Gold and Silver miners (Jr and Exploration)

[Edge83]

Endeavour Silver Reports Initial NI 43-101 Mineral Resource Estimate and Preliminary Economic Assessment for El Compas Mine, Zacatecas, Mexico

Mon March 27, 2017 6:55 AM|Marketwire|About: EXK
VANCOUVER, BC -- (Marketwired) -- 03/27/17 -- Endeavour Silver Corp. (EXK) (NYSE: EXK) (TSX: EDR) reports its initial NI43-101 Mineral Resource Estimate and a Preliminary Economic Assessment ("PEA") for its El Compas mine project located adjacent to the city of Zacatecas in Zacatecas state, Mexico. The PEA will be filed on SEDAR and EDGAR within 45 days of this news release.

The Mineral Resource is small but shallow and high grade and the PEA provides robust economic returns. As a result, management has made a production decision to develop the new El Compas mine, subject to receiving an explosives permit and receiving further clarity from the Zacatecas government regarding an exemption from the new Zacatecas state environmental tax.

Endeavour's decision to place the El Compas mine into production is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, and the Company cautions that historically such projects have a much higher risk of economic or technical failure. Management proposes to proceed with mine development because it has successfully developed similar mines in Mexico, the total capital required is low and Endeavour has the in-house experience to build and operate such a mine.

Bradford Cooke, CEO of Endeavour Silver, commented, "We look forward to developing El Compas into our fourth mine. The mine should generate robust economic returns at current metal prices because the two known mineralized zones (El Compas and El Orito) are relatively shallow and high grade. The operation is very scalable if we discover or purchase additional mineral resources in the Zacatecas district and refurbish the second ball mill to double the plant capacity to 500 tonnes per day (tpd). With the low capital investment of US$10 million funded by existing cash, and the short timeline of only six months to initial production once we receive the explosives permit and tax clarity, the El Compas mine has the near-term potential to become a healthy contributor to our consolidated cash flow."

Mineral Resource Estimate

The initial Indicated Mineral Resource Estimate totals 495,000 ounces (oz) silver (Ag) and 34,900 oz gold (Au) for 2.9 million oz silver equivalent (Ag Eq) and the Inferred Mineral Resource Estimate totals 527,000 oz silver and 37,500 oz gold for 3.2 million oz Ag Eq, as shown in the table below:

https://seekingalpha.com/pr/16781041-endeavour-silver-reports-initial-ni-43minus-101-mineral-resource-estimate-preliminary