Endeavour Silver Invests $250 Million; 2012 Q1 Production, Silver(Up 19%) & Gold(Up 26%)
VANCOUVER – Endeavour Silver announced that the Company is paying 250 million for two Mexican mining properties AuRico’s El Cubo silver-gold mine in Guanajuato state, and the Guadalupe y Calvo silver-gold exploration project in the state of Chihuahua. Both owned by AuRico Gold (TSX:AUQ).
The Company set new records for silver and gold production in the First Quarter, 2012 from the Company’s two operating silver mines in Mexico, the Guanacevi Mine in Durango State and the Guanajuato Mine in Guanajuato State.
El Cubo is a producing mine about 10 kilometres from Endeavour’s Guanajuato mine. The 1200-tpd operation produced 209,440 oz of silver and 4,453 ounces of gold in the first quarter of 2012.
“El Cubo’s proximity and similarity to, and potential synergies with, our Guanajuato mine, make El Cubo a logical and strategic acquisition for Endeavour that will have an immediate and sizable impact on our production, reserves and resources with minimal or no dilution to our shareholders.” Endeavour Chairman and CEO Bradford Cooke
Guadalupe y Calvo is an advanced silver-gold exploration project containing 9 mineral concessions. AuRico Gold’s preliminary economic assessment of the property last month showed the potential for a combined open-pit underground mine producing on average 968,100 oz silver and 17,600 oz gold annually for the first 8 years of production. The deposit hosts indicated resources of 7.6 million ounces of silver and 126,000 ounces of gold, and 4.4 million inferred ounces of silver and 67,000 ounces of gold.
Silver production was up 19% to 1,072,491 ounces (oz) and gold production was up 26% to 6,321 oz compared to the First Quarter 2011. Revenues were up 39% to US$49.0 million thanks to both the higher metal production and higher realized gold prices.
Production Highlights of First Quarter 2012 (Compared to First Quarter 2011)
- Silver production increased 19% to 1,072,491 oz
- Gold production rose 26% to 6,321 oz
- Silver and equivalents production escalated 21% to 1.39 million oz (at a 50:1 silver: gold ratio)
- Revenues jumped 39% to $49.0 million on 1,100,000 silver oz sold and 7,496 gold oz sold
- Realized silver price fell less than 1% to $33.10 per oz sold (1.4% above average price for Q1/12)
- Realized gold price rose 20% to $1,686 per oz sold (equal to average spot price for Q1/12)
- Metal held in inventory at quarter-end included 925,100 oz silver and 3,927 oz gold
About Endeavour Silver Corp.
Endeavour Silver is a premier mid-tier silver mining company focused on the growth of its silver production, reserves and resources in Mexico. Since start-up in 2004, Endeavour has posted seven consecutive years of growing silver production, reserves and resources. The organic expansion programs now underway at Endeavour’s two (soon to be three) operating silver mines in Mexico combined with its strategic acquisition and exploration programs should facilitate Endeavour’s goal to become the next premier senior silver mining company.
Endeavour Contact Information – For more information, please contact Hugh Clarke, Vice President, Corporate Communications, Toll free at 877-685-9775, or Tel: (604) 685-9775, Fax: (604) 685-9744, Email hugh@edrsilver.com, Website, www.edrsilver.com.
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Posted by WoodlawnPost
on Apr 17 2012. Filed under Mining, N. America, S. America.
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