Parral, Mexico

Acquisition Optioned in 2006; purchased 100% interest for less than $1 million in 2011
Location 210 kilometres south of the city of Chihuahua in the state of Chihuahua
Access 2½ hours by road to the city of Hidalgo de Parral
Property 37 hectares in the historic Parral mining district
Infrastructure State power; local labour, supplies, and services
Geology Medium-grade polymetallic epithermal veins with potential for silver and gold
Resources 2.6 million ounces of indicated silver; 47,200 ounces of indicated gold; 2.7 million ounces of inferred silver; 36,900 ounces of inferred gold; significant lead; and zinc
Outlook Acquire more resources in the district, to create critical mass for a new mine

Endeavour owns the 37-hectare El Cometa property in the historic silver district of Parral, which government records say has produced more than 250 million ounces of silver. The El Cometa property is well sited for mining. It's accessible by paved road, adjacent to the city of Parral, and one kilometre from a government-owned plant that processes 500 tonnes of ore per day.

Silver was first discovered at El Cometa in 1631. By 1655, more than 60 small mines were operating. The old El Cometa mine was developed on 3 levels to a depth of 75 metres. It was on the same vein as the Esmeralda mine, which was just 2 kilometres south. Esmeralda is estimated to have produced 4 million tonnes of ore graded at 6% for lead and zinc, 100 grams of silver per tonne, and 0.5 grams of gold per tonne, on 10 levels and to a depth of 600 metres.

After acquiring Parral in 2006, Endeavour found a similar polymetallic zone in the El Cometa vein, along strike from the historic Esmeralda mine. In 2011, resources at El Cometa were estimated at 1.6 million tonnes containing 49 grams of indicated silver and 0.9 grams of indicated gold per tonne, graded at 2.87% for lead and 2.9% for zinc, and 1.3 million tonnes containing 63 grams of inferred silver and 0.9 grams of inferred gold per tonne, graded at 2.6% for lead and 2.3% for zinc.

We're seeking other properties in the district with silver resources, to create critical mass for developing a new mine.