Guanacevi Mines Project Appointments, Update and Revised Production Guidance for 2006
December 7, 2006 - Vancouver, Canada - Endeavour Silver Corp. (EDR: TSX, EDRGF: PinkSheets, and EJD: Frankfurt) provides the following update of the Guanacevi Mines Project mine and plant appointments, operations and revised production guidance for 2006.
Endeavour is pleased to announce the appointments of Alejandro Garcia Badilla as the new Mine Manager and Humberto Alanis Hernandez as the new Mine Superintendent for the Porvenir Mine. Alejandro replaces the previous mine manager, Neil Marshall, who has resigned to pursue other opportunities.
The Porvenir Mine to date has been using a local mining contractor for mine development and production. Management made the decision in Q2, 2006 to replace the mining contractor at year-end with company-employed miners and US$3.5 million worth of new mining equipment, in order to facilitate increases in future production and reductions in future cash costs per oz.
Company miners are already producing about 20% of the daily mine production and 30% of the new equipment is now working onsite. Most of the new equipment is scheduled to arrive at the mine-site by year-end and the balance of the new miners will start work beginning in January.
Endeavour also announces the appointment of Eduardo Solis as the new Process Manager for the Guanacevi plant. He will work with Plant Manager Ramiro Castillo to continue upgrading the Guanacevi Plant equipment, operations and silver recoveries.
The new 600 tpd ball mill has finally been installed but will require the month of December for commissioning into full service. Certain mill issues remain to be resolved during the commissioning process. As a result, the engineering company retained to manage the new mill project has been released and the Guanacevi Mines Project team, led by Vice President, Mexico Operations, David Drips, will bring the new mill on-line by year-end.
As a result of the four-month delay in commissioning the new mill, Endeavour has revised its production guidance for 2006. The Company now forecasts silver production of 1.3 to 1.35 million oz silver (up 40% over 2005) and silver stockpiles totalling 0.6 million oz to year-end. Cash operating costs are expected to average between US$4.75 and US$5.25 per oz silver produced in 2006 (down slightly from 2005).
Management plans to release its 2007 production forecast and updated NI 43-101 reserve-resource estimate for the Guanacevi Mines Project in February 2007.
Endeavour Silver Corp. (EDR: TSX, EDRGF: PinkSheets, and EJD: Frankfurt) is a silver mining company focused on the aggressive growth of its silver production, reserves and resources in Mexico. The expansion program now underway at the high grade Guanacevi Mines Project in the state of Durango should propel Endeavour into the ranks of the top primary silver producers.
ENDEAVOUR SILVER CORP.
/s/ "Bradford J. Cooke"
Bradford J. Cooke
Chairman and CEO
For more information, please contact Hugh Clarke Toll free: 877-685-9775, tel: (604) 685-9775, fax: (604) 685-9744, email firstname.lastname@example.org or visit our website, www.edrsilver.com. The TSX Exchange has neither approved nor disapproved the contents of this news release.
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements. We seek safe harbour.