Endeavour Silver Re-Commissions El Cubo Plant on Time and Budget; Plant Now
Operating at Mine Output of 1,100-1,200 Tonnes per Day
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/03/13 -- Endeavour
Silver Corp. (TSX:EDR) (NYSE:EXK), announces that the
re-commissioning of the newly rebuilt plant at its El Cubo mine in
Guanajuato, Mexico was successfully completed on May 31, on time and
budget. The El Cubo plant is now operating at the current mine output
of 1,100-1,200 tonnes of ore per day (tpd).
More than 600,000 hours of work have been completed to date on the
plant and infrastructure capital projects with no lost time
accidents, an outstanding accomplishment. The reconstruction of the
plant was managed by Smith Foster Associates, Promimet was the main
procurement and construction contractor and several smaller
contractors also worked on various capital projects. The tailings
facility was engineered by AMEC and built by Endeavour personnel
working with local contractors. For an updated photo essay of the
plant reconstruction program, shareholders are invited to visit the
El Cubo page on our recently re-launched website at
Work to bring the plant capacity up to 1,550 tpd is well advanced and
should be completed by month-end. At that time, management plans to
start processing up to 350 tpd of additional ore from the Bolanitos
mine located in the same district as El Cubo only 15 kilometres away.
Other capital projects such as the refurbishment of the leach and CCD
circuits are on track for completion by year-end.
Due to the successful re-commissioning of the El Cubo plant,
Endeavour plans to return the nearby leased Las Torres plant to its
owner, Fresnillo plc, on June 10, 2013. The Company budgeted for up
to 15% down time in El Cubo plant availability during the second
quarter (estimated 15,000 tonnes) for the re-commissioning process
and actual lost time and tonnage only slightly exceeded that.
Bradford Cooke, CEO of Endeavour Silver, commented, "To rebuild and
re-commission the El Cubo plant on time and budget in just seven
months is truly a remarkable achievement. We knew this would be a
massive task but everyone rolled up their sleeves and did what had to
be done. I would personally like to thank each and every one of the
people involved, our management team, operations people, project
management and construction contractors for their magnificent efforts
to accomplish this goal - bravo!"
Endeavour Silver acquired the El Cubo mine in July 2012 and launched
a two-step strategy to turn around the operations from losses to
profits and make new exploration discoveries to fuel future mine
expansions. The two year operational turn-around program has been
bearing fruit, with production grades slowly climbing, lost time
accident rate falling and operating costs declining in recent
While much work remains to be done to unfold the full potential of El
Cubo, one of the key initiatives to facilitate an operating
turn-around was a $67.1 million capital investment program, including
$34.0 million to upgrade mining equipment and accelerate mine
exploration and development and $33.1 million to modernize the plant,
buildings and surface infrastructure.
The bulk of these capital investments have now been completed, and
thanks in part to cost cutting programs initiated in April, Endeavour
Silver remains in strong financial shape. The Company reduced its
work force by 15%, primarily at El Cubo, working capital is
approximately $42 million and Endeavour still has $39 million of
credit available on its $75 million revolving credit line with
Endeavor Silver also reports that David Tingey, previously Vice
President of Health, Safety and Sustainability, has left the Company.
Management wishes David well in his future career path. Given the
importance Endeavour places on health, safety and sustainability, the
Company plans to immediately seek a replacement for this position.
ENDEAVOUR SILVER CORP.
BRADFORD COOKE, CEO and Director
About Endeavour - Endeavour is a mid-tier 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 a premier senior silver producer.
Cautionary Note Regarding Forward-looking Statements
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
Forward-looking statements or information involve known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of Endeavour
and its operations to be materially different from those expressed or
implied by such statements. Such factors include, among others,
changes in national and local governments, legislation, taxation,
controls, regulations and political or economic developments in
Canada and Mexico; operating or technical difficulties in mineral
exploration, development and mining activities; risks and hazards of
mineral exploration, development and mining; the speculative nature
of mineral exploration and development, risks in obtaining necessary
licenses and permits, and challenges to the Company's title to
properties; as well as those factors described in the section "risk
factors" contained in the Company's most recent form 40F/Annual
Information Form filed with the S.E.C. and Canadian securities
Forward-looking statements are based on assumptions management
believes to be reasonable, including but not limited to: the
continued operation of the Company's mining operations, no material
adverse change in the market price of commodities, mining operations
erate and the mining products will be completed in accordance
with management's expectations and achieve their stated production
outcomes, and such other assumptions and factors as set out herein.
Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained
in forward-looking statements or information, there may be other
factors that cause results to be materially different from those
anticipated, described, estimated, assessed or intended. There can be
no assurance that any forward-looking statements or information will
prove to be accurate as actual results and future events could differ
materially from those anticipated in such statements or information.
Accordingly, readers should not place undue reliance on
forward-looking statements or information.
Endeavour Silver Corp.
Director Investor Relations
(604) 685-9775 or Toll free: (877) 685-9775
(604) 685-9744 (FAX)
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