Endeavour Silver (TSX: EDR; NYSE: EXK) plans to add a fourth mine to its Mexican operations, following an encouraging preliminary economic assessment (PEA) at its El Compas gold-silver project in Zacatecas state.
The miner currently operates three underground silver-gold mines: Guanacevi in Durango state, and Bolanitos and El Cubo in Guanajuato state. Combined the three churned out 9.7 million silver equivalent oz. in 2016, in line with guidance.
The recent PEA outlines a small, low cost operation at El Compas, with favourable economic returns. It also includes an initial resource estimate. El Compas contains 2.9 million indicated silver equivalent oz. (148,400 tonnes at 616 silver equivalent oz.) and 3.2 million inferred silver equivalent oz. (216,800 tonnes at 453 silver equivalent oz.)
Although the resource is small, it’s shallow and high grade. The resource, along with Endeavour’s leased mill, sitting within 20 km, has contributed to El Compas’ low start-up costs of US$10 million and life of mine sustaining costs of US$1.8 million. Endeavour, with a cash balance of US$72 million, intends to fund El Compas’ development internally.
Continue reading at The Northern Miner.
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