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$5 million over an estimated 15-week period. This cash outflow includes accumulating ore stockpile with self-mining activities.
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$0.5 million and a period of 16-weeks to installation. Management is assessing several alternatives to shorten the estimated downtime of the primary ball mill.
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.
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.
Endeavour Silver Corp. ("Endeavour" or the "Company") (NYSE: EXK; TSX: EDR) is pleased to announce that shareholders voted in favour of all items of business at the Company's 2024 Annual General Meeting ("AGM") held on May 28, 2024 in Vancouver. A total of 104,090,503 votes were cast or represented by proxy at the AGM, representing 43.31% of the outstanding common shares as of the record date. The following is a tabulation of the votes submitted by proxy:
DIRECTORS
NUMBER OF SHARES
PERCENTAGE OF VOTES CAST
FOR
WITHHELD/ ABSTAIN
FOR
WITHHELD
Rex J. McLennan
50,212,585
11,699,944
81.10%
18.90%
Margaret M. Beck
61,370,134
542,396
99.12%
0.88%
Ricardo M. Campoy
61,455,874
456,656
99.26%
0.74%
Daniel Dickson
61,461,186
451,345
99.27%
0.73%
Amy Jacobsen
61,364,651
547,879
99.12%
0.88%
Kenneth Pickering
53,516,716
8,395,815
86.44%
13.56%
Mario D. Szotlender
61,428,282
484,248
99.22%
0.78%
Angela Johnson
61,333,538
578,992
99.06%
0.94%
All director nominees were re-elected, including the addition of Angela Johnson to the Board of Directors (see news release dated April 18, 2024 ) to fill vacancy left by the retirement of Christine West.
Shareholders voted 88.36% in favour of re-appointing KPMG LLP as auditor of the Company and authorized the Board to fix the auditor's remuneration for the ensuing year. In addition, shareholders also voted 96.79% in favour of approving certain amendments to the Stock Option Plan and all unallocated options grantable under the Stock Option Plan, as amended by Amendment No. 6, and 96.76% in favour of approving all unallocated awards grantable under the Share Unit Plan.
About Endeavour Silver – Endeavour Silver 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.
Endeavour Silver Corp. ("Endeavour" or the "Company") (TSX: EDR, NYSE: EXK) made further progress executing its 2022-2024 Sustainability Strategy as outlined in the Company's 2023 Sustainability Report released today.
Entitled "Transformation in Motion", the report provides insights into Endeavour's sustainability performance and approach over 2023, including second-year progress highlights against the strategy.
"Since launching our 2022-2024 Sustainability Strategy two years ago, we have completed many significant initiatives and achieved key targets," stated Dan Dickson, CEO of Endeavour. "In 2023, we transformed more commitments into meaningful impact across our sites and surrounding areas. With the ongoing construction of our flagship mine, Terronera, we're on the doorstep of a transformation that will bring us closer to becoming a premier silver producer—and our sustainability initiatives have helped set us up for this exciting future."
Endeavour's 2022-2024 Sustainability Strategy is centered around three pillars:
People – Increasing positive social impacts for people in our workplace and in the communities where we operate.
Planet – Elevating our environmental stewardship to reduce negative impacts, protect ecosystems and support environmental sustainability.
Business – Operating a trusted, well-performing business by further strengthening the critical foundations that create long-term organizational sustainability.
The actions we took in 2023, and achievements made, include the following (all dollar amounts presented below are in U.S. dollars):
People
Continued implementing safety procedures aligned to ISO 45001, the global standard for reducing occupational injuries and diseases, and recorded a 1.03 reportable injury rate.
Provided an average of 31 training hours per employee and contractor.
Made upgrades to our mining on-site facilities, including employee accommodations, food services and enjoyment areas, to create more comfortable experiences for our people.
Nearly doubled our community investments, to $854,620 which supported initiatives such as road improvement projects, the building of a new community water well, and the delivery of skill-training workshops for local residents.
Marked the seventh anniversary of our Scholarship Program, with 142 scholarships awarded in 2023 – and 855 since 2017 – to enhance access to education for local students.
Awarded the ‘Socially Responsible Company' distinction by the Mexican Center for Philanthropy.
Planet
Released our first climate report aligned to the Task Force on Climate-related Financial Disclosures (TCFD) framework, entitled " Our Climate Journey " , and undertook research to inform the development of a long-term Climate Action Plan.
Calculated Scope 3 emissions for the first time, for our two producing mines.
Recycled 89% of water used in our operations, beating our target and minimizing our use of fresh water.
Diverted 78% of our overall waste from landfills.
Continued working with an external consultant to align our current practices with the new Global Industry Standard on Tailings Management.
Planted 58,580 trees through our reforestation program to restore land disturbed by mining activity
Business
Surpassed 30% representation of women on the Board, achieving our 2024 target.
Developed Anti-money Laundering and Anti-terrorist Financial Protocol to formalize and strengthen the controls governing our relationships with third parties.
100% of our employees completed business conduct and ethics training.
Created a new human rights training course for Endeavour's security personal.
97% of our procurement was from local and national suppliers in Mexico.
Launched Supplier Standards of Conduct to integrate enhanced ESG criteria into our supplier due diligence processes.
The 2023 Sustainability Report and related performance tables are available on Endeavour's website . The report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards and the Sustainability Accounting Standards Board (SASB) framework, as well as with reference to the United Nations Sustainable Development Goals (SDGs). A Spanish version of the report will be available online during Q3, 2024.
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.
Spurred by moves in the gold market as well as increasing demand from industrial sectors, silver saw strong price movements in the first half of 2024, breaching US$30 per ounce for the first time in more than a decade.
While silver has often been seen as a more approachable precious metal owing to its lower per ounce price, its performance has lagged gains seen in the gold price over the past few years. However, silver did join gold in its rally earlier this year, climbing above US$32 in May, and pulled above US$30 again in July.
Like gold, investors can gain exposure to silver in several ways that each offer their own pros and cons, along with differing costs and risks. For example, investors can purchase physical silver bars or coins, or invest in silver futures.
Another way for investors to diversify their portfolio with silver is to invest in exchange traded funds (ETFs). These products work similarly to mutual funds in that they pool investor resources into an asset. However, as their name suggested, ETFs are traded on exchanges like stocks, making them more accessible to investors.
While ETFs aren’t without risk, they can offer a more stable investment compared to individual stocks thanks to their diversification and the fact that they are often managed and rebalanced.
Silver ETFs come in several forms, such as ones that hold physical silver and ones that hold silver mining, royalty and exploration stocks. Investors looking to start trading silver ETFs should be aware of the options available to them.
In order to determine which silver ETF will best suit their precious metals needs, investors should examine the options available to them. Here's a brief look at seven of the top silver ETFs by total assets. The first four ETFs track the price of silver, while the last three provide exposure to silver-mining stocks.
Assets and prices for these silver ETFs were collected on September 10, 2024, using data from ETF Database, and performance data is accurate for the end of Q2 2024.
Total assets: US$13.01 billion; unit price: US$25.66
As the iShares Silver Trust’s website warns, it is not your standard ETF. Why? Put simply, the iShares Silver Trust is not an investment company registered under the Investment Company Act of 1940, or a commodity pool under the Commodity Exchange Act. Further, its ETF shares aren’t subject to the regulatory requirements that apply to mutual funds.
Investors who are not put off by those conditions may find the iShares Silver Trust appealing. It uses the London Bullion Market Association silver price as its benchmark and holds silver bullion — 465.55 million ounces as of the date noted above, to be exact. The trust has a five year total return of 13.49 percent.
Total assets: US$1.34 billion; unit price: US$27.06
The Aberdeen Standard Physical Silver Shares ETF is also not a typical ETF and is very similar to the iShares Silver Trust. The investment objective of the Aberdeen Standard Physical Silver Shares ETF is for its shares to reflect the performance of the silver price less the expenses of the trust's operations.
The fund is backed with 45.51 million ounces of silver held with JPMorgan Chase Bank in London in a secured vault. This ETF reportedly has a good record for correctly tracking the spot price of silver. Its five year average annual return comes in at 13.71 percent.
Total assets: US$570.83 million; unit price: US$33.80
Set up in December 2008 by ProShares, the ProShares Ultra Silver ETF was designed to offer daily investment results, that correspond with twice the daily performance of the Bloomberg Silver Subindex.
The fund uses derivatives such as futures contracts to invest in silver. ETF Database suggests it may be "a powerful tool for investors with a bullish short-term outlook for silver." While designed for short term investment, its total five year return stands at 8.74 percent.
Total assets: US$76.2 million; unit price: US$11.64
Alongside the creation of the ProShares Ultra Silver ETF in late 2008, ProShares launched its UltraShort Silver ETF. This fund was designed to provide investors with a hedge against declines in the silver market.
Because the fund is built around providing results at a negative two times daily performance of the Bloomberg Silver Subindex, it is meant for traders who have a high capacity for risk and who are willing to monitor their positions on a daily basis.
This high-volatility fund provides exposure to the silver futures market and has a five year return of -40.56 percent.
Total assets: US$1.02 billion; unit price: US$30.44
The Global X Silver Miners ETF gives investors access to a basket of silver-mining stocks. The ETF benefits from the fact that those companies can enjoy quick gains when the price of the metal is rising. It also allows investors to avoid the risks associated with individual companies and lets them add geographical diversity to their portfolios.
This ETF has an expense ratio of 0.65 percent, and its top holdings include streaming company Wheaton Precious Metals (TSX:WPM,NYSE:WPM) at a weight of 25.94 percent, Pan American Silver (TSX:PAAS,NASDAQ:PAAS) at a weight of 14.06 percent and Korea Zinc Company (KRX:010130) at 5.49 percent.
The five year average annualized return for the fund is 4.3 percent.
Total assets: US$875.89 million; unit price: US$10.96
The Amplify Prime Junior Silver ETF bills itself as the "first and only ETF to target small cap silver miners." The index provides a benchmark for investors to track public small-cap companies in the silver space.
The ETF has an expense ratio of 0.69 percent and its holdings span Canada, the US and the UK, with key silver companies such as Pan American Silver at a weight of 8.95 percent, Harmony Gold Mining (NYSE:HMY) at 7.92 percent and Coeur Mining (NYSE:CDE) at 7.16 percent.
Over the last five years the fund has provided investors with a return of 2.62 percent.
Total assets: US$213.67 million; unit price: US$11.52
The iShares MSCI Global Silver Miners ETF tracks an index composed of global equities of companies primarily engaged in silver exploration or metals mining; however, it skews toward Canadian mining stocks. The ETF has the lowest expense ratio of the three ETFs focused on silver stocks at 0.39 percent.
Holdings for the iShares MSCI Global Silver Miners ETF include Pan American Silver at a weight of 21.69 percent, Hecla Mining (NYSE:HL) at 9.66 percent and Newmont (TSX:NGT,NYSE:NEM) at 7.51 percent.
The five year total return for the fund is 5.94 percent.
This is an updated version of an article originally published by the Investing News Network in 2014.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Significant increase in estimated mineral resources for the La Colorada Skarn project
Mineral reserve replacement and 1.2 million ounce increase in gold inferred mineral resources at Jacobina demonstrates exploration potential
Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) ("Pan American" or the "Company") reports its estimated mineral reserves and mineral resources as at June 30, 2024. Proven and probable mineral reserves are estimated to contain approximately 468.0 million ounces of silver and 6.9 million ounces of gold. Measured and indicated ("M&I") mineral resources (excluding proven and probable ("P&P") reserves) are estimated to total approximately 1,148.0 million ounces of silver and 15.5 million ounces of gold. Inferred mineral resources are estimated to total approximately 366.0 million ounces of silver and 9.4 million ounces of gold. The updated mineral reserves and mineral resources estimates are reported net of the sales of the MARA, Agua de la Falda and Morococha properties, as announced in the Company's news release dated July 31, 2023. The divestment of these non-core, non-producing assets is largely responsible for a decrease in mineral reserves and mineral resources compared to 2023.
"Our exploration efforts have successfully replaced mine production and expanded mineral reserves at Jacobina, La Colorada, Huaron and Minera Florida. In addition, infill and extensional drilling at the Jacobina mine has increased inferred mineral resources by over 1.2 million ounces of gold, highlighting the significant exploration potential of the deposit and the opportunity to replace mineral resources and mineral reserves in the future," said Christopher Emerson, Pan American's Vice President of Exploration and Geology. "At the La Colorada Skarn project, estimated indicated mineral resources have grown substantially to 309 million ounces of silver due to higher tonnage and higher grades, with the inferred mineral resource now estimated at 59 million ounces of silver. Zinc and lead contained within the skarn deposit have also increased since our last resource update."
In 2024, Pan American plans to complete over 360,000 metres of drilling across its portfolio of mines, focused on near-mine exploration for mineral reserve replacement.
Consolidated Proven and Probable Mineral Reserves, as at June 30, 2024 (1,2,3)
Segment
Category
Tonnes (millions)
Ag
(g/t)
Contained Ag (Moz)
Au
(g/t)
Contained Au
(koz)
Silver Segment (4)
Proven Reserves
13.3
278
119.1
0.68
135.1
Probable Reserves
32.5
293
306.2
0.49
444.6
Proven and Probable Reserves
45.8
289
425.2
0.52
579.7
Gold Segment (5)
Proven Reserves
80.3
13
17.6
1.14
2,952.9
Probable Reserves
99.8
16
25.2
1.05
3,360.3
Proven and Probable Reserves
180.1
14
42.7
1.09
6,313.1
Total Segments (6)
Proven Reserves
93.7
75
136.6
1.11
3,088.0
Probable Reserves
132.3
124
331.4
0.92
3,804.8
Proven and Probable Reserves
225.9
105
468.0
1.00
6,892.8
(1) See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as at June 30, 2024". (2) Please refer to the complete mineral reserve and mineral resource tables at the end of this news release for more information. (3) This summary table does not include base metal grades or contents. Please refer to the Reserves & Resources page on Pan American's website for a more complete table, including zinc, lead and copper grades and contents. (4) Silver Segment mineral reserves comprised of Escobal, La Colorada, Huaron, San Vicente, and Cerro Moro. (5) Gold Segment mineral reserves comprised of Jacobina, Shahuindo, El Peñon, Timmins, Minera Florida, La Arena, and Dolores. (6) Totals may not add up due to rounding. Total average grades of each metal are with respect to those mines that produce the metal.
Consolidated Mineral Resources, as at June 30, 2024 (1,2,3,4)
Segment
Category
Tonnes (millions)
Ag
(g/t)
Contained Ag (Moz)
Au
(g/t)
Contained Au
(koz)
Silver Segment (5)
Measured Resources
20.7
159
105.6
0.63
65.2
Indicated Resources
425.4
73
1,002.7
0.47
276.9
M&I Resources
446.1
77
1,108.4
0.50
342.2
Gold Segment (6)
Measured Resources
271.8
21
17.8
0.62
5,431.2
Indicated Resources
704.7
26
21.8
0.43
9,751.0
M&I Resources
976.5
24
39.6
0.48
15,182.2
Total Segments (7)
Measured Resources
292.4
82
123.5
0.62
5,496.4
Indicated Resources
1,130.1
71
1,024.5
0.43
10,027.9
M&I Resources
1,422.6
72
1,148.0
0.48
15,524.3
(1) See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as at June 30, 2024". (2) Mineral resources are reported exclusive of mineral reserves. (3) Please refer to the complete mineral reserve and resource tables at the end of this news release for more information. (4) This summary table does not include base metal grades or contents. Please refer to the Reserves & Resources page on Pan American's website for a more complete table, including zinc, lead and copper grades and contents. (5) Silver Segment mineral resources comprised of Navidad, La Colorada Skarn, Escobal, Huaron, La Colorada, Manantial Espejo, Cerro Moro, San Vicente, and Joaquin. (6) Gold Segment mineral resources comprised of Jacobina, La Arena II, La Pepa, El Peñon, Minera Florida, La Bolsa, Lavra Velha, Pico Machay, Timmins, Shahuindo, Vogel, Gold River, Whitney, Marlhill, Dolores, and La Arena. (7) Totals may not add up due to rounding. Total average grades of each metal are with respect to those mines that produce the metal.
Consolidated Inferred Mineral Resources, as at June 30, 2024 (1,2,3,4)
Segment
Category
Tonnes (millions)
Ag
(g/t)
Contained Ag (Moz)
Au
(g/t)
Contained Au
(koz)
Silver Segment (5)
Inferred Resources
130.0
78
327.8
0.61
304.3
Gold Segment (6)
Inferred Resources
254.0
21
38.2
1.12
9,118.4
Total Segments (7)
Inferred Resources
384.0
61
366.0
1.09
9,422.8
(1) See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as at June 30, 2024". (2) Mineral resources are reported exclusive of mineral reserves. (3) Please refer to the complete mineral reserve and mineral resource tables at the end of this news release for more information. (4) This summary table does not include base metal grades or contents. Please refer to the Reserves & Resources page on Pan American's website for a more complete table, including zinc, lead and copper grades and contents. (5) Silver Segment inferred mineral resources comprised of Navidad, La Colorada, La Colorada Skarn, Huaron, San Vicente, Escobal, Cerro Moro, Manantial Espejo and Joaquin. (6) Gold Segment inferred mineral resources comprised of Jacobina, Gold River, El Peñon, Arco Sul, Minera Florida, Whitney, Pico Machay, La Arena II, Timmins, La Pepa, Lavra Velha, La Bolsa, Vogel, Shahuindo, Dolores, and La Arena. (7) Totals may not add up due to rounding. Total average grades of each metal are with respect to those mines that produce the metal.
Mineral reserve and mineral resource highlights for the 12-months ended June 30, 2024:
The successful divestment of non-core, non-producing properties - MARA, Morococha and Agua de la Falda - in 2023 reduced the consolidated P&P mineral reserves by 89.9 million ounces of silver and 5.2 million ounces of gold. After adjusting for a full year of production, the significant exploration success at many of our operations and other parameters, the consolidated mineral reserves at June 30, 2024, are estimated to total 468.0 million ounces of silver and 5.2 million ounces of gold.
Consolidated M&I silver mineral resources increased from an estimated 959.0 million ounces to an estimated 1,148.0 million ounces. The increase in M&I silver mineral resources is mainly due to the increase in indicated resources at the La Colorada Skarn project more than offsetting the sales of MARA and Morococha. Consolidated M&I gold mineral resources decreased from an estimated 17.5 million ounces to an estimated 15.5 million ounces, largely due to the sales of the MARA and Agua de la Falda properties.
At the La Colorada Skarn project, estimated indicated mineral resources significantly increased to 308.7 million ounces of contained silver with higher tonnage, higher silver and base metal grades, and improved geological confidence.
At Jacobina, exploration more than replaced mine production with new mineral reserves, marking the eighth consecutive year of full replacement of production. New gold inferred mineral resources estimated at over 1.2 million ounces were also added, including 495 thousand ounces at Maricota, a new zone north of Morro do Cuscuz. See the Company's news releases dated June 17, 2024 and December 5, 2023, for further information on Maricota.
At El Peñon, mineral resources and mineral reserves were added to the southeast of the current mining zones in major veins like Pampa Sur and Pampa Campamento, as well as in silver rich structures like Tostado Sur and others. Future exploration will continue to target converting the large inferred mineral resource to mineral reserves and to discovering new veins on the mine's extensive land position.
At La Colorada, the eastward extensions of the veins, described in previous news releases, contributed to a net addition to silver P&P mineral reserves.
At Minera Florida, 103.7 thousand ounces of P&P gold mineral reserves and 864 thousand ounces of P&P silver mineral reserves were added, more than replacing mine production.
At Huaron, P&P silver mineral reserves increased by 1.7 million ounces, more than replacing mine production, with the Horizonte zone alone adding 2.7 million ounces of new P&P silver mineral reserves.
At Timmins, exploration has been focused on the Whitney joint venture project, with more than 20,500 metres of drilling completed over the 2021 to 2023 period, contributing to an updated estimate for indicated gold mineral resources of 93.6 thousand ounces and inferred gold mineral resources of 574.0 thousand ounces (based on a 100% interest). Pan American is now focused on further exploratory and confirmation drilling of the project. See the December 5, 2023 news release for more information on the Whitney project.
A detailed summary of the silver and gold mineral reserves and mineral resources as at June 30, 2024 is provided in the tables at the end of this news release.
LA COLORADA SKARN MINERAL RESOURCE UPDATE
Approximately 73,000 metres of exploration and infill drilling have been completed since the last mineral resource update, including high-grade intercepts reported in previous news releases. The drilling has resulted in a significant increase in estimated mineral resources and higher silver and base metal grades. It also improved a large portion of mineral resources from the inferred category to indicated. The tables below illustrate the improvements and the highlights include:
A 53% increase in indicated mineral resources to an estimated 265.4 million tonnes.
Improvement in silver, zinc and lead grades by 10%, 2% and 4%, respectively, for the indicated mineral resource category.
A 69% increase in contained silver to 308.7 million ounces in indicated mineral resources. Contained silver in inferred mineral resources is estimated at 58.6 million ounces.
A 56% increase in contained zinc to 7.6 million tonnes and a 60% increase in contained lead to 3.6 million tonnes in indicated mineral resources.
Addition of 125.5 million ounces of silver, 2.7 million tonnes of zinc and 1.4 million tonnes of lead to indicated mineral resources.
Exploration and resource infill drilling is ongoing with additional drill rigs completing condemnation and hydrogeological work. Engineering work continues with geotechnical studies required for sub level caving ("SLC") and reviewing the updated mineral resource and mining shapes to optimize mineral extraction.
Next steps include further infill drilling, additional analysis of alternative mining methods, optimizing throughputs, preparing capital and operating cost estimates, as well as advancing discussions with potential project partners.
La Colorada Skarn Estimated Mineral Resource as at June 30, 2024
Classification
Tonnes
(millions)
Zn
(%)
Pb
(%)
Ag
(g/t)
Indicated
265.4
2.85
1.37
36
Inferred
61.7
2.55
0.95
30
Notes:
The effective date of the mineral resources estimate is June 30, 2024.
Estimation and reporting of mineral resources were carried out in accordance with Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") guidelines.
Mineral resources have been classified into indicated and inferred confidence categories.
Mineral resources have reasonable prospects for eventual economic extraction demonstrating sufficient spatial continuity of mineralization constrained within a potentially mineable shape. Mineral resources that are not mineral reserves do not have demonstrated economic viability. No mineral reserves are reported at this time for the La Colorada Skarn project.
Prices used to report mineral resources were: $22.00 per ounce of silver, $2,800 per tonne of zinc and $2,200 per tonne of lead.
An estimated NSR (in US$/t) was calculated using metallurgical recoveries of 84.9% Ag, 84.3% Pb and 93.7% Zn with mineral concentrate qualities of 61% Pb in lead concentrate and 59% Zn in zinc concentrate, obtained from metallurgical testing. Estimates for transport, payability and refining/selling costs, based on experience and long-term views of the marketing, treatment and refining of these types of mineral concentrates, were included.
Reasonable prospects for eventual economic extraction were assessed by determining the total in-situ tonnes and metal grades constrained inside volumes that are based on a SLC mining method considering operating and sustaining capital cost estimates of $45/t. To determine the constraining SLC shapes, an initial elevated cutoff value of $50/t NSR was applied. Then geotechnical, geometry and caving rules were applied to ensure practical mining shapes were achieved. The resulting constraining shapes were then considered to be practical mining outlines. The tonnes and grades are inclusive of the must-take low grade material within the volume. No other mining recovery, ring recovery, dilution or mineral losses have been applied.
This mineral resource estimate was prepared under the supervision of, or was reviewed by, Christopher Emerson, FAusIMM, Vice President Exploration and Geology, who is a Qualified Person as that term is defined in NI 43-101.
Grades are shown as contained metal before mill recoveries are applied. The Company has undertaken a verification process with respect to the data disclosed in this news release.
A total of 376 diamond drill holes with a total length of 314,930 metres were used in the geological interpretation and resource estimate. Several old historic drill holes were included in the modeling. Drilling of the La Colorada Skarn deposit has been completed from both surface and underground drill platforms.
All drill hole samples used in the mineral resource estimate have been previously reported in news releases dated October 23, 2018, February 21, 2019, May 8, 2019, August 1, 2019, October 30, 2019, February 13, 2020, August 4, 2020, May 12, 2021, November 10, 2021, February 24, 2022, May 9, 2022, November 1, 2022, May 2, 2023, December 5, 2023, and April 7, 2024.
MINERAL RESERVES AND MINERAL RESOURCES TABLES
Consolidated Pan American Mineral Reserves as at June 30, 2024 (1)
Property
Location
Classification
Tonnes
(millions)
Ag
(g/t)
Contained Ag
(koz)
Au
(g/t)
Contained Au
(koz)
Silver Segment
Escobal
Guatemala
Proven
2.5
486
39.5
0.42
34.2
Probable
22.1
316
225.0
0.34
243.8
La Colorada
Mexico
Proven
3.2
305
31.4
0.20
20.5
Probable
5.8
296
55.2
0.19
35.3
Huaron
Peru
Proven
6.2
173
34.4
--
--
Probable
3.5
163
18.2
--
--
San Vicente (95%) (2)
Bolivia
Proven
0.9
329
9.8
--
--
Probable
0.5
250
4.3
--
--
Cerro Moro
Argentina
Proven
0.4
272
3.9
5.58
80.4
Probable
0.6
200
3.6
9.31
165.5
Total Silver Segment (3)
45.8
289
425.2
0.52
579.7
Gold Segment
Jacobina
Brazil
Proven
24.0
--
--
1.84
1,420.0
Probable
30.3
--
--
1.79
1,742.3
Shahuindo
Peru
Proven
39.8
8
10.5
0.52
660.4
Probable
44.7
5
7.2
0.28
398.6
El Peñon
Chile
Proven
0.8
208
5.5
5.46
145.4
Probable
4.0
131
16.7
3.99
507.4
Timmins
Canada
Proven
5.4
--
--
2.79
481.4
Probable
4.4
--
--
2.74
386.2
Minera Florida
Chile
Proven
1.2
23
0.9
3.25
128.7
Probable
1.8
22
1.3
3.18
188.0
La Arena (4)
Peru
Proven
8.0
--
--
0.41
103.7
Probable
14.7
--
--
0.29
137.8
Dolores
Mexico
Proven
1.2
16
0.6
0.35
13.3
Probable
--
--
--
--
--
Total Gold Segment (3)
180.1
14
42.7
1.09
6,313.1
Total Gold and Silver Segments (3)
Proven + Probable
225.9
105
468.0
1.00
6,892.8
(1) See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as at June 30, 2024". (2) This information represents the portion of mineral reserves attributable to Pan American based on its ownership interest in the operating entity as indicated. (3) Totals may not add up due to rounding. Total average grades of each metal are with respect to those mines that produce the metal. (4) Pan American has entered into an agreement to sell its interest in La Arena S.A., which owns the La Arena gold mine and the La Arena II copper-gold project; see the news release dated May 1, 2024 for further details.
Pan American Silver Measured and Indicated Mineral Resources as at June 30, 2024 (1,2)
Property
Location
Classification
Tonnes
(millions)
Ag
(g/t)
Contained Ag
(koz)
Au
(g/t)
Contained Au
(koz)
Silver Segment
Navidad
Argentina
Measured
15.4
137
67.8
--
--
Indicated
139.8
126
564.5
--
--
La Colorada Skarn
Mexico
Indicated
265.4
36
308.7
--
--
Escobal
Guatemala
Measured
2.3
251
18.6
0.23
16.7
Indicated
14.2
201
91.6
0.20
93.0
Huaron
Peru
Measured
1.3
196
8.3
--
--
Indicated
1.8
162
9.4
--
--
La Colorada
Mexico
Measured
0.4
231
2.7
0.11
1.2
Indicated
2.1
181
12.2
0.27
18.4
Manantial Espejo
Argentina
Measured
0.3
164
1.7
2.40
24.7
Indicated
1.0
149
4.9
2.79
91.5
Cerro Moro
Argentina
Measured
0.1
226
0.9
5.48
21.4
Indicated
0.5
347
5.5
4.50
70.7
San Vicente (95%) (3)
Bolivia
Measured
0.7
180
4.1
--
--
Indicated
0.3
203
1.8
--
--
Joaquin
Argentina
Measured
0.1
360
1.5
0.28
1.2
Indicated
0.4
351
4.2
0.28
3.4
Total Silver Segment (3)
446.1
77
1,108.4
0.50
342.2
Gold Segment
Jacobina
Brazil
Measured
39.7
--
--
1.70
2,175.1
Indicated
55.1
--
--
1.58
2,796.0
La Arena II (4)
Peru
Measured
152.2
--
--
0.25
1,246.1
Indicated
554.3
--
--
0.23
4,042.7
La Pepa (80.0%) (3)
Chile
Measured
47.1
--
--
0.61
922.8
Indicated
52.3
--
--
0.49
824.3
El Peñon
Chile
Measured
1.6
166
8.3
5.25
262.2
Indicated
3.8
112
13.8
3.44
423.1
Minera Florida
Chile
Measured
1.9
17
1.1
3.26
202.6
Indicated
4.1
19
2.5
3.54
467.6
La Bolsa
Mexico
Measured
10.8
10
3.5
0.70
242.8
Indicated
10.6
8
2.7
0.54
184.3
Lavra Velha
Brazil
Indicated
4.5
--
--
1.96
282.1
Pico Machay
Peru
Measured
4.7
--
--
0.91
137.5
Indicated
5.9
--
--
0.67
127.1
Timmins
Canada
Measured
1.1
--
--
2.48
85.5
Indicated
1.3
--
--
2.76
114.2
Shahuindo
Peru
Measured
8.8
7
2.0
0.38
108.5
Indicated
6.8
6
1.2
0.34
74.2
Vogel
Canada
Indicated
2.2
--
--
1.75
125.0
Gold River
Canada
Indicated
0.7
--
--
5.29
117.4
Whitney (83.27%) (3)
Canada
Measured
--
--
--
--
--
Indicated
0.6
--
--
3.77
77.9
Marlhill
Canada
Indicated
0.4
--
--
4.52
57.4
Dolores
Mexico
Measured
3.0
30
2.9
0.41
39.4
Indicated
0.6
73
1.5
1.40
28.8
La Arena (5)
Peru
Measured
0.9
--
--
0.29
8.7
Indicated
1.4
--
--
0.19
8.9
Total Gold Segment (4)
976.5
24
39.6
0.48
15,182.2
Total Gold and Silver Segments (4)
Measured + Indicated
1,422.6
72
1,148.0
0.48
15,524.3
(1) See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as at June 30, 2024". (2) Mineral resources are reported exclusive of mineral reserves. (3) This information represents the portion of mineral resources attributable to Pan American based on its ownership interest in the operating entity as indicated. (4) Totals may not add up due to rounding. Total average grades of each metal are with respect to those mines that produce the metal. (5) Pan American has entered into an agreement to sell its interest in La Arena S.A., which owns the La Arena gold mine and the La Arena II copper-gold project; see the news release dated May 1, 2024 for further details.
Pan American Inferred Mineral Resources as at June 30, 2024 (1,2)
Property
Location
Classification
Tonnes
(millions)
Ag
(g/t)
Contained Ag
(koz)
Au
(g/t)
Contained Au
(koz)
Silver Segment
Navidad
Argentina
Inferred
45.9
81
119.4
--
--
La Colorada
Mexico
Inferred
12.4
235
93.8
0.19
74.4
La Colorada Skarn
Mexico
Inferred
61.7
30
58.6
--
--
Huaron
Peru
Inferred
5.2
165
27.5
--
--
San Vicente (95%) (3)
Bolivia
Inferred
1.6
213
11.0
--
--
Escobal
Guatemala
Inferred
1.9
180
10.7
0.90
53.7
Cerro Moro
Argentina
Inferred
0.7
168
3.6
6.98
149.8
Manantial Espejo
Argentina
Inferred
0.5
106
1.8
1.49
25.2
Joaquin
Argentina
Inferred
0.2
280
1.4
0.25
1.2
Total Silver Segment (4)
130.0
78
327.8
0.61
304.3
Gold Segment
Jacobina
Brazil
Inferred
57.1
--
--
1.77
3,249.5
Gold River
Canada
Inferred
5.3
--
--
6.06
1,027.4
El Peñon
Chile
Inferred
18.4
48
28.6
1.38
816.4
Arco Sul
Brazil
Inferred
6.2
--
--
3.08
614.2
Minera Florida
Chile
Inferred
5.4
15
2.7
3.03
531.2
Whitney (83.27 %) (3)
Canada
Inferred
4.0
--
--
3.75
477.7
Pico Machay
Peru
Inferred
23.9
--
--
0.58
445.7
La Arena II (5)
Peru
Inferred
66.8
--
--
0.21
445.2
Timmins
Canada
Inferred
3.5
--
--
3.37
382.5
La Pepa (80.0%) (3)
Chile
Inferred
20.0
--
--
0.46
296.1
Lavra Velha
Brazil
Inferred
4.7
--
--
1.56
238.0
La Bolsa
Mexico
Inferred
13.7
8
3.3
0.51
224.6
Vogel
Canada
Inferred
1.5
--
--
3.60
168.8
Shahuindo
Peru
Inferred
17.3
4
2.1
0.21
115.8
Dolores
Mexico
Inferred
0.9
56
1.6
1.65
45.8
La Arena (5)
Peru
Inferred
5.3
--
--
0.23
39.6
Total Gold Segment (4)
254.0
21
38.2
1.12
9,118.4
Total Gold and Silver Segments (4)
Inferred
384.0
61
366.0
1.09
9,422.8
(1) See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as at June 30, 2024". (2) Mineral resources are reported exclusive of mineral reserves. (3) This information represents the portion of mineral resources attributable to Pan American based on its ownership interest in the operating entity as indicated. (4) Totals may not add up due to rounding. Total average grades of each metal are with respect to those mines that produce the metal. (5) Pan American has entered into an agreement to sell its interest in La Arena S.A., which owns the La Arena gold mine and the La Arena II copper-gold project; see the news release dated May 1, 2024 for further details.
Metal price assumptions used to estimate mineral reserves and mineral resources as at June 30, 2024
Mine
Category
Ag US$/oz
Au US$/oz
Cu US$/t
Pb US$/t
Zn US$/t
Escobal
All categories
20.00
1,300
2,204
2,424
La Colorada
Reserves
20.00
1,700
8,000
2,100
2,600
Resources
22.00
1,850
9,000
2,200
2,800
La Colorada Skarn
Resources
22.00
2,200
2,800
Huaron
Reserves
20.00
1,700
8,000
2,100
2,600
Resources
22.00
1,850
9,000
2,200
2,800
San Vicente
All categories
20.00
1,700
8,000
2,100
2,600
Cerro Moro
Reserves
21.00
1,850
Resources
23.00
1,950
Navidad
All categories
12.52
1,100
Manantial Espejo
Resources
22.00
1,700
Joaquin
Resources
22.00
1,700
Jacobina
Reserves
1,700
Resources
1,850
Shahuindo
Reserves
20.00
1,700
Resources
22.00
1,850
El Peñon
Reserves
20.00
1,700
Resources
22.00
1,850
Timmins West
Reserves
21.00
1,850
Resources
23.00
1,950
Bell Creek
Reserves
21.00
1,850
Resources
23.00
1,950
Whitney
Resources
1,950
Minera
Florida
Reserves
21.00
1,850
2,100
2,600
Resources
23.00
1,950
2,200
2,800
La Arena
Reserves
21.00
1,850
Resources
23.00
1,950
La Arena II
All categories
1,500
8,816
Dolores
Reserves
21.00
1,850
Resources
23.00
1,950
La Pepa
Resources
1,650
La Bolsa
All categories
14.00
825
Lavra Velha
Resources
1,650
Pico Machay
All categories
700
Vogel
Inside pit
1,150
Below pit
1,150
Gold River
Resources
1,200
Marlhill
Resources
1,125
Arco Sul
Resources
1,250
General Notes with Respect to Technical Information
All mineral reserves and mineral resources have been estimated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves , adopted by the CIM Council, as amended (the "CIM Standards") and reported in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). Mineral resources are reported exclusives of mineral reserves.
Pan American does not expect these mineral reserve and mineral resource estimates to be materially affected by metallurgical, environmental, permitting, legal, taxation, socio-economic, political, and marketing or other relevant issues.
The Company has undertaken a verification process with respect to the data disclosed in this news release. The mineral resources and mineral reserves databases comprising drilling and, in some cases, surface and underground sampling, have been compiled at each of the Pan American mine sites by the qualified staff. All the assay data used in the resource evaluation provided by each of the mines has been subjected to the industry standard quality assurance and quality control ("QA/QC") program including the submission of certified standards, blanks, and duplicate samples. The results are reviewed monthly by management. The results of the QA/QC samples submitted for the resource databases demonstrate acceptable accuracy and precision. The Qualified Person is of the opinion that the sample preparation, analytical, and security procedures followed for the samples are sufficient and reliable for the purpose of these mineral resource and mineral reserve estimates. Pan American is not aware of any drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the data reported herein.
Quantities and grades of contained metal are shown before metallurgical recoveries.
Technical information contained in this news release with respect to Pan American has been reviewed and approved by Christopher Emerson, FAusIMM., Vice President of Exploration and Geology, and Martin Wafforn, P.Eng., Senior Vice President Technical Services and Process Optimization, who are each Qualified Persons for the purposes of NI 43-101.
Pan American Silver Corp. is authorized by The Association of Professional Engineers and Geoscientists of the Province of British Columbia to engage in Reserved Practice under Permit to Practice number 1001470.
About Pan American
Pan American Silver is a leading producer of silver and gold in the Americas, operating mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. We also own the Escobal mine in Guatemala that is currently not operating, and we hold interests in exploration and development projects. We have been operating in the Americas for three decades, earning an industry-leading reputation for sustainability performance, operational excellence and prudent financial management. We are headquartered in Vancouver, B.C. and our shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol "PAAS".
Cautionary Note Regarding Forward-Looking Statements and Information
Certain of the statements and information in this news release constitute "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 provincial securities laws. All statements, other than statements of historical fact, are forward-looking statements or information. Forward-looking statements or information in this news release relate to, among other things: estimated mineral reserve and mineral resource information; estimated mine life and any anticipated changes related thereto; the extent of, and success related to any future exploration or development programs; expectations that metallurgical, environmental, permitting, legal, title, taxation, socio-economic, political, marketing or other issues will not materially affect estimates of mineral reserves and mineral resources; expectations regarding planned drilling in 2024, including that it will be focused on near-mine exploration; expectations regarding mineral reserve replacement; and expectations with respect to future work to be conducted at the La Colorada Skarn project.
These forward-looking statements and information reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: the accuracy of our mineral reserve and mineral resource estimates and the assumptions upon which they are based; ore grades and recoveries are as anticipated; prices for silver, gold, and base metals remaining as estimated; currency exchange rates remaining as estimated; capital, decommissioning and reclamation estimates; prices for energy inputs, labour, materials, supplies and services (including transportation); all necessary permits, licenses and regulatory approvals for our operations are received in a timely manner; and our ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.
The Company cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this news release and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in silver, gold and base metal prices; fluctuations in prices for energy inputs, labour, materials, supplies and services (including transportation); fluctuations in currency markets (such as the PEN, MXN, ARS, BOB, CLP, BRL, GTQ and CAD versus the USD); operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather); employee relations; relationships with, and claims by, local communities and indigenous populations; our ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; changes in laws, regulations and government practices in the jurisdictions where we operate, including environmental, export and import laws and regulations; legal restrictions relating to mining; risks relating to expropriation; diminishing quantities or grades of mineral reserves as properties are mined; increased competition in the mining industry for equipment and qualified personnel; and those factors identified under the caption "Risks Related to Pan American's Business" in the Company's most recent form 40-F and Annual Information Form filed with the United States Securities and Exchange Commission (the "SEC") and Canadian provincial securities regulatory authorities, respectively. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Investors are cautioned against undue reliance on forward-looking statements or information. Forward-looking statements and information are designed to help readers understand management's current views of our near and longer term prospects and may not be appropriate for other purposes. The Company does not intend, nor does it assume any obligation to update or revise forward-looking statements or information, whether as a result of new information, changes in assumptions, future events or otherwise, except to the extent required by applicable law.
Cautionary Note to US Investors Regarding References to Mineral Reserves and Mineral Resources
Unless otherwise indicated, all reserve and resource estimates included in this news release have been prepared in accordance with NI 43-101 and the CIM Standards. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the mineral property disclosure requirements of the SEC (the "U.S. Rules"), and reserve and resource information included herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, this news release uses the terms "measured resources," "indicated resources" and "inferred resources" as defined in accordance with NI 43-101 and the CIM Standards. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, U.S. investors are cautioned not to assume that any measured mineral resources, indicated mineral resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable. Further, "inferred mineral resources" have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies, except in rare cases. While the above terms under the U.S. Rules are "substantially similar" to the standards under NI 43-101 and CIM Standards, there are differences in the definitions under the U.S. Rules and CIM Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the U.S. Rules.
Andean Silver (ASX:ASL) published an updated resource estimate for its Chile-based Cerro Bayo silver-gold project on Tuesday (September 10), saying silver equivalent ounces have increased by 80 percent.
The resource now stands at 8.3 million tonnes at 342 grams per tonne silver equivalent, which equates to 91 million silver equivalent ounces. In addition to the 80 percent boost in silver equivalent ounces, that's a 64 percent increase in tonnes compared to the previous estimate, which was published in March of this year.
“The updated Resource establishes Cerro Bayo as an outstanding silver asset with genuine scale and high grades,” said CEO Tim Laneyrie, noting that Andean has nearly quadrupled the asset's resource since acquiring it.
The company said the average depth of the resource is less than 300 metres, also stating that significant mining infrastructure is already established at the site. Cerro Bayo is made up of the previously operating Cerro Bayo and Laguna Verde mine complexes, and both of these are included in Andean's new resource estimate.
Also included are underground resources at Lourdes, Marcela and Cerro Bayo that are within the immediate historic Cerro Bayo mine complex; Raul and Guanaco, the other more regional prospects, are encompassed as well.
Not included are drill results and high-grade silver and gold mineralisation intersected since Andean acquired the project. This data will be added in an updated resource estimate planned for release in early 2025.
“The mineralisation remains completely open and we have a pipeline of greenfields targets to drill. This all points to compelling potential for upgrades and further value creation for our shareholders,” Laneyrie said.
Located in Chile’s Aysen region, Cerro Bayo produced over 100 million silver equivalent ounces from 1995 to June 2017. It occupies the western margin of Deseado Massif, a globally recognised epithermal gold-silver province.
Andean's drilling at the project is ongoing.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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2023 was a relatively lackluster year for silver, which largely traded between US$22 and US$25 per ounce.
The white metal started 2024 on a similar note, with its price remaining fairly rangebound for the first eight weeks of the year. It dropped to US$22.08 on January 21, marking its quarterly low.
Silver started seeing gains in March on expectations that the US Federal Reserve was getting closer to lowering interest rates. Improving sentiment gave precious metals momentum, causing silver to reach its quarterly high of US$25.62 on March 20; it then continued on to an 11 year high of US$29.26 on April 12.
These gains were reinforced by positive language following the Fed's March meeting, when the central bank said inflation was continuing to progress toward its target of 2 percent. Even though it was unwilling to commit to dates, the Fed suggested it was done with hikes and was expecting to make three cuts to its benchmark rate in 2024.
While gold captured attention as it set price records in March and April, silver has produced better returns for investors. In an April 9 email to the Investing News Network (INN), Peter Krauth, editor of Silver Stock Investor and author of "The Great Silver Bull," commented on the white metal's performance during the quarter.
“Silver also typically lags gold, then catches up and surpasses it. We’re starting to see that happen in spades right now. Since the end of February, gold is up about 15 percent, while silver is up about 22 percent," he said.
Krauth emphasized, "Those are breathtaking gains in just a matter of weeks."
According to Krauth, this rise came alongside decreasing inventories at the COMEX, London Bullion Market Association and the Shanghai Gold Exchange, where stockpiles have dropped 40 percent over the past three years.
“The same has happened to silver exchange-traded funds (ETFs) globally. My view is that large silver consumers are buying long contracts and silver ETFs, then taking delivery," he noted.
"That helps explain why the silver price didn’t rise in the face of ongoing deficits. But these inventories are being drained, and I think there may be 12 to 24 months left before they run out."
Industrial demand for silver increasing
Also helping to draw down inventories is industrial demand for silver. The biggest contributing sectors are related to the energy transition, particularly the production of photovoltaics and electric vehicles.
Krauth pointed to the Silver Institute, a top industry association, which is calling for silver to record a structural deficit for the fourth consecutive year in 2024, with shortfalls to continue for several more years.
In its latest World Silver Survey, the Silver Institute states that in 2024, demand for the white metal is forecast to reach the second highest level on record at 1.22 billion ounces, with industrial demand set to see a 9 percent increase to 710.9 million ounces; that would beat out the record set in 2023 at 654.4. million ounces.
India has been a critical driver of demand, importing 94 million ounces of silver in the first two months of 2024, including 71 million ounces in February alone — that represents nearly an entire month of global mine production.
While the Silver Institute notes that demand for silverware and jewelry in India remains strong, it also says there is growing industrial demand as India sees an increasing focus on infrastructure development.
To support local manufacturing, the Indian Ministry of New and Renewable Energy reimposed its Approved List of Models & Manufacturers for solar modules, effective April 1. With the list in place, certain solar projects in the country will be required to use domestically produced photovoltaics.
This comes as new N-type solar cells, which require greater amounts of silver, enter mass production in 2024.
Silver supply unable to keep up with demand
On the supply side, the Silver Institute is predicting a decline of 1 percent in 2024, with 1 billion ounces being made available. Recycled quantities of silver are expected to remain flat at 178.9 million ounces, while the biggest drop is seen coming from mine production, with an estimated total of 823.5 million ounces in 2024.
This differential suggests a widening deficit of 215.3 million ounces, a year-on-year increase of 17 percent.
Silver is primarily produced as a by-product of gold, lead, zinc and copper, with these mines accounting for 595.2 million ounces in 2023. Meanwhile, primary silver mines produced just 235.2 million ounces.
With a contraction in mine output forecast for 2024 and increasing industrial demand over the next several years, the Silver Institute is projecting more tightness over the next few years.
Krauth sees two standout projects set to add millions of ounces over the next year.
“There are two major primary silver projects that stand out. Endeavour Silver (TSX:EDR,NYSE:EXK) is building its Terronera project in Mexico, which will bring about 7 million silver equivalent ounces per year, starting at the end of this year. Then there’s Aya Gold & Silver (TSX:AYA,OTCQX:AYASF), whose Zgounder mine in Morocco is expanding production from about 1.9 million ounces of silver to 8 million ounces, starting with its commissioning in Q2 this year,” he said.
The Silver Institute also sees supply contributions coming from Newmont’s (TSX:NGT,NYSE:NEM) Penasquito mine, which will return to full production in 2024 following strike action in 2023. Meanwhile, Coeur Mining (NYSE:CDE) is expanding its Rochester mine, and Kinross Gold's (TSX:K,NYSE:KGC) Manh Choh project is coming online.
Even with these additions, the Silver Institute sees steep offsets in silver production, including the loss of 17.9 million ounces out of Peru as Hochschild Mining (LSE:HOC,OTCQX:HCHDF) has placed its Pallancata operation into care and maintenance as it waits for permits for its Royropata deposit.
Investor takeaway
Krauth sees strong upside in silver's industrial applications, although he believes many market participants still see it largely as a precious metal. However, attitudes may be starting to change.
This past January, silver producers penned an open letter to the Canadian government, urging it to include the metal on the country's list of critical minerals. While the government won't make a decision until May, silver companies could see new funding options open up if the metal is added, while permitting could be streamlined.
Krauth thinks such a move would boost silver’s status among investors, and is a point to watch in Q2.
“I, along with the entire sector, will be watching closely to see whether silver makes the list or not. If it does, I think that would be a shot in the arm for silver. The broader investment community would pay more attention to silver’s significant structural supply shortages,” he explained to INN.
Krauth wouldn't be surprised to see a pullback in silver this year, but thinks it is in a sustained bull market. He expects the price to continue to hold at US$28, and probably grow to US$30 in the second half of the year.
As silver sees upward momentum going into the next quarter, it may present opportunities for investors who want an alternative to gold, or are keen to take advantage of the white metal’s increasing role as an industrial metal.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
The silver price saw significant gains through the first half of 2024, hitting levels not seen in over a decade.
After starting the year trading in the US$22 per ounce range, the price of silver saw little change until March, when the white metal began to gain momentum following a US Federal Reserve meeting.
While the Fed left interest rates steady at that time, dovish language provided critical support for silver as investors pushed the price above US$25. Silver continued its upward trend through April and into May, when it climbed above US$32 for the first time since November 2012 and set a year-to-date high of US$32.07 on May 27.
Silver price breaks important US$30 level
A number of factors have been driving the price of silver upward in 2024.
Even though rate cuts from the Fed have yet to materialize, softening interest rates and slowing economic growth have led to greater speculation that at least one reduction will come in the second half of the year.
Silver was initially followed gold higher in the March to May period. However, the gains in silver have outpaced gold nearly two to one in 2024. To date, silver has risen nearly 30 percent, while gold has only gained 15 percent.
The pace of these gains has led to improving sentiment among investors. As of April, managed money positions in silver had climbed to their highest level since May 2022, and exchange-traded product holdings rose to their highest since July 2023, as outlined in the Silver Institute’s 2024 World Silver Survey presentation and report.
In an email to the Investing News Network (INN), Silver Institute President and CEO Michael DiRienzo said that the close link between silver and gold has led some investors to use it as a leverage play to gain exposure to gold.
“In addition, silver’s low unit cost and lower entry level have also made it more attractive to retail investors with a limited investment budget,” DiRienzo explained.
This was a point echoed by IndependentSpeculator.com CEO Lobo Tiggre in an interview with INN that took place on July 9. He suggested that even though silver has acted more like an industrial metal over the last several years, 2024 has seen investors once again looking at it for its value as a precious metal.
“That market dynamic has changed, and it’s moving more strongly with gold again as a monetary metal should … I think it's fantastic news for silver — and long-suffering silver bulls out there,” he said.
Industrial silver demand continues climbing in India, China
Improved sentiment has coincided with heightened industrial demand, particularly in the Indian market. Overall, silver demand is projected to grow by 2 percent in 2024, with the Silver Institute forecasting that industrial demand will increase by 9 percent — photovoltaics alone are expected to see a 20 percent gain.
As mentioned, India in particular has upped its silver purchases in 2024. Its imports came to a record 2,295 metric tons of silver in February, nearly outstripping an entire month of global mine supply. Though purchases have waned as prices have risen, the first four months of the year saw India import more silver than it did for all of 2023.
DiRienzo said that while the primary silver demand in India continues to be from the production of jewelry, the precious metal has also benefited from “firmer electrical & electronics demand, thanks to the continued strength in India’s real estate market and rising investment in local infrastructure construction.”
Additionally, he noted that Indian manufacturing of solar cells received additional support as companies reduced their reliance on Chinese manufacturing and diversified their supply lines for solar panels.
India has been the biggest driver in the photovoltaics category as the country continues building up its domestic solar supply chain through efforts such as its Approved List of Models and Manufacturers, which consists wholly of domestic companies. After a pause due to supply concerns last year, the nation's government reinstated the mandate as of April 1 of this year — as a result, government-funded and subsidized solar projects in India must source their solar photovoltaic modules from one of the companies included on the list.
Even so, China remains the global leader in photovoltaics production. And with new N-Type TopCon panels — which require 50 percent more silver — set to become the industry standard, industrial demand is set to rise even further.
Last year, a flagging Chinese economy not only put base metals under pressure, but dragged on silver as well. According to DiRienzo, fiscal stimulus measures implemented by the Chinese government have provided crucial support.
“Expectations on further fiscal stimulus for the Chinese economy led to a sharp rebound in base metal prices during 2024-to-date, which has benefited silver,” he said.
New silver mine supply won't outweigh deficit
While both retail and industrial demand is growing, it’s not just demand driving prices.
Silver is also facing a severe supply crisis as a deficit that began to emerge in 2021 continues to widen, with the Silver Institute forecasting that the deficit will reach 215 million ounces by the end of 2024.
According to the Silver Institute, Mexico and Argentina had steep output declines in 2023, with production falling by 10.9 million ounces and 4.9 million ounces, respectively. The Silver Institute predicts that global production will fall further in 2024 to 823.5 million ounces due to the closure of several mines in Peru.
While it isn’t expected to eclipse these declines, new silver supply is coming online from various sources this year.
The Silver Institute forecasts an increase from Mexico this year now that Newmont’s (TSX:NGT,NYSE:NEM) Peñasquito mine is back at full operating capacity following a strike in 2023. Additionally, Endeavour Silver (TSX:EDR,NYSE:EXK) announced in April that its Terronera project was more than 50 percent complete and on schedule to begin production at the end of 2024. The mine will add 4 million ounces of silver supply to global markets annually.
The US is also increasing its silver output this year. Hecla Mining Company's (NYSE:HL) Lucky Friday mine in Idaho returned to full production in March, while the expansion at Coeur Mining’s (NYSE:CDE) Rochester silver-gold mine in Nevada entered commercial operation at the end of the first quarter. Once fully ramped up, it will be the largest domestic source of silver in the US, processing 32 million metric tons of ore per year.
Aya Gold and Silver (TSX:AYA,OTCQX:AYASF) provided an update on progress at its Zgounder mine expansion in Morocco on July 9, announcing it had made the first silver pour. The company said it remains on schedule for commercial production to begin in Q4. Once fully ramped up, the expanded mine is expected to produce 6.8 million ounces of silver per year, a significant increase from its 2023 output of 1.97 million ounces.
Despite these new and expanded mining operations bringing significant new silver supply to the market, it’s still a far cry from meeting the more than 200 million ounce deficit.
How high can the silver price rise in 2024?
While gold tends to garner more of the media attention, silver has already been a stronger performer in 2024. Since its move began this year, a variety of experts have suggested the white metal has further to go.
In an interview with INN on July 3, Chris Vermeulen, chief market strategist at TheTechnicalTraders.com, suggested that silver is at a multi-year consolidation. He thinks a run over the next few months to US$36 per ounce is a possibility.
Peter Krauth, editor of Silver Stock Investor, told INN on May 24 that silver might experience a slight pullback over the next couple of months, but would likely establish a new floor at US$30. This came to pass as silver traded in the US$29 range in June before stabilizing above US$30 through the first half of July.
“We still have the gold-to-silver ratio somewhere around 75; it's averaged about 55 or 60 over the last few decades, so just on that basis if gold were to stay put, silver has a lot higher to go,” Krauth said.
“Typically when you get the ratio running down, both metals do well, but silver continues to do even better … so look for this to be a really tremendous run over the next months and years," he added.
While this might not be good news for manufacturers that require silver and consumers who buy their products, it's positive news for existing silver investors and new market participants who are looking for opportunities for a safe-haven investment that doesn’t come with the high entry point of gold.
There are also opportunities in silver stocks, which have been undervalued in recent years — in fact, many silver stocks have already seen significant gains this year. For example, silver producer Endeavour Silver and advanced development-stage companies GR Silver Mining (TSXV:GRSL,OTCQB:GRSLF) and Defiance Silver (TSXV:DEF,OTCQX:DNCVF) have all gained more than 100 percent from the start of the year through July 9.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Affiliate Disclosure: The Investing News Network may earn commission from qualifying purchases or actions made through the links or advertisements on this page.
Chen Lin: Silver's Move to US$50 Will be Quick, How I'm Investing Now
Speaking to the Investing News Network, Chen Lin of Lin Asset Management shared his outlook for silver, explaining that the white metal could move quickly to the US$50 per ounce level once market participants realize how large the divide between supply and demand really is.
When asked about the most important drivers for silver right now, he pointed to the solar industry, noting that two to three years ago it was consuming 100 million ounces of silver; that amount rose to 200 million ounces last year.
This year, the Silver Institute is projecting a further 40 million ounces of solar demand, but Lin thinks the sector may end up requiring an extra 100 million ounces, bringing its total usage to 300 million ounces for 2024.
"From all the data I get, it's 100 million ... so from 200 million to 300 million," he said. A new report out of Germany has an even higher projection, forecasting that the solar market could consume 400 million ounces of silver this year.
"My point is that once investors see the huge deficit, they truly see the huge deficit in silver, silver will go to US$50 just like that — just in a heartbeat," Lin said, adding that so far most market participants haven't gotten there.
When asked how he's getting exposure to silver, Lin said he's heavily exposed in the future market. However, he doesn't recommend that path for everyone as the leverage involved can be highly risky.
He's also looking at silver miners, which he believes are cheap. "Silver miners are going to have a huge Q2 — gold miners too, but silver in particular," he said, noting that the average silver price will be much higher than it was in Q1.
"If they are not making money at US$20 (silver), at US$30 suddenly there's a huge profit," he said.
Watch the interview above for more from Lin on his outlook for silver and ways to invest.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Lobo Tiggre: Shopping for Silver Stocks, Watching "Powerful" Gold Mover
Lobo Tiggre, CEO of IndependentSpeculator.com, shared his updated thoughts on gold, silver and uranium.
When it comes to gold, he pointed to a "powerful mover" that he thinks could be in play — a change in global portfolio allocations to the yellow metal. Historically the allocation has been 2 percent, but more recently it's been 0.5 percent.
"I think that what we're seeing is that changing. And maybe it doesn't go back to 2 percent, but if it just goes back to 1 percent, that doubles the investment demand for gold from where we are now," he said.
Looking at silver, he said lately it's correlated more closely to copper than to gold; however, that dynamic now seems to be changing. "I think it's fantastic — not just good — I think it's fantastic news for silver ... that it's acting as a monetary metal should," he said at the Rule Symposium, held last week in Boca Raton, Florida.
With that in mind, Tiggre and his team are on the lookout for stocks that meet his criteria. One of those is jurisdiction — while he's seen strong discoveries in places like Mexico, the political risk is too high for him to be interested.
Watch the interview above for more from Tiggre on gold and silver, as well uranium.
You can also click here to view the Investing News Network's Rule Symposium playlist on YouTube. Recorded presentations from the Rule Symposium are available here.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Affiliate Disclosure: The Investing News Network may earn commission from qualifying purchases or actions made through the links or advertisements on this page.
2024 has been positive for silver stocks. A variety of factors pushed the white metal's price higher during the second quarter, allowing it to break the US$30 per ounce mark for the first time since 2012.
According to the Silver Institute, demand for silver is set to outstrip mine supply for the third year in a row, due in part to rising consumption from sectors dependent on the energy transition, including photovoltaics and electric vehicles.
India in particular has seen demand soar after introducing regulations for domestic production for new solar projects; that led the country to import more silver in the first four months of the year than all of 2023.
How has silver's price movement benefited Canadian silver stocks on the TSX and TSXV? The five companies listed below have seen the best performances since the start of the year. Data was gathered using TradingView's stock screener on August 26, 2024, and all companies listed had market caps over C$10 million at that time.
Explorer Defiance Silver is working to advance its district-scale Zacatecas silver project in Zacatecas, Mexico.
The project consists of a 4,300 hectare land package and includes four project areas: San Acacio, Lucito, Panuco and Lagartos. Both San Acacio and Lagartos have seen previous exploration and mining activity.
On January 15, the company announced results from its 2023 drill program at the San Acacio target, reporting well-developed silver and zinc values with elevated gold and copper. This includes a highlighted assay of 223.53 g/t silver over 12.82 meters with an interval of 306.86 g/t silver over 7.79 meters.
Defiance provided an update on April 15 on a surface-sampling campaign at the Lucita target. The results show widespread high-grade polymetallic mineralization, with Defiance highlighting grades of up to 795 g/t silver from Lucita North and 2,350 g/t silver from Lucita South. The company said the results reinforce the district-scale potential at Zacatecas.
Shares of Defiance reached a year-to-date high of C$0.425 on May 15.
GR Silver Mining is a small-cap explorer and developer that is working to advance its Rosario Mining District in Sinaloa, Mexico, to production. The district consists of three core mining areas: Plomosas, San Marcial and La Trinidad.
The company’s primary focus has been the development of Plomosas and neighboring San Marcial, a 9,764 hectare land package that hosts a past-producing silver, gold, lead and zinc underground mine.
In March 2023, the company released an updated resource estimate for Plomosas showing total indicated quantities of 97 million silver equivalent ounces, with additional inferred quantities of 53 million silver equivalent ounces.
Shares of GR Silver saw significant gains in the first quarter alongside a rising silver price and a March 4 news release. In the announcement, GR Silver reported that it had started small bulk sampling and test mining at Plomosas.
In an update on June 27, the company provided results from the sampling program. In the report, GR Silver said it had completed 280 meters of underground development and processed 15,170 metric tons of material. Silver recovery rates from the samples were between 84 and 92 percent. Assays from channel sampling produced high grades, with one sample grading 1,625 grams per metric ton (g/t) silver and 14.1 g/t gold over 2.5 meters.
GR Silver's share price reached a year-to-date high of C$0.23 on June 2.
Gatos Silver is a silver-focused production and exploration company. Its flagship asset is the Cerro Los Gatos mine and district, located south of Chihuahua City, Mexico.
The site consists of 14 predominantly silver, lead and zinc mineralization zones, and is a joint venture with Dowa Metals and Mining, which holds a 30 percent stake in the operation; Gatos owns the remaining 70 percent.
On February 21, the company released its full-year results for 2023, indicating it had produced 9.2 million ounces of silver, marking a decline from the 10.3 million ounces produced in 2022. However, the company said it improved operational efficiencies to offset inflationary pressure, lowering all-in-sustaining costs (AISC) to the lower end of 2023 guidance.
In the release, Gatos also notes that it expects similar production totals for 2024, with guidance of 8.4 million to 9.2 million ounces of silver at an AISC of US$9.50 to US$11.50 per payable ounce. The company said it anticipates that exploration efforts at the South-East Deeps target will further extend the life of the mine.
The most recent news from the project came on July 23, when Gatos reported continued results from the South East Deeps zone extension drilling alongside an update on regional exploration programs. In the announcement, the company provided a highlighted assay of 214 g/t silver over 3.5 meters.
Results from its ongoing drilling at the Portigueño target included a highlight of 49 g/t silver over 1.6 meters, while results from two holes testing the depth of the San Luis target produced a highlighted intercept more than 150 meters below surface of 66 g/t silver over 8.9 meters, which included 111 g/t silver over 2.5 meters.
In an update on August 6, Gatos reported that silver production through the first six months of 2024 was 4.67 million ounces, up from 4.43 million ounces from the same period in 2023. The company also said it remained on track to achieve 2024 production and cost guidance.
Shares of Gatos reached a year-to-date high of C$19.29 on July 15.
Avino Silver and Gold Mines is a precious metals miner with two primary silver assets: the producing Avino silver mine and the neighboring La Preciosa project in Durango, Mexico.
The Avino mine is capable of processing 2,500 MT of ore per day ore, and in 2023 produced 928,643 ounces of silver, 7,335 ounces of gold and 5.3 million pounds of copper. While within the company's guidance, there was a 6 percent decrease in silver production over 2022, when it produced 985,195 ounces in the same time period.
In addition to its Avino mining operation, Avino is working to advance its La Preciosa project toward the production stage. The site covers 1,134 hectares, and according to a February 2023 resource estimate, holds measured and indicated quantities of 98.59 million ounces of silver and 189,190 ounces of gold.
On February 28, the company provided an update for La Preciosa, saying it was preparing for the first phase of production at the Gloria and Abundancia veins. Avino also said it has the equipment needed to commence operations at the site once it receives the necessary environmental permits, which it expects later in 2024.
In its Q2 2024 results released on August 13, Avino reported that it had generated record quarterly revenues of C$14.8 million during the second quarter, an increase of 60 percent over the same quarter in 2023. Additionally, the company said it had produced 543,589 ounces of silver through the first half of the year, a 16 percent increase from the 466,755 ounces of silver in the six months of 2023.
Avino's share price marked a year-to-date high of C$1.51 on May 26.
Endeavour Silver is a silver company with two operating silver-gold mines in Mexico — Guanaceví and Bolañitos — plus an advanced-stage development project and several exploration properties.
Its primary focus for 2024 has been the development of its Terronera project in Jalisco, Mexico, which is under construction. Once complete, the new mine will become the company’s flagship operation. According to a 2023 update to its 2021 feasibility report, Terronera will produce an estimated 4 million ounces of silver per year over a 10 year mine life.
The most recent update from Terronera came on July 24, when the company announced that construction at the site had progressed, with surface construction achieving 77 percent completion. The company said the upper platform was progressing and should be ready for dry commissioning during Q3 2024 and that it was concentrating on the lower platform with final earthworks and concrete pouring also during the third quarter.
In an update on August 19, Endeavour reported that processing at its Guanacevi mine site had resumed following a failure that occurred at the primary ball mill trunnion on August 12. However, the company noted that processing would be less than half of its 1,200 metric ton per day capacity during a ramp up with temporary modifications. Permanent repairs to return to regular capacity are expected to take 16 weeks for fabrication and installation.
The company said that silver production for the year is estimated to decrease by 900,000 to 1.1 million ounces and has recalculated its 2024 guidance to 4.4 to 4.6 million ounces.
Shares of Endeavour reached a year-to-date high of C$6.80 on July 15.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
First Majestic Silver Corp. (NYSE: AG) (TSX: AG) (FSE: FMV) (the "Company" or "First Majestic") announces that the Toronto Stock Exchange ("TSX") has accepted for filing First Majestic's Notice of Intention to Make a Normal Course Issuer Bid (the "Share Repurchase Program") to be transacted through the facilities of the TSX andor through Canadian alternative trading systems.
Pursuant to the NCIB, First Majestic may, during the 12-month period commencing September 12, 2024, and ending on or before September 11, 2025, purchase up to 10,000,000 of its common shares ("Shares"), being approximately 3.32% of the 301,616,350 issued and outstanding Shares as of September 4, 2024. All purchases under the Share Repurchase Program will be made at prevailing market prices.
First Majestic may purchase up to a daily maximum of 193,454 Shares (being 25% of the average daily trading volume of the Shares for the last six calendar months, which was 773,816 Shares), subject to the TSX rules permitting block purchases. Any purchases under the Share Repurchase Program will depend on future market conditions, and any Shares purchased by the Company will be cancelled. Purchases under the Share Repurchase Program will be made by First Majestic's broker based upon the parameters prescribed by the TSX and by applicable law. First Majestic has not repurchased any of its Shares by way of a normal course issuer bid in the previous 12 months.
First Majestic believes that, from time to time, the market price of its Shares may not fully reflect the underlying value of the Company's business and its future business prospects. The Company believes that at such times the purchase of Shares would be in the best interests of the Company. Such purchases are expected to benefit all shareholders by increasing their proportionate equity interest in the Company.
About First Majestic
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, and the La Encantada Silver Mine as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, U.S.A.
First Majestic is proud to own and operate its own minting facility, First Mint, LLC, and to offer a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase online at www.firstmint.com, at some of the lowest premiums available.
This news release contains "forward‐looking information" and "forward-looking statements" under applicable Canadian and United States securities laws (collectively, "forward‐looking statements"). Forward-looking statements in this news release include, but are not limited to, statements with respect to potential purchases of Shares under the Company's NCIB bid and the timing of such purchases. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are discussed in the section entitled "Description of the Business - Risk Factors" in the Company's most recent Annual Information Form for the year ended December 31, 2023 filed with the Canadian securities regulatory authorities under the Company's SEDAR+ profile at www.sedarplus.ca, and in the Company's Annual Report on Form 40-F for the year ended December 31, 2023 filed with the United States Securities and Exchange Commission on EDGAR at www.sec.gov/edgar.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise.
Brodsky & Smith reminds investors of the following investigations. If you own shares and wish to discuss the investigation, contact Jason Brodsky ( jbrodsky@brodskysmith.com ) or Marc Ackerman ( mackerman@brodskysmith.com ) at 855-576-4847. There is no cost or financial obligation to you.
Under the terms of the agreement, Iteris will be acquired by Almaviva S.p.A. ("Almaviva") for $7.20 per share in cash upon completion of the proposed transaction. The investigation concerns whether the Iteris Board breached its fiduciary duties to shareholders by failing to conduct a fair process, including whether Almaviva is paying fair value to shareholders of the Company.
Under the terms of the Merger Agreement, Forza X1 will be acquired by Twin Vee PowerCats Co. ("Twin Vee") (Nasdaq -VEEE). Each holder of Forza Common Stock (other than Twin Vee) will receive 0.61166627 shares of Twin Vee Common Stock. On closing, holders of Twin Vee and Forza would beneficially own approximately 64% and 36%, respectively, of the outstanding shares of Twin Vee Common Stock. The investigation concerns whether the Forza X1 Board breached its fiduciary duties to shareholders by failing to conduct a fair process, including whether Twin Vee is paying fair value to shareholders of the Company.
Under the terms of the agreement, Titan will be acquired by KE Sdn. Bhd. ("KE"). On the closing of the transaction, Titan Pharmaceuticals stockholders will own only 13% of the combined company. The investigation concerns whether the Titan Pharmaceuticals Board breached its fiduciary duties to shareholders by failing to conduct a fair process, including whether KE is paying fair value to shareholders of the Company.
Under the terms of the agreement, Gatos Silver will be acquired by First Majestic Silver Corp. ("First Majestic") (NYSE -AG) (TSX - AG) (FSE -FMV). Gatos Silver shareholders will receive 2.550 common shares of First Majestic for each common share of Gatos Silver held. The consideration implies a total offer value of US$13.49 per common share of Gatos based on the closing price of First Majestic's common shares on the NYSE on September 4, 2024.
The investigation concerns whether the Gatos Silver Board breached its fiduciary duties to shareholders by failing to conduct a fair process, including whether First Majestic is paying fair value to shareholders of the Company.
Brodsky & Smith is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.
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