VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/10/13 -- Endeavour Silver Corp. (TSX: EDR)(NYSE: EXK) announced today that it set new records for quarterly silver and gold production in the Second Quarter, 2013 from the Company's three operating silver mines in Mexico, the Guanacevi Mine in Durango State and the Bolanitos and El Cubo Mines in Guanajuato State.
Silver production in the Second Quarter, 2013 was up 48% to 1,535,873 ounces (oz) and gold production was up 159% to 19,914 oz compared to the Second Quarter, 2012. Revenues were up 57% to US$63.5 million in Q2, 2013 as a result of the increased metal production, offset partially by lower metal prices.
Production Highlights for Second Quarter, 2013 (Compared to Second Quarter, 2012)
-- Silver production increased 48% to 1,535,873 oz-- Gold production jumped 159% to 19,914 oz-- Silver and equivalents production escalated 76% to 2.61 million oz (at a 60:1 silver: gold ratio)-- Revenues rose 57% to $63.5 million on 1,787,571 silver oz sold and 25,477 gold oz sold-- Realized silver price fell 35% to $19.08 per oz sold(2)-- Realized gold price fell 28% to $1,151 per oz sold(2)-- Bullion inventory at quarter-end included 214,068 oz silver and 522 oz gold-- Concentrate inventory at quarter-end included 41,192 oz silver and 798 oz gold-- Reduced costs company-wide in response to the sharply lower metal prices-- Expanded production at Bolanitos to boost cash flow and offset lower metal prices-- Re-commissioned the newly rebuilt plant and infrastructure at El Cubo on time and budget-- Bolanitos placed 2nd, El Cubo 6th of 15 teams in regional underground mine safety competition
At Bolanitos, production averaged 2,225 tonnes per day (tpd) in Q2, 2013, well above the mine plan, thanks to the continued availability of the leased Las Torres plant near El Cubo. The Bolanitos plant operated at its 1,600 tpd capacity and the extra tonnes were processed at Las Torres. Ore grades were also significantly above plan, as mining is now accessing better than planned reserve grades.
The Company previously announced the return of the leased Las Torres plant on June 10 but Fresnillo plc was not ready to take it back so Endeavour continued to use these facilities to process El Cubo and Bolanitos ores in Q2, 2013. The return of the Las Torres assets is now expected to occur this month, at which time mine production at Bolanitos will pull back to the 1,900 tpd range.
At El Cubo, production averaged 987 tpd, better than planned because the actual 8% plant down time during the plant re-construction period was less than the scheduled 15% production shortfall. Grades were a bit below plan as the Company focused more on mine development during the Second Quarter 2013. Recoveries appear low because the El Cubo plant was emptied during the re-building period and the reloading of the plant results in approximately 73,000 oz silver and 1,460 oz gold production held in circuit that was processed into bullion after the end of the quarter.
At Guanacevi, production averaged 1,107 tpd, 8% below plan due to unscheduled repair and maintenance issues at the plant. Those issues should be fully resolved in July. Ore grades were better than planned as the higher grade production from Porvenir Cuatro continues to climb but recoveries were below plan due to weaker recoveries from the deeper Porvenir Norte ores.