Silver and gold production was lower in Q4, 2019 compared to Q4, 2018 due to the suspension of mining operations at the El Cubo mine during the quarter and lower throughput and grades at Bolanitos, partly offset by higher production at Guanacevi and new production at El Compas. The Company withdrew its revised guidance in Q4, 2019, silver production missed the low range of revised guidance by 4% and gold production missed the low range of revised 2019 production guidance by 2%.
Silver equivalent production was slightly lower in Q4, 2019 compared to Q3, 2019 due to the suspension of mining operations at the El Cubo mine on
“We continued to advance our Terronera and Parral projects, with additional engineering trade off studies completed for Terronera and continued exploration drilling at Parral during the
Production Highlights for Fourth Quarter, 2019 (Compared to Fourth Quarter, 2018)
- Silver production decreased 32% to 939,511 oz
- Gold production decreased 27% to 9,578 oz
- Silver equivalent production was 1.7 million oz (80:1 silver: gold ratio)
- Silver oz sold decreased 17% to 1,050,157 oz
- Gold oz sold decreased 9% to 10,803 oz
- Bullion inventory at quarter-end included 89,677 oz silver and 287 oz gold
- Concentrate inventory at quarter-end included 5,353 oz silver and 300 oz gold
Highlights for Fiscal 2019 (Compared to Fiscal 2018)
- Silver production decreased 27% year-on-year to 4,018,735 oz
- Gold production decreased 27% year-on-year to 38,907 oz
- Silver equivalent production was 7.1 million oz (at a 80:1 silver: gold ratio)
- Silver ounces sold totaled 4,054,652 oz
- Gold ounces sold totaled 39,151 oz
- Implemented operating improvements at all mines to generate free cash flow in 2020
- Declared commercial production for
El Compas at the end of Q1 - Acquired final government permits required for construction at Terronera in Q2
- Leased two properties adjacent to two orebodies at the Guanacevi mine and commenced exploration, development and production of these properties in Q3
- Released positive exploration drill results for Guanacevi, Bolanitos and Parral
- Advanced economic studies to further enhance and de-risk the Terronera project
- Reported positive surface exploration results and commenced drilling of two highly prospective properties in
Chile - Suspended mining operations at the El Cubo mine in Q4
Production Table for 2019
Three Months Ended | 2019 Highlights | Year Ended | ||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | |
236,531 | 309,036 | (23%) | Throughput (tonnes) | 954,886 | 1,266,831 | (25%) |
939,511 | 1,386,505 | (32%) | Silver ounces produced | 4,018,735 | 5,522,068 | (27%) |
9,578 | 13,117 | (27%) | Gold ounces produced | 38,907 | 52,967 | (27%) |
923,540 | 1,359,256 | (32%) | Payable silver ounces produced | 3,951,923 | 5,417,633 | (27%) |
9,397 | 12,821 | (27%) | Payable gold ounces produced | 38,003 | 51,826 | (27%) |
1,705,751 | 2,435,865 | (30%) | Silver equivalent ounces produced(1) | 7,131,295 | 9,759,428 | (27%) |
1,050,157 | 1,264,340 | (17%) | Silver ounces sold | 4,054,652 | 5,461,197 | (26%) |
10,803 | 11,819 | (9%) | Gold ounces sold | 39,151 | 51,318 | (24%) |
(1) Silver equivalent ounces calculated using 80:1 ratio.
Production Tables for Fourth Quarter, 2019 by Mine
Production | Tonnes | Tonnes | Grade | Grade | Recovery | Recovery | Silver | Gold |
by mine | Produced | per day | Ag gpt(1) | Au gpt(1) | Ag % | Au % | Oz | Oz |
Guanaceví | 92,323 | 1,004 | 252 | 0.75 | 90.0% | 91.0% | 673,559 | 2,025 |
Bolañitos | 82,147 | 893 | 51 | 1.81 | 81.6% | 85.5% | 109,963 | 4,088 |
39,206 | 426 | 106 | 1.16 | 91.7% | 79.8% | 122,471 | 1,167 | |
22,855 | 248 | 65 | 4.33 | 70.2% | 72.2% | 33,518 | 2,298 | |
Consolidated | 236,531 | 2,628 | 140 | 1.53 | 88.3% | 82.2% | 939,511 | 9,578 |
(1) gpt = grams per tonne
Production Tables for 2019 by Mine
Production | Tonnes | Tonnes | Grade | Grade | Recovery | Recovery | Silver | Gold |
by mine | Produced | per day | Ag gpt(1) | Au gpt(1) | Ag % | Au % | Oz | Oz |
Guanaceví | 322,988 | 885 | 234 | 0.65 | 90.6% | 90.2% | 2,202,592 | 6,087 |
Bolañitos | 316,708 | 868 | 73 | 1.69 | 84.1% | 85.9% | 624,942 | 14,779 |
245,418 | 672 | 155 | 1.54 | 88.9% | 86.1% | 1,086,824 | 10,464 | |
69,772 | 345 | 75 | 4.37 | 62.0% | 77.3% | 104,377 | 7,577 | |
Consolidated | 954,886 | 2,770 | 149 | 1.50 | 88.0% | 84.7% | 4,018,735 | 38,907 |
(1) gpt = grams per tonne
(2) Results are as of commercial production achieved
Guanacevi
Production increased compared to Q4, 2018 primarily due to higher throughput and higher ore grades. Throughput and ore grades increased year-on-year as a result of the operational changes made to improve mine output, while increased access to the higher grade ores in the Milache and Porvenir Cuatro Extension (P4E) orebodies replaced production from the lower grade Porvenir Norte and
Bolañitos
Production decreased compared to Q4, 2018 primarily due to lower throughput and lower silver and gold grades. Mine output declined year-on-year because the mine plan had to be re-sequenced to allow for blending of high and low arsenic ores, equipment availability issues and mine development fell behind plan which resulted in lack of access to ore. The Company initiated operational measures in Q3, 2019 to improve mine output which should benefit production in 2020. Silver and gold production did not meet revised 2019 guidance, missing by 11% and 1%, respectively.
Production has no prior year for comparison but decreased compared to Q3, 2019 primarily due to lower grades, partly offset by slightly higher throughput. The grade variation reflects different parts of the Orito orebody. In Q4, 2019, throughput was on plan, however silver and gold production were below plan. During the first three quarters of commercial production, throughput was 95% of plan, while gold grades exceeded plan by 7% and silver grades were below plan by 10%. Silver recoveries over this period exceeded plan by 8%, while gold recoveries fell short of plan by 3%. Final refining settlements on Q3 concentrate production resulted in lower gold contained than estimated. These adjustments are recognized in Q4 production results and impact reported recoveries. Going forward recoveries are expected to be higher than 80%. Silver and gold production met revised 2019 guidance.
The Company suspended mining operations at the El Cubo underground mine on
Suspension costs are estimated to be approximately
Sustainability Highlights for 2019
- Continued to focus sustainability efforts on our five pillars: safety & health, our people, the environment, local communities and positive economic impacts
- Guanacevi, Bolañitos and
El Cubo received the annual “Socially Responsible Company” distinction from CEMEFI (Mexican Philanthropy Center ) - Ceased operations at the
El Cubo Mine in a collaborative manner with the employees, provided a social plan to mitigate risks and addressed community concerns resulting from the suspension of mining operations - Made significant community donations including a recreational sports facility at El Cubo and partnered with the Culture and Education department of the Municipal Government to open a cultural community center at Bolañitos
- Carried out a Social Impact Study at Parral to identify and address important issues to the local community
- Continued to engage with the surrounding communities of the
Terronera Project including San Sebastian Del Oeste, San Felipe De Hijar, andSantiago De Pinos , and hosted multiple events and programs during 2019 to which over 1,000 locals attended - Invested in our scholarship program at Guanacevi, Bolañitos and
El Cubo , benefitting over 100 students from high school and university levels - The Company planted 52,000 trees to reclaim disturbed ground at all our mines and projects
- The 2019 Annual Review and Sustainability Report will be published in
May 2020
Endeavour expects to release the following news in Q1, 2020:
- Year-end Mineral Reserve and Resource Estimates
- 2020 production and cost guidance
- 2020 exploration and development updates and “Growth Strategy” webinar presentation
- Updated Pre-Feasibility Study for Terronera
- Initial Preliminary Economic Assessment for Parral
- Update on
Chile exploration program - 2019 Year End Financial Results
About
SOURCE Endeavour Silver Corp.
Contact Information:
Toll free: (877) 685-9775
Tel: (604) 640-4804
Fax: (604) 685-9744
Email: gmeleger@edrsilver.com
Website: www.edrsilver.com
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Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, production levels, 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 production and costs guidance, national and local governments, legislation, taxation, controls, regulations and political or economic developments in
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, 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 could 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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