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Endeavour Silver delivers robust feasibility for Terronera, rapidly advances towards construction

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(Kitco News) - Endeavour Silver (NYSE: EXK) (TSX: EDR) today announced that its feasibility study on the 100% owned Terronera project in Jalisco state, Mexico, delivers robust economics supported by larger mineral reserves, higher annual silver production and longer mine life.

According to the company's statement, the average annual EBITDA during full years commercial production is $63.5 million and after-tax free cash flow is $40.7 million. The cumulative LOM EBITDA and after-tax free cash flow are estimated at $757 million and $311 million, respectively, or 59% and 43% higher than the 2020 PFS.

Highlights of the feasibility study also include an after-tax NPV (5%) of $282 million under the base case scenario at spot price sensitivity, with an after-tax IRR of 30% and a payback period of 2.5 years.

Both Terronera and La Luz will be mechanized ramp access underground mines capable of producing a combined average of 1,700 tpd to meet the plant capacity. The feasibility study supports a high grade, silver-gold underground mining operation at Terronera producing an average of 3.3 million payable ounces ("oz") silver and 32,874 payable oz gold per year over a 12-year mine life.

The company said that the Terronera project will take approximately 24 months for construction and ramp up to full production. However, these timeframes do not take into account further disruptions to the labour market and global supply chain interruptions due to the COVID 19 pandemic.

CEO Dan Dickson commented, "With the completion of the feasibility study, the Terronera project is now advancing rapidly towards financing and construction. The results provided today support the construction of our largest, and lowest cost mine.  We believe there are further opportunities to optimize the project and grow the mineral resource. It is our belief that, with continued drilling success, there is potential to add significant production ounces and mine life at Terronera."

Endeavour Silver is a mid-tier precious metals mining company that owns and operates two high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera project towards a development decision and exploring its portfolio of exploration and development projects in Mexico and Chile to facilitate its goal to become a premier senior silver producer.

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