TORONTO (miningweekly.com) – Mid-cap silver miner Endeavour Silver has raised its 2013 output guidance to six-million ounces of silver, up 20% from previous guidance of between 5-million and 5.3-million ounces, and a 34% increase over 2012, mainly owing to higher-than-expected output from its Bolanitos mine, in Guanajuato state, Mexico.

Endeavour, which owns and operates three underground silver/gold mines in the country, said total silver production during the first half of the year totalled three-million ounces.

Gold output was now expected to total 68 000 oz, up 48% from the previous guidance of between 46 000 oz and 49 000 oz, and an 87% increase over 2012. Gold output for the first half of the year was about 35 000 oz.

On a silver-equivalent basis, using a conversion ratio of 60:1, output for the year was now expected to total about ten-million ounces, up 37% from the previous guidance of between 7.3-million ounces and 7.8-million ounces, and a 45% increase over 2012. Silver-equivalent production for the first half totalled about five-million ounces.

“Our Bolanitos mine has outperformed expectations this year and will produce nearly one-million ounces more silver and 22 000 oz more gold than originally planned, primarily due to production grades being higher than the reserve grades and higher tonnage throughputs thanks to the prolonged availability of the leased Las Torres plant near El Cubo," CEO Bradford Cooke said.

He added that the El Cubo and Guanacevi operations were both expected to meet the original output guidance for 2013 and all three plants were operating at close to capacity.

The El Cubo plant is currently processing about 1 100 t/d of El Cubo ores and 400 t/d of Bolanitos ores. “Management's turn-around initiatives at El Cubo have gained traction and, as a result, this mining operation appears to have turned the corner,” Cooke noted.

Endeavour said its capital-growth programmes for 2013 had now been completed and more than half the remaining sustaining capital expenditure for the year was deemed low priority and deferred until next year.

Exploration drilling stopped in July after management implemented a cost-cutting programme, but with the recent bounce back in metal prices, two drills were expected to resume work this month.

The company maintained its cash-cost guidance of between $9/oz and $10/oz of silver produced, net of the gold credits, notwithstanding the lower gold prices.