El Compas //

El Compas is located in Zacatecas state, Mexico, about one kilometre south of the city of Zacatecas in the historic silver mining district of the same name. El Compas was acquired in 2016 and has the potential to quickly become our next operating mine. Our property covers approximately 3,990 hectares, and is well served by local infrastructure, including a paved highway, state electrical power, local labour, supplies and services. El Compas represents a small but scalable, high grade opportunity to achieve near-term production for a small amount of time and capital investment.

El Compas is characterized by two high-grade, low-sulphidation epithermal veins up to several hundred metres long by 200 metres deep and up to 10 metres thick, and multiple vein targets that have never been drilled. The mine is already permitted and a nearby 500 tonne-per-day government plant has been leased for up to 10 years.

In March 2017, Endeavour published a preliminary economic analysis for El Compas which delivered robust economic returns. The mine plan calls for production of 200 tpd and the plant will have an initial capacity of 250 tpd. With the exception of an explosives permit, currently in progress, the mine is fully permitted, and will process 300,000 tonnes over a 4.3 year mine life.

With the low capital investment of US$10 million funded by existing cash, and the short timeline of only six months to initial production, the El Compas mine has the near-term potential to become a healthy contributor to our consolidated cash flow.

Economics

Initial capital expenditures are estimated to be $10 million. Operating costs are estimated to be $110 per tonne and cash costs, including royalties and mining duties, are estimated to be $9.09 per silver equivalent ounce. All-in-sustaining costs are estimated to be $9.64 per silver equivalent ounce.

Ag PriceAu PriceIRRNPVPayback Period
$16/oz$1,120/oz29%$8.0m2.6 years
$18/oz Base Case$1,260/oz42%$12.6m2.1 years 
$20/oz$1,400/oz54%$17.0m1.8 years

Mineral Reserves & Resources

Classification Tonnes (000s)Ag g/t  Au g/tAg Eq g/t Ag oz (000s) Au oz (000s) Ag Eq oz (000s) 
Indicated Resources148.41047.3161649534.92,939
Inferred Resources216.8765.3845352737.53,158

Reserves and Resources: Silver

495,000 M oz indicated silver reserves
527,000 M oz inferred silver resources

Reserves and Resources: Gold

34,900 oz indicated gold reserves
37,500 oz inferred gold resources

*For details refer to the complete Reserves and Resources table in the footer below.

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El Compas

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