Guanacevi Eyes Doubling of Silver Production in 2007

Endeavour Silver Corp., based in Vancouver, British Columbia, is forecasting a near doubling of silver production at its Guanacevi operations in Durango, Mexico, from 1.48 million oz silver equivalent in 2006 to 2.80 million oz in 2007. Production during 2006 included 1.35 million oz of silver and 2,493 oz of gold; for 2007, production is expected to total 2.57 million oz of silver and 4,720 oz of gold. Current production is from the Porvenir mine. Endeavour is currently evaluating development of a second silver mine at Guanacevi as part of its fiveyear mine plan, with construction beginning in 2007 for production in 2008.

During 2006, Endeavour drove 6,800 m of underground ramps, sills, and raises at the Porvenir mine; purchased six new scoop trams; ordered two new jumbo drills; built two new underground electrical substations; and refurbished the mine offices. Plant improvements included installation of a new 10.5 x 12-ft ball mill, construction of a new electrical substation, and upgrading of the plant laboratory. During 2007, a plant expansion program will emphasize improvement of metal recoveries by upgrading the performance of the CCD leach, Merrill Crowe precipitation, and refinery circuits.

The Guanacevi district has been mined at least since 1535 and is renowned for its high grades. Historic production from the district is estimated at 500 million oz of silver and silver equivalent. Endeavour is currently mining grades of about 12 oz/st from vein widths averaging 3 m. NI 43-101 compliant reserves total 9.93 million oz of silver plus gold (10.85 million oz silver equivalent); indicated resources total 21.06 million oz of silver plus gold (21.23 million oz silver equivalent); and inferred resources total 9.99 million oz of silver plus gold (10.94 million oz silver equivalent).