Endeavour in silver at San Pedro (October 02, 2008)

Vancouver – Endeavour Silver (EDR-T, EXK-X) continues to hit high silver grades at its San Pedro properties, about 7 km northwest of its Guanacevi mine in Durango State, Mexico.

Endeavour cut as much as 0.30 metres in hole NB2-1 grading 1,295 grams silver per tonne, 0.45 grams gold per tonne, 1.46 % lead and 2.95% zinc about 156 metres downhole. An intercept in hole NB1-2 returned 2 metres grading 810 grams silver, 0.2 gram gold, 2.32% lead and 4.01% zinc starting 120 metres downhole.

On news of the drill results Endeavour’s share price increased 28 to close at $2.49.

The latest eight holes showing mineralization add to impressive mid-summer results at San Pedro. Endeavour hit a whopping 1.15 metres grading 6,680 grams silver, 11.2 grams gold, 1.49% lead and 2.52% zinc in hole EPS3-1 starting 249 metres downhole.

With an eye cast on expansion of silver production, which increased from 350,000 oz. silver in 2004 to 2.1 million oz. in 2007, Endeavour expects to calculate a resource for San Pedro by the end of the year.

As it stands Endeavour holds reserves of 1.3 million proven and probable tonnes grading 349 grams silver and 0.67 gram gold. It has a further 1.8 million tonnes grading 242 grams silver and 0.84 gram gold in the measured and indicated categories.

Most of the company’s production comes from the Guanacevi mine. It produced 1.9 million oz. silver and 4,000 oz. gold at a cash cost of US$8.16 per oz. net of gold in 2007.

Its other operating mine, Guanajato, about 600 km southeast of Guanacevi, produced 228,000 oz. silver and 2,400 oz. gold in 2007. Although cash costs jumped to US$20 per oz. in 2007 largely due to upgrades and rehabilitation of underground working there Endeavour expects costs to decline in 2008. Taking gold credits into consideration, 2006 cash costs were US$5.82 per oz.

Endeavour CEO Bradford Cooke remains confident on that score. Earlier in September he said in a statement, “The Guanajuato mine operation in particular is outperforming the jump in production planned for Q3 2008 and cash costs continue to decline as production rises.”

Endeavour has about 50 million shares issued.