Endeavour Silver Provides Update on Guanacevi Trunnion Failure
Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) has provided an update on the Guanacevi mine's primary ball mill trunnion failure reported on August 12, 2024. Processing has resumed at a reduced rate of 400-500 tonnes per day (tpd), about half of the planned 1,200 tpd capacity. The company has implemented temporary solutions, including repurposing a regrind mill as the primary ball mill. Mining operations will continue at a reduced rate, focusing on high-grade ore processing and stockpiling.
The company estimates a cash shortfall of less than US$5 million over a 15-week period. Guanacevi's production is expected to decrease by 0.9-1.1 million silver ounces and 2,000-3,000 gold ounces compared to the original plan. Endeavour has revised its 2024 production forecast to 4.4-4.6 million silver ounces and 36,000-38,000 gold ounces. The trunnion replacement is estimated to cost US$0.5 million with a 16-week installation period. Due to uncertainties, the company has withdrawn its cost guidance for 2024.
Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) ha fornito un aggiornamento sulla rottura del trunnion del mulino a palline principale della miniera di Guanacevi, segnalata il 12 agosto 2024. Il processo è ripreso a una velocità ridotta di 400-500 tonnellate al giorno (tpd), circa la metà della capacità pianificata di 1.200 tpd. L'azienda ha implementato soluzioni temporanee, tra cui la riconversione di un mulino per regrind come mulino a palline principale. Le operazioni minerarie proseguiranno a una velocità ridotta, concentrandosi sul trattamento del minerale ad alta legge e sullo stoccaggio.
L'azienda stima un carenza di liquidità di meno di 5 milioni di dollari USA su un periodo di 15 settimane. La produzione di Guanacevi è prevista in diminuzione di 0.9-1.1 milioni di once d'argento e 2.000-3.000 once d'oro rispetto al piano originale. Endeavour ha rivisto le sue previsioni di produzione per il 2024 a 4.4-4.6 milioni di once d'argento e 36.000-38.000 once d'oro. La sostituzione del trunnion è stimata costare 0.5 milioni di dollari USA con un periodo di installazione di 16 settimane. A causa delle incertezze, l'azienda ha ritirato le sue indicazioni sui costi per il 2024.
Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) ha proporcionado una actualización sobre la falla del trunnion del molino de bolas principal en la mina Guanacevi, reportada el 12 de agosto de 2024. El procesamiento se ha reanudado a una tasa reducida de 400-500 toneladas por día (tpd), alrededor de la mitad de la capacidad planeada de 1,200 tpd. La compañía ha implementado soluciones temporales, incluida la reconversión de un molino de regrindo como el molino de bolas principal. Las operaciones mineras continuarán a una tasa reducida, enfocándose en el procesamiento del mineral de alta ley y el apilamiento de reservas.
La compañía estima un déficit de efectivo de menos de 5 millones de dólares EE. UU. en un período de 15 semanas. Se espera que la producción de Guanacevi disminuya en 0.9-1.1 millones de onzas de plata y 2,000-3,000 onzas de oro en comparación con el plan original. Endeavour ha revisado su pronóstico de producción para 2024 a 4.4-4.6 millones de onzas de plata y 36,000-38,000 onzas de oro. Se estima que el reemplazo del trunnion costará 0.5 millones de dólares EE. UU. con un período de instalación de 16 semanas. Debido a las incertidumbres, la compañía ha retirado su orientación de costos para 2024.
엔데버 실버 코퍼레이션(뉴욕증권거래소: EXK; 토론토증권거래소: EDR)은 2024년 8월 12일 보고된 과나세비 광산의 주요 볼 밀 트러니온 고장에 대한 업데이트를 제공했습니다. 처리가 재개되었습니다가 하루에 400-500톤(tpd)의 감소된 속도로 진행되고 있으며, 이는 계획된 1,200 tpd 용량의 약 절반에 해당합니다. 회사는 재분쇄 밀을 주요 볼 밀로 재사용하는 것을 포함한 임시 솔루션을 시행했습니다. 광산 작전은 고품질 광산 처리 및 재고 쌓기를 집중하면서 감소된 속도로 계속될 것입니다.
회사는 미국 달러로 500만 달러 미만의 현금 부족이 15주 동안 발생할 것으로 추정하고 있습니다. 과나세비의 생산은 원래 계획에 비해 90만에서 110만 온스의 은과 2,000에서 3,000 온스의 금이 감소할 것으로 예상됩니다. 엔데버는 2024년 생산 예측을 440만에서 460만 온스의 은과 36,000에서 38,000 온스의 금으로 수정했습니다. 트러니온 교체 비용은 50만 달러로 추정되며 설치 기간은 16주가 소요될 것입니다. 불확실성으로 인해 회사는 2024년 비용 가이드를 철회했습니다.
Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) a fourni une mise à jour sur la défaillance du trunnion du moulin à billes principal de la mine de Guanacevi, signalée le 12 août 2024. Le traitement a repris à un taux réduit de 400-500 tonnes par jour (tpd), soit environ la moitié de la capacité prévue de 1 200 tpd. L'entreprise a mis en œuvre des solutions temporaires, y compris la réaffectation d'un moulin de re-broyage comme moulin à billes principal. Les opérations minières se poursuivront à un rythme réduit, en se concentrant sur le traitement des minerais riches et l'aménagement de stocks.
L'entreprise estime un manque à gagner de moins de 5 millions de dollars américains sur une période de 15 semaines. La production de Guanacevi devrait diminuer de 0,9 à 1,1 million d'onces d'argent et de 2 000 à 3 000 onces d'or par rapport au plan initial. Endeavour a révisé ses prévisions de production pour 2024 à 4,4-4,6 millions d'onces d'argent et de 36 000 à 38 000 onces d'or. Le remplacement du trunnion devrait coûter 0,5 million de dollars américains avec une période d'installation de 16 semaines. En raison des incertitudes, l'entreprise a retiré ses prévisions de coûts pour 2024.
Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) hat ein Update zum Trunnion-Ausfall der Hauptkugelmühle der Mine Guanacevi gegeben, der am 12. August 2024 gemeldet wurde. Die Verarbeitung hat wieder begonnen bei einer reduzierten Rate von 400-500 Tonnen pro Tag (tpd), etwa der Hälfte der geplanten Kapazität von 1.200 tpd. Das Unternehmen hat vorübergehende Lösungen implementiert, einschließlich der Umnutzung einer Nachmahlmühle als Hauptkugelmühle. Die Bergbauaktivitäten werden mit reduzierter Rate fortgeführt, wobei der Schwerpunkt auf der Verarbeitung von hochgradigem Erz und der Lagerhaltung liegt.
Das Unternehmen schätzt, dass ein Liquiditätsengpass von weniger als 5 Millionen US-Dollar über einen Zeitraum von 15 Wochen entstehen wird. Die Produktion in Guanacevi wird voraussichtlich um 0,9-1,1 Millionen Unzen Silber und 2.000-3.000 Unzen Gold im Vergleich zum ursprünglichen Plan sinken. Endeavour hat seine Produktionsprognose für 2024 auf 4,4-4,6 Millionen Unzen Silber und 36.000-38.000 Unzen Gold revidiert. Die Kosten für den Austausch des Trunnions werden auf 0,5 Millionen US-Dollar geschätzt, mit einer Installationsdauer von 16 Wochen. Aufgrund von Unsicherheiten hat das Unternehmen seine Kostenschätzung für 2024 zurückgezogen.
- Processing has resumed at Guanacevi mine, albeit at reduced capacity
- Company implemented temporary solutions to maintain operations
- Focusing on processing highest-grade ore to manage cash flow
- Estimated cash shortfall to less than US$5 million over 15 weeks
- Trunnion replacement cost estimated at US$0.5 million
- Guanacevi operating at only 40-50% of planned production capacity
- Production forecast reduced by 0.9-1.1 million silver ounces and 2,000-3,000 gold ounces
- Annual consolidated production guidance lowered for both silver and gold
- Operating costs and all-in sustaining costs expected to be higher than originally guided
- Company withdraws cost guidance for 2024 due to uncertainties
Insights
The trunnion failure at Guanacevi has led to significant operational adjustments. The temporary solution of repurposing a regrind mill allows for 400-500 tpd production, about
The financial implications of this disruption are significant. The estimated
The failure of a critical component like the primary ball mill trunnion highlights the importance of preventive maintenance in mining operations. The quick implementation of a temporary solution using existing equipment shows good problem-solving skills and operational flexibility. However, the
VANCOUVER, British Columbia, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) provides an update to the Guanacevi primary ball mill trunnion failure that was reported on August 12, 2024.
Processing has resumed at the Guanacevi mine site. Temporary modifications have been completed within the plant to re-purpose one of the regrind mills as the primary ball mill which is currently milling at a rate of 400 tonnes per day (tpd). While the grinding circuit is being closely monitored, there is potential for the plant to operate near 500 tpd or close to half of its planned production capacity of 1,200 tpd during this temporary phase.
During this time, mining operations will continue at a reduced rate without comprising safety or the long-term viability of the ore body. The operations will focus on feeding the highest-grade ore to the mill and stockpiling the remaining material. Contract mining activities and local third-party material purchases will cease until the process plant operations have returned to full capacity. These temporary solutions are intended to manage cash flows until the primary mill is fully operational. Using current metal prices, the preliminary estimate indicates a cash shortfall could be limited to during this period of reduced processing is less than US
Constructive discussions have been held with our workforce, communities and suppliers to address the potential implications and broader social impact of these temporary measures.
Initial quotes for the trunnion fabrication and installation have been obtained with an estimated fabrication cost of US
During this reduced processing period, Guanacevi production is estimated to decrease by 0.9 million to 1.1 million silver ounces and by 2,000 to 3,000 gold ounces compared to its original operating plan. Annual consolidated silver production for 2024 is expected to range from 4.4 to 4.6 million ounces, and gold production is expected to be between 36,000 ounces and 38,000 ounces. Silver equivalent production for 2024 is now forecast to total between 7.3 million and 7.6 million ounces. We achieved 4.4 million silver equivalent ounces in the first half of the year.
Due to the reduced operating capacity for 15 weeks, operating costs and all in sustaining cost metrics will be higher than originally guided for 2024. Due to the number of variables, estimates and remaining uncertainties, management is withdrawing its cost guidance at this time.
About Endeavour Silver – Endeavour is a mid-tier precious metals company with a strong commitment to sustainable and responsible mining practices. With operations in Mexico and the development of the new cornerstone mine in Jalisco state, the company aims to contribute positively to the mining industry and the communities in which it operates. In addition, Endeavour has a portfolio of exploration projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer.
Contact Information
Allison Pettit, Director Investor Relations
Tel: (877) 685 - 9775
Email: apettit@edrsilver.com
Website: www.edrsilver.com
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Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking statements and information herein include but are not limited to statements regarding the suspension of processing at Guanacevi, timing for completion of repairs at the Guanacevi mill, the availability and assessment of alternative processing methods, the impact on Q3 production and annual production and cost guidance, and Endeavour’s anticipated performance in 2024 including changes in mining operations and forecasts of production levels, anticipated production costs and all-in sustaining costs. The Company does not intend to and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.
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 to the ability to complete repairs at the Guanacevi mill in a timely manner, the availability of alternative processing methods, changes in production and costs guidance; and satisfaction of conditions precedent to drawdown under the Debt Facility; as well as those factors described in the section “risk factors” contained in the Company’s most recent form 40F/Annual Information Form filed with the S.E.C. and Canadian securities regulatory authorities.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the ability to complete repairs at the Guanacevi mill in a timely manner, the availability of alternative processing methods, the continued operation of the Company’s mining operations, no material adverse change in the market price of commodities, forecasted 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.
FAQ
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