Endeavour Silver Signs Two Contracts For Sale of Silver-Gold Concentrates And Boost Production in 2013

Endeavour Silver (TSX:EDR, NYSE:EXK) has signed two contracts to sell its silver-gold concentrates and help boost production in 2013 from its Bolanitos mine in Guanajuato State in Mexico. Both contracts are commercially competitive with Endeavour’s costs to process the concentrate into saleable metals.

As quoted in the company news:

In 2012, Endeavour expanded the Bolanitos mine and plant by 60% to 1600 tonnes per day (tpd) and since Q4, 2012, the Bolanitos mine output has actually been over 1700 tpd, well in excess of the current plant capacity. The extra mine output has been processed into silver-gold concentrates at the Las Torres plant under lease adjacent to Endeavour’s El Cubo mine, also located in the Guanajuato district.

However, Endeavour does not currently have sufficient capacity at its two leach circuits at Guanacevi and El Cubo to process these extra Bolanitos concentrates into dore bars so they were stockpiled. The sales contracts will allow Endeavour to sell its current concentrate inventory of 1400 tonnes by month-end and add about $20 million cash to working capital during this peak period of capital spending at El Cubo.

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