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Endeavour Gold Corp.: US $1.1 Million Phase 1
Exploration Program Now Underway at Santa Cruz Silver
Mine, Durango, Mexico
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 4, 2004) -
Endeavour Gold Corp. (EDR : TSX-V) announces that a US $1.1
million Phase 1 exploration program is now underway at the
Company's recently optioned Santa Cruz silver mine in Durango,
Mexico. Two prospective ore zones, North Porvenir and San
Guillermo, will be explored by underground ramps and diamond
drilling in 2004. The objective is to outline mineable resources
in each zone and prepare them for production before year-end.
The North Porvenir prospect was discovered last year when 3 drill
holes returned ore grades over mineable widths within the Santa
Cruz vein about 1 km northwest of the Santa Cruz mine shaft. A
total of approximately 2800 m of underground development,
including 1000 m of ramp access plus related crosscuts, sublevels
and raises will be completed in order to explore and equip the
North Porvenir mine for production.
Endeavour advanced a US $350,000 loan to Minera Santa Cruz y
Garibaldi S.A. de C.V. after closing the final option agreements
in May 2004 in order to commence work on the ramp. The North
Porvenir ramp was collared in mid-June 2004, using the
neighbouring El Porvenir mine workings to gain access to the
vein.
To date, approximately 180 m of ramp development has been
completed, principally along the vein footwall on the
neighbouring El Porvenir property. This ramp should cross the
property boundary onto the Santa Cruz mine property and encounter
the prospective North Porvenir ore zone shortly.
To complement the underground exploration program, a 6000 m
surface drilling program is also planned to commence in
mid-August 2004 at North Porvenir. Drilling will focus on
outlining the mineralization on 50 m centres so as to better
guide the underground development program once it reaches the
prospective ore zone.
The San Guillermo prospect was outlined in the 1980's when
drilling and drifting returned high grade silver values over good
widths in the Santa Cruz vein about 600 m southeast of the Santa
Cruz mine shaft. At San Guillermo, mining activities in 2003/2004
have exhausted the ore reserves above Mine Level 6. Therefore,
about 100 m of underground development, including a ramp and
related crosscuts, was completed in July 2004 below Level 6. A
small underground drilling program is also being considered for
this area.
Minera Santa Cruz funded this work out of operating cash flow.
Two prospective ore shoots were previously identified at San
Guillermo so the ramp splits to the north and south, in order to
explore both target zones. Mineralization has been intersected in
the south ramp and sampling is now underway.
Underground mapping and surveying of the mine workings in the
Santa Cruz mine is also underway to better assess the remaining
ore reserves in the mine. A large area of high grade, mixed
oxide-sulfide mineralization appears not to have been mined at
Santa Cruz because it caused metallurgical recovery problems in
the plant.
In addition to the drilling and ramp programs, Endeavour is also
carrying out metallurgical testing and mill optimization programs
at the Guanacevi process plant in order to improve the recoveries
of silver and gold. RDI Resource Development Inc., metallurgical
consultants, recently completed a millsite tour and concluded
that:
1) The mill and process equipment is in good working condition. A
small capital investment to recondition certain equipment items
should result in some improvements in mill performance.
2) The plant personnel are all highly experienced operators.
Given that several ball mills, flotation cells and leach tanks
are idle due to lack of ore, it should be fairly simple to boost
mill output once more prospective ore zones are developed.
3) The production of silver dore bars from reprocessing of the
old oxidized tailings doubled in July 2004 to 450 tpd. All that
is needed to expand it by another 50% to 750 tpd is a third pump
station plus the expansion of the tailings pond to facilitate the
mining of old tailings and the increase in new tailings.
4) A systematic metallurgical test program is recommended for the
San Guillermo and the North Porvenir ores and their mill
products, as well as the old tailings feeding the oxide leach
circuit, in order to boost the recoveries of gold and silver in
the plant.
To conclude, if the Phase 1 exploration program is successful,
Endeavour and Minera Santa Cruz plan to bring the North Porvenir
and San Guillermo mines into production this year. Coupled with
the recent increase in tailings reprocessing and possible
improvements in gold and silver recoveries, silver production
from the Santa Cruz silver mine and the Guanacevi processing
plant is targeted to triple up to 1.2 million oz silver per year
by June, 2005.
Endeavour holds an option to acquire a 100% interest in the Santa
Cruz silver mine and Guanacevi mill by paying US $7 million over
a 4 year period. Endeavour can earn an initial 51% interest by
January 2005 by paying US $3 million (US $1 million already paid)
and spending US $1 million on mine exploration.
Endeavour Gold Corp. (EDR: TSX-V) is a small-cap exploration and
mining company focused on aggressively expanding its portfolio of
high grade silver-gold properties, reserves and production in
Mexico. Canarc Resource Corp. holds a minority shareholding in
the company and helps manage the affairs of Endeavour.
On Behalf of the Board of Directors,ENDEAVOUR GOLD CORP.
Bradford J. Cooke, President and CEO
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Endeavour Gold Corp.
Bradford J. Cooke
President and CEO
(604) 685-9775 or Toll Free: 1-877-685-9775 (Canada & U.S.)
(604) 685-9744 (FAX)
Email: invest@edrgold.com
Website: www.edrgold.com
WARNING: The company relies on litigation protection for
forward-looking statements. The TSX Venture Exchange does not
accept responsibility for the adequacy or accuracy of this News
Release.
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