Endeavour Reports Production Of 942,274 Silver Ounces In Q3

VANCOUVER, BC - Endeavour Silver Corp. reported production of 942,274 silver ounces (oz) and 10,260 gold oz in Q3, 2020, for silver equivalent (AgEq) production of 1.8 million oz at an 80:1 silver:gold ratio, bringing the year to date production total to 4.4 million AgEq oz. Endeavour operates three high grade, underground, silver-gold mines in Mexico; Guanacevi in Durango state, Bolanitos in Guanajuato state and El Compas in Zacatecas state. Production returned to plan in Q3, notwithstanding a heavy rain season, after a two month shut down in Q2 following a government mandated suspension of mining operations due to COVID-19.

Bradford Cooke, CEO, said, “After riding out a challenging Q2 with our mining operations suspended for more than half the quarter, due to the government COVID-19 mandate, our operations team were able to deliver a return to our production plan in Q3, 2020. I commend all of our employees for quickly and fully embracing our COVID-19 precautionary measures to prevent contagion at our mine sites. This pandemic has temporarily changed our lives and required all of us to be persistent with our safety procedures to operate as safely and effectively as possible. We continue to keep our higher risk people safe at home during this period and yet our mines are running near capacity despite having fewer employees on site, a testament to the positive response by our operations management and employees.”

Consolidated silver production in Q3, 2020 was lower than Q3, 2019 due to lower silver grades from the Bolanitos and El Compas mines, and the November 2019 suspension of El Cubo operations, offset by a significant increase in silver grade ore at the Guanacevi mine. Consolidated gold production increased 6% due to higher throughputs and gold grade ore from the Bolanitos and Guanacevi mines, offset by lower grades from El Compas and the November 2019 suspension of the El Cubo operations.

Guanacevi silver and gold grades were both significantly higher than Q3, 2019 and well above plan. Mining the new, higher grade El Curso, Milache and SCS orebodies has led to the significantly improved ore grades. Mine output approached plan in Q3, 2020, however an extremely wet August and September impacted the plant throughput during the quarter. The mine added over 24,000 tonnes of ore to the plant stockpile in Q3, 2020 and as the rain subsides, management expects throughput to reach the plant capacity of 1,200 tpd by quarter-end. Management is reviewing alternatives to reduce the impact of rain on future plant throughput.

Bolanitos gold grades were higher and silver grades were lower than Q3, 2019. The Q2, 2020 mine re-start focused on accelerated mine development and additional dilution control in order to return to plan in Q3, 2020. Mine output and plant throughput approached plan and is expected to maintain these levels going forward. Silver grades remain lower than plan due to lower mine output from the San Miguel vein which has higher silver and gold grades than other working areas. The output from San Miguel vein is expected to increase in Q4, 2020 as development is completed. Mine development will continue to focus on completing access to the San Miguel ore body and commencing access to the Medallito discovery.

El Compas throughput was above plan, however dilution remains a continuing focus at the mine. El Compas grades were lower than Q3, 2019, and below planned grade. The variation of grades was due to dilution and normal fluctuations in the ore body.