It’s a relentless push to the finish line for Endeavour Silver’s much-anticipated Terronera Project, located within the revered Sierra Madre volcanic belt, which boasts the majority of Mexico’s silver and gold deposits.
Despite enduring formidable headwinds including a bolstered Mexican peso, prevailing inflation, and a constricted market for essential supplies, progress at Terronera steadfastly marches onward. According to Dan Dickson, Endeavour’s CEO, “We remain confident in our commissioning schedule, our updated capital cost estimate, and our ability to address these challenges as we advance the project for the benefit of all stakeholders.”
The project’s revised capital expenditure now stands at $271 million, representing a modest increase of under 20% from earlier projections.
Additional expenses have surfaced, particularly with mill equipment costs stacking on an extra $11 million, predominantly for electrical equipment. The intricacies of structural steel fabrication have led to an $8 million surge, attributed to the combination of escalated steel prices and design alterations during detailed engineering. Furthermore, the cost of the tailings storage facility has vaulted by $5.5 million following conclusive geotechnical studies and subsequent modifications.
An incremental $13.9 million has been earmarked for mine development, equipment, and infrastructure throughout the commissioning phase. A substantial portion of this allotment is designated for mobile equipment costs at both the Terronera and La Luz mines. Notably, the permanent camp surpassed its budget by $2.2 million.
Intriguingly, the Terronera and La Luz underground deposits will undergo extraction using a blend of long hole and cut and fill methods. The mineral processing plant is set to accommodate a capacity of 2,000 t/d. Based on the feasibility study, the project is anticipated to yield 4 million oz. of silver and 38,000 oz. of gold annually over a 10-year span.
As things stand, Terronera lays claim to proven and probable reserves of 7.4 million tonnes averaging 197 g/t silver and 2.25 g/t gold (equivalent to 88.8 million oz. of silver). Although Endeavour refrained from disclosing measured and indicated resources, the inferred material at Terronera amounts to 1.1 million tonnes grading 322 g/t silver and 0.21 g/t gold.
