Mr. Bradford Cooke reports
ENDEAVOUR SILVER UPDATES RESERVE AND RESOURCE ESTIMATES; DEEP DRILLING INTERSECTS HIGHEST GRADES YET AT TERRONERA
Endeavour Silver Corp.
has released an updated National Instrument 43-101 silver and gold reserve and resource estimates for its three producing mines in Mexico: the Guanacevi mine in Durango state, and the Bolanitos and El Cubo mines in Guanajuato state, as well as one exploration project, the Terronera project in Jalisco state, as of Dec. 31, 2015.
Endeavour replaced its proven and probable silver reserves in 2015 notwithstanding a lower metal price assumption ($16 per ounce silver versus $18 per ounce) compared with 2014. Measured and indicated silver resources increased 6 per cent and gold resources decreased 17 per cent in 2015 due, respectively, to upgrading of inferred silver resources at Guanacevi and Bolanitos, and depletion of gold resources at Bolanitos.
Bradford Cooke, chief executive officer of Endeavour, stated: "We are gratified to have replaced our P&P reserves and boosted our M&I silver resources given the challenging metal price environment last year. Our exploration efforts were successful in identifying new mineralization at each mine and the Terronera mine project should be a significant driver of new reserves and resources in 2016."
In past years, Endeavour has used three-year trailing price averages for silver and gold in estimating reserves and resources. At the end of 2015, the trailing price averages for gold and silver were approximately $1,279 per ounce gold and $19.52 per ounce silver, which management views as too high for use in the estimation of reserves and resources. Instead, management used a $1,150-(U.S.)-per-ounce gold price and $16-(U.S.)-per-ounce silver price to more reasonably reflect the near-term outlook.
Reserve/resource highlights -- 2015 (compared with Dec. 31, 2014):
- Silver proven and probable reserves were flat at 12.0 million ounces.
- Gold proven and probable reserves were flat at 110,800 ounces.
- Silver-equivalent proven and probable reserves totalled 19.7 million ounces (70-to-1 silver-to-gold ratio).
- Silver measured and indicated resources increased 7 per cent to 69.8 million ounces.
- Gold measured and indicated resources decreased 19 per cent to 539,500 ounces.
- Silver-equivalent measured and indicated resources totalled 107.6 million ounces.
- Silver inferred resources decreased 12 per cent to 44.7 million ounces.
- Gold inferred resources increased 3 per cent to 349,700 ounces.
- Silver-equivalent inferred resources totalled 69.2 million ounces.
Work on Endeavour's other exploration projects in Mexico (the Guadalupe y Calvo and Parral projects in Chihuahua and the Arroyo Seco project in Michoacan) did not change the resources and previous estimates remain unchanged. The Guadalupe y Calvo resources were estimated in 2012, and the Parral and Arroyo Seco resources were estimated at the end of 2010. The Terronera resource estimate is the same one used in the preliminary economic assessment (PEA) released in May, 2015.
MINERAL RESERVE AND RESOURCE ESTIMATES AT DEC. 31, 2015
AU-AG RESERVES AND RESOURCES
Tonnes Ag Au AgEq Ag Au AgEq
(g/t) (g/t) (g/t) (oz) (oz) (oz)
P&P reserves
Proven
Guanacevi 107,500 254 0.52 290 878,000 1,795 1,003,700
Bolanitos 205,700 125 2.60 307 827,700 17,400 2,045,700
El Cubo 195,200 150 3.11 367 940,600 19,585 2,311,600
Total
proven 508,400 162 2.37 328 2,646,300 38,780 5,361,000
Probable
Guanacevi 798,000 205 0.45 237 5,260,600 11,735 6,082,100
Bolanitos 172,600 101 2.73 292 561,800 15,150 1,622,300
El Cubo 632,100 173 2.23 330 3,521,700 45,105 6,679,100
Total
probable 1,602,700 181 1.40 279 9,344,100 71,990 14,383,500
Total P&P 2,111,100 177 1.63 291 11,990,400 110,770 19,744,500
M&I resources
Measured
Guanacevi 175,500 306 0.54 344 1,728,000 3,090 1,944,300
Bolanitos 101,300 140 2.13 289 457,300 6,940 943,100
El Cubo 74,650 279 2.83 477 670,200 7,062 1,164,500
Total
measured 360,650 255 1.49 359 2,953,400 17,292 4,163,800
Indicated
Guanacevi 2,313,200 277 0.78 331 20,565,600 58,215 24,640,700
Bolanitos 940,700 153 1.94 289 4,639,700 58,610 8,742,400
El Cubo 630,000 215 2.19 368 4,352,400 44,570 7,472,300
Terronera 3,091,400 221 1.71 340 21,947,000 169,500 33,812,000
Guadalupe y
Calvo 1,861,000 119 2.38 286 7,147,300 142,500 17,122,300
Total
indicated 9,104,500 207 1.61 320 60,714,000 470,595 93,655,700
Total M&I 9,465,150 209 1.60 321 63,667,400 487,887 97,819,500
Inferred
resources
Guanacevi 1,150,520 308 0.72 358 11,389,100 26,671 13,256,100
Bolanitos 1,291,700 171 2.74 363 7,104,500 113,900 15,077,500
El Cubo 1,172,500 192 2.68 380 7,247,100 100,800 14,303,100
Terronera 1,176,700 189 1.43 289 7,157,400 54,300 10,958,400
Guadalupe y
Calvo 154,000 94 2.14 244 464,600 10,600 1,206,600
Total
inferred 5,039,520 211 1.90 344 34,132,500 307,971 55,690,500
AG-AU-PB-ZN RESOURCES
Tonnes Ag Au AgEq
(g/t) (g/t) (g/t)
Indicated
Parral 1,631,000 49 0.90 112
Guanacevi 655,000 166 0.21 181
Total indicated 2,286,000 83 0.70 132
Parral 1,303,000 63 0.88 125
Arroyo Seco 738,000 220 0.07 225
Guanacevi 646,000 129 0.15 140
Total inferred 2,687,000 122 0.48 156
Ag Au AgEq Pb Zn
(oz) (oz) (oz) (%) (%)
Indicated
Parral 2,589,900 47,200 5,893,500 2.87 2.86
Guanacevi 3,495,700 4,400 3,805,300 0.61 1.02
Total indicated 6,085,600 51,600 9,698,800 2.22 2.33
Parral 2,658,900 36,900 5,239,500 2.55 2.28
Arroyo Seco 5,220,000 1,700 5,336,300 0.65 0.18
Guanacevi 2,687,300 3,100 2,904,300 1.12 2.07
Total inferred 10,566,200 41,700 13,476,100 1.68 1.65
1. Reserve cut-off grades were 200 g/t silver-equivalent at Guanacevi, 192 g/t
silver-equivalent at Bolanitos and 184 g/t silver-equivalent at El Cubo.
2. Measured and indicated resource cut-off grades were 182 g/t silver-equivalent
at Guanacevi, 175 g/t silver-equivalent at Bolanitos, 167 g/t silver-equivalent
at El Cubo and 150 g/t silver-equivalent at Terronera.
3. Inferred resource cut-off grades for Guanacevi, Bolanitos and El Cubo were
the same as the measured and indicated resource cut-offs and 150 g/t
silver-equivalent at Terronera.
4. Mineral resources are not mineral reserves and do not have demonstrated
economic viability. There is no certainty that all or any part of the mineral
resources estimated will be converted into mineral reserves.
5. Recoveries were 83.5 per cent silver and 86.2 per cent gold at Guanacevi;
75.9 per cent silver and 84.7 per cent gold at Bolanitos; and 87.4 per cent
silver and 89.6 per cent gold at El Cubo.
6. Minimum mining widths were 1.4 metres at Guanacevi, 0.8 metre at Bolanitos
and 0.8 metre at El Cubo.
7. Dilution factors were 26.2 per cent at Guanacevi, 24.0 per cent at Bolanitos
and 23.9 per cent at El Cubo. Dilution factors are calculated based on internal
stope dilution calculations and external dilution factors of 15 per cent for cut
and fill, and 30 per cent for long hole.
8. Silver-equivalents are based on a 70-to-1 silver-to-gold ratio.
9. Price assumptions are $16 per ounce for silver and $1,150 per ounce for gold.
10. Mineral resources are estimated exclusive of and in addition to mineral
reserves.
11. Proven reserves are defined within 10 metres of underground development
while probable reserves extend a further 15 metres from underground development.
Godfrey Walton, MSc, PGeo, president and chief operating officer of Endeavour, is the qualified person who reviewed and approved the technical information contained in these mineral resource estimates. The qualified persons for the mineral resource and reserve estimates were Zachary Black, QP, SME-RM, and Jeffery Choquette, PE, QP, MMSA of Hard Rock Consulting. Technical reports for Guanacevi, Bolanitos and El Cubo will be completed and filed on SEDAR by March 6, 2016.
These reserve and resource statements were classified following the definitions and guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum standards and definitions of mineral resources and reserves, and the guidelines contained in National Instrument 43-101.
Updated exploration highlights -- 2015
Endeavour Silver also released today an update of the company's final exploration drill results in 2015. Last year, the focus was on brownfields exploration around the three operating mines to replace reserves and expand resources, and on infill drilling the Terronera discovery to better define the resources for mine planning and economic modelling.
Luis Castro, Endeavour's vice-president of exploration, commented: "Our exploration programs continued to deliver solid drill results in 2015, notwithstanding a reduced budget due to lower metal prices. In particular, deep drilling at Terronera intersected the highest grades yet on the property, and surface sampling of several other veins identified multiple new high-grade drill targets for 2016. Last year, we spent $7.2-million (U.S.) on exploration, excluding capitalized property costs and drilled 36,385 metres or 119,373 feet in 151 drill holes."
Terronera property
Endeavour drilled 6,130 m in 27 holes at Terronera to infill the recently discovered, thick, high-grade silver-gold mineralization within the Terronera vein. Recent drilling highlights include 3,875 grams per tonne silver and 4.36 g/t gold over 5.58 m true width (122.5 ounces per ton silver-equivalent over 18.3 feet based on a silver-to-gold ratio of 75 to 1) in hole TR09-5.
This hole, drilled below a low-grade hole, TR09-3, which was previously thought to be the bottom of the bonanza mineralized zone, intersected the highest grades yet on the property, including a core zone grading 15,533 g/t silver and 10.0 g/t gold over 0.39 m true width (16,283 g/t silver-equivalent over 1.3 feet based on a silver-to-gold ratio of 75 to 1). This part of the deposit remains open for further drilling.
TERRONERA DRILL RESULTS
Hole From True width Au Ag AgEq
(m) (m) (g/t) (g/t) (g/t)
TR06-4 309.80 1.94 1.37 122 225
Including 309.80 0.23 0.55 674 715
TR08-4 298.40 1.83 0.72 979 1,033
Including 299.20 0.26 2.63 4,360 4,557
TR09-5 302.60 5.58 4.36 3,875 4,202
Including 308.05 0.39 10.00 15,533 16,283Surface grab and chip sampling of three other veins on the Terronera property identified new areas of high-grade silver-gold mineralization over minable widths. The La Luz vein was traced for 1.7 kilometres in length, ranges from two to seven m wide, and grades from nil up to 951 g/t silver and 26.7 g/t gold. The El Padre vein was traced for 1.8 kilometres along strike, ranges from 0.4 to four m wide, and grades from nil up to 358 g/t silver and 10.1 g/t gold. The Democrata vein was traced for 850 m in length, ranges from 0.3 to two m wide, and grades from nil up to 534 g/t silver and 9.3 g/t gold. Each of these veins exhibit small historic mine workings but has never been explored or drilled in modern times.
Bolanitos mine
In 2015, Endeavour drilled 9,500 m in 39 holes at Bolanitos to outline high-grade, gold-silver vein mineralization in the Bolanitos North and Puertecito South areas. Recent drilling highlights include 29 g/t silver and 19.0 g/t gold over 1.69 m true width (42.4 ounces per ton silver-equivalent over 5.5 feet based on a silver-to-gold ratio of 75 to 1) within the San Miguel HW vein in hole MG-03. The San Miguel HW vein intercepts are a shallow extension of the historic San Miguel mine and the mineralization is wide open along strike.
BOLANITOS DRILL RESULTS
Hole From True width Au Ag AgEq
(m) (m) (g/t) (g/t) (g/t)
MG-03 108.75 1.69 19.02 29 1,456
Including 108.95 0.14 97.50 123 7,436
MG-04 29.20 1.32 0.48 385 421
Including 30.55 0.38 0.63 859 906
149.80 2.16 4.44 10 343
Including 152.40 0.26 17.05 27 1,306
MG-05 66.35 1.41 5.47 114 525
Including 67.55 0.13 14.40 158 1,238
RV-16 283.40 1.20 2.08 82 238
Including 284.40 0.20 4.20 199 514
CTA-02 38.35 1.48 1.79 98 232
Including 40.10 0.25 4.66 116 466
136.10 1.16 0.97 175 248
Including 136.35 0.30 3.38 448 702
El Cubo mine
Endeavour drilled 11,200 m in 47 holes last year at El Cubo to delineate new high-grade, gold-silver vein mineralization in the V-Asuncion and other veins. Recent drilling highlights include 223 g/t silver and 3.72 g/t gold over 6.06 m true width (14.6 ounces per ton silver-equivalent over 19.9 feet based on a silver-to-gold ratio of 75 to 1) within the Nayal vein in hole CNY-04. The Nayal vein intercepts are very shallow and the mineralized zone remains open along strike.
EL CUBO DRILL RESULTS
Hole From True width Au Ag AgEq
(m) (m) (g/t) (g/t) (g/t)
CNY-02 109.30 1.13 6.15 547 1,008
Including 110.15 0.30 17.90 1,595 2,938
CNY-04 46.25 6.06 3.72 223 501
Including 49.40 0.68 14.90 865 1,983
CUDG-989 14.90 1.09 3.90 197 489
Including 15.50 0.50 6.39 354 833
CUDG-989A 14.85 1.10 4.83 289 651
Including 15.25 0.40 12.95 771 1,742
CUDG-994 30.60 1.06 3.50 25 287
Including 30.90 0.18 11.05 66 895
CUDG-996 92.70 1.35 10.40 123 902
Including 93.80 0.29 48.00 566 4,166
CUDG-1002 109.30 1.54 4.33 72 397
Including 109.30 0.17 18.30 45 1,418
Guanacevi mine
In 2015, Endeavour drilled 9,550 m in 38 holes at Guanacevi to expand previously discovered high-grade silver-gold mineralization in the Santa Cruz vein at the Santa Cruz and Porvenir Norte mines. Recent drilling highlights include 1,661 g/t silver and 3.11 g/t gold over 1.03 m true width (55.2 ounces per ton silver-equivalent over 3.4 feet based on a silver-to-gold ratio of 75 to 1) in hole UG-07.
The Santa Cruz vein intercepts are depth extensions of the Santa Cruz mine and remain open at depth.
GUANACEVI DRILL RESULTS
Hole From True width Au Ag AgEq
(m) (m) (g/t) (g/t) (g/t)
UG-01 100.85 1.32 0.26 245 264
Including 102.50 0.13 0.77 799 857
UG-04 170.85 1.02 0.39 269 298
UG-06 172.00 1.06 1.35 1,061 1,163
Including 172.25 0.14 5.03 3,300 3,677
UG-07 212.50 1.03 3.11 1,661 1,895
Including 212.50 0.21 11.90 6,340 7,233
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