Endeavour Silver Releases Drilling Results
- By Alberto Abaterusso
Endeavour Silver Corp. (EXK), the Canadian midtier precious metal producer that aims to create shareholder value through its producing mines and the advancement of high valued projects in Mexico, announced the hole drilling results from the Terronera property in the Mexican State of Jalisco March 16.
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Previous drilling results have already shown that the Terronera site is a silver and gold mineral deposit characterized by having a high-grade ore body, which recently has been expanded by the new drillings made by the company's exploration team at the Terronera vein and at the La Luz vein.
The most promising drilling results from the Terronera vein are those that come from hole number TR11-3, where the company says that the exploration team achieved the following results: "230 grams per tonne (gpt) silver and 1.8 gpt gold (359 gpt AgEq) over 16.3 meters true width, or 10.5 opT AgEq over 53.5 feet, with an internal interval assaying 3,490 gpt silver and 8.9 gpt gold (4,110 gpt AgEq) over 0.3 meters true width, or 119.8 opT AgEq over 1.0 foot, in hole TR11-3."
These findings mean that at 16.3 meters the exploration team found a deposit of valuable minerals and also found a richer strike of ore over a subspace of 0.3 meters in the wider part of the mineralized area. The latter is characterized by a very high ore grade: just to give you an idea, 8 grams of gold per ton of ore and nearly 3.5 kilograms of silver per ton of ore that together lead to 4.11 kilograms of equivalent silver per ton of ore.
The most relevant drilling results from the La Luz vein are those that come from the new hole number LL-21, where Endeavour Silver declared that it achieved these results: "63 gpt silver and 57.0 gpt gold (4,054 gpt AgEq) over 2.2 meters true width, or 118.0 opT AgEq over 7.2 feet, with an internal interval assaying 340 gpt silver and 320.0 gpt gold (22,740 gpt AgEq) over 0.3 meters true width, or 663.0 opT AgEq over 1.0 foot, in hole LL-21."
The exploration team has reached a rich ore grade strike in gold over a subspace of 0.3 meters in the wider part of the deposit found at 2.2 meters, where the concentration of gold and silver per ton of ore are respectively 320 grams and 340 grams that together lead to 22.74 kilograms of equivalent silver per ton of ore.
Of course, a feasibility study needs to be completed for the Terronera vein and La Luz vein to assess the economic viability of the development project and to be able to say how many ounces of gold and silver the company can add to its future production. However, the company says that these drilling results "indicate clear potential to expand resources within the La Luz vein and Terronera vein." This means that once the company has also proved its economic viability through the release of an up-to-date feasibility study, it can have a positive impact not only on the company's asset base but also on the share price of Endeavour Silver as the project gets adequate promotion by the mining media.
Endeavour Silver is trading at $3.205, down 7.5 cents (or -2.29%) from the previous trading day and is selling at 3.05 times its book value and at 10.69 times its EBITDA.
Disclosure: I have no positions in Endeavour Silver.
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This article first appeared on GuruFocus.
Warning! GuruFocus has detected 3 Warning Signs with EXK. Click here to check it out.
The intrinsic value of EXK
