Endeavour Silver Updates Mineral Reserve and Mineral Resource Estimates for its Operating Mines and Development Projects and Reports Initial Mineral Resource Estimate for New Parral Properties
Endeavour Silver Updates Mineral Reserve and Mineral Resource Estimates
for its Operating Mines and Development Projects and Reports Initial Mineral
Resource Estimate for New Parral Properties
VANCOUVER, British Columbia, Feb. 07, 2018 -- Endeavour Silver Corp. (TSX:EDR) (NYSE:EXK) reports updated NI 43-
101 Mineral Reserve and Resource Estimates for its three operating mines and two development projects and an initial Mineral
Resource Estimate for its new Parral Properties, all in Mexico.
2017 Mineral Reserve and Resource Estimate Highlights (Compared to December 31, 2016)
• Silver Proven and Probable Mineral Reserves increased 217% to 33.5 million ounces (oz)
• Gold Proven and Probable Mineral Reserves increased 246% to 315,300 oz
• Silver equivalent Proven and Probable Mineral Reserves increased 228% to 57.1 million oz (75:1 silver:gold ratio)
• Silver Measured and Indicated Mineral Resources decreased 46% to 36.7 million oz
• Gold Measured and Indicated Mineral Resources decreased 35% to 362,900 oz
• Silver equivalent Measured and Indicated Mineral Resources decreased 42% to 63.9 million oz
• Silver Inferred Mineral Resources increased 44% to 53.1 million oz
• Gold Inferred Mineral Resources decreased 12% to 300,800 oz
• Silver equivalent Inferred Mineral Resources increased 22% to 75.7 million oz
Bradford Cooke, CEO of Endeavour, stated, “We enjoyed solid development and exploration success in 2017, more than
replacing our Mineral Reserves and growing our silver Mineral Resources. We also published a Pre-Feasibility Study (“PFS”)
for Terronera, a Preliminary Economic Assessment (“PEA”) for El Compas, and an initial silver Mineral Resource Estimate for
the new Parral Properties. The substantial growth of our Mineral Reserves and Mineral Resources is a testament to our
exploration and acquisition teams. We now have a strong pipeline of exploration and development projects to drive our next
phase of organic growth.
“Looking forward to 2018, we plan to invest US$11.1 million on exploration, the majority of which will target organic growth
opportunities, including brownfields targets around our operating mines and development projects and greenfields targets such
as Parral. This year, Parral will be our largest exploration expenditure, as we continue testing new silver vein targets and
enhance our geological understanding of the historic Mineral Resource areas. At Terronera, we will test the southeast
extension of mineralization in the high grade Terronera Vein and drill other vein targets. At El Compas, further testing of the
Misie-Karla-Karla HW and Calicanto Veins and new zones will be key priorities.”
2017 Mineral Reserve and Resource Estimate Summaries
Proven and Probable silver and gold Mineral Reserves increased year over year by 217% and 246% respectively to 33.5 million
ounces of silver and 315,000 ounces of gold. On a silver equivalent basis, Mineral Reserves totalled 57.1 million ounces (at a
silver to gold ratio of 75:1). These significant increases in Mineral Reserves are mainly due to the reclassification of Mineral
Resources into Mineral Reserves pursuant to the NI 43-101 Technical Report, Preliminary Feasibility Study for the Terronera
Project, Jalisco State Mexico dated May 18, 2017 . The PFS Report estimated 4.06 million tonnes of Probable Mineral
Reserves grading 207 g/t silver and 1.95 g/t gold containing 27 million silver ounces and 255,000 gold ounces at Terronera.
When the Terronera Mineral Reserves are excluded from the new estimate, silver and gold Mineral Reserves at the three mines
decreased by 11% and 9% respectively.
Measured and Indicated silver and gold Mineral Resources declined by 46% and 35% respectively to 31.6 million ounces of
silver and 312,600 ounces of gold. The decrease in Measured and Indicated Mineral Resources was mainly the result of
conversion into Mineral Reserves at the Terronera project and at the existing operations. When the conversion of Terronera
Indicated Mineral Resources to Mineral Reserves are excluded from the Measured and Indicated Mineral Resource Estimate,
Measured and Indicated silver and gold Mineral Resources declined 20% and 14%, respectively at the three mines.
Inferred silver Mineral Resources increased by 44% due to the initial Mineral Resource Estimate for the new Parral Properties.
At Parral, forty-one drill holes totalling 11,300 metres were completed, primarily to verify a part of the historic Mineral Resource
in the Veta Colorada mine area and to test one of the targets within the Palmilla Mine area. The initial estimate consists of an
Indicated Mineral Resource of 216,000 silver ounces and an Inferred Mineral Resource of 19.2 million silver ounces and 18,100
gold ounces. A Technical Report prepared in accordance with NI 43-101 for the Parral Properties will be completed and filed on
SEDAR in March 2018.
Last year, the Company completed an NI 43-101 Technical Report for a Preliminary Economic Assessment for the El Compas
Project, Zacatecas State, Mexico dated May 11, 2017 . The Technical Report estimated an initial Mineral Resource of 495,000
silver ounces and 34,900 gold ounces in the Indicated category; and 465,000 silver ounces and 10,600 gold ounces in the
Inferred category. The El Compas Mineral Resource is a shallow high grade epithermal vein system that is estimated to
provide a robust after tax return on investment (IRR) of 42% (see Endeavour News Release dated March 27, 2017). Due to the
positive economics, low initial capital requirements, and management’s experience in having successfully developed similar
mines in Mexico, a decision was made to proceed with the mine development in Q3, 2017. The Company expects to reach
commercial production at El Compas in July 2018 (see Endeavour News Release dated January 25, 2018).
Mineral Reserve and Resource Estimates at December 31, 2017 (1-16)
Silver-Gold Proven and Probable Mineral Reserves
Tonnes Ag g/t Au g/t Ag Eq g/t Ag oz Au oz Ag Eq oz
Proven
Guanaceví 82,000 224 0.49 261 591,000 1,300 688,500
Bolañitos 154,000 87 2.48 273 431,000 12,300 1,353,500
El Cubo 171,000 184 1.80 319 1,010,000 9,900 1,752,500
Total Proven 407,000 155 1.80 290 2,032,000 23,500 3,794,500
Probable
Guanaceví 224,000 252 0.58 296 1,812,000 4,200 2,127,000
Bolañitos 258,000 86 1.87 226 714,000 15,500 1,876,500
El Cubo 317,000 186 1.68 312 1,894,000 17,100 3,176,500
Terronera 4,061,000 207 1.95 353 27,027,000 255,000 46,152,000
Total Probable 4,860,000 201 1.87 341 31,447,000 291,800 53,332,000
Total P&P 5,267,000 198 1.86 337 33,479,400 315,300 57,126,500
Silver-Gold Measured and Indicated Mineral Resources
Tonnes Ag g/t Au g/t Ag Eq g/t Ag oz Au oz Ag Eq oz
Measured
Guanaceví 17,000 299 0.38 328 167,000 200 182,000
Bolañitos 31,000 118 2.28 289 118,000 2,300 290,500
El Cubo 207,000 184 2.90 402 1,225,000 19,300 2,672,500
Total Measured 255,000 184 2.66 384 1,510,000 21,800 3,145,000
Indicated
Guanaceví 1,650,000 310 0.80 370 16,449,000 42,400 19,629,000
Bolañitos 763,000 152 1.84 290 3,727,000 45,100 7,109,500
El Cubo 404,000 165 1.98 314 2,143,000 25,700 4,070,500
El Compas 148,000 104 7.31 652 495,000 34,900 3,112,500
Guadalupe y Calvo 1,861,000 119 2.38 298 7,120,000 142,400 17,800,000
Parral (new) 37,000 184 0.27 204 216,000 300 238,500
Total Indicated 4,863,000 193 1.86 332 30,150,000 290,800 51,960,000
Total M&I 5,118,000 192 1.90 335 31,660,000 312,600 55,105,000
Silver-Gold Inferred Mineral Resources
Tonnes Ag g/t Au g/t Ag Eq g/t Ag oz Au oz Ag Eq oz
Inferred
Guanaceví 761,000 314 0.78 373 7,684,000 19,100 9,116,500
Bolañitos 945,000 150 1.95 296 4,556,000 59,200 8,996,000
El Cubo 1,100,000 143 2.07 298 5,058,000 73,200 10,548,000
Terronera 1,174,000 288 1.16 375 10,848,000 43,700 14,125,500
El Compas 217,000 76 5.38 480 530,000 37,500 3,342,500
Guadalupe y Calvo 154,000 94 2.14 255 465,000 10,600 1,260,000
Parral (new) 2,283,000 262 0.25 281 19,215,000 18,100 20,572,500
Total Inferred 6,634,000 227 1.23 319 48,356,000 261,400 67,961,000
Silver-Gold-Lead-Zinc Mineral Resources
Tonnes Ag g/t Au g/t Ag Eq g/t(1) Ag oz Au oz Ag Eq oz(1) Pb% Zn%
Indicated
Guanacevi 363,000 208 0.26 302 2,420,500 3,100 2,653,000 0.78 1.32
Parral (Cometa) 1,631,000 49 0.90 117 2,589,900 47,200 6,129,900 2.87 2.86
Total Indicated 1,994,000 78 0.78 151 5,010,400 50,300 8,782,900 2.49 2.58
Inferred
Guanacevi 488,000 132 0.16 293 2,076,000 2,500 2,263,500 1.36 2.54
Parral (Cometa) 1,303,000 63 0.88 129 2,658,900 36,900 5,426,400 2.55 2.28
Total Inferred 1,791,000 82 0.68 174 4,734,900 39,400 7,689,900 2.23 2.35
Notes:
1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty
that any or all part of the Mineral Resources will be converted into Mineral Reserves. The estimate of Mineral Resources
may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant
issues.
2. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral
Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred
Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3. The Mineral Resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM
Standing Committee on Reserve Definitions and adopted by CIM Council.
4. Mineral Resources are exclusive of and in addition to Mineral Reserves.
5. Mineral Resource and Mineral Reserve cut-off grades are based on a 202 g/t silver equivalent for Guanaceví, 158 g/t
silver equivalent for Bolañitos, 152 g/t silver equivalent for Villalpando Ascuncion ore zone of El Cubo and 218 g/t silver
equivalent for Santa Cecilia ore zone of El Cubo, and 150 g/t silver equivalent for Terronera, El Compas, Guadalupe y
Calvo and Parral Properties.
6. Metallurgical recoveries were 83.0% silver and 85.0% gold for Guanaceví, 84.3% silver and 87.7% gold for Bolañitos,
and 87.0% silver and 86.7% gold for El Cubo.
7. Mining recoveries of 92% were applied for Mineral Reserve Estimate calculations.
8. Minimum mining widths were 0.8 metres for Mineral Reserve Estimate calculations.
9. Dilution factors for Mineral Reserve Estimate calculations averaged 26% for Guanaceví, 28% for Bolañitos, and 35% for
El Cubo. Dilution factors are calculated based on internal stope dilution calculations and external dilution factors of 15%
for cut and fill mining and 30% for long hole mining at Guanaceví, 28% and Bolañitos and 54% for long mining at El
Cubo.
10. Silver equivalent grades are based on a 75:1 silver:gold ratio and calculated including only silver and gold.
11. Inferred Mineral Resources for Terronera includes the Terronera and Real Alto Area (Animas-Los Negros, El Tajo & Real
veins).
12. The La Colorada structure (Parral) does not contain gold on an economic scale.
13. Price assumptions for Guanaceví, Bolañitos and El Cubo are US$17.26/oz for silver, US$1,232/oz for gold, US$0.82/lb
for lead and US$0.90/lb for zinc.
14. Price assumptions for Terronera are US$18/oz for silver, US$1,250/oz for gold.
15. Price assumptions for El Compas are US$18/oz for silver, US$1,225/oz for gold.
16. Figures in the tables are rounded to reflect estimate precision; small differences generated by rounding are not material
to the estimates.
Godfrey Walton, M.Sc., P.Geo., President and COO of Endeavour, is the Qualified Person who reviewed and approved the
technical information contained in these Mineral Reserve and Resource Estimates. A Quality Control sampling program of
reference standards, blanks and duplicates has been instituted to monitor the integrity of all assay results. All samples are
split at the local field office and shipped to ALS-Chemex Labs, where they are dried, crushed, split and 50 gram pulp samples
are prepared for analysis. Gold and silver are determined by fire assay with an atomic absorption (AA) finish.
The Mineral Resource Estimates for Terronera, El Compas and Parral were undertaken by Independent Qualified Persons
Eugene Puritch, P.Eng., FEC, CET, Yungang Wu, P.Geo., and David Burga, P.Geo of P&E Mining Consultants Inc. Mr.
Puritch has reviewed and approved the technical content of this press release with respect to the Terronera vein area, El
Compas and new Parral.
The Cometa property in Parral which is part of the Lead-Zinc portion of the table is based on a Technical report titled NI 43-101
Technical Report audit of the Mineral Resource Estimate for the Parral Project, Chuhuahua State, Mexico and filed Dec 15,
2010 and authored by William Lewis, B.Sc., Charley Z. Murahwi M.Sc. MAusIMM and Dibya Kanti Mukhopadhyay M.Sc.
MAusIMM. This report is separate from the Parral Properties described by P&E Mining Consultants Inc.
The resources on the veins (Animas-Negros, Tajo and Real) from the Terronera property were estimated as part of a 43-101
report authored by Michael J. Munroe dated March 27 th 2014 and titled NI 43-101 Technical Report audit of the Mineral
Resource estimate for the San Sebastian Project, Jalisco State, Mexico. The San Sebastian project was renamed the
Terronera project.
About Endeavour – Endeavour Silver Corp. is a mid-tier precious metals mining company that operates three high-grade,
underground, silver-gold mines in Mexico. The Company is forecasting a 20% increase in production to 10.2-11.2 million oz
silver equivalent in 2018. Endeavour has a compelling pipeline of exploration and development projects to facilitate its goal to
become a premier senior silver producer. The Company’s fourth mine, El Compas in Zacatecas state, will be in production
this year and the Terronera Project in Jalisco state is awaiting final permits and a production decision to become Endeavour’s
fifth producing mine. Our philosophy of corporate social integrity creates value for all stakeholders.
SOURCE Endeavour Silver Corp.
Contact Information - For more information, please contact:
Galina Meleger, Director Investor Relations
Toll free: (877) 685-9775
Tel: (604) 640-4804
Fax: (604) 685-9744
Email: [email protected]
Website: www.edrsilver.com
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 Endeavour’s anticipated
performance in 2018, Mineral Resource and Reserve Estimates, and the timing and results of various future 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, 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 to 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; the reliability of Mineral Resource
and Reserve Estimates risks and hazards of mineral exploration, development and mining; 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, no material adverse change in the market price of commodities,
the reliability of Mineral Resource and Reserve Estimates, 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.