Terronera //

Terronera has the potential to become Endeavour’s next core asset, located in Jalisco state, Mexico, about 40 km northeast of Puerto Vallarta in the historic silver mining district of San Sebastián. Our property covers approximately 6,100 hectares, and is well served by local infrastructure, including a paved highway, state electrical power, local labour, supplies and services, and a company camp.

The Terronera property is characterized by multiple low-sulphidation epithermal veins up to five kilometres long by 300 to 500 metres deep and up to 30 metres thick. We optioned a 100% interest in the property in 2010, commenced exploration drilling in 2011, and discovered a new high-grade, silver-gold mineralized zone in 2012. In 2013, we exercised our option to purchase the property for $2.75 million.

In April 2017 Endeavour published a pre-feasibility study (PFS) on Terronera which outlines a 1,000 tonne per day operation for two years, expanding to 2,000 tonnes per day in year three. The plant will process 4.1 million tonnes over a seven-year mine life. Life of mine production will average 3.2 million ounces of silver and 26,400 ounces of gold per year, equal to 5.1 million silver equivalent ounces.

Subject to receiving the remaining government mine permits, arranging an appropriate debt financing, and completing certain optimization work on the PFS, management intends to seek approval from the Company’s board of directors to commence development of the Terronera mine and related facilities.

Economics

Initial capital expenditures are estimated to be $69.2 million. The capital for the expansion from 1,000 tonnes per day to 2,000 tonnes per day is estimated at $35.5 million. Total life of mine capital requirements are estimated to be $132.0 million. Management will seek opportunities to optimize the capital requirements going forward.

Life of mine average operating costs are estimated to be $72 per tonne and cash costs, net of gold credits, are estimated to be $3.44 per ounce of silver. All-in-sustaining costs – also net of gold credits – are estimated at $4.76 per silver ounce of silver. Management also recognizes opportunities to optimize the operating costs.

Ag PriceAu PriceIRRNPVPayback Period
$16/oz$1,120/oz14%$40.5m5.1 years
$18/oz Base Case$1,260/oz21%$78.1m4.3 years 
$20/oz$1,400/oz28%$112.4m3.8 years

Mineral Reserves & Resources Estimates

Classification Tonnes (000s)Ag g/t  Au g/tAg Eq g/t Ag oz (000s) Au oz (000s) Ag Eq oz (000s) 
Probable Reserves4,0612071.9535327,027254.646,122
Inferred Resources6184862.826989,6565613,859

Reserves and Resources: Silver

27.0 M oz probable silver reserves
9.7 M oz inferred silver resources

Reserves and Resources: Gold

254,600 oz probable gold reserves
56,000 oz inferred gold resources

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

Endeavour Silver Sidebar Box Curve

Terronera

Endeavour Silver Sidebar Box Curve