Endeavour Silver Provides Q1 2024 Construction Progress Update on Terronera; Construction Progress Reaches 53% Completion
April 23 2024 - 5:00PM
Endeavour Silver Corp.
(“Endeavour” or the
“Company”) (NYSE: EXK; TSX: EDR) is
pleased to provide a Q1 2024 construction progress update for its
Terronera Project in Jalisco state, Mexico. A photo gallery
presentation accompanies this news release and can be found
here or on the Company website at
Terronera Project Progress Photos. All dollar ($)
references in this news release are United States dollars.
The Terronera project made significant progress
in the first quarter, as concrete work was nearly complete on the
Upper Plant Platform and erection of structural steel advanced for
areas including crushing, coarse-ore storage, grinding, flotation,
and thickening. Mechanical installation of major equipment
continued to advance on schedule and the project remains on track
for commissioning in Q4 2024.
“Site activities ramped up rapidly, as overall
construction surpassed the halfway milestone,” commented Don Gray,
Chief Operating Officer. “We’ve been very pleased with progress of
structural steel erection and major equipment installation
including the semi-autogenous grinding (“SAG”) and ball mills,
apron feeders and flotation cells. Our procurement and materials
management planning has been effective in keeping pace with site
construction. We’ve been able to install many components upon
immediate arrival to site, while making use of the limited laydown
area. Underground mine development continues advancing very well,
and we anticipate initial ore access in Q2. We are exceptionally
pleased with the progress our Terronera team is making and remain
committed to successfully completing and operating Endeavour's next
core asset.”
Q1 2024 Construction and Development
Highlights
As of March 31, 2024, site works and activities
included:
- Safety – A strong onsite safety focus has enabled a notable 60%
reduction in the lost-time injury frequency rate since Q2 2023,
during a substantial increase in the workforce. Ongoing initiatives
such as mandatory certification for working-at-heights, frequent
field audits and inspections, rescue-team training, and regular
emergency drills continue.
- Progress – Overall project progress reached 53% completion,
with more than $158 million (1) of the project’s budget spent to
date. Project commitments total $225 million (1,2) which is 83% of
the $271 million capital budget.
- Engineering – Efforts have been transitioning over to
construction support. Detail design was completed for the Tailing
Storage Facility (“TSF”), Portal 2 waste dump, and Lower Platform
excavation.
- Mine Development – During the quarter, over 1,000 metres of
underground mine development was completed, bringing the total to
over 3,200 metres. Mine crews continue working in Portal 1, 2, and
4 declines with excavations well advanced for the explosives
magazines and the main pump-station sump system.
- Upper Platform Plant Site – Surface mill and infrastructure
construction is 56% complete and progressing on schedule. Concrete
work is 83% complete, and structural steel erection is 80%
complete.
- Primary Crusher – Structural and mechanical construction was
initiated on the conveyor and apron feeder support steel, and the
apron feeder was placed in position.
- Course Ore Stockpile and Reclaim (“COS”) Tunnel – Two apron
feeders were installed in the COS tunnel along with structural
steel support, which opened the area to install the SAG feed
conveyor.
- Grinding – All major SAG and Ball Mill components were
assembled. The high-pressure hydraulic pump was used for mounting
the main bearings (spherical roller bearings), and all four
bearings were installed under vendor supervision. Structural steel
and pump installations continued.
- Flotation – All flotation cell tanks were set in place and
installation of the drive decks and structural steel installation
continued. Several drive decks were assembled on the ground and
lifted as complete units for each flotation cell tank. The regrind
mill was set in place.
- Tailing Thickener – The floor foundation and wall concrete were
completed and erection of steel commenced together with the
installation of the thickener tank floor.
- Lower Facilities Platform and TSF – Excavation for the TSF
embankment key trench was nearly 60% complete, and the lower
platform area was nearly 45% complete, with the excavated material
suitable to use in the TSF key trench and as embankment fill.
Concrete work on the lower platform is anticipated to start in
Q2.
- Procurement – Bulk materials procurement purchase orders have
been released and lead times are aligned with the current schedule.
The Procurement team has focused on critical path purchases, such
as electrical components and transfer chutes, and reducing bulk
material lead times to increase schedule float.
- Onsite Personnel – The workforce increased to 150 employees and
over 400 contractor workers.
- Community Relations – Supporting the local municipality
continues to be a major commitment. A new miner training program
for local community members was established to provide training and
employment. The Company also sponsored English and computer skills
for local communities.
- Environmental – Environmental and social assessment initiatives
continue according to schedule as outlined under the Equator
Principal requirements for project loan financing.
Next Steps and Planning
The Terronera Project is on track for
commissioning in Q4 2024.
For Q2 2024, surface construction will continue
focusing on mechanical installations and initial electrical work
for the crushing, coarse-ore stockpile, grinding, flotation and
tailing thickener areas. Excavation of the Lower Platform is
anticipated to be complete in the coming months. Concrete work is
expected to be initiated for the LNG and power generation and
concentrate and tailing filtration. Concentrate and tailing
filtration structural, mechanical, and electrical installations
will commence in early Q3.
Mine development in Portal 1, 2 and 4 declines
will continue with first ore development anticipated in Q2. Initial
long-hole mining is planned for Q3 followed by cut-and-fill mining;
ore will be stockpiled for mill ramp up. Development activities at
La Luz are anticipated to begin in Q2 with portal construction and
ramp advance to ore access anticipated in Q4. The critical path
remains the TSF and lower platform construction and advancing
underground mine, where development is meeting expectations.
Visit www.terronera.com, our dedicated project
website, to stay informed on the ongoing development at Terronera.
Explore updates, learn about our commitment to environmental
stewardship, and discover the positive impacts on local
communities.
About Endeavour Silver:
Endeavour is a mid-tier precious metals company with a strong
commitment to sustainable and responsible mining practices. With
operations in Mexico and the development of the new cornerstone
mine in Jalisco state, the Company aims to contribute positively to
the mining industry and the communities in which it operates. In
addition, Endeavour has a portfolio of exploration projects in
Mexico, Chile and the United States to facilitate its goal to
become a premier senior silver producer.
Contact InformationGalina Meleger, VP, Investor
RelationsEmail: gmeleger@edrsilver.comWebsite:
www.edrsilver.comFollow Endeavour Silver on Facebook, X,
Instagram and LinkedIn
Footnote:
- Financial
figures are based on a preliminary estimate. Final audited figures
will be released with the Q1 2024 financial statements on May 9,
2024.
- Project
commitments are inclusive of total project expenditures.
Cautionary Note Regarding
Forward-Looking Statements
This news release contains “forward-looking
statements” within the meaning of the United States private
securities litigation reform act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities
legislation. Such forward-looking statements and information herein
include but are not limited to statements regarding the development
and financing of the Terronera Project including: capital cost
estimates, anticipated timing of the project construction;
anticipated timing of drawdown under the project loan debt
facility, Terronera’s forecasted operations, costs and
expenditures, and the timing and results of various related
activities. The Company does not intend to and does not assume any
obligation to update such forward-looking statements or
information, other than as required by applicable law.
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 changes in
production and costs guidance; the ongoing effects of inflation and
supply chain issues on mine economics; national and local
governments, legislation, taxation, controls, regulations and
political or economic developments in Canada, Chile, the U.S.A and
Mexico; financial risks due to precious metals prices; operating or
technical difficulties in mineral exploration, development and
mining activities; risks and hazards of mineral exploration,
development and mining; the speculative nature of mineral
exploration and development; risks in obtaining necessary licenses
and permits; satisfaction of conditions precedent to drawdown under
the project loan debt facility; the ongoing effects of inflation
and supply chain issues on the Terronera Project economics;
fluctuations in the prices of silver and gold, fluctuations in the
currency markets (particularly the Mexican peso, Chilean peso,
Canadian dollar and U.S. dollar); and challenges to the Company’s
title to properties; as well as those factors described in the
section “risk factors” contained in the Company’s most recent form
40F/Annual Information Form filed with the S.E.C. and Canadian
securities regulatory authorities.
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, forecasted Terronera mine economics as of 2024, 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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