“Comprehensive reviews completed by the Project team and third-party consultants have greatly improved visibility towards initial production at Terronera later this year,” said
Updated Initial Capital Cost
As previously announced, the Board approved an optimized
(millions) | 2023 Revised Scenario Initial Capex | 2024 Updated Scenario Initial Capex | Variance | |||
Mining | ||||||
Mineral Processing Plant | ||||||
Site Infrastructure | ||||||
Total Direct Costs | ||||||
Owner Costs | ||||||
Project Indirect Costs | ||||||
Contingency | ( | |||||
Total Indirect Costs | ||||||
Total (Direct & Indirect) |
Below summarizes the main items impacting the 2024 Updated Scenario initial capital cost forecast:
- Mill equipment purchases contributed an additional
$11 million , primarily for E-houses and transformers, which have been ordered with final deliveries expected in Q2 2024. The higher electrical equipment costs reflect escalating component prices and increases due to supply availability. - Structural steel fabrication contributed an additional
$8 million ; steel prices have increased due to significant demand within the region. Also, additional tonnage is required for design changes made during detail engineering. The Company has delivery commitments from several fabrication shops, which began in early January, and are being planned according to the construction schedule requirements through Q2 2024. - Tailing storage facility (“TSF”) design changes contributed an additional
$5.5 million ; following final geotechnical site investigation studies, modifications were required for local conditions and to meet seismic load requirements. The strength of the Mexican Peso has also impacted the cost forecast. - The Company forecasts an additional
$13.9 million on mine development, equipment, and infrastructure expenditures through commissioning. Much of the additional cost is for mobile equipment at both the Terronera andLa Luz mines. Tradeoff evaluations show considerable savings through self-performed development and production, compared to escalating contractor mining prices. Additional mining equipment will be purchased earlier than originally planned to ensure sustained production during ramp up. Additional costs are anticipated from the strengthened Mexican Peso for labor and direct inputs sourced in-country. - The permanent camp was completed for
$2.2 million more than budget. A combination of additional scope, the impact of the strengthened Mexican Peso and inflationary costs impacted the final cost. - Management has allocated
$8.9 million from the$17.6 million contingency for additional cost forecasts for detail engineering, mine waste rock dump construction and indirect owner and construction management expenditures.
The Company’s early move to assemble an experienced Project team has provided the expertise to mitigate some of these impacts. Management believes the Company is well-equipped to meet the challenges of the current business environment. The Company has worked with external advisors and independent engineers to ensure forecasts are appropriately supported and verified. Management assumed a
Development and Execution Plan
In 2023, project activity focused on completing bulk earthworks, major mobile mining equipment procurement, detail engineering, access road construction, advancing plant concrete, constructing the permanent camp, and development advance in Portals 1, 2 and 4. At the end of the year, construction progress was approaching 50% completion.
In 2024, the Q1 surface construction will focus on structural steel erection, mechanical installations and initial electrical work for the crushing, coarse-ore stockpile, grinding, flotation and tailing thickener areas. Excavation is expected to be nearing completion for the LNG and power generation areas and the concentrate and tailing filtration areas at the end of Q1. In Q2 and Q3, work is planned to advance in all plant areas with mechanical completion and commissioning activities planned in Q4 with initial production at the end of 2024.
For the mine, development of Portals 1, 2 and 4 will continue with first ore development anticipated in Q2. The first long-hole mining is planned for Q3 and cut-and-fill mining is planned to begin in Q4 with accumulation of the stockpile during this period. Development activities at
The project remains on schedule for mill commissioning and initial production in the fourth quarter of 2024. The critical path remains the underground mine development where advance rates have been steadily increasing and the TSF construction.
Project Funding
The Company is well-positioned to satisfy the financing requirements of the project. The Company expects to make the first draw under the
Launch of Project Website
The Company is pleased to introduce a dedicated project website, accessible at www.terronera.com. This new website will serve as a virtual hub for the local community, key stakeholders, and other interested parties to stay informed and engaged with the ongoing progress of the
About the
The Terronera project is a high-grade silver-gold project being developed in the
For more information about the project and details of the Feasibility Study, the technical report is entitled “NI 43-101 Technical Report on the Feasibility Study of the
Technical Disclosure
The scientific and technical information contained in this news release has been reviewed and approved by
About Endeavour Silver – Endeavour is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in
Contact Information
Email: gmeleger@edrsilver.com
Website: www.edrsilver.com
Follow
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, production levels, performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors include but are not limited changes in production and costs guidance; the ongoing effects of inflation and supply chain issues on mine economics; national and local governments, legislation, taxation, controls, regulations and political or economic developments in
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the Company’s mining operations, no material adverse change in the market price of commodities, forecasted Terronera mine economics as of 2024, mining operations will operate and the mining products will be completed in accordance with management’s expectations and achieve their stated production outcomes, and such 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.
Source:
2024 GlobeNewswire, Inc., source