Endeavour Silver shares rise as Terronera surpasses the 50% completion mark
Shares of Endeavour Silver (NYSE: EXK; TSX: EDR) rose on Tuesday as the company announced that its new Terronera mine in Jalisco state, Mexico, has surpassed the 50% completion mark.
Commissioning of the mine is expected in the fourth quarter of 2024, with an anticipated 10-year mine life. Its capital expenditure is estimated at $271 million, up by less than 20% from earlier estimates.
The Terronera project is situated within the Sierra Madre volcanic belt, which hosts most of Mexico’s silver and gold deposits.
The mine will consist of the Terronera and La Luz underground deposits, both of which will be mined using a combination of long-hole and cut-and-fill methods.
The mineral processing plant will have a capacity of 2,000 tonnes per day. A feasibility study forecasts the project to produce 4 million oz. of silver and 38,000 oz. of gold annually over a 10-year period.
Terronera has proven and probable reserves of 7.4 million tonnes grading 197 g/t silver and 2.25 g/t gold (88.8 million oz. of silver equivalent).
Endeavour provided no measured and indicated resources, but the inferred material at Terronera totals 1.1 million tonnes grading 322 g/t silver and 0.21 g/t gold.
Shares of Endeavour Silver rose 6.8% by 12:10 p.m. EDT. The company has a market capitalization of C$903 million ($661 million).