Resource World Magazine

MIN I NG Endeavour Silver extends high-grade silver-gold values at Milache by Peter Caulfield Endeavour Silver Corp. [EDR-TSX; EXKNYSE; EJD-Frankfurt] recently announced that exploration drilling on the Vancouverbased company's Milache property, near its Guanacevi Mine in Durango State, Mexico, has extended the high-grade, silver-gold mineralization along the Santa Cruz Vein to more than 250 metres long by 250 m deep and it is still open for expansion. The latest drill highlights at Milache include 796 g/t silver and 2.28 g/t gold over a 7.59-m true width (26.5 oz/ton silver equivalents over 24.9 feet) in hole MCH-15, based on a silver:gold ratio of 50:1; including a very high-grade interval of 10,990 g/t silver and 25.1 g/t gold over 0.22 m true width (357 oz/t silver equivalents over 0.7 ft). In an announcement, CEO and director Bradford Cooke said, "Exploration drilling at Milache continues to extend the highgrade, silver-gold mineralization to the north and to depth." The high-grade mineralized zone at Milache was discovered in late 2011. "The drill results, since then, are showing it to be one of our best new discoveries at Guanacevi in recent years," Cooke said. "Every recent hole has intersected kilo-plus silver grades and significant gold grades. Drill hole MCH15 contains the highest grade vein intercept ever drilled by Endeavour in the district of Guanacevi." Cooke says there will be more drill news from Milache later in 2012. "Enveavour's goal is to have Milache in development by 2013," he said. Endeavour was founded by Cooke and president and COO, Godfrey Walton. The company describes itself as a mid-tier, 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 consecu54 www.resourceworld.com tive years of growing silver production, reserves and resources," Cooke said. The company has three producing silver mines in Mexico: The Guanacevi Mine in Durango and the Bolañitos and El Cubo mines in the state of Guanajuato. In 2011, Guanacevi and Bolañitos mines produced 3.7 million ounces of silver and 21,800 ounces of gold at a production cash cost of $5.08 per ounce, net of by-product gold credits. With the acquisition of El Cubo, production is set to rise again in 2012 to 4.6 million ounces of silver and 38,000 ounces of gold; the company expects cash costs to rise between $6.00 and $7.00 per ounce. In addition, the company has a portfolio of district-scale exploration properties which will undergo exploration and drilling. Cooke says Endeavour stands out from other silver mining companies for its strong track record of growth, its outlook for continued growth and its per-share leverage to silver production, cash-flow and earnings. "The organic expansion programs now underway at our silver mines, combined with our acquisition and exploration program, should help Endeavour achieve its goal to become the next premier senior silver mining company," Cooke said. Cooke and Walton, both geologists, started the company in 2003 with $300,000 of their own money and an idea. "We went to Mexico and sought out silver and gold properties that had the potential to become company-building assets," Cooke said. "Today, Endeavour has a $1 billion market cap, three operating mines, 2,000 employees and we're not half-done yet." "Our strategy is to buy and explore new mines that will lead to an increase in the company's total production," Cooke said. "Every year we go out and find a tired old Bradford Cooke, CEO mine, bring in money and mining expertise and fast-track its development in order to unlock its potential." The Guanacevi Mine is located five km from a paved highway and the town of Guanacevi. The mine has grades of 300plus g/t silver and gold credits of 0.70 g/t. Guanacevi has a modern 1,300 tpd mill with opportunities for expansion. In 2011, the mine produced 2,682,035 oz silver; 6,866 oz gold, for a 2,991,005 oz silver equivalent. The Bolañitos Mine lies approximately five km from Guanajuato with good road access, power and water and a trained work force on site. The silver grade at the mine is 185 g/t and gold at 2.44 g/t, which equates to more than 10 oz/ton silver equivalents. Historic grades were reported to be more than 300 g/t silver and more than 3 g/t gold. The mill commissioned a new circuit in 2011 that increased its capacity from 600 tpd to 1,600 tpd. In 2011, the mine produced 1,048,093 oz silver, 6,867 oz gold, for a 1,720,528 oz silver equivalent. "The story at Bolañitos is far from finished," said Cooke. "Our new discovery at the mine, the Lana Vein, is now in develDECEMBER 2012/JANUARY 2013

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