2004

Endeavour Intersects High Grade Silver Mineralization in North Porvenir Zone, Santa Cruz Mine, Durango, Mexico

Endeavour Silver Corp. (EDR : TSX-V) announces that it has intersected high grade silver mineralization in the North Porvenir zone, Santa Cruz mine, Durango, Mexico. The Company is hosting a conference call for investors on Wednesday, October 13, 2004 at 12:00 noon Pacific Time to discuss in more detail these positive results.

North Porvenir was first discovered last year when three diamond drill holes returned high grade assays over broad vein widths along a 300 m strike length, open in all directions. After executing the formal option agreements in May 2004 to acquire up to a 100% interest in the operating Santa Cruz mine and Guanacevi process plant, Endeavour commenced a US$1.1 million exploration program of underground ramp development and surface diamond drilling in June 2004 to explore, develop and prepare the North Porvenir zone for production by February 2005.

Endeavour gained access to the underground workings on a neighbouring property in order to shorten the length of the underground ramp needed to access the North Porvenir zone. To date, 340 m of ramp (2.5 m x 2.5 m diameter at -12 % grade) plus a ventilation raise and 8 cross-cuts have been completed using a local mining contractor. The last 100 m of ramp are located on the Santa Cruz property.

Endeavour also recently completed 942 m in three holes of 6000 m diamond drilling program that extend the high grade North Porvenir zone a further 50 m to the north (350 m total length still open) and 100 m in vertical depth (250 m total depth still open). Assays are as follows:



Hole (No.) Sampled Width (m) Ag (gpt) Au (gpt) Ag-eq (gpt)
2003 Drill Holes
SSC-01 5.36 612 1.27 688
  Including 0.52 2018 5.23 2332
 
SSC-02 5.50 526 0.58 561
  Including 0.94 2477 1.47 2565
 
SSC-03 7.20 528 1.17 598
  Including 1.00 1139 1.70 1241
 
Hole (No.) Sampled Width (m) Ag (gpt) Au (gpt) Ag-eq (gpt)
 
2004 Drill Holes
NP31-1 2.85 386 0.52 417
  Including 0.50 1160 1.26 1236
 
NP31-2 (abandoned due to bad ground conditions)
 
NP31-3 5.00 447 0.55 480
 
  Including 1.45 844 0.88 897
  And 0.95 348 0.40 372
  And 1.10 438 0.77 484
 
2004 Cross Cuts
 
XC-1 to 4 (on neighbouring property)
 
XC-5 5.8 low grade
 
XC-6 2.2 447 0.73 491
  2.3 294 0.87 346
 
XC-7 1.8 658 1.60 754
  1.9 661 1.54 753
  2.7 682 1.67 782
 
XC-8 2.8 801 1.28 878
  2.4 1485 1.55 1578
  3.9 874 2.13 1002

True widths in the drill holes and cross-cuts average about 70% to 80% of the sampled widths. Cross-cut 8 did not penetrate the entire vein and drill hole NP31-3 intersected two high grade vein splays in the footwall. The multiple channel samples in each cross-cut were taken at 5 m spacings. Silver equivalents are calculated at a silver-gold ratio of 60:1. 

Endeavour's President, Bradford Cooke, stated, "These initial high grade drill and cross-cut results certainly confirm our view that the North Porvenir zone represents a substantial new mineralized zone with near-term production potential. The discovery of new high grade mineralization only one kilometer away from a historic Spanish silver mine in the same vein highlights the tremendous exploration potential of the Guanacevi district."

The Company plans to complete a total of 14 drill holes and at least 600 m of ramp access by year-end so that a mineable resource estimate can be made and the North Porvenir zone can be brought into production by February 2005. Upon completion of the US$1.1 million exploration program, continued drilling and tunneling will then be funded out of cash flows to outline the full potential of the North Porvenir zone in 2005.

Endeavour has the right to recover the $350,000 loan it provided for the ramp development from 100% of net cash flows generated by mining at North Porvenir. Upon making a US$2 million payment in late January 2005, Endeavour will own a 51% interest in the mine and plant operations.

At this time, the mine and plant are on track to produce about 300,000 oz silver in 2004. The mine is producing 50 to 100 tpd of moderate grade ore from the San Guillermo area of the Santa Cruz mine. In addition, the plant is custom processing a further 50 to 100 tpd from other mines in Durango, as well as 225 tpd of old, oxidized tailings. The successful development of the North Porvenir zone to production should triple the current output of the Santa Cruz mine and Guanacevi plant to more than 1 million oz silver equivalents per year.

However, the 1400 tpd Guanacevi plant has the capacity to process up to 700 tpd of sulfide ore in the flotation circuit and 700 tpd of oxide ore in the leach circuit. Therefore, Endeavour's business plan calls for the development of two additional orebodies over the next 2 ½ years in order to expand production to the mill capacity. 

Godfrey Walton, M.Sc, P.Geo., is the Qualified Person supervising the Phase 1 surface drilling and underground sampling programs on the Santa Cruz property. He has instituted a Quality Control sampling program of blanks and duplicates to monitor the integrity of all assay results. All drill core is split by Endeavour personnel at the Guanacevi camp and then driven to Durango where it is couriered to the Chemex lab in Hermosillo. Core samples are dried, crushed, split and a 30 gram sub sample is taken for analysis. Gold and silver are determined by fire assay with an atomic absorption (AA) finish. Selected samples are sent to Inspectorate laboratory in Reno, as an additional quality assurance check.

Bradford Cooke will provide more details and answer questions via telephone conference call on Wednesday, October 13, 2004 at 12:00 noon Pacific Time. To access the conference call:

  • In the greater Toronto area call 1-416-695-5261;

     

  • For all other participants call 1-877-888-7019

Give the operator the following information:

 

  • Endeavour Silver Corp. Conference Call

     

  • Speaker: Brad Cooke

     

  • Reservation Number: T526078E

Endeavour Silver 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.

On Behalf of the Board of Directors,

ENDEAVOUR SILVER CORP.


"Bradford J. Cooke"

Bradford J. Cooke


President and CEO

"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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