Endeavour Silver: Changes To Mean Improved Results In 3Q, 4Q
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Changes in Endeavour Silver Corp.’s (NYSE: EXK; TSX: EDR) silver-gold mining operations in Mexico, aimed at improving operating and financial performance, are starting to have an impact although the outcome may not show up until third-quarter earnings, the company said. The measures include changes in mine-site management and contractors, employee and contractor supervision, renting used mining equipment and leasing new mining equipment, and revising the 2019 mine plans for all four mines, particularly Guanacevi. The company said it has reduced the employee and contractor workforce by 18% and deferred all discretionary expenditures, all with the goal of generating free cash flow at current metal prices in the third quarter. However, officials said the company’s performance in the second quarter likely will not differ from the first quarter since these initiatives take time to gain full traction and Endeavour incurred one-time expenses such as severance costs in the second quarter. “Our goal in implementing these actions is to make our mining operations more efficient so they can return to profitability quickly and permanently,” said Bradford Cooke, chief executive officer. He noted that at Guanacevi, Endeavour stopped new mine development at the lower-grade Santa Cruz and Porvenir Norte mines to focus on mining the remaining accessible reserves there. “We also re-allocated employee and contractor resources to accelerate the development and production of the higher-grade Milache and SCS ore bodies,” he said. “This should have a big impact on our operating and financial performance at Guanacevi.”
By Allen Sykora of Kitco News; firstname.lastname@example.org
Iamgold Upbeat About Nelligan Drill Results
Thursday May 30, 2019 08:25
Iamgold Corp. (TSX: IMG; NYSE: IAG) is upbeat about exploration results for a drilling program at the Nelligan project in Quebec. This is a joint venture 51% owned by Iamgold and 49% by Vanstar Mining Resources Inc. Iamgold reported assay results from 22 diamond drill holes totaling 6,970 meters. Results are pending from another 28 holes totaling 10,680 meters. The results so far included one hole of six meters in the Renard zone grading 56.5 grams of gold per tonne. The grade in a number of other holes ranged from 1.04 to 4.4 g/t. “The 2019 drilling program has successfully confirmed wide zones of mineralization extending to surface, which will help complete our deposit model in support of a mineral resource estimate planned for completion in the second half of the year,” says Craig MacDougall, senior vice president for exploration. “It is important to note that the mineralized zones remain open and are therefore believed to have favorable potential to continue to expand with additional drilling.”