Silver Producer Focused on Growth - Mexico
Three producing silver mines/mills in Mexico, the Guanacevi Mine in Durango State and the Bolanitos and El Cubo in Guanajuato. Production forcast for 2013: 8M Oz Eq @ 8-9$/Oz
Message: Endeavour Silver Reports Strong Reserve and Resource Growth in 2012
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 25, 2013) - Endeavour Silver Corp. (EDR.TO)(EXK)(EJD.F) announces that for the ninth consecutive year, the Company has delivered substantial growth of its consolidated silver and gold reserves and resources.
Endeavour released today its updated NI 43-101 reserve and resource estimates to December 15, 2012 (see table below) for its three producing silver mines (the Guanacevi Mine in Durango State and the Bolanitos and El Cubo Mines in Guanajuato State) and four exploration projects (the San Sebastian Project in Jalisco, Guadalupe y Calvo and Parral Projects in Chihuahua and Arroyo Seco Project in Michoacán) in Mexico.
Endeavour more than replaced the proven and probable reserves it depleted in 2012 and increased its resources in all categories as a result of its successful acquisition, exploration and development programs. Gold reserves and resources rose more than silver reserves and resources because both the newly discovered mineralized zones at Bolanitos and San Sebastian and the recently acquired El Cubo and Guadalupe y Calvo properties have more gold relative to Guanacevi.
The December 15, 2012 reserve and resource highlights are as follows:
2012 Reserve/Resource Highlights (Compared to December 31, 2011)
- Silver Proven and Probable Reserves up 37% to 23.1 million ounces (oz);
- Gold Proven and Probable Reserves up 229% to 222,300 oz;
- Silver Equivalent Proven and Probable Reserves up 67% to 34.2 million oz;
- Silver Measured and Indicated Resources up 62% to 58.5 million oz;
- Gold Measured and Indicated Resources up 96% to 524,800 oz;
- Silver Equivalent Measured and Indicated Resources up 67% to 84.7 million oz;
- Silver Inferred Resources up 74% to 61.1 million oz;
- Gold Inferred Resources up 182% to 520,400 oz;
- Silver Equivalent Inferred Resources up 92% to 87.1 million oz;
- Mineral resources are calculated exclusive of the mineral reserves
- Proven Reserves are determined as being within 10 meters of underground development while Probable Reserves are a further 15 meters from underground development.
- Mine plans are developed for the Proven and Probable Reserves and Measured and Indicated Resources but the Inferred Resources are discounted in the mine plans.
- Mineral reserves have demonstrated economic viability whereas mineral resources do not
- 2011 silver equivalents based on 55:1 silver:gold ratio, base metals not included
- 2012 silver equivalents based on 50:1 silver:gold ratio, base metals not included
- All assumptions used are listed at the bottom of the reserve and resource summary table
Bradford Cooke, CEO, commented, "Endeavour enjoyed another strong year of reserve and resource growth thanks to the success of our acquisition, exploration and development programs. Our talented exploration team continues to discover new, high grade silver-gold deposits each year within historic silver mining districts such as Guanacevi, Guanajuato and San Sebastian, and the recently acquired El Cubo mine and Guadalupe y Calvo property were also accretive to our reserves and resources.
"In particular last year, the Company's discoveries in the Milache area at Guanacevi, the Lana vein at Bolanitos and the Terronera vein at San Sebastian all contributed significantly to our resource growth. In 2013, Endeavour will continue to focus on unfolding the full exploration potential of our project portfolio, especially at El Cubo where we have several attractive drill targets, as well continuing to be opportunistic with regard to possible new exploration property acquisitions in order to facilitate our future growth."
|Silver-Gold Reserves & Resources (as of December 15, 2012)|
|Total Proven & Probable||4,320,000||166||1.60||23,057,200||222,300||34,172,200|
|Guadalupe y C||1,861,000||119||2.38||7,147,300||142,500||14,272,300|
|Total Measured and Indicated||10,215,418||170||1.45||55,887,100||477,600||79,767,100|
|Guadalupe y C||154,000||94||2.14||464,600||10,600||994,600|
|Silver-Gold-Lead-Zinc Resources (as of December 31, 2011)|
|Santa Cruz Mine XC-2 (Ag-Pb-Zn)||-||-||-||-||-||-|
|Buena Fe (Ag-Pb-Zn)||-||-||-||-||-||-|
|Total Measured and Indicated||1,631,000||49||0.90||2,589,900||47,200||4,949,900|
The main changes at Guanacevi in 2012 were the reduction of reserves due to the higher production rate and the boost in resources resulting from the delineation of the new mineralized zone at Milache.
- Silver Proven and Probable Reserves down 31% to 9.3 million ounces (oz)
- Gold Proven and Probable Reserves down 37% to 16,600 oz
- Silver Equivalent Proven and Probable Reserves down 32% to 10.1 million oz
- Silver Measured and Indicated Resources up 19% to 23.7 million oz
- Gold Measured and Indicated Resources up 28% to 49,700 oz
- Silver Equivalent Measured and Indicated Resources up 19% to 26.2 million oz
- Silver Inferred Resources down 3% to 14.5 million oz
- Gold Inferred Resources down 1% to 27,000 oz
- Silver Equivalent Inferred Resources down 4% to 15.8 million oz
At Bolanitos, accelerated mine development in 2012 spurred a jump in reserves but also caused resources to dip, notwithstanding the discovery of new mineralization in the Lana vein.
- Silver Proven and Probable Reserves up 124% to 7.4 million ounces (oz)
- Gold Proven and Probable Reserves up 154% to 104,600 oz
- Silver Equivalent Proven and Probable Reserves up 127% to 12.8 million oz
- Silver Measured and Indicated Resources down 37% to 9.2 million oz
- Gold Measured and Indicated Resources down 31% to 139,400 oz
- Silver Equivalent Measured and Indicated Resources down 37% to 16.1 million oz
- Silver Inferred Resources down 24% to 7.4 million oz
- Gold Inferred Resources down 25% to 85,200 oz
- Silver Equivalent Inferred Resources down 27% to 11.6 million oz
No revisions were made at El Cubo since Endeavour's maiden reserve and resource estimate released in July, 2012, except for the use of a slightly lower silver equivalent formula of 50:1 to reflect current gold and silver prices.
- Silver Proven and Probable Reserves of 6.3 million ounces (oz)
- Gold Proven and Probable Reserves of 101,100 oz
- Silver Equivalent Proven and Probable Reserves of 11.4 million oz
- Silver Measured and Indicated Resources of 4.4 million oz
- Gold Measured and Indicated Resources of 76,700 oz
- Silver Equivalent Measured and Indicated Resources of 8.3 million oz
- Silver Inferred Resources of 11.4 million oz
- Gold Inferred Resources of 220,900 oz
- Silver Equivalent Inferred Resources of 22.4 million oz
The emerging discovery of high grade mineralization over thick core intervals in the Terronera vein prompted a sharp jump in estimated resources, still open for expansion by drilling along strike.
- Silver Indicated Resources of 11.4 million oz
- Gold Indicated Resources of 69,300 oz
- Silver Equivalent Indicated Resources of 14.9 million oz
- Silver Inferred Resources of 19.5 million oz
- Gold Inferred Resources of 138,100 oz
- Silver Equivalent Inferred Resources of 26.4 million oz
Guadalupe y Calvo
This is Endeavour's maiden resource estimate for the Guadalupe y Calvo property, based on drilling conducted by the previous owner.
- Silver Indicated Resources of 7.1 million oz
- Gold Indicated Resources of 142,500 oz
- Silver Equivalent Indicated Resources of 14.3 million oz
- Silver Inferred Resources of 0.5 million oz
- Gold Inferred Resources of 10,600 oz
- Silver Equivalent Inferred Resources of 1.0 million oz
Endeavour exploration personnel modeled the updated reserves and resources at Guanacevi, Bolanitos and San Sebastian to December 15, 2012. The El Cubo reserves and resources were estimated as of June 1, 2012 and remain unchanged. The Parral and Arroyo Seco resources were estimated at the end of 2010 and remain unchanged from that time.
Endeavour retained Micon International Limited ("Micon") to update the reserves and resources for the Guanacevi, Bolanitos and El Cubo mines and to audit resources generated from exploration projects around the mines and on the San Sebastián and Guadalupe y Calvo projects. The Qualified Persons for the Mineral Resources are Charley Murahwi, M.Sc., P.Geo, FAusIMM and Alan San Martin, MAusIMM(CP) while the Qualified Persons for the Mineral Reserves are William J. Lewis, B.Sc., P.Geo. and Charley Murahwi, M.Sc., P.Geo, FAusIMM. Micon's report will be completed and filed on SEDAR within 45 days of this news release. The Arroyo Seco report was authored by David St. Clair Dunn B.Sc.,P.Geo and Barry Devlin M.Sc., P. Geo, both of whom are Qualified Persons, and the report was previously filed on SEDAR.
These reserve and resource statements were classified following the definitions and guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum CIM standards and definitions on Mineral Resources and Reserves and the guidelines of NI 43-101.
ENDEAVOUR SILVER CORP.
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