Endeavour Silver expects 2021 production to remain steady

This year, silver and gold producer Endeavour Silver expects its three underground mines in Mexico to produce 3.6 to 4.3 million oz. of silver and 31,000 to 35,500 gold oz. (6.1 to 7.1 million oz. of silver-equivalent). These numbers are in line with the 3.5 million oz. of silver and 37,139 oz. of gold (6.5 million oz. of silver-equivalent) generated last year.

All-in sustaining costs are forecast at US$19 to US$20 per silver oz., net of gold byproduct credits. The AISCs are expected to be higher than those incurred in 2020 due to higher royalty and mining duty payment forecasts.

“Having completed the operational turn arounds at our Guanacevi and Bolanitos mines in 2020, we are forecasting relatively steady state performance from our operating mines in 2021, with slightly higher consolidated production offset by slightly higher operating costs at the three mines. Advancing our Terronera mine project through the feasibility study and project financing will be a key focus during the first half of the year,” Bradford Cooke, Endeavour CEO, said in a release.

The Guanacevi mine in Durango state is expected to operate at an average production rate of 1,100 t/d, mining three orebodies in 2021. A large portion of the year’s production is forecast to come from the Porvenir Cuatro extension, within the El Curso concessions. These leased concessions did not include upfront costs but carry “significant royalty payments on production.” As a result, cash costs per ounce are expected to trend upwards in 2021, with no major changes anticipated to direct operating costs per tonne.

The Bolanitos mine in Guanajuato state is projected to average 1,050 t/d, mining three vein systems.

Guanacevi is expected to contribute the lion's share of production this year at 3.7 to 4.5 million silver-equivalent oz., followed by Bolanitos at 2.1 to 2.3 million oz. of silver-equivalent.

For 2021, the miner has a sustaining capital budget of US$30.8 million and a growth capital budget of US$2 million. This includes US$16.7 million allocated for capital projects at Guanacevi and US$14.1 million budgeted for projects at Bolanitos.

A feasibility study is also in progress for the Terronera development project in Jalisco state, with a US$9-million budget for the feasibility, expansion of the project team, site prep and sourcing of long lead time items.

A July 2020 prefeasibility study for the asset defined a 1,600 t/d underground operation producing an average of 5.9 million oz. of silver-equivalent a year.

This year, Endeavour also expects to spend US$10.2 million on 50,000 metres of core drilling at brownfields and greenfields projects.

Financial results for the fourth quarter and 2020 are expected on Mar. 1.

For more information, visit www.EdrSilver.com.