At the El Inca properties located in northern Chile, surface mapping, and target identification were completed and drilling commenced in April. The El Inca properties have intriguing exploration potential for bulk tonnage silver-gold mineralization of the El Penon type, high grade silver mineralization in the four veins that were mined historically on the property, and classic porphyry copper deposits.
The Company planned another year of organic growth in 2013. Silver production is forecast to rise 12-18% to 5.0-5.3 million oz and gold production is anticipated to increase 19-27% to 46,000-49,000 oz. Silver equivalent production is expected to climb 14-22% to 7.3-7.8 million oz (silver:gold ratio of 50:1).
However, with the sharp decline of silver and gold prices in April, management has implemented cost reductions and revised its 2013 financial plan in response to reduced metal price expectations for the year. Metal production is not expected to be negatively impacted by these measures but the anticipated reduced value of Endeavour's gold by-product credits could negatively impact cash cost guidance.
The Company did plan for a strong first quarter of production to compensate for possible interruptions of second quarter production at El Cubo related to the re-commissioning of the newly rebuilt plant and surface infrastructure. The reconstruction of the El Cubo plant is now nearing completion with re-commissioning underway ahead of schedule.
Endeavour anticipates Q2 production will dip slightly before recovering in Q3 and growing in Q4. Bolanitos and El Cubo are the main engines of production growth in 2013 and Guanacevi is expected to continue at a steady pace.
A telephone conference call to discuss the results will be held at 10:00 am PDT (1:00 pm EDT) on Tuesday, May 7, 2013. To participate in the conference call, please dial the following:
1-800-319-4610 Canada and USA (Toll-free)604-638-5340 Vancouver Dial In1-604-638-5340 Outside of Canada & USANo pass-code is necessary to participate in the conference call
A replay of the conference call will be available by dialing 1-800-319-6413 in Canada & USA (Toll-free) or 1-604-638-9010 outside of Canada & USA. The required pass-code is 4890 followed by the # sign.
All shareholders can receive a hard copy of the Company's complete audited financial statements free of charge upon request. To receive this material in hard copy, please contact Meghan Brown, Director Investor Relations at 604-685-9775 or toll free 877-685-9775.
ENDEAVOUR SILVER CORP.
BRADFORD COOKE, CEO and Director
About Endeavour - Endeavour is a mid-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. Since start-up in 2004, Endeavour has posted eight consecutive years of growing silver production, reserves and resources. The organic expansion programs now underway at Endeavour's three operating silver mines in Mexico combined with its strategic acquisition and exploration programs should facilitate Endeavour's goal to become the next premier senior silver mining company.
Cautionary Note Regarding Forward-looking Statements
This news release 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 2012 and the timing and results of exploration drill programs. 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.