Endeavour Silver Signs Two Contracts to Sell Silver-Gold Concentrates and Facilitate Higher Production in 2013 from Bolanitos Mine in Mexico
Vancouver, Canada – March 13, 2013 - Endeavour Silver Corp. (NYSE: EXK, TSX: EDR, Frankfurt: EJD) announces it has signed two contracts to sell its silver-gold concentrates and facilitate higher production in 2013 from its Bolanitos mine in Guanajuato State, Mexico. The two contracts are commercially competitive with Endeavour’s own costs to process these concentrates into saleable metals.
In 2012, Endeavour expanded the Bolanitos mine and plant by 60% to 1600 tonnes per day (tpd) and since Q4, 2012, the Bolanitos mine output has actually been over 1700 tpd, well in excess of the current plant capacity. The extra mine output has been processed into silver-gold concentrates at the Las Torres plant under lease adjacent to Endeavour’s El Cubo mine, also located in the Guanajuato district.
However, Endeavour does not currently have sufficient capacity at its two leach circuits at Guanacevi and El Cubo to process these extra Bolanitos concentrates into dore bars so they were stockpiled. The sales contracts will allow Endeavour to sell its current concentrate inventory of 1400 tonnes by month-end and add about $20 million cash to working capital during this peak period of capital spending at El Cubo.
Endeavour is also arranging to sell 500 tonnes per month of Bolanitos concentrates for a six month period in order to allow the Guanacevi and El Cubo plants to conduct updated metallurgical reconciliations and balances for Guanacevi ores and El Cubo concentrates respectively. It will also provide an opportunity to optimize silver and gold recoveries at both plants.
The net effect of the concentrate sales on Endeavour’s operating performance this year should be the production of higher payable metals at a slightly higher cash cost per ounce resulting in slightly higher cash flow compared to the lower payable metals at lower cash costs from processing the concentrates through Endeavour’s leach circuits.
Upon completion of the metallurgical program and the El Cubo plant reconstruction in Q2, 2013, Endeavour should have ample leach circuit capacity to process both Bolanitos and El Cubo concentrates.
ENDEAVOUR SILVER CORP.
/s/ "Bradford J. Cooke"
CEO and Director
About Endeavour– Endeavour is a mid-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. Since start-up in 2004, Endeavour has posted eight consecutive years of growing silver production, reserves and resources. The organic expansion programs now underway at Endeavour’s three operating silver mines in Mexico combined with its strategic acquisition and exploration programs should facilitate Endeavour’s goal to become the next premier senior silver mining company.
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This news release contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward‑looking statements and information herein include but are not limited to statements regarding Endeavour’s anticipated performance in 2012 and the timing and results of exploration drill programs. The Company does not intend to, and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.
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