Name of the Project
Terronera silver/gold project.

Location
The project is located 40 km north-east of Puerto Vallarta, in the state of Jalisco, Mexico.

Client
Endeavour Silver.

Project Description
A prefeasibility study on the project has proven positive.

The updated Terronera indicated resource estimate totals 29.6-million ounces of silver and 277 000 oz of gold for 49-million silver-equivalent ounces. Inferred resources are estimated at 7.1-million ounces of silver and 34 000 oz of gold for 9.5-million ounces of silver equivalent. The mine plan calls for an initial production rate of 1 000 t/d during the first two years (Phase 1), expanding to 2 000 t/d in the third year (Phase 2).

The plant will process 4.1-million tonnes over the seven-year mine life, grading 207 g/t silver and 1.95 g/t gold and recovering 87% of the silver and 75% of the gold.

Total life-of-mine production is expected to be 22.6-million ounces of silver and 185 000 oz of gold for 44.9-million of silver equivalent. 

Jobs to Be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 5% discount rate, of $78.2 million and an internal rate of return of 21%, with a payback of 4.3 years.

Value
Initial capital expenditure for Phase 1 is estimated at $69.2-million, comprising $43.1-million for plant and site infrastructure, $8.7-million for mine development, mine infrastructure and equipment, $9.4-million for owner’s costs, a construction camp, and engineering, procurement and construction management, and $8-million for contingencies.

The capital for the Phase 2 expansion from 1 000 t/d to 2 000 t/d is estimated at $35.5-million. 

Duration
Not stated.

Latest Developments
Subject to receiving the remaining government mine permits and debt financing and completion of certain optimisation work on the prefeasibility study, Endeavour Silver aims to obtain approval from the company’s board of directors to start development of the Terronera mine and related facilities.  

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Endeavour Silver director for investor relations Meghan Brown, tel +1 604 640 4804 or email mbrown@erdsilver.com.