follows:
- Upper platform process plant commissioning is well advanced.
- The crushing, grinding, flotation and tailing thickening circuits ran to produce over two tonnes of concentrate.
- Concentrate filter precommissioning has started.
- Tailing filter mechanical assembly was completed;
- Tailing storage facility main embankment reached full height, and the underdrain piping with gravel cover has been installed and prepared for life of mine tailing placement.
- The first production stope has been mined and backfilled.
- Surface run of mine and crushed ore stockpiles have reached a total of 40,000 tonnes.
Meanwhile the focus remains on completing the tailing filter electrical and mechanical installations and the pipeline connection between the upper and lower platforms.
With an updated initial capital cost of US$271 million, the new underground mine will become Endeavour Silver’s flagship operation and rank as one of the lowest cost silver mines in the world. Once in production, it will take the company one step closer to becoming a premier, senior silver producer
As per requirements under a US$120 million senior secured debt facility, the company must self-fund development from cash on hand before drawing on the facility.
Endeavour has a portfolio of exploration projects in Mexico and Chile and the United States, which has helped it to achieve its goal of becoming a premier senior silver producer. Endeavour Silver shares trade in a 52-week range of $7.87 and $3.27.