Endeavour Silver production drops by one-third
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The issue was due to lower grades at El Cubo and Bolanitos. However, the company said production increased at Guanacevi and El Compas to alleviate some of the shortfall.
The company's stock was off 4.57% to $3.13 a share as of 12:22 p.m. ET.
"Our production in the Third Quarter 2019 was down year-on-year, but we are seeing positive traction from all the operational changes made in the past two quarters," said Bradford Cooke, Endeavour CEO, in a news release.
"We expect lower operating costs in Q3 and further improvements of Guanacevi and Bolanitos tonnes and grades in Q4, 2019, which should have a positive impact on costs and production.
At Bolanitos, Endeavour said output declined year-on-year because the mine plan had to be re-sequenced to allow for blending of high and low arsenic ores. There were also equipment availability issues and a lack of stope access. Endeavour notes that tonnes rose month to month during Q3, 2019 and higher tonnes and grades are expected in Q4, 2019.
At El Cubo, the planned grades were due to narrower widths and higher dilution of the V-Ascuncion ore body than estimated. The company said it is currently assessing the area to determine whether better mining practices can reduce dilution going forward. Mine tonnes and grades are expected to stabilize in Q4, 2019.
Cooke provided an update on projects in the pipeline.
"We continued to advance our Terronera and Parral projects with engineering trade-off studies during the quarter. The mining and processing of bulk samples from each project are planned this quarter in order to complete a final PFS for Terronera and an initial PEA for Parral. Our exploration programs continue to generate positive brownfields results and we plan to drill two greenfields projects in Chile in Q4, 2019."