Canada's Endeavour reports drop in Q2 gold, silver output

Wednesday, July 12, 2017

Canadian precious metals miner Endeavour Silver reported a drop in second quarter silver and gold production at its three mines in Mexico due to spending cuts.

Silver output fell 26% to 1.14Moz in the quarter from 1.55Moz a year earlier, while gold was down 17% to 13,058oz from 15,649oz a year ago, the Vancouver-based company said in a statement. Endeavour treated 303,943t of ore, down 19% from 377,198t in Q2 2016.

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Silver sales fell 34% to 988,821oz, while gold sales declined 20% to 12,294oz, it said. Bullion inventory totaled 226,437oz silver and 631oz gold through June 30, with another 50,644oz silver and 890oz gold in concentrates, according to the company.

Output was lower at the Bolañitos and El Cubo mines in Guanajuato and Guanaceví in Durango due to a decision last year to slash exploration and development spending, reducing mine access to reserves, the company said. Endeavour said it plans to increase spending this year to boost output at all three mines.

Work is underway on a mine ramp at the El Compas project, which will become the company's fourth mine, CEO Bradford Cooke said in the statement. Endeavour also secured mine and plant permits for its Terronera project from Mexico's environment ministry (Semarnat), while waste dump and tailings area permits are expected later this year, Cooke added.

Endeavour produced 5.44Moz silver and 57,375oz gold at all-in sustaining costs of US$12.43/oz silver equivalent in 2016. Mexico is the world's largest silver producer.