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Endeavour Silver expects ‘transformative’ 2017 as it moves to develop two new mines
Endeavour Silver Corp (TSE:EDR, NYSE:EXK) reported reduced production in its first quarter due to reduced development at its Mexico mines but expects output to rise for the rest of 2017.
Silver production decreased 29% in the three months to around 1.076 mln ounces compared to the same time in 2016, while gold output decreased 27% to 11,724 ounces.
The data comes from the firm’s three silver-gold mines in Mexico – the Guanacevi mine in Durango state and the Bolanitos and El Cubo mines also in Guanajuato state.
The firm sold 18% fewer silver ounces compared to the first quarter last year and 26% less gold, it added
Notably, in 2016, production was highest in Q1 and lowest in Q4 due to the decision at low metal prices in January to cut spending on exploration and development at all three sites.
Today, chief executive Bradford Cooke said: “Our plan is to increase production throughout the year as we improve ore grade controls at El Cubo, slowly return Guanacevi to good health, optimize throughput at Bolanitos and regain access to reserves at each mine in order to achieve our production guidance.
“We expect 2017 to be a transformative year for Endeavour as we move to develop two new mines.
“We recently made a decision to develop the El Compas as our fourth mine and we look forward to giving the green light soon to develop Terronera into our fifth mine.
“The emergence of our exciting new Terronera discovery and the acquisition of the El Compas and Parral mine projects have positioned us for significant growth over the next three years.”
At the Guanacevi mine, in the second half last year, the firm began improvements to underground infrastructure including expanded pumping, ventilation and electrical systems to remediate access issues. The mine operations are expected to slowly improve in 2017.
At Bolanitos, silver grades were significantly lower than plan due to grade variations in the LL-Asuncion vein. As mining increases from the new Plateros zone during the year, silver grades should improve, it said.
At El Cubo, both silver and gold grades were below plan due to excess dilution of ore.
Grades and production are expected to improve in the second quarter of 2017.
At Bolanitos, silver grades were significantly lower than plan due to grade variations in the LL-Asuncion vein. As mining increases from the new Plateros zone during the year, silver grades should improve.
Since start-up in 2004, Endeavour has grown its mining operations organically to produce 9.7 million ounces of silver and equivalents in 2016, it told investors
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/176307/endeavour-silver-expects-transformative-2017-as-it-moves-to-develop-two-new-mines-176307.html
