August st 30, 2018 18 2018 8 Updated ated PFS FS Terron onera era Project ect TSX: EDR I TSX NYSE: E: EXK I www.ed .edrs rsilver ilver.com .com
Cautio utiona nary ry Not ote This presentation contains “forward - looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward - looking information” within the meaning of applicable Canadian securities legislation. Such forward -looking statements and information herein include but are not limited to statements regarding Endeavour’s anticipated performance in 2018, the timing and results of various future activities, the reliability of mineral resource estimates, the economic analysis and proposed development of the Terronera mine. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors include, among others, the reliability of Terronera mineral resource and reserve estimates, economic analysis and estimates for the Terronera, changes in national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development, risks in obtaining necessary licenses and permits, and challenges to the Company’s title to prop erties; as well as those factors described in the section “risk factors” contained in the Company’s most recent form 40F/Annual Informat ion Form filed with the S.E.C. and Canadian securities regulatory authorities. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the reliability of mineral resource and reserve estimates and economic analyses for the Terronera mine, the continued operation of the Company’s mines, no material adverse change in the market prices of commodities, mining operations will operate and the minin g products will be completed in accordance with management’s expectations and achieve their stated production outcomes, and suc h other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company does not intend to, and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law. The 2018 Updated PFS report and the updated Mineral Resource and Reserve Estimates were prepared in compliance with National Instrument 43-101 (NI 43-101) and will be filed on SEDAR and EDGAR within 45 days of Endeavour Silver’s News Release dated August 30, 2018. All currency references herein are in US$. 2 GROWTH WITH INTEGRITY
En Endeavo eavour ur Si Silver lver Overview erview Mid Mid-tier er precious us metals als producer r with h four high grade e silver ver gold mines es in Mexico. o. The Company y has a compell lling ing pipeline ne of explora rati tion n and develop lopme ment nt projects s to f fuel el future ure growth h to b become e a premier er senio ior silver er producer er. 4 4 operating mines • Product duction ion Sierra Madre 10.2 2 – 11.2 2 mil oz oz Ag Eq Eq 1 Developmen opment • Occidental Silver & Gold Belt 2018 production forecast Explora ration ion Chihuahua Guanac acev eví +1,60 600 0 employees • Parral Guada dalupe pe y y Calvo $58.9M 9M working cap, no debt 2 • Durango Zacatecas Bolañit itos os $35.7 7 millio lion n ATM Financi ncing ng • Lourde des El Compas pas to advance Terronera to fund Guanajuato El Cubo Jalisco equity portion of CAPEX Terroner era Mexic ico City US$305M 5M market cap 3 • 1. Silver equivalents based on 75:1 silver: gold ratio 2. As at June 30, 2018. Cash position of US$31.1 million 3. As at August 28, 2018 3 GROWTH WITH INTEGRITY
Ter erronera onera Proj ojec ect t Overvi erview ew A N New District trict Scale ale Explora rati tion n & Mining ng Opportunit tunity Locat ation n - NW Jalisco State, near town of San Sebastian, 40 Km NE of Puerto Vallarta, Jalisco state, Mexico Access – 1.5 hour drive from Puerto Vallarta via Highway 70 2010 – acquired option to purchase from Grupo Mexico, one of the largest mining companies in Mexico 2011 – commenced exploration 201 012 2 – discovered Terronera mineralization 2013 3 – exercised option to acquire 100% interest in the San Sebastián Properties 2014 4 - 2018 8 – Further consolidated land package in the View overlooking the local town of San Sebastian area, expanded resources, completed PEA & PFS Total al purchas ase price - $2.75 million, subject to 2% NSR Property erty – currently comprised of 21 mineral concessions, totalling 16,691 hectares 4 GROWTH WITH INTEGRITY
Prop opert erty y Ge Geol ology ogy The San n Sebasti astian an veins ns rang nge e up to 30 m meter ers s thick ick and carry rry high grade silver gold mineralization up to 1,000’s gpt Ag Eq Eq San Sebas asti tian an - historic mining district dating back to • 1542 Situated in the Sierra Madre volcanic belt that hosts • the majority of Mexico’s Au & Ag deposits > 50 historic mines on > 20 known veins • Production was halted by 1910-12 due to Mexican • Revolution Grupo Mexico xico – conducted minor exploration drilling • in late 1980’s early 1990’s but district largely unexplored by modern methods Low sulphi hidati ation epit ithe hermal al vein n system tem – in 4 • mineralized vein sub-districts Each vein cluster spans ~3km x 3km in area • Mineralization down to 400 m depth • Veins average 2-8 m thick, up to 30 m in places • 5 GROWTH WITH INTEGRITY
Prop oper erty ty Mine neralizati ralization on Low sulfidation, epithermal, bonanza • silver-gold mineralization • Hosted in Cretaceous andesite volcanics Ore minerals are argentite-pyrite • (galena-sphalerite-pyrargyrite) in ginguro bands Vein minerals are quartz-adularia- • calcite- barite (sericite) Amenable to both flotation and • agitated leach recoveries 80-90% Grades typically range 100-500 gpt • Ag and 1-5 gpt gold 6
Ex Exploration oration Dr Drillin lling g From 2011-2018 + 3 307 drill holes es & + 9 90,000 meter ers s have ve been n drilled ed 2010 – Commenced exploration activities 2011 – 2012 2 – drilling on Real Alto & Quiteria West Veins 2012 2 – 2015 5 – drilling on Terronera vein, initial government permitting including PEA 2016 6 – exploration of new drilling targets around the Terronera Project and discovery of high grade La Luz vein 2017 – Exploration focused on La Luz, and PFS on the Terronera Project 2018 8 – Infill drilling along Terronera vein, final government permitting and updated PFS Terrone nera a mine neraliz alizat ation ion 1,40 400 mete eters long, g, 400 meter ters deep ep and 3-16 6 mete ters thick ick and still l open n along g strik ike e and at depth th 7 GROWTH WITH INTEGRITY
Recommend
More recommend
