2008

Exploration Review Of 2007 And Exploration Outlook For 2008

February 12, 2008 - Vancouver, Canada - Endeavour Silver Corp. (EDR: TSX, EXK: AMEX, and EJD: Frankfurt) delivered additional exploration success in 2007, highlighted by the discovery of new polymetallic mineralization on the El Cometa mine property, part of Endeavour's Parral Project located in the historic mining district of Hidalgo de Parral, Chihuahua State, Mexico.

Last year, the Company drilled a total of 24,000 m of core in 76 drill holes, testing prospective silver targets in 4 separate project areas, Guanacevi in Durango, Guanajuato in Guanajuato, Parral in Chihuahua and Arroyo Seco in Michoacan. All four areas returned positive drill results although many of the sample assays for the projects were still in progress at year-end.

For 2008, Endeavour is budgeting 38,000 of drilling in approximately 150 drill holes using 4 drill rigs at the four project areas, with a renewed focus on expanding the silver resources near Endeavour's two operating mines at Guanacevi and Guanajuato (previously called the Bolanitos Project but renamed to reflect the district-scale opportunity of the Bolanitos-Cebada-Golondrinas properties at Guanajuato).

Bradford Cooke, Chairman and CEO, Commented "We are gratified to see our acquisition and exploration strategy at the Parral Project already paying off with the new discovery at El Cometa. Even though the new mineralized zone is not silver-rich, it has substantial zinc, lead and gold values. El Cometa is attractively located adjacent to existing infrastructure for rapid development and represents the first of what management hopes will be several new discoveries in this historic mining district."

The following is an overview of the Company's four principal exploration projects in Mexico, including a review of exploration results in 2007 and the outlook for exploration programs in 2008:

Parral Project

Endeavour currently holds an option to acquire a 100% interest in the 20 hectare (49 acres) El Cometa mine property located on the outskirts of the city of Parral in Chihuahua State, Mexico. According to the Mexican Geological Survey (SGM, previously CRM), the district of Parral produced over 250 million oz silver historically, as a by-product of several large lead-zinc-silver vein mines. Two large polymetallic mines continue to operate at the south end of the district, the Santa Barbara mine (6000 tpd) of Grupo Mexico and the San Francisco mine (3000 tpd) of Grupo Frisco.

In 2006, Endeavour acquired options to purchase several properties along the Colorada vein system in the Parral district. In 2007, a total of 15,800 m were drilled in 47 holes to test 7 separate prospective silver veins target. Once it became clear that the Company had an emerging discovery on the El Cometa Property, the other properties were dropped because the drill results were less encouraging.

The El Cometa property is well located for mining, accessible by paved road only 1 km from a 500 tpd government-owned plant. The old El Cometa mine was developed on 3 mine levels to 75 m in depth on the same vein as the Esmeralda mine, located only 2 km to the south.

Esmeralda is estimated to have produced 4 million tonnes of ore grading 6% combined Pb-Zn, 100 gpt Ag and 0.5 gpt Au on 10 levels to 600 m in depth. The deepest drill hole by Endeavour at El Cometa is only 400 m below surface and the newly discovered mineralized zone is still open at depth and to a certain extent along strike. Drill results to year-end are shown in the following table:

El Cometa Vein Drill Results



HOLE VEIN FROM WIDTH Au Ag Cu(%) Pb(%) Zn(%) Released 
Previously

CM11-1

La Estrella Vein 178.30 2.50 0.2 77 0.005 0.077 0.300  
El Cometa Vein 265.75 2.50 0.1 6 0.016 0.808 1.486 *
CM12-1 El Cometa Vein 129.46 2.38 0.4 28 0.035 1.063 1.344 *
CM13-1 El Cometa Vein 187.37 2.30 0.5 14 0.031 1.729 3.396 *
CM13-2 El Cometa Vein 199.62 2.66 0.9 15 0.050 2.527 4.952 *

CM13-3

La Estrella Vein 111.91 3.34 0.9 24 0.063 1.425 1.859 *
El Cometa Vein 292.25 3.95 0.2 9 0.070 1.168 2.917 *
Consuelo Breccia 342.30 3.86 0.2 30 0.134 0.349 0.111  
CM13-4 El Cometa Vein 225.75 4.15 0.2 10 0.049 1.856 4.452  
CM14-1 El Cometa Vein 166.57 4.26 0.3 41 0.038 1.351 2.614  
CM14-2 El Cometa Vein 263.06 3.68 3.1 51 0.169 3.533 1.048  

CM14-3

La Estrella Vein 236.20 3.70 0.4 18 0.045 2.929 7.281  
Inc. 236.55 0.35 0.51 38.00 0.071 6.080 17.850  
Inc. 239.10 0.45 0.78 60.00 0.179 9.710 16.600  
El Cometa Vein 416.65 2.97 1.8 22 0.121 0.293 0.261  
Consuelo Breccia 477.05 2.97 0.1 18 0.119 0.488 0.505  
CM15-1 El Cometa Vein 212.06 2.94 1.4 22 0.052 1.826 1.662 *
CM15-2 El Cometa Vein 300.57 8.86 1.0 50 0.212 5.431 3.043 *

CM15-3

La Estrella Vein 238.93 2.92 0.9 20 0.012 4.245 4.459  
El Cometa Vein 447.23 4.34 0.2 81 0.382 2.631 2.442  
Consuelo Breccia 473.50 3.20 0.1 15 0.459 0.084 0.408  

CM16-1

La Estrella Vein 156.55 2.51 0.3 40 0.022 3.067 1.181 *
El Cometa Vein 319.70 2.47 0.2 15 0.112 1.847 3.537 *
Consuelo Breccia 340.43 2.53 1.1 21 0.180 2.244 0.497  

CM16-2

El Cometa Vein 254.47 2.63 0.2 6 0.015 0.475 0.672 *
Consuelo Breccia 273.87 2.66 0.6 16 0.068 2.120 2.697  

CM17-1

El Cometa Vein 300.90 2.92 1.5 23 0.097 2.799 4.295 *
Consuelo Breccia 324.58 10.55 3.1 28 0.160 2.400 2.930  

CM17-2

La Estrella Vein 111.50 2.43 0.2 58 0.055 1.494 1.193 *
El Cometa Vein 278.77 2.36 0.3 6 0.060 0.519 0.404  
Consuelo Breccia 283.83 4.19 0.6 21 0.134 3.472 1.322 *

CM17-3

El Cometa Vein 210.93 2.24 0.1 8 0.007 1.015 1.239  
Consuelo Breccia 227.39 2.16 4.7 362 0.095 3.110 2.107  
Inc. 227.70 1.10 8.3 700 0.152 5.330 3.410  

CM17-4

La Estrella Vein 218.70 2.83 0.4 10 0.021 1.616 3.053  
El Cometa Vein 406.81 5.08 3.5 47 0.014 2.978 0.397  

CM18-1

La Estrella Vein 138.24 2.51 0.4 19 0.048 1.538 1.985  
El Cometa Vein 328.30 3.50 15.3 36 0.359 4.431 3.452 *
Consuelo Breccia 341.22 2.66 0.3 8 0.055 0.975 0.989    

CM18-2

La Estrella Vein 126.65 2.75 0.4 32 0.023 2.047 2.111 *
El Cometa Vein 303.61 4.53 0.8 115 0.254 5.051 6.456 *
Inc. 305.30 0.90 0.76 58.00 0.074 3.830 15.750  

CM18-3

La Estrella Vein 89.34 3.47 0.3 157 0.078 1.526 1.441 *
El Cometa Vein 251.67 2.91 1.9 38 0.058 2.363 1.344 *

CM18-4

La Estrella Vein 154.01 2.74 0.8 11 0.017 0.900 1.610  
El Cometa Vein 364.31 2.74 0.2 5 0.067 0.844 1.573  
Consuelo Breccia 386.63 4.84 0.2 87 0.758 1.853 1.533  

CM19-1

La Estrella Vein 129.35 2.56 0.2 58 0.027 2.235 3.552  
El Cometa Vein 327.93 6.59 0.7 63 0.304 3.023 4.646  
Inc. 329.70 0.60 0.59 72.00 0.299 7.120 11.050  

CM19-2

La Estrella Vein 145.20 4.00 0.3 11 0.010 1.022 1.582  
El Cometa Vein 356.22 6.51 1.6 62 0.302 2.907 1.933  
El Cometa Vein 264.16 8.87 0.4 40 0.346 3.721 4.470  
Inc. 265.10 0.50 0.86 178.00 0.301 10.500 10.650  
MX-1 La Mexicana Vein 121.00 3.66 0.2 47 0.054 2.852 6.343 *

Note -- The width referred to above is the core width and not the true width which is the process of being finalized.

It is clear that the zinc, lead and gold contents of the vein appear to be more valuable than the silver component. On average, the mineralized zones grade approximately 1.7 % Zn, 2.6% Pb, 1.8 gpt Au and 50 gpt Ag, assuming no mine dilution.

Metallurgical test-work and a preliminary economic assessment are currently underway so that an initial resource estimate can be completed in Q1, 2008. Endeavour has also commenced infill drilling of 7 holes totaling 2,000 m to tighten up the drill spacing to approximately 40 m centers. 

Negotiations are now underway to significantly expand Endeavour's land-holdings at Parral, both near El Cometa as well as in other prospective areas. For the Parral Project as a whole, a total of 4300 m of drilling is budgeted in 2008, including El Cometa and new property acquisitions.

Guanajuato Project

In 2007, Endeavour acquired a 100% interest in the Bolanitos Mines Project (now renamed the Guanajuato Project), including the Cebada mine properties along the Veta Madre and the Bolanitos mine properties along the Veta La Luz as well as the 500 tpd Bolanitos process plant, located only a few km north and west of the city Guanajuato in the famous silver-gold mining district of Guanajuato, Guanajuato State, Mexico.

Unidad Bolanitos consists of 13 properties totaling 2071 hectares (5,117 acres) in two property groups (Bolanitos and Cebada), three operating silver(gold) mines (Bolanitos, Golondrinas and Cebada), several past-producing silver(gold) mines, and the 500 tonne per day Bolanitos process plant. Cebada is located just 3 km north of the city of Guanajuato. Bolanitos and the plant are situated approximately 5 km west of Cebada, and both properties are readily accessed by paved and well maintained gravel roads.

According to the SGM, the district of Guanajuato was the second largest historic silver mining district in Mexico, having produced over 1 billion oz of silver and 5 million oz of gold since the late 1500's. In the last three years, three historic mines have been re-activated in the Guanajuato district by Canadian companies, the El Cubo mine of Gammon Gold, the Cata-Las Rayas-Valenciana mines of Great Panther and Cebada-Bolanitos-Golondrinas mines of Endeavour.

In 2007, Endeavour compiled the historic surface and underground sample and drill data of Industrias Peñoles for the Cebada and Bolanitos mine properties, commenced underground re-sampling of certain historic reserve blocks, identified multiple prospective silver vein targets, and initiated the first drilling program in this part of the district in almost 2 decades.

A total of 3,600 m were drilled in 15 holes to test three target areas. As of year-end, the company was still awaiting the assays from all 15 holes.

The Cebada and Bolanitos mine properties are well located for mining, accessible by gravel road only a few km north and west of the city of Guanajuato. The Cebada mine lies along the famous Veta Madre and were originally developed by the Spaniards in the 1600's. The Bolanitos mines cover most of the Veta La Luz sub-district, which was found in the early 1500's, prior to the discovery of the Veta Madre. 

The Company has launched an aggressive drilling program at the Guanajuato Project in 2008, totaling 17,500 m in approximately 75 holes. The focus will be on delineating new resources within or adjacent to the numerous existing mine workings at Cebada and Bolanitos, as well as exploring new property acquisitions within the district.

Guanacevi District

Endeavour currently owns or has options to acquire 100% interests in approximately 957 hectares (2,365 acres) within the historic silver mining district of Guanacevi, Durango State, Mexico. The Company first acquired the producing Santa Cruz mine properties and the Guanacevi process plant in 2004 when they were preparing to close.

Since that time, Endeavour has discovered four new high-grade silver orebodies along an initial 4 km length of the Santa Cruz vein, culminating in a reserve and resource estimate in March 2007 (see NR dated March 8, 2007) totaling approximately 10 million oz silver in proven and probable reserves, 21 million oz silver in measured and indicated resources and 10 million oz silver in inferred resources, as follows:

Proven and Probable Reserves
 

Category

Zone

In-situ Tonnes & Grade

Tonnes Silver
(g/t)
Ounces Gold 
(g/t)
Ounces
Proven Zone 1 0 0 0 0 0
  Zone 1-2 91,436 513 1,508,049 0.92 2,718
  Zone 2 82,063 671 1,770,316 0.97 2,558
  Zone 3 182,498 483 2,833,911 0.91 5,314
  Zone 4 10,072 658 213,070 0.95 309
Total Proven 366,069 537 6,325,346 0.93 10,898
Probable Zone 1 218,818 476 3,348,659 0.98 6,892
  Zone 1-2 0 0 0 0 0
  Zone 2 0 0 0 0 0
  Zone 3 23,421 341 256,799 0.73 550
  Zone 4 0 0 0 0.00 0
Total Probable 242,239 463 3,605,458 0.096 7,442
Total Proven +
Probable
608,308 508 9,930,804 0.94 18,339

Indicated Resources (Cut-off Grade 200 g/t Silver)



AREA

Million 
Tonnes

Silver (g/t)

Gold (g/t)

Silver 
Million oz

Gold 
Thousand oz

PORVENIR 1.38 300 0.46 13.33 20
PORVENIR DOS 0.22 349 0.66 2.47 5
SANTA CRUZ 0.33 391 0.69 4.21 7
ALEX BRECCIA 0.10 314 0.62 1.05 2
TOTAL 2.03 327 0.54 21.06 34

Inferred Resources (Cut-off 200 g/t Silver and within 75 m of the Indicated Boundary)



AREA

Million 
Tonnes

Silver (g/t)

Gold (g/t)

Silver 
Million oz

Gold 
Thousand oz

PORVENIR 0.68 284 0.58 6.19 13
PORVENIR DOS - - - - -
SANTA CRUZ 0.22 379 0.62 2.67 4
ALEX BRECCIA 0.13 277 0.50 1.13 2
TOTAL 1.03 323 0.60 9.99 19

According to the SGM, the district of Guanacevi was a top five historic silver mining district in Mexico with past production estimated at more than 450 million oz silver. Endeavour brought its first new discovery, the new North Porvenir ore-body into production in late 2004 and has significantly expanded the operations each year since. 

Exploration drilling was halted in Q1, 2007 to allow mine development to proceed and underground drill stations to be cut. Drilling resumed in September, 2007 and by year-end, 3,900 m had been completed in 7 drill holes to extend known mineralization at the North Porvenir and Santa Cruz mines to the northwest. Only half of the assays for these drill holes were received by year-end.

An aggressive drilling program is now underway in 2008 to complete 12,700 m in approximately 50 drill holes testing 6 target areas, including the newly acquired Milache and San Pedro properties. Like Guanajuato, the focus will be on delineating new silver resources proximal to both current and historic mine workings.

Arroyo Seco

Endeavour owns 1,215 hectares (3,002 acres) at the Arroyo Seco property in Michoacan that it acquired at auction from the SGM in late 2006. Arroyo Seco was acquired because the SGM reported a stratabound silver historic resource within a favorable sedimentary layer. 

Arroyo Seco is somewhat unique to Mexico in that the silver mineralization appears to be syn- sedimentary in nature, forming stratiform tabular lenses within three stacked sedimentary layers. Mineralization consists of tetrahedrite, tennantite, argentite, and minor galena, sphalerite, chalcopyrite and pyrite associated with barite, calcite, and quartz in disseminated sulfide zones. 

The Company drilled 750 m in 7 holes last year to confirm the syn-sedimentary nature of the silver-barite mineralization. The holes returned economically interesting mineralization, including 823 gpt Ag over 1.10 m.

Geological mapping and IP--Resistivity surveying both indicate that the favorable mineralized sedimentary bed thickens towards the southeast part of the property. Therefore, a small drilling program of 1,500 m in approximately 10 holes is planned for this area in 2008.

Barry Devlin, M.Sc., P.Geo. Vice President Exploration is the Qualified Persons who reviewed this news release and supervised the surface drilling and sampling programs in Parral, Guanacevi and Guanajuato Projects. A Quality Control sampling program of blanks and duplicates has been instituted to monitor the integrity of all assay results. All core samples are split at the Parral, Guanajuato, or Guanacevi field offices and shipped to SGS assay lab in Durango and or Chemex Labs, where they are dried, crushed, split and 30 gram pulp samples are prepared for analysis. Gold and silver are determined by fire assay with an atomic absorption (AA) finish and lead, zinc and copper are determined by AA.

Endeavour Silver Corp. (EDR: TSX, EXK: AMEX, EJD: DBFrankfurt) is a small-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. The expansion programs now underway at Endeavour's two operating mines, Guanacevi in Durango and Bolanitos in Guanajuato, coupled with the Company's aggressive acquisition and exploration programs in Mexico should enable Endeavour to join the ranks of top primary silver producers worldwide. 

ENDEAVOUR SILVER CORP.
Per:


/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 investorrelations@edrsilver.com or visit our website, www.edrsilver.com.

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, M.Sc., P.Geo., President and COO is the Qualified Person 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.

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