Endeavour Silver Corp.


Endeavour Silver Corp.

March 19, 2012 13:14 ET

Endeavour Silver Expands Its Reserves/Resources for 8th Consecutive Year



VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 19, 2012) - Endeavour Silver Corp. (TSX:EDR)(NYSE:EXK)(FRANKFURT:EJD) announced today that for the eighth consecutive year, the Company has grown its consolidated silver and gold reserves and resources.

Endeavour released today its updated NI 43-101 reserve and resource estimates to December 31, 2011 (see table below) for its two producing silver mines (the Guanacevi Mine in Durango State and the Guanajuato Mine in Guanajuato State) and three exploration projects (the San Sebastian Project in Jalisco, Parral Project in Chihuahua and Arroyo Seco Project in Michoacán) in Mexico.

Endeavour more than replaced the Proven and Probable Reserves it depleted in 2011 and the Resources in all categories also increased as a result of our successful exploration and development programs. Gold reserves and resources increased more than silver reserves and resources because much of our exploration success last year was at Guanajuato where the gold grades are much higher than at Guanacevi.

The 2011 year-end reserve and resource highlights are as follows:

2011 Reserve/Resource Highlights

  • Silver Proven and Probable Reserves up 25% to 16.8 million ounces (oz);
    Guanacevi 13.5 million oz and Guanajuato 3.3 million oz
  • Gold Proven and Probable Reserves up 69% to 67,500 oz;
    Guanacevi 26,300 oz and Guanajuato 41,200 oz
  • Silver Equivalent Proven and Probable Reserves up 29% to 20.5 million oz;
    Guanacevi 14.9 million oz and Guanajuato 5.6 million oz
  • Silver Measured and Indicated Resources up 32% to 36.1 million oz;
    Guanacevi 19.9 million oz, Guanajuato 11.6 million oz, Parral 2.6 million oz, San Sebastian 2.0 million oz
  • Gold Measured and Indicated Resources up 47% to 267,600 oz;
    Guanacevi 38,800 oz, Guanajuato 176,200 oz, Parral 47,200 oz, San Sebastian 5,400 oz
  • Silver Equivalent Measured and Indicated Resources up 36% to 50.8 million oz;
    Guanacevi 22.1 million oz, Guanajuato 21.3 million oz, Parral 5.2 million oz, San Sebastian 2.2 million oz
  • Silver Inferred Resources up 18% to 35.1 million oz;
    Guanacevi 15.0 million oz, Guanajuato 9.8 million oz, Parral 2.7 million oz, Arroyo Seco 5.2 million oz, San Sebastian 2.4 million oz
  • Gold Inferred Resources up 9% to 184,800 oz;
    Guanacevi 27,200 oz, Guanajuato 114,100 oz, Parral 37,000 oz, Arroyo Seco 2,000 oz, San Sebastian 6,000 oz
  • Silver Equivalent Inferred Resources up 16% to 45.3 million oz;
    Guanacevi 16.4 million oz, Guanajuato 16.1 million oz, Parral 4.5 million oz, Arroyo Seco 5.3 million oz, San Sebastian 2.7 million oz
  • Mineral resources are calculated exclusive of the mineral reserves
  • Proven Reserves are determined as being within 10 meters of underground development while Probable Reserves are a further 15 meters from underground development.
  • Mine plans are developed for the Proven and Probable Reserves and Measured and Indicated Resources but the Inferred Resources are discounted in the mine plans.
  • Mineral reserves have demonstrated economic viability whereas mineral resources do not
  • 2010 silver equivalents based on 65:1 silver:gold ratio, base metals not included
  • 2011 silver equivalents based on 55:1 silver:gold ratio, base metals not included
  • All assumptions used are listed at the bottom of the reserve and resource summary table

Bradford Cooke, Chairman and CEO, commented, "Endeavour enjoyed another strong year of organic growth of our consolidated silver and gold reserves and resources thanks to the success of our exploration and development programs. Our talented exploration team continues to discover new, high grade silver-gold deposits year after year within historic Mexican silver districts."

"Last year, it was the Daniela/La Joya/Belen discoveries in Guanajuato, the Milache discovery along the Santa Cruz vein north of the Porvenir Cuatro mine in Guanacevi, and several finds at San Sebastian that fueled our resource growth. In 2012, Endeavour will focus on the organic growth of its reserves and resources through its ongoing strategic acquisition and exploration programs within the Guanacevi and Guanajuato districts. We will also continue to seek exciting new district scale exploration opportunities (such as San Sebastian in 2010) in order to facilitate our future growth."

Reserves and Resources (as of December 31, 2011)
Reserves Proven & Probable
Description Tonnes Ag g/t Au g/t Ag oz Au oz
Guanacevi 773,000 304 0.65 7,555,500 16,200
Guanajuato 337,000 189 2.41 2,045,400 26,100
Total Proven 1,110,000 268 1.18 9,575,200 42,200
Guanacevi 799,000 231 0.39 5,935,400 10,100
Guanajuato 179,000 225 2.63 1,297,200 15,200
Total Probable 978,000 285 0.38 7,232,600 25,300
Total Proven & Probable 2,088,000 250 1.01 16,807,800 67,500
Resources Measured & Indicated
Description Tonnes Ag g/t Au g/t Ag oz Au oz
Guanajuato 258,000 177 2.51 1,470,900 20,800
Total Measured 258,000 177 2.51 1,470,900 20,800
Guanacevi 2,849,000 217 0.42 19,922,300 38,800
Guanajuato 2,539,000 161 2.20 10,128,300 155,400
San Sebastian 307,000 199 0.55 1,968,000 5,400
Total Indicated 5,695,000 175 1.09 32,018,600 199,600
Total Measured & Indicated 5,953,000 175 1.15 33,489,500 220,400
Resources Inferred
Description Tonnes Ag g/t Au g/t Ag oz Au oz
Guanacevi 2,013,000 217 0.40 14,050,900 26,200
Guanajuato 1,783,600 167 1.92 9,586,700 110,200
San Sebastian 354,000 211 0.52 2,404,100 5,900
Total Inferred 4,150,600 195 1.07 26,041,700 142,300
Silver-Gold-Lead-Zinc Resources (as of December 31, 2010)
Description Tonnes Ag g/t Au g/t Ag oz Au oz Pb % Zn%
Resources Indicated
Parral 1,631,000 49 0.90 2,589,900 47,200 2.87 2.86
Total Indicated 1,631,000 49 0.90 2,589,900 47,200 2.87 2.86
Description Tonnes Ag g/t Au g/t Ag oz Au oz Pb % Zn%
Resources Inferred
Guanacevi 307,000 98 0.10 962,900 1,000 1.73 3.32
Parral 1,303,000 63 0.88 2,658,900 36,900 2.55 2.28
Arroyo Seco 738,000 220 0.07 5,220,000 1,700 0.65 0.18
Total Indicated 2,348,000 117 0.52 8,841,800 39,600 1.85 1.76
1. Reserve cut-off at Guanacevi is 158 g/t Ag
2. Reserve cut-off at Guanajuato is 111 g/t Ag
3. Mining width is 2.0 meters
4. Dilution is 15% after it has been diluted to a minimum mining width if required
5. Resource cut-off for the Guanacevi and Guanajuato projects is 100 Ag eq
6. Reserve and Resource Silver equivalent is 55:1 for Silver to Gold
7. At the Parral project a cut-off using NSR of $40 is used with the prices listed below
8. The cut-off used for Arroyo Seco was 100 g/t Ag
Net Smelter Return (NSR) Cut-off Parameters for the Parral Project
Description Parameter
Gold Price US $1,000 per oz
Silver Price US $16 per oz
Lead Price US
.65 per lb
Zinc Price US
.65 per lb
Gold Recovery (Overall) 75%
Silver Recovery (Overall) 71%
Lead Recovery (Overall) 80%
Zinc Recovery (Overall) 74%
Smelter Terms Based on generic contract

Endeavour exploration personnel prepared the updated resources to December 31, 2011 for the exploration projects at Guanacevi and Guanajuato mines and San Sebastian. The Parral and Arroy Seco resources were estimated at the end of 2010 and remain unchanged from that time.

Endeavour retained Micon International Limited (Micon) to update the reserves and resources for the Guanacevi and Guanajuato mines and to audit resources generated from exploration projects around the mines (i.e. Guanacevi and Guanajuato) and also for the San Sebastián project. The Qualified Persons for Micon are William J. Lewis, B.Sc., P.Geo., Charley Murahwi, M.Sc., P.Geo, FAusIMM, and Ing. Alan J. San Martin MAusIMM(CP). Micon's report for the Guanacevi and Guanajuato mines and the San Sebastián project will be completed and filed on SEDAR before the end of March. The Arroyo Seco report was authored by David St. Clair Dunn B.Sc.,P.Geo and Barry Devlin M.Sc., P. Geo, both of whom are Qualified Persons, and the report was previously filed on SEDAR.

These reserve and resource statements were classified following the definitions and guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum CIM standards and definitions on Mineral Resources and Reserves and the guidelines of NI 43-101.