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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 and acquired an entire exploration district.

In April 2017, Endeavour published a pre-feasibility study (PFS) on Terronera. Subsequently, we conducted a number of engineering trade-off studies to refine the operating parameters and optimize the economic performance of the project. In early 2018, we provided an update on improved operating parameters including an initial 750 tpd mechanized, underground, ramp access mine and plant. Since the resources are still growing, the concept is to expand the mine and plant to 1,500 tpd in year 2. Annual production at 1500 tpd is estimated at 5.0 million oz silver equivalents per year (at a 75:1 silver:gold ratio) based on 300 grams per tonne net payable silver equivalents per tonne, which is still being optimized. We will continue refining our studies with the goal to publish an updated PFS once the tailings and dumps permits are approved.

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 in 2018.

Low Costs*

Initial capital expenditures are estimated to be $69.2 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, net of gold credits are estimated at $4.76 per ounce of silver.

* Based on the initial PFS published by Endeavour Silver on April 3, 2017

PFS Economics

Ag Price Au Price IRR NPV Payback Period
$16/oz US$1,120/oz 14% $40.5m 5.1 years
$18/oz Base Case US$1,260/oz 21% $78.1m 4.3 years
$20/oz US$1,400/oz 28% $112.4m 3.8 years

Reserves and Resources: Silver

  • 27M oz
    Probable Silver Reserves
  • 10.9M oz
    Inferred Silver Resources

Reserves and Resources: Gold

  • 254,600 oz
    Probable Gold Reserves
  • 43,700 oz
    Inferred Gold Resources
*for full details, refer to the complete Reserves and Resources table found here

Terronera has the potential become our fifth producing mine with significant exploration potential.

Map Terronera