Endeavor Silver - High-Grade Silver-Gold Mineralization at the Bolañitos Operation

[pmbug]

Nov. 27, 2023 -- Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) is pleased to report positive drill results from its exploration program at the Bolañitos Mine in Guanajuato State, Mexico. The 2023 program mainly focused on two areas, drilling the El Puertecito and Fortuna veins. At both areas, surface drilling intersected high-grade gold and silver mineralization near historic workings and provide opportunities to increase resources, replace reserves and extend mine life.

Dan Dickson, CEO, commented, “Our track record of exploration success has sustained operations at Bolañitos for over 16 years. Ongoing exploration results demonstrate our commitment to targeted and cost-effective brownfields exploration, which has been successfully extending mine life in this historically rich district. We continue to make progress year over year in understanding the regional mineralization system and remaining prospectivity at Bolañitos.”
...
Drilling Context

At El Puertecito, since the beginning of the year, 32 new holes were completed totalling 5,833 metres. El Puertecito is a new area south of Bolañitos, situated 300 metres northeast from Endeavour Silver’s historic Golondrinas Mine. Due its proximity to existing infrastructure, minimal development would be required to incorporate El Puertecito into a mine plan. New high-grade vein mineralization has now been delineated over 400 metres in length to a depth of 120 metres. The structure remains open at depth and to the southeast.

At Fortuna, 13 holes were completed totalling 2,922 metres. Fortuna is located south of Bolañitos situated 200 metres from current accesses to the Lana vein of Endeavour Silver’s Lucero mine. Two structures have been delineated to define a mineralized zone of 250 metres in length and 100 metres to depth, open to the southeast.
...

More (details):

Endeavour Silver Continues to Intersect High-Grade Silver-Gold Mineralization at the Bolañitos Operation

VANCOUVER, British Columbia, Nov. 27, 2023 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) is pleased to report positive drill results...

www.globenewswire.com

 

[Peter89]

EXK is indeed one of the most promising silver producers - imo.

Their big story is Terronera, which will go live next year doubling EXK production (from the current 4-5M oz to 9-10 M oz, more or less...)
Add to that their gigantic story, Pitarilla, one of the biggest known deposits worldwide - with the major permits already in place.

With both underground and open pit Pitarilla alone will produce ca 20M oz/year - according to Presentation - catapulting EXK into the big league of the silver producers (currently only Fresnillo produces more than 20M oz among the silver producers).

 

[searcher]

EXK is indeed one of the most promising silver producers - imo.

Peter.........I'm not a sophisticated investor but I do gamble a bit. Do you think this is a good lottery ticket?

 

[Peter89]

Peter.........I'm not a sophisticated investor but I do gamble a bit. Do you think this is a good lottery ticket?

Yes I do

Stocks are risky, we know that - so the lottery metaphor suits... - but producers are in general less risky than explorers.
EXK is what ... 15-20 years old?, and they never messed up big time, so good management, imo.
The two (big and very big) new mines are permitted and reserves/resources defined.
They have basically no debt and cash in the bank, they have other mines - like Bolañitos - they can finance the building of the new ones with.
They have relatively high AISC, which means high leverage - in both directions...
I'm not sophisticated either, but should I try with stocks, yes, I would go with EXK - and a couple of others, for diversification's sake


Speaking of good management - an aspect I'm not knowledgeable enough to judge - Sprott is known for considering the quality of management a major investment factor.
Look at their jr. gold miners ETF: EXK is the only silver miner in it, with 2,5% weight.

 

[searcher]

Hey @Peter89 - Thanks. Just brought 25 shares @ Fidelity. Will leave it alone and add 25 more next month.

 

[Voodoo]

I really like EXK as well but the market is just not giving ANYTHING of value to silver right now. They did also just sell $60 million ATM of shares which hurts. They need the gold cash flow from Terronorra ASAP.

 

[Peter89]

but the market is just not giving ANYTHING of value to silver right now

Well it depends on which market V

In the Asian market silver has been rising non-stop for a year now. Look at this textbook stairs step pattern

The Western silver market can't but catch up! ... as all derivative ultimately can't but follow the real thing.
Only question is when...

 

[Voodoo]

A huge silver deposit combined with a huge silver gap between price and actual value = Mega value. I just hope I don't screw it up and try to time it wrong with options or too much leverage.

 

[Cigarlover]

They did take on a lot of debt to build Terronera but once completed and online they are saying it will bring AISC way down. My expectations are for this to turn around by end of the year. Mid 2025 at the latest.

​

 

[Peter89]

They did take on a lot of debt to build Terronera

True, didn't know
Thanks CL

SENIOR SECURED DEBT FACILITY(1)

• Principal: $120 million
• Term: 8.5 years; grace period during construction
• Cost: SOFR + 3.75% per annum
• Requirements: Gold hedge for up to 68,000 ounces

@searcher calling Fidelity to sell the 25 shares

 

[searcher]

calling Fidelity to sell the 25 shares

Nah, paid 1.87 when I grabbed my lottery ticket. Here's the 52 wk range.

52 Week Range

1.7400 - 4.5500

I'm just having a little fun. Hope to double the ticket price.

I follow the lunatic trading thread. I'm hoping to read something that leads me to buy another ticket. lol

 

[Cigarlover]

 

[Cigarlover]

Since May of 21 this has been in a downtrend and it shows no signs of turning around. Since April of last year you can see the yellow channel that has formed. A smaller channel within the larger one which is red. If this doesn't break out of this yellow channel then this goes well below 1.00 by end of the year. If you take the bottom of the yellow channel and intersect it with the bottom of the red channel, that's is mid April of this year and around .66 cents.
If we reach 1.00 a share I will double or triple down. If we go to 66 cents I will do that again. By the middle of this year I do expect the bleeding to stop on this. Maybe sideways for awhile before we start higher in anticipation of the new mine coming online. Just my opinion.

 

[Peter89]

Hi @Cigarlover
in order for EDR to lose 30% and reach $1, how low should silver go?
Under 20, I guess.
Is it possible?
Yes, but imo only for a short time, as silver is in a bull market, driven - remotely... - by physical demand.

 

[Cigarlover]

This is the 5 year weekly chart on silver. Same time frame as EXK above. As you can see EXK isn't tracking with the silver price. The reasons were pretty much laid out in the video. Margins getting squeezed by higher costs and exchange rates with the peso. My comments were purely based on what the chart is doing on EXK. That chart pattern can change at any time but in my opinion it ill need a catalyst to do so. Higher silver prices, as in the price finally breaks out or something positive coming from the company. If everything goes as planned and Terranova opens on time and throughput is as expected and the silver [price is where it is now or higher, than I fully expect the stock price to go much much higher.
Looking at this silver chart we can see that silver has been consolidating in this yellow channel since middle of 2020. Brief periods above and below but for the most part just consolidating in that channel. Usually the longer the consolidation the larger the move when it breaks out. Silver is up roughly 100% since the March 2020 low.

 

[Cigarlover]

Looking at the silver chart back to 2014 you can see that the is not an exciting investment. It didn't do a whole lot for many many years and then 2020 took it down briefly and then up 200% off the low. Then back down to where we are now. My best guess is we could see 18 again on some news that drives the price down and then from there we move up another 100% to around 36 or so. That will become the new floor. When that happens EXK will be 30+. It is my biggest holding and will continue to get bigger for the rest of this year.

 

[Peter89]

Hi @Cigarlover
AISC currently 23-24, so right now they are producing vs. love.
Terronera will let AISC decrease, but that a long term investment case.

Short and medium investment cases could be the swap dealers going net long and more evidence of supply/demand imbalance.

25 vs. 23
10%
I keep wondering why arbitrageurs don't jump in
How high should be that price difference in order to see arbitrageurs jumping in

 

[Voodoo]

I wish we had a bunch more American incorporated miners and they weren't all Canadian. I would like to pick up 1,000 shares but I really would only want to hold that in DRS form. Any shares I buy as an investment now I'm going to look to take actual ownership.

 

[Peter89]

Mexico’s president calls for ban on open-pit mining​

No new open-pit mining concessions have been granted since 2018.

Mexican President Andrés Manuel López Obrador proposed to modify Article 27 to prohibit open-pit mining, as part of a range of constitutional reforms presented before parliament, citing concerns for excessive environmental damage.

The proposal, announced early in February 2024, calls for bans on open-pit mining concessions and activities relating to the exploration, exploitation, benefit or use of minerals, metals or metalloids using the open-pit method.

Of the 250 mines hosted by the nation, 97 are open-pit projects

mining-technology.com

Endeavour has Pitarilla, an elephant deposit, and imo a main reason for investing in this company. Interestingly they classify is as "Exploration", not as "Development".
Anyway, I wonder whether they have already the permits in place for open-pit or whether they need one. In the latter case, if Article 27 gets modified, very bad news for the company. Imo

 

[Voodoo]

It's money in the ground and it's going to get a WHOLE lot more valuable. And the market has essentially written it off as worthless. Heck, at the coming silver prices just pull a little bit out via "underground" tunnels and they will be making bank. At a non-manipulated price they won't need a massive open-pit operation. Also, that site lists an underground part to the deposit for the sulphides with about 1/4 of the silver or 150 million ounces.

And in the future I think its quite likely they relax these rules again when the economy needs the jobs and REAL money.

 

[searcher]

Mexican mining sector balks at plan to ban open-pit mines​

MEXICO CITY, Feb 15 (Reuters) - Mexican President Andres Manuel Lopez Obrador's proposal to ban open-pit mining will generate uncertainty and curtail investment for the key sector, mining industry representatives said this week.

Lopez Obrador announced the proposal to prohibit new concessions for open-pit projects last week amid a slew of initiatives as he looks to shape political debate ahead of a June presidential election that his protégé is expected to win.

The proposal is unlikely to pass in the short-term, as Lopez Obrador does not have the two-thirds super majority in Congress needed to change the constitution.

But the frontrunner to succeed him, former Mexico City Mayor Claudia Sheinbaum, has said she will adopt his proposals as part of her platform.

The industry says such a move would be disastrous for the sector, which fuels 2.5% of gross domestic product. Mexico is the world's top silver producer and a major gold and copper producer.

More:

https://www.reuters.com/markets/commodities/mexican-mining-sector-balks-plan-ban-open-pit-mines-2024-02-15/

 

[searcher]

Hey @Peter89 - Thanks. Just brought 25 shares @ Fidelity. Will leave it alone and add 25 more next month.

Bad lottery ticket. lol Bailed yesterday. BTC going strong.

 

[Peter89]

I'm just having a little fun

yes you do!

 

[searcher]

Just a heads up - moved the posts about the shipping stock to the https://www.pmbug.com/threads/dividend-stocks.4109/ thread.

 

[Cigarlover]

From a low of 1.42 to 5.50 today. Not a bad year. Makes up for the last 3 years of bag holding. I'm sure we all wish we had added more back in Jan,Feb and March but who knew?

Making good progress on Terranova and still on track to get things rolling next quarter. Although I suspect that will be at the end of next quarter based on where they are at with construction. Supposedly the AISC is going to drop significantly with the opening of the new plant. Will wait and see how that works out but I have no reason to doubt them.
As tempting as it is to take some profits here I think if they execute as they say they will then this is only the beginning of a very nice bull run. For now any pullbacks will be treated as a buying opportunity for me.

 

[Cigarlover]

Looking at the silver chart back to 2014 you can see that the is not an exciting investment. It didn't do a whole lot for many many years and then 2020 took it down briefly and then up 200% off the low. Then back down to where we are now. My best guess is we could see 18 again on some news that drives the price down and then from there we move up another 100% to around 36 or so. That will become the new floor. When that happens EXK will be 30+. It is my biggest holding and will continue to get bigger for the rest of this year.
View attachment 11912

What a failed call that was on my part. I honestly don't even know what I was thinking. EXK 30+ when silver hits 36? Here we are and silver hit 35 today and EXK only at 5.50. LOL. I musta been smoking something good. . Then again, Back in Feb I could have never guessed that silver and gold would have the moves they did this year.