|Mine||Ag (M oz)||Au (K oz)||Ag Eq (M oz)||Tonnes/Day (tpd)|
|El Compas||0.1-0.1||7.0-8.5||0.6-0.8||0-250 (1)|
"Guanacevi should continue to improve this year as the mine completes its recovery from the operating issues that held it back last year. Bolanitos and El Cubo should both see higher production from steady throughput, higher silver grades and improving metal recoveries."We look forward to bringing Endeavour's fourth mine into commercial production in the third quarter as the El Compas construction program nears completion. Over the next few months, we anticipate a number of potential material developments to catalyze our future growth, including:
- Update of the El Compas project construction and optimized mine plan and economics
- Completion of construction and commissioning of production at El Compas
- Release of an optimized pre-feasibility study for Terronera
- Receipt of the final government environmental permits for Terronera
- Continued exploration results from Parral and other projects
- Additional acquisitions to expand our development project pipeline
At El Cubo, mine production and plant throughput will also continue steady at 1,400 tpd from the V-Asunción, Dolores, and San Nicolas veins. Ore grades should increase considerably as a higher grade area of the V-Asuncion orebody is scheduled for mining this year. Metal recoveries should rise incrementally after modifying the flotation circuit late last year.Operating Costs Cash costs, net of gold by-product credits, are expected to be $6.00-$7.00 per oz of silver produced in 2018. Consolidated cash costs on a co-product basis are anticipated to be $10.00-$11.00 per oz silver and $750-$800 per oz gold. All-in sustaining costs (AISC), net of gold by-product credits, in accordance with the World Gold Council standard, are estimated to be $15.00-$16.00 per oz of silver produced in 2018 reflecting new investments in exploration and development programs. When non-cash items such as stock-based compensation are excluded, AISC are forecast to be in the $14.50-$15.50 range. Excluding the investment to develop the SCS and Milache ore bodies into production at Guanacevi, AISC would decrease by $2.00 per oz to $13.00-$14.00 per oz. On a co-product basis, AISC are anticipated to be $15.50-$16.00 per oz silver and $1,150-$1,200 per oz gold. Direct operating costs are estimated to be in the range of $80-$85 per tonne. Management has assumed a $17 per oz silver price, $1,275 per oz gold price, and 19:1 Mexican peso per US dollar exchange rate for its 2018 cost forecasts. 2018 Capital Budget In 2018, Endeavour plans to invest $48.4 million on capital projects including $41.1 million in sustaining capital at the four operating mines and $7.3 million in growth capital at the two development projects. At current metal prices, the sustaining capital investments will be covered by operating cash flow. Growth capital of $7.2 million is budgeted to complete the construction of the El Compas project to commercial production.
At Guanacevi, a capital budget of $25.9 million is planned for 2018, including sustaining capital of $10.3 million to develop 9.2 kilometres (km) of mine access at the North Porvenir and Santa Cruz mines. A total of $13.3 million is budgeted to development the new ore bodies. An additional $2.3 million will be invested on site infrastructure, including plant and office equipment and building improvements.At Bolañitos, a capital budget of $2.6 million is planned for 2018, including $0.5 million on mine development to access resources in LL-Asunción and Plateros veins, plus mineralized fill from historic stopes not included in resources. An additional $2.1 million is planned for supporting site infrastructure, including mobile equipment, plant equipment, office equipment and building improvements. At El Cubo, a capital budget of $12.6 million is planned for 2018, including 5.9 km of mine development for $7.6 million, $2.0 million for refurbishment of underground mobile equipment, $1.8 million to increase the capacity of the tailings facility and an additional $1.2 million for site infrastructure, including vehicles, plant equipment, office equipment and building improvements. In 2017, Endeavour received government environmental permits to build the Terronera mine and plant but the Company still awaits receipt of the dumps and tailings permits. Upon receipt of these final permits, and assuming a positive production decision and appropriate debt financing, the 2018 growth capital budget will be amended accordingly.
|Mine||Mine Development||Other Capital||Sustaining Capital||Growth Capital||Total Capital|
|Guanaceví||$23.6 million||$2.3 million||$25.9 million||-||$25.9 million|
|Bolañitos||$0.5 million||$2.1 million||$ 2.6 million||-||$2.6 million|
|El Cubo||$7.6 million||$5.0 million||$12.6 million||-||$12.6 million|
|El Compas||-||-||-||$7.2 million||$7.2 million|
|Corporate||-||-||-||$0.1 million||$0.1 million|
|Total||$29.0 million||$6.6 million||$41.1 million||$7.3 million||$48.4 million|
At El Compas, 6,600 m will be drilled for $1.0 m primarily on the Calicanto concessions. The 2018 drilling will further test the new zones of high grade mineralization within the Misie-Karla-Karla HW and Calicanto veins discovered in 2017.At Terronera, $1.7 million will be spent to complete an updated pre-feasibility study and a 6,600 m drill program. The 2018 drilling will focus on extending mineralization in the Terronera vein to the southeast of the current resource, plus testing other veins. At Parral, $2.2 million will be spent on drilling 12,000 m to extend historic and new resource areas and complete a preliminary economic assessment. In Chile, the Company will conduct a 3,000 m drill program on one property exploring for bulk tonnage silver-lead-zinc manto mineralization.
|Project||2018 Activity||Drill Metres||Expenditures (millions)|
|Guadalupe y Calvo||Mapping||-||$0.2|
|Mexico||Holding Costs/Land Payments||-||$2.4|