Endeavour Silver Corp. has announced the receipt of the exploration and exploitation rights to two properties near the Guanacevi Mine in Durango State, Mexico. The two properties cover potential extensions of Endeavour orebodies.
The El Porvenir property, covering an area of 15 ha, is located close to the operating Porvenir Norte mine and encompasses the updip extension of the Porvenir Norte orebody. Endeavor had a comparable exploration and exploitation right on this property from 2006 to 2008.
During this period, the Company carried out exploration drilling and small-scale mining. Earlier estimated resources and reserves remain available for production and development, although at higher silver costs.
The El Curso property, covering an area of 40 ha, is situated near the recently shut down Porvenir Cuatro mine and covers any potential northwest extension of the Porvenir Cuatro orebody. Porvenir Cuatro was earlier Endeavour’s highest-grade mine in the district. Mining at Porvenir Cuatro came to an end in 2018 at the boundary with the El Curso property.
The existing mine access ramp from Porvenir Cuatro to Milache traverses the whole El Curso property; therefore, Endeavour has existing underground access and infrastructure to make the exploration, development, and production of El Curso easier.
After many years of discussions, we are happy to announce this exploration and exploitation agreement. It gives us access to two key properties adjacent to two of our past mines at Guanacevi in order to explore, develop and produce any extensions of the Porvenir Norte and Porvenir Cuatro orebodies.
Bradford Cooke, CEO, Endeavour Silver Corp
Cooke continued, “Subject to successful exploration, we not only have the opportunity to extend the mine life at Guanacevi but also to commence development and initial production from the El Curso property this year.”
Refinadora Plata Guanacevi SA de CV, a subsidiary of Endeavour, has obtained a 10-year right to explore and make use of the El Porvenir and El Curso properties from Ocampo Mining SA de CV, a subsidiary of Grupo Frisco, which is a leading Mexican mining company.
RPG has settled for an agreement to achieve some minimum production targets from the properties conditional on a range of terms and conditions and to pay OM a fixed per-tonne production payment as well as a floating net smelter return royalty based on the spot silver price.