Endeavour plans to invest $32.7 million on capital projects in 2015, including $18.3 million on mine development, $11.0 million on plant and equipment, and $3.1 million on tailings upgrades. The mine development capital is for accessing reserves for mining and replacing reserves by converting measured and indicated resources. Endeavour does not estimate reserves based on drill holes, only on underground workings.
The Company has budgeted US$15.0 million at El Cubo, $4.9 million at Bolañitos, $12.5 million at Guanaceví and $0.3 million for corporate items, all of which will be covered by the Company's anticipated 2015 cash flow.
In 2015, Endeavour plans to spend $6.9 million on exploration, including $0.9 million required for property payments. A total of 26,000 metres of drilling in approximately 150 holes are budgeted to test multiple exploration targets in addition to the underground mine exploration drilling.
The Company will focus on brownfields exploration around the three operating mines in order to replenish resources as well as infill and condemnation drilling needed for engineering the emerging new high grade silver-gold discovery in the Terronera vein on the San Sebastián property in Jalisco State.
Mr. Cooke added, "We will run the three mines at close to capacity in Q1, 2015 until we complete the alternative mine plans for El Cubo in March. The primary consideration of the alternative mine plans is to reduce unit operating costs at El Cubo. Considering the current low precious metal prices and anticipated lower output from Bolañitos, we plan to produce at a lower rate in 2015 but capital and exploration budgets are significantly reduced this year which should help to boost free cash-flow."
At El Cubo, production will continue primarily from the new V-Asunción, Dolores, Villalpando, San Nicolas and Santa Cecilia veins. At Guanaceví, production will continue primarily from the Porvenir Cuatro, Porvenir Norte, and Santa Cruz deposits. Underground development of the new Santa Cruz Sur and Milache discoveries are awaiting permitting for development in 2015 and production to start in 2016. At Bolañitos, production will continue primarily from the Daniela, Karina, Lana and Bolañitos veins and the new LL-Asunción deposit.
Consolidated cash costs of production, net of gold by-product credits, are expected to be in the range of $10-11 per oz of silver in 2015. The increase is largely due to the rising contribution of the higher cost El Cubo mine and reduced gold production at the Bolanitos mine. Consolidated cash costs for silver and gold on a co-product basis are anticipated to be around $13-$14 and $900-$950 per oz respectively.
All-in sustaining costs (AISC), net of gold by-product credits, in accordance with the World Gold Council standard, are estimated to be $18-19 per oz of silver in 2015. When non-cash items such as stock based compensation are excluded, AISC, net of gold by-product credits, is forecast in the $17.50-$18.50 range.
On a co-product basis, AISC are predicted to be $18.50-19.50 per oz silver and $1,200-1,250 per oz gold. Direct operating costs are estimated to be in the $90-94 per tonne range. \
2015 Production Guidance
As a result of the anticipated decrease in production at the Bolañitos mine in 2015 and the sharp increase in production and reduced unit operating costs at the El Cubo mine in the Q4, 2014, management is currently developing alternative production scenarios for the El Cubo mine, including a possible significant mine expansion to fill available Bolañitos plant capacity in 2015. The Company is seeking the cooperation of the miners' union to accomplish the alternative mine plans in order to ensure the short and long term viability of the El Cubo mining operation. The union recently helped to identify and develop higher grade historic mineralization that facilitated the improved the grades and tonnages in Q4, 2014.
Since the alternative mine plans will not be completed until early March 2015, the Bolañitos and El Cubo mines will continue to produce at close to their respective plant capacities until that time. Based on our review of the alternative mine plans, the following 2015 production guidance may be subject to revision.
Silver production for 2015 is expected to be in the range of 5.8-6.4 million oz, gold production is anticipated to be in the 47,000-52,000 oz range, and silver equivalent production is forecast to be 9.0-10.1 million oz using a 70:1 silver:gold ratio, as shown in the table below.
Mine Ag (M oz) Au (K oz) Ag Eq. (M oz) Tonnes/Day (tpd)
Guanaceví 3.1-3.3 6.0-7.0 3.5-3.8 1,200-1,300
Bolañitos 1.2-1.4 22.0-24.0 2.7-3.1 1,100-1,200
El Cubo 1.5-1.7 19.0-21.0 2.8-3.2 1,350-1,450
Total 5.8-6.4 47.0-52.0 9.0-10.1 3,650-3,950
Silver-Gold Inferred Resources
Tonnes Ag g/t Au g/t Ag Eq g/t Ag oz Au oz Ag Eq oz
Guanaceví 1,792,900 281 0.61 324 16,226,200 35,000 18,670,000
Bolañitos 1,936,700 138 1.45 239 8,576,100 90,400 14,903,600
El Cubo 1,782,900 134 1.83 262 7,680,200 104,900 15,017,000
San Sebastián 1,176,700 189 1.44 290 7,165,200 54,300 10,967,800
Guadalupe y Calvo 154,000 94 2.14 244 464,600 10,600 1,206,500
Total Inferred 6,843,200 182 1.34 276 40,112,300 295,200 60,764,900
Tonnes Ag g/t Au g/t Ag Eq g/t Ag oz Au oz Ag Eq oz Pb % Zn%
Parral 1,631,000 49 0.90 112 2,589,900 47,200 5,893,500 2.87 2.86
Noche Buena 655,000 166 0.21 181 3,495,700 4,400 3,805,300 0.61 1.02
Total Indicated 2,286,000 83 0.70 132 6,085,600 51,600 9,698,800 2.22 2.33
Parral 1,303,000 63 0.88 125 2,658,900 36,900 5,239,500 2.55 2.28
Arroyo Seco 738,000 220 0.07 225 5,220,000 1,700 5,336,300 0.65 0.18
Noche Buena 337,000 149 0.18 162 1,614,400 2,000 1,750,900 0.63 1.04
Buena Fe (Ag-Pb-Zn) 309,000 108 0.11 116 1,072,900 1,100 1,149,400 1.64 3.16
Total Inferred 2,687,000 122 0.48 156 10,566,200 41,700 13,476,100 1.68 1.65
2014 Reserve/Resource Highlights (Compared to December 31, 2013)
•Silver Proven and Probable Reserves increased 3% to 12.0 million ounces (oz)
•Gold Proven and Probable Reserves decreased 19% to 113,300 oz
•Silver Equivalent Proven and Probable Reserves totalled 19.9 million oz (70:1 silver:gold ratio)
•Silver Measured and Indicated Resources increased 8% to 65.0 million oz
•Gold Measured and Indicated Resources increased 20% to 665,700 oz
•Silver Equivalent Measured and Indicated Resources totalled 111.6 million oz
•Silver Inferred Resources decreased 1% to 50.7 million oz
•Gold Inferred Resources decreased 23% to 336,900 oz
•Silver Equivalent Inferred Resources totalled 74.2 million oz
•Mineral resources are estimated exclusive of and in addition to mineral reserves
•Proven Reserves are defined within 10 metres of underground development while Probable Reserves extend a further 15 metres from underground development
•2014 silver equivalents based on 70:1 silver:gold ratio, base metals not included
•All assumptions are listed at the bottom of the reserve and resource summary table
Work on Endeavour's other exploration projects in Mexico (the Guadalupe y Calvo and Parral projects in Chihuahua and the Arroyo Seco project in Michoacán) did not change the resources, and previous estimates remain unchanged. The Guadalupe y Calvo resources were estimated in 2012 and the Parral and Arroyo Seco resources were estimated at the end of 2010.
7:31 am Endeavour Silver updates NI 43-101 silver and gold reserve and resource estimates for its mines and exploration project in Mexico (EXK) :
•Silver Proven and Probable Reserves increased 3% to 12.0 mln oz, totalling 19.9 mln oz
•Gold Proven and Probable Reserves decreased 19% to 113,300 oz
•Silver production for 2015 is expected to be in the range of 5.8-6.4 mln oz
•Gold production is anticipated to be in the 47,000-52,000 oz range
Looks like they are forecasting a small decline in production for 2015 at 60/1 silver to gold.
Any one else see this? or is my math wrong.
8.6 to 9.52 oz of silver Eq production.
I am sure that is conservative.
that is what the "ignore" feature is for.
The board clears up nicely if you use it.
If you want to read a post, you can without unignoring them by hovering out so the flag pops up and click read post.
brmi12345 did give the source of his info on one of his earlier posts.
What difference does it make? you would not believe it as being credible.
I could post the predictions and info he posted if you would like.
I went back and checked as he was giving very specific info that was falling into place as being confirmed in the filings.
I don't know about the latest reports of workers all on unemployment, but it is possible.
We may never know anything else about this company.
It can't cost much to put out a PR to briefings or flyonthewall...probably nothing $.
I would give money...let's take up a collection. I'm in for $20
I have thought it odd that he posts the same thing, over and over here. Telling people to go over and ask on the CCTC board. yet, he does not post there. I checked his posting history.
Why is he posting that on the TMEN board?
It could only be because of a connection between my_man_cosentino and investorchicago_66_upa.
They could be the same poster. Strange things on this board.
Most every poster on here for TMEN, only posts here and says the same things, mostly all defending investorchicago_66_upa, as if he were Jim Jones.
He never said how he made all that money in CCTC.
This board is pure soap opera entertainment!
investorchicago_66_upa never sounds angry?
That is hysterical.
Why do you defend him? What is the connection?
Well, If oil doesn't go up...all oil companies will be bankrupt in 10 years.
It won't be just cut dividends.
They had a very good Q3 and Q4 has been their strongest quarter.
Speculating that some think that SPU has turned the corner on it's drink business and it is growing enough to compensate for the fluctuations of the fruit harvests.
Maybe they can pull off all the big projects and set up the orchards to supply them.
Bladex's Fourth Quarter and Full-Year 2014 Earnings Release will be distributed on Wednesday, February 11, 2015 before the market open and will be available on the Bank's corporate website, along with the webcast presentation.
The conference call will be on Thursday, February 12, 2015 At 10:00 am eastern.
Good read... you 100% agree about paragraphs.
What is the agreement? Not having any?
Leave out the politics...that's baloney How did Bush and Cheney make money and where is it?
I receive the full dividend in my Rollover IRA from BLX. Nothing withheld.
disclosure: stockholder for over 5 years
I know what you mean about being attacked for being honest.
I don't even call names and attack other posters.
Basillman is a little girl...a little baby girl?
How old is she?
At least she doesn't seem to bother you.
She sure does bother this message board, and you get the credit for that...even if you felt you were being honest. And you kept going back over there to the CCTC board and stirring the pot.
It is ironic how much the two companies now have in common. It is fitting that the two message boards are so intertwined.
You never did tell us how long those frack deals take. Are we still waiting, or did the deals fall through? TMEN is so unlucky, fracking is contracting at an alarming rate. TMEN will need to find a new market.