Issue link: http://resourceworld.uberflip.com/i/937377
F E B R U A R Y / M A R C H 2 0 1 8 www.resourceworld.com 67 He added, "We hope to be breaking ground in the second quarter of 2018. That will allow us to see initial production by the fourth quarter of 2019." Terronera has over 60 million ounces of silver equivalents in the reserve and resource categories. The planned produc- tion rate will be 1,500 tonnes per day and the average resource grade is over 400 grams per tonne silver equivalents. As a result, the estimated cash costs are less than $3.50 per silver ounce, which drives a very robust anticipated economic performance. On the exploration side, Endeavour Silver has been receiving some very high assays from the Calicanto Project in Zacatecas, which is located near the El Compas Mine. Drilling highlights include 2,043 g/t silver and 13.2 g/t gold (2,967 g/t silver equivalent) over a 2.8-metre true width within the Calicanto vein. Another high-grade intercept assayed 932 g/t sil- ver and 1.26 g/t gold over a 2.7-metre true width within the Misie vein. A maiden resource estimate is being prepared for Q1, 2018. "After additional drilling in 2018 fol- lowed by permitting, we want to see production from Calicanto in 2019 in order to take advantage of the spare plant capac- ity," said Cooke. Endeavour Silver has also received encouraging exploration results from its Parral Project in Chihuahua. Drill results confirmed a portion of the historic 32 mil- lion oz silver resource at Veta Colorada. Additionally, the company is drilling on the Palmilla vein, which was previously a historic high-grade silver mine that sup- plied silver to the Mexican mint in the late 1800s. Endeavour's drilling there has outlined low-grade, bulk-tonnage miner- alization above and along strike of the old workings that may be amenable to open pit mining. Drilling highlights include 11.1 metres (true width) grading 154 g/t silver, 0.36 g/t gold, 0.07% lead and 0.23% zinc and other similar assays. This would be the second mineralized zone with resource potential to complement the Veta Colorada area. Drilling continues at Parral in a third mineralized zone known as the San Patricio vein. A new resource estimate will be released in Q1, 2018. Summing up the company's key objec- tives for 2018, Cooke said, "We want to finish the turnaround of the Guanacevi Mine. Clearly, that's a mine that fell off plan and it needs another two or three quarters to come back to normal and start adding cash to our treasury. That's number one. Number two is to deliver the fourth mine, El Compas, on time and budget by the end of March. We're on track for that. Thirdly, completing the permitting, arranging the debt financing and com- mencing the construction of Terronera in the second quarter of 2018 is also impor- tant for our near and long term future, to help drive our share performance." n