Endeavour Silver nears Terronera finish in Mexico

Endeavour Silver (NYSE: EXK; TSX: EDR) expects its Terronera project in Jalisco state, Mexico, to be ready for full commissioning early in the second quarter.

Crews made “substantial” progress on the site’s Upper Plant Platform during the fourth quarter and systems commissioning is underway, the company said Friday. It’s 89% finished overall.

“Endeavour Silver’s Terronera Project is nearing completion,” chief operating officer Don Gray said in a release.

Capital spending reached US$302 million by Dec. 31 with US$30 million more planned at that point. A $16-million increase in mining costs is attributed to an extended project schedule and higher waste rock disposal costs including hauling and building a permanent dump for it.

During the fourth quarter, crews developed 1,694 metres underground, bringing the total to 7,239 metres. The primary crusher commissioning was completed, with a total of 6,000 tonnes of ore crushed.

4M oz silver

Terronera has total proven and probable reserves of 7.4 million tonnes grading 197 grams silver per tonne and 2.25 gram gold per tonne. The mine consists of the Terronera and La Luz underground deposits, both of which will be mined using a combination of long-hole and cut-and-fill methods.

The processing plant will have a capacity of 2,000 tonnes per day. A feasibility study forecasts that the project will produce 4 million oz. of silver and 38,000 oz. of gold annually over a 10-year period.

Shares of Endeavour Silver rose 1.3% Friday morning before sliding with wider markets to $5.65 apiece, down 3.4% in Toronto. The company has a market capitalization of $1.49 billion.