Endeavour Silver Produces 942,274 oz Silver and 10,260 oz Gold (1.8 Million oz Silver Eq.) in Third Quarter, 2020; Hosting Video Zoom Update on October 13, 2020
Endeavour Silver Produces 942,274 oz Silver and 10,260 oz Gold (1.8 Million oz
Silver Eq.) in Third Quarter, 2020; Hosting Video Zoom Update on October 13,
2020
VANCOUVER, British Columbia, Oct. 08, 2020 -- Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) reports production of
942,274 silver ounces (oz) and 10,260 gold oz in Q3, 2020, for silver equivalent (“AgEq”) production of 1.8 million oz at an 80:1
silver:gold ratio, bringing the year to date production total to 4.4 million AgEq oz.
Endeavour operates three high grade, underground, silver-gold mines in Mexico; Guanacevi in Durango state, Bolanitos in
Guanajuato state and El Compas in Zacatecas state. Production returned to plan in Q3, notwithstanding a heavy rain season,
after a two month shut down in Q2 following a government mandated suspension of mining operations due to COVID-19.
Bradford Cooke, Endeavour CEO, commented, “After riding out a challenging Q2 with our mining operations suspended for
more than half the quarter, due to the government COVID-19 mandate, our operations team were able to deliver a return to our
production plan in Q3, 2020. I commend all of our employees for quickly and fully embracing our COVID-19 precautionary
measures to prevent contagion at our mine sites.”
“This pandemic has temporarily changed our lives and required all of us to be persistent with our safety procedures to operate
as safely and effectively as possible. We continue to keep our higher risk people safe at home during this period and yet our
mines are running near capacity despite having fewer employees on site, a testament to the positive response by our
operations management and employees.”
2020 Third Quarter Highlights
• Consolidated Silver Equivalent Production Continues to Improve Q-o-Q: Production was up 66% compared to
Q2, 2020 due to the resumption of normal throughput.
• Guanacevi Grades Continue to Outperform: Silver and gold grades continued to deliver well above plan however
throughput was affected by significant rainfall in August and September. Over 24,000 tonnes of ore was stockpiled at
the plant during the quarter. Management anticipates reaching 1,200 tpd in Q4, while reviewing alternatives to better
manage next year’s rainy season.
• Bolanitos Performance Continues to Improve: Throughput approached 1,075 tpd while gold grades aligned with plan
and silver grades remain lower than plan. Output from San Miguel is expected to increase in Q4, 2020 as mine
development is completed and grades will rise.
• El Compas Performance Remains Steady: Throughput at 260 tpd remains steady while gold grades were similar to
plan, but silver grades remain lower than plan. Brownfield exploration re-started in the quarter and will continue through
Q4, 2020.
• Metal Sales and Inventories: Sold 741,263 oz silver and 8,998 oz gold, held 412,913 oz silver and 1,963 oz gold of
bullion inventory and 13,761 oz silver and 1,032 oz gold in concentrate inventory. The Company’s improved balance
sheet provided management with the flexibility to withhold metal from sale during the price correction over last two
weeks of September. Management expects to sell a significant portion of the metal inventory in anticipation of a
precious metal prices rebound in Q4, 2020.
• Robust Economics in the Updated 2020 Pre-Feasibility Study on the Terronera Mine Project: Represents the
Company’s next core asset with a low CAPEX and low operating costs, short payback period and exceptional financial
returns. See EDR news release dated July 14, 2020 or the accompanying webinar slides here.
• Strengthening Management Team with Newly Appointed Chief Operating Officer: Mr. Gray brings over 40 years
experience in mine engineering and operations, including strategic planning, budget oversight, economic evaluations
and corporate development. He has been responsible for designing, financing, constructing and operating large precious
metal mines along with all related sustainability programs including health, safety, environmental, community, security
and labour, and corporate responsibilities with stakeholders.
• Advancing Terronera: Awarded Feasibility Study contract to Wood Plc, for completion in the summer of 2021.
• Filed At-The-Market Prospectus Supplement for up to $60 million: Proceeds to be used for funding growth
initiatives including advancing Terronera, Parral and prospective mergers and acquisitions and working capital purposes.
2020 Third Quarter Mining Operations
Consolidated silver production in Q3, 2020 was lower than Q3, 2019 due to lower silver grades from the Bolañitos and
El Compas mines, and the November 2019 suspension of El Cubo operations, offset by a significant increase
in silver grade ore at the Guanacevi mine. Consolidated gold production increased 6% due to higher throughputs and gold
grade ore from the Bolañitos and Guanacevi mines, offset by lower grades from El Compas and the November 2019
suspension of the El Cubo operations.
Guanacevi silver and gold grades were both significantly higher than Q3, 2019 and well above plan. Mining the new, higher
grade El Curso, Milache and SCS orebodies has led to the significantly improved ore grades. Mine output approached plan in
Q3, 2020, however an extremely wet August and September impacted the plant throughput during the quarter. The mine added
over 24,000 tonnes of ore to the plant stockpile in Q3, 2020 and as the rain subsides, management expects throughput to
reach the plant capacity of 1,200 tpd by quarter-end. Management is reviewing alternatives to reduce the impact of rain on
future plant throughput.
Bolanitos gold grades were higher and silver grades were lower than Q3, 2019. The Q2, 2020 mine re-start focused on
accelerated mine development and additional dilution control in order to return to plan in Q3, 2020. Mine output and plant
throughput approached plan and is expected to maintain these levels going forward. Silver grades remain lower than plan due
to lower mine output from the San Miguel vein which has higher silver and gold grades than other working areas. The output
from San Miguel vein is expected to increase in Q4, 2020 as development is completed. Mine development will continue to
focus on completing access to the San Miguel ore body and commencing access to the Medallito discovery.
El Compas throughput was above plan, however dilution remains a continuing focus at the mine. El Compas grades were lower
than Q3, 2019, and below planned grade. The variation of grades was due to dilution and normal fluctuations in the ore body.
Production Highlights for Three Months and Nine Months Ended September 30, 2020.
Three Months Ended September 30 Q3 2020 Highlights Nine Months Ended September 30
2020 2019 % Change 2020 2019 % Change
206,324 234,196 (12%) Throughput (tonnes) 519,771 718,355 (28%)
942,274 948,547 (1%) Silver ounces produced 2,396,478 3,079,224 (22%)
10,260 9,716 6% Gold ounces produced 24,553 29,329 (16%)
932,837 938,572 (1%) Payable silver ounces produced 2,373,246 3,028,383 (22%)
10,041 9,465 6% Payable gold ounces produced 24,078 28,606 (16%)
1,763,074 1,725,827 2% Silver equivalent ounces produced(1) 4,360,718 5,425,544 (20%)
741,262 835,045 (11%) Silver ounces sold 2,041,601 3,004,495 (32%)
8,997 9,373 (4%) Gold ounces sold 21,669 28,348 (24%)
(1) Silver equivalent ounces calculated using 80:1 ratio.
Production Tables for Third Quarter, 2020 by Mine (2)
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 83,816 911 336 0.95 89.1% 91.5% 806,917 2,342
Bolañitos 98,945 1,075 42 2.04 83.9% 89.1% 112,094 5,779
El Compas 23,563 256 48 3.98 64.0% 70.9% 23,263 2,139
Consolidated 206,324 2,243 162 1.82 87.6% 85.0% 942,274 10,260
(1) gpt = grams per tonne
Production Tables for Nine Months Ended September 30, 2020 by Mine (2)
Production Tonnes Tonnes Grade Grade Recovery Recovery Silver Gold
by mine Produced per day (2) Ag gpt(1) Au gpt(1) Ag % Au % Oz Oz
Guanaceví 240,254 877 306 0.94 88.0% 91.1% 2,079,378 6,616
Bolañitos 223,842 817 42 1.93 84.0% 87.9% 253,901 12,209
El Compas 55,675 203 54 4.28 65.4% 74.8% 63,199 5,728
Consolidated 519,771 1,897 165 1.72 86.7% 85.2% 2,396,478 24,553
(1) gpt = grams per tonne
(2) results for the year to date represent a partial period of production, as operations were suspended for more than half the
second quarter, as mandated by the Mexican Government in response to the pandemic
ZOOM Video Update – Third Quarter, 2020 Production Results
A zoom video webcast to discuss these results is scheduled for Tuesday October 13, 2020, at 10:00 a.m. Pacific time (1:00
p.m. Eastern time), with Dan Dickson, Chief Financial Officer and Galina Meleger, Director of IR. The zoom webcast will be
archived for replay 24 hours after the event, under the Company's website at www.edrsilver.com under the Investor Relations,
Events, Webcast section. To join this event, you must use the ZOOM app or web-based platform.
ZOOM Registration: https://zoom.us/webinar/register/WN_PuHpYdU7TdCDveR8LmkEOg
After registering for the meeting, you will receive an email confirmation with the direct webinar link. A Question & Answer
period will follow the brief presentation. Participants can submit a question through the chat feature in zoom or can email
questions in advance directly to [email protected]
Release of Third Quarter, 2020 Financial Results and Conference Call
The 2020 Third Quarter Financial Results will be released before market on Thursday, November 5, 2020 and a telephone
conference call will be held the same day at 10:00am PT (1:00pm ET). To participate in the conference call, please dial the
numbers below. No pass code is necessary.
Toll-free in Canada and the US: 1-800-319-4610
Local Vancouver: 604-638-5340
Outside of Canada and the US: +604-638-5340
A replay of the conference call will be available by dialing 1-800-319-6413 in Canada and the US (toll-free) or +604-638-9010
outside of Canada and the US. The required pass code is 5378#. The audio replay and a written transcript will be available on
the Company’s website at www.edrsilver.com under the Investor Relations, Events section.
About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that owns and operates
three high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project
towards a development decision and exploring its portfolio of exploration and development projects in Mexico and Chile to
facilitate its goal to become a premier senior silver producer. Our philosophy of corporate social integrity creates value for all
stakeholders.
SOURCE Endeavour Silver Corp.
Contact Information:
Galina Meleger, Director, Investor Relations
Toll free: (877) 685-9775
Tel: (604) 640-4804
Email: [email protected]
Website: www.edrsilver.com
Follow Endeavour Silver on Facebook, Twitter, Instagram and LinkedIn
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
forwardlooking statements and information herein include but are not limited to statements regarding the impact of suspension
of mining operations, Endeavour’s anticipated performance in 2020, including production forecasts, cost estimates and metal
price estimates, and the timing and results of mine expansion and development and receipt of various permits. 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, performance or achievements of Endeavour and its operations to be materially different
from those expressed or implied by such statements. Such factors include, among others, uncertainty of the ultimate impact
of the COVID-19 pandemic on operations, changes in national and local governments, legislation, taxation, controls,
regulations and political or economic developments in Canada and Mexico; operating or technical difficulties in mineral
exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; metal
prices; the speculative nature of mineral exploration and development, risks in obtaining necessary licenses and permits, 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, the impact of the COVID-19 pandemic on mining operations in
Mexico generally, and the Company’s operations specifically, 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, resource and reserve estimates, metal prices, 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.