Vancouver, Canada — July 11, 2011 – Endeavour Silver Corp. (NYSE: EXK, TSX: EDR, Frankfurt: EJD) announced today continued growth of silver and gold production in the Second Quarter, 2011 from the Company’s two operating silver mines in Mexico, the Guanacevi Mine in Durango State and the Guanajuato Mine in Guanajuato State.
Silver production was up 3% to 850,476 ounces (oz) and gold production was up 8% to 4,831 oz compared to the Second Quarter, 2010. Revenues were up 85% for the quarter to US$36.4 million thanks to both the higher metal production and higher realized metal prices.
Production Highlights of Second Quarter, 2011 (Compared to Second Quarter, 2010)
- Silver production up 3% to 850,476 oz
- Gold production up 8% to 4,831 oz
- Silver and equivalents production up 4% to 1.04 million oz (at a 40:1 silver:gold ratio)
- Revenues up 85% to US$36.4 million
- Realized silver price up 102% to US$37.65 per oz sold
- Realized gold price up 26% to US$1,523 per oz sold
Godfrey Walton, President and COO, stated, “Endeavour delivered another quarter of growing silver and gold production in Q2, 2011. Production was up slightly year on year and down slightly quarter on quarter but well within our guidance for 2011. We planned for a relatively flat quarter of production due to our operations teams focusing on the capital expansion programs.”
“Production should start rising again once the Guanajuato plant expansion from 600 tonnes per day (tpd) to 1,000 tpd is completed in Q3, 2011. We are actually installing an additional 1,000 tpd circuit at the plant, to be commissioned later this quarter, at which time the current 600 tpd circuit will be idled, leaving the door open for further production expansion to 1,600 tpd once our reserves and resources have also grown.”
At Guanajuato, the Lucero vein continues to dominate mine production with the balance of ore coming from the Cebada and Bolanitos mines. At the Lucero South mine, the main access ramp is on track to connect with the Lucero mine in the next three months and crosscuts have already accessed the top two levels of each of the Lucero, Karina, Fernanda and Daniela veins so that mine production can be expanded to 1,000 tpd.
The expansion of the Guanajuato plant is about 65% complete and proceeding on time and budget. All required mill equipment has been delivered to the site, including a refurbished 1,000 tpd ball mill, new Nordberg cone crusher, conveyors, fine ore bin and flotation cells. Construction and electrical work related to the new cone crusher, conveyors and fine ore bin are largely completed and mechanical and installation work related to the new mill, cyclone and flotation circuits are making good progress.
At Guanacevi, the Porvenir Norte ore-body continues to dominate mine production with Porvenir Dos ores complementing it. The Porvenir Cuatro mine access ramp has reached the second deepest mine level and so will be fully developed for production shortly and the Santa Cruz mine access ramp has reached the fourth mine level and is being actively developed for production this year.
The dry stack tailings project at Guanacevi is also on time and budget, design work is complete, the filter presses have been ordered and completion is expected in Q4, 2011. The new 115 Kva power line for the mine and plant is currently being designed with installation by CFE scheduled for commencement this quarter and completion late this year. Mine development is now accelerating at both mines as a result of new equipment and new miners arriving at the mine-sites.
Godfrey Walton, M.Sc., P. Geo., the President and COO for Endeavour, is the Qualified Person who reviewed this news release and oversaw the mining operations.
ENDEAVOUR SILVER CORP.
/s/ “Bradford J. Cooke”
Chairman and CEO