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Endeavour Silver Corp. (TSX:EDR) (NYSE:EXK) reports updated NI 43-101 Mineral Reserve and Resource Estimates for its three operating mines and two development projects and an initial Mineral Resource Estimate for its new Parral Properties, all in Mexico.
2017 Mineral Reserve and Resource Estimate Highlights (Compared to December 31, 2016)
Bradford Cooke, CEO of Endeavour, stated, "We enjoyed solid development and exploration success in 2017, more than replacing our Mineral Reserves and growing our silver Mineral Resources. We also published a Pre-Feasibility Study ("PFS") for Terronera, a Preliminary Economic Assessment ("PEA") for El Compas, and an initial silver Mineral Resource Estimate for the new Parral Properties. The substantial growth of our Mineral Reserves and Mineral Resources is a testament to our exploration and acquisition teams. We now have a strong pipeline of exploration and development projects to drive our next phase of organic growth.
"Looking forward to 2018, we plan to invest US$11.1 million on exploration, the majority of which will target organic growth opportunities, including brownfields targets around our operating mines and development projects and greenfields targets such as Parral. This year, Parral will be our largest exploration expenditure, as we continue testing new silver vein targets and enhance our geological understanding of the historic Mineral Resource areas. At Terronera, we will test the southeast extension of mineralization in the high grade Terronera Vein and drill other vein targets. At El Compas, further testing of the Misie-Karla-Karla HW and Calicanto Veins and new zones will be key priorities."
2017 Mineral Reserve and Resource Estimate Summaries
Proven and Probable silver and gold Mineral Reserves increased year over year by 217% and 246% respectively to 33.5 million ounces of silver and 315,000 ounces of gold. On a silver equivalent basis, Mineral Reserves totalled 57.1 million ounces (at a silver to gold ratio of 75:1). These significant increases in Mineral Reserves are mainly due to the reclassification of Mineral Resources into Mineral Reserves pursuant to the NI 43-101 Technical Report, Preliminary Feasibility Study for the Terronera Project, Jalisco State Mexico dated May 18, 2017. The PFS Report estimated 4.06 million tonnes of Probable Mineral Reserves grading 207 g/t silver and 1.95 g/t gold containing 27 million silver ounces and 255,000 gold ounces at Terronera. When the Terronera Mineral Reserves are excluded from the new estimate, silver and gold Mineral Reserves at the three mines decreased by 11% and 9% respectively.
Measured and Indicated silver and gold Mineral Resources declined by 46% and 35% respectively to 31.6 million ounces of silver and 312,600 ounces of gold. The decrease in Measured and Indicated Mineral Resources was mainly the result of conversion into Mineral Reserves at the Terronera project and at the existing operations. When the conversion of Terronera Indicated Mineral Resources to Mineral Reserves are excluded from the Measured and Indicated Mineral Resource Estimate, Measured and Indicated silver and gold Mineral Resources declined 20% and 14%, respectively at the three mines.
Inferred silver Mineral Resources increased by 44% due to the initial Mineral Resource Estimate for the new Parral Properties. At Parral, forty-one drill holes totalling 11,300 metres were completed, primarily to verify a part of the historic Mineral Resource in the Veta Colorada mine area and to test one of the targets within the Palmilla Mine area. The initial estimate consists of an Indicated Mineral Resource of 216,000 silver ounces and an Inferred Mineral Resource of 19.2 million silver ounces and 18,100 gold ounces. A Technical Report prepared in accordance with NI 43-101 for the Parral Properties will be completed and filed on SEDAR in March 2018.
Last year, the Company completed an NI 43-101 Technical Report for a Preliminary Economic Assessment for the El Compas Project, Zacatecas State, Mexico dated May 11, 2017. The Technical Report estimated an initial Mineral Resource of 495,000 silver ounces and 34,900 gold ounces in the Indicated category; and 465,000 silver ounces and 10,600 gold ounces in the Inferred category. The El Compas Mineral Resource is a shallow high grade epithermal vein system that is estimated to provide a robust after tax return on investment (IRR) of 42% (see Endeavour News Release dated March 27, 2017). Due to the positive economics, low initial capital requirements, and management's experience in having successfully developed similar mines in Mexico, a decision was made to proceed with the mine development in Q3, 2017. The Company expects to reach commercial production at El Compas in July 2018 (see Endeavour News Release dated January 25, 2018).
Mineral Reserve and Resource Estimates at December 31, 2017
Silver-Gold Proven and Probable Mineral Reserves
Tonnes Ag g/t Au g/t Ag Eq g/t Ag oz Au oz Ag Eq oz
Proven
Guanacevi 82,000 224 0.49 261 591,000 1,300 688,500
Bolanitos 154,000 87 2.48 273 431,000 12,300 1,353,500
El Cubo 171,000 184 1.80 319 1,010,000 9,900 1,752,500
Total Proven 407,000 155 1.80 290 2,032,000 23,500 3,794,500
Probable
Guanacevi 224,000 252 0.58 296 1,812,000 4,200 2,127,000
Bolanitos 258,000 86 1.87 226 714,000 15,500 1,876,500
El Cubo 317,000 186 1.68 312 1,894,000 17,100 3,176,500
Terronera 4,061,000 207 1.95 353 27,027,000 255,00046,152,000
Total Probable 4,860,000 201 1.87 341 31,447,000 291,80053,332,000
Total P&P 5,267,000 198 1.86 337 33,479,400 315,30057,126,500
Silver-Gold Measured and Indicated Mineral Resources
Tonnes Ag g/t Au g/t Ag Eq g/t Ag oz Au oz Ag Eq oz
Measured
Guanacevi 17,000 299 0.38 328 167,000 200 182,000
Bolanitos 31,000 118 2.28 289 118,000 2,300 290,500
El Cubo 207,000 184 2.90 402 1,225,000 19,300 2,672,500
Total Measured 255,000 184 2.66 384 1,510,000 21,800 3,145,000
Indicated
Guanacevi 1,650,000 310 0.80 370 16,449,000 42,400 19,629,000
Bolanitos 763,000 152 1.84 290 3,727,000 45,100 7,109,500
El Cubo 404,000 165 1.98 314 2,143,000 25,700 4,070,500
El Compas 148,000 104 7.31 652 495,000 34,900 3,112,500
Guadalupe y Calvo 1,861,000 119 2.38 298 7,120,000 142,40017,800,000
Parral (new) 37,000 184 0.27 204 216,000 300 238,500
Total Indicated 4,863,000 193 1.86 332 30,150,000 290,80051,960,000
Total M&I 5,118,000 192 1.90 335 31,660,000 312,60055,105,000
Silver-Gold Inferred Mineral Resources
Tonnes Ag g/t Au g/t Ag Eq g/t Ag oz Au oz Ag Eq oz
Inferred
Guanacevi 761,000 314 0.78 373 7,684,000 19,100 9,116,500
Bolanitos 945,000 150 1.95 296 4,556,000 59,200 8,996,000
El Cubo 1,100,000 143 2.07 298 5,058,000 73,200 10,548,000
Terronera 1,174,000 288 1.16 375 10,848,000 43,700 14,125,500
El Compas 217,000 76 5.38 480 530,000 37,500 3,342,500
Guadalupe y Calvo 154,000 94 2.14 255 465,000 10,600 1,260,000
Parral (new) 2,283,000 262 0.25 281 19,215,000 18,100 20,572,500
Total Inferred 6,634,000 227 1.23 319 48,356,000 261,40067,961,000
Silver-Gold-Lead-Zinc Mineral Resources
Tonnes Ag g/t Au g/t Ag Eq g/t Ag oz Au oz Ag Eq oz Pb% Zn%
Indicated
Guanacevi 363,000 208 0.26 302 2,420,500 3,100 2,653,000 0.78 1.32
Parral (Cometa) 1,631,000 49 0.90 117 2,589,900 47,200 6,129,900 2.87 2.86
Total Indicated 1,994,000 78 0.78 151 5,010,400 50,300 8,782,900 2.49 2.58
Inferred
Guanacevi 488,000 132 0.16 293 2,076,000 2,500 2,263,500 1.36 2.54
Parral (Cometa) 1,303,000 63 0.88 129 2,658,900 36,900 5,426,400 2.55 2.28
Total Inferred 1,791,000 82 0.68 174 4,734,900 39,400 7,689,900 2.23 2.35
Notes:
-- Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any or all part of the Mineral Resources will be converted into Mineral Reserves. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
-- The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
-- The Mineral Resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
-- Mineral Resources are exclusive of and in addition to Mineral Reserves.
-- Mineral Resource and Mineral Reserve cut-off grades are based on a 202 g/t silver equivalent for Guanacevi, 158 g/t silver equivalent for Bolanitos, 152 g/t silver equivalent for Villalpando Ascuncion ore zone of El Cubo and 218 g/t silver equivalent for Santa Cecilia ore zone of El Cubo, and 150 g/t silver equivalent for Terronera, El Compas, Guadalupe y Calvo and Parral Properties.
-- Metallurgical recoveries were 83.0% silver and 85.0% gold for Guanacevi, 84.3% silver and 87.7% gold for Bolanitos, and 87.0% silver and 86.7% gold for El Cubo.
-- Mining recoveries of 92% were applied for Mineral Reserve Estimate calculations.
-- Minimum mining widths were 0.8 metres for Mineral Reserve Estimate calculations.
-- Dilution factors for Mineral Reserve Estimate calculations averaged 26% for Guanacevi, 28% for Bolanitos, and 35% for El Cubo. Dilution factors are calculated based on internal stope dilution calculations and external dilution factors of 15% for cut and fill mining and 30% for long hole mining at Guanacevi, 28% and Bolanitos and 54% for long mining at El Cubo.
-- Silver equivalent grades are based on a 75:1 silver:gold ratio and calculated including only silver and gold.
-- Inferred Mineral Resources for Terronera includes the Terronera and Real Alto Area (Animas-Los Negros, El Tajo & Real veins).
-- The La Colorada structure (Parral) does not contain gold on an economic scale.
-- Price assumptions for Guanacevi, Bolanitos and El Cubo are US$17.26/oz for silver, US$1,232/oz for gold, US$0.82/lb for lead and US$0.90/lb for zinc.
-- Price assumptions for Terronera are US$18/oz for silver, US$1,250/oz for gold.
-- Price assumptions for El Compas are US$18/oz for silver, US$1,225/oz for gold.
-- Figures in the tables are rounded to reflect estimate precision; small differences generated by rounding are not material to the estimates.
Godfrey Walton, M.Sc., P.Geo., President and COO of Endeavour, is the Qualified Person who reviewed and approved the technical information contained in these Mineral Reserve and Resource Estimates. A Quality Control sampling program of reference standards, blanks and duplicates has been instituted to monitor the integrity of all assay results. All samples are split at the local field office and shipped to ALS-Chemex Labs, where they are dried, crushed, split and 50 gram pulp samples are prepared for analysis. Gold and silver are determined by fire assay with an atomic absorption (AA) finish.
The Mineral Resource Estimates for Terronera, El Compas and Parral were undertaken by Independent Qualified Persons Eugene Puritch, P.Eng., FEC, CET, Yungang Wu, P.Geo., and David Burga, P.Geo of P&E Mining Consultants Inc. Mr. Puritch has reviewed and approved the technical content of this press release with respect to the Terronera vein area, El Compas and new Parral.
The Cometa property in Parral which is part of the Lead-Zinc portion of the table is based on a Technical report titled NI 43-101 Technical Report audit of the Mineral Resource Estimate for the Parral Project, Chuhuahua State, Mexico and filed Dec 15, 2010 and authored by William Lewis, B.Sc., Charley Z. Murahwi M.Sc. MAusIMM and Dibya Kanti Mukhopadhyay M.Sc. MAusIMM. This report is separate from the Parral Properties described by P&E Mining Consultants Inc.
The resources on the veins (Animas-Negros, Tajo and Real) from the Terronera property were estimated as part of a 43-101 report authored by Michael J. Munroe dated March 27 2014 and titled NI 43-101 Technical Report audit of the Mineral Resource estimate for the San Sebastian Project, Jalisco State, Mexico. The San Sebastian project was renamed the Terronera project.
About Endeavour - Endeavour Silver Corp. is a mid-tier precious metals mining company that operates three high-grade, underground, silver-gold mines in Mexico. The Company is forecasting a 20% increase in production to 10.2-11.2 million oz silver equivalent in 2018. Endeavour has a compelling pipeline of exploration and development projects to facilitate its goal to become a premier senior silver producer. The Company's fourth mine, El Compas in Zacatecas state, will be in production this year and the Terronera Project in Jalisco state is awaiting final permits and a production decision to become Endeavour's fifth producing mine. Our philosophy of corporate social integrity creates value for all stakeholders.
SOURCE Endeavour Silver Corp.
Contact Information - For more information, please contact:
Galina Meleger, Director Investor Relations
Toll free: (877) 685-9775
Tel: (604) 640-4804
Fax: (604) 685-9744
Email: gmeleger@edrsilver.com
Website: www.edrsilver.com
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States private securities litigation reform act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forwardâ?'looking statements and information herein include but are not limited to statements regarding Endeavour's anticipated performance in 2018, Mineral Resource and Reserve Estimates, and the timing and results of various future activities. The Company does not intend to, and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors include but are not limited to changes in national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; operating or technical difficulties in mineral exploration, development and mining activities; the reliability of Mineral Resource and Reserve Estimates risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development, risks in obtaining necessary licenses and permits, and challenges to the Company's title to properties; as well as those factors described in the section "risk factors" contained in the Company's most recent form 40F /Annual Information Form filed with the S.E.C. and Canadian securities regulatory authorities.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of the Company's mining operations, no material adverse change in the market price of commodities, the reliability of Mineral Resource and Reserve Estimates, mining operations will operate and the mining products will be completed in accordance with management's expectations and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events cou ld differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.
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