El Cubo, Mexico

2013 Production

  • 1.2 million ounces of silver
  • 17,142 ounces of gold
  • 2.2 million ounces of silver equivalent

Reserves and Resources (as of December 31, 2013)

  • 5.9 million ounces of proven and probable silver
  • 10.6 million ounces of measured and indicated silver
  • 7.7 million ounces of inferred silver
  • 96,300 ounces of proven and probable gold
  • 165,000 ounces of measured and indicated gold
  • 130,100 ounces of inferred gold

Other Achievements

  • Initiated a program to expand the reserve blocks and test multiple new targets
  • Launched a $67-million capital investment program to explore and develop the mines and to rebuild and expand the plant and surface facilities
  • Completed $14.5 million worth of capital projects to modernize the mines and equipment, on time and budget

Exploration Objectives

  • Continue to explore around the old mines, to expand the reserves
  • Drill new targets southeast of the mines, to make new discoveries
     

Overview

Acquisition Endeavour's third mine, acquired in July 2012
Location 6 kilometres southeast of the city of Guanajuato in the state of Guanajuato
Access 30 minutes by municipal road to the town of El Cubo
Property 8,146 hectares in the second largest historic silver mining district in Mexico
Infrastructure State power grid; local labour, supplies, and services
Operations 3 mines feed a flotation plant that produces mineral concentrates; concentrates feed a 400-tonne-per-day leach plant to produce doré bars
Geology Low-sulphidation epithermal veins are typically thousands of metres long, 400 metres deep, and 1 to 3 metres thick

 

Our acquisition of the El Cubo mine in July of 2012 was a great fit with Endeavour's business strategy of buying and rejuvenating struggling old mines in historic mining districts.

Unlike Guanaceví and Bolañitos, which came to us with low throughputs and no reserves, El Cubo offered the potential to quickly become a core asset for Endeavour, with a 1,000-tonne-per-day output and a long mine life. El Cubo has many mine adits, ramps, and shafts, as well as a 400-tonne-per-day leach plant. It also holds a lease (until May 2013) on the adjacent Las Torres mine and 1,800-tonne-per-day flotation plant owned by Fresnillo PLC.

In the third quarter of 2012, we launched a $67-million, 18-month capital investment program at El Cubo, to explore and develop the mine and to rebuild and expand the plant, tailings facility, water supply, electrical supply, surface buildings, and surface infrastructure. Of the initial $14.5 million we spent, $9.7 million went to 5.4 kilometres of mine development, $4.1 million went to the El Tajo plant rehabilitation and expansion, $0.4 million went to mine equipment purchases and refurbishing, and $0.3 million went to office equipment, building upgrades, and light vehicles.

Located in the southeastern part of the historic Guanajuato mining district, this producing silver and gold mine is only 15 kilometres from our Bolañitos project. We see potential for significant operational synergies between El Cubo and Bolañitos. At acquisition, the operation engaged about 965 employees and 202 contractors.

Continuous Improvement

Although El Cubo has recently been a low-grade, high-cost mining operation, it's already showing improved throughput, grades, and mineral recoveries as a result of our operational initiatives.

Our exploration review identified 28 prospective target areas in and around the existing mines at El Cubo, with near-term potential to delineate new reserves and resources. Since acquiring the property, we have undertaken mapping, sampling, permitting, and drilling to start testing the high-priority targets. More than 50,000 metres of core drilling are planned over the next two years.

The El Cubo property consists of 61 mineral concessions covering 8,146 hectares. Some 38 individual veins have been historically mined, and 16 additional exploration targets outside of the existing mines at El Cubo offer potential for new silver and gold vein discoveries.

Health and Safety

El Cubo, regrettably, had a poor safety record prior to acquisition. It was evident from the beginning that more attention to safety was needed. We began with the basics—a new safety program of policies and practices that includes standard safety training, weekly safety meetings, regular safety audits, and specialized safety training such as first aid.

Rescue stations and first aid kits were installed throughout the mines and the plant, as well as significant new signage as reminders. We've also established a mine rescue team, which won awards in its first rescue competition last fall.

A culture shift is under way but there's still much work to do.

Environmental Stewardship

The processing plant at El Cubo goes back at least 150 years, and was the first mill site permitted to use cyanide in Mexico.

Recognizing that this is an old facility, ripe with risks and challenges dating back to a time before sustainable mining standards and practices were in place, we launched a rebuilding program to address any shortcomings of the facilities and to modernize the operations.

We run clean mines, and we work to stay a step ahead by proactively diverting problems before they arise. We've already made significant progress in cleaning up after a century's worth of previous owners.

Community Outreach

Many of the 2,700 residents in the six small communities near the El Cubo mine and its installations are now participating in our community engagement programs. They're helping us identify local projects that will provide long-term benefits and improve quality of life for our employees, their families, and their neighbours.

In 2012, we started working with the local health department to build awareness about healthy diets and practices and to provide medical, dental, and vision care. We also provided summer sports camps, music workshops, and art classes for local children.

Follow the Development of Work Underway at El Cubo Plant

August 1, 2013


Plant overview
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Cladding completed on Ore Bins Building
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Cladding completed on Reagents Building
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Filter Press arrives on site
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Filter Building purlins completed
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Filter Building discharge conveyor installed
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July 18, 2013


Reagents building with lighting installed
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Main building cladding completed
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Filter building steel erection completed
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Foundry deck installation
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Filter building conveyor
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Piping to 2nd set of tailings pumps
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June 19, 2013


Mine feed approaching coarse ore bin
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Main building with lighting completed
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New steel pipe replacing HDPE water supply pipe
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Filter Building steel erection
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Foundry Building civil works in progress
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Reagents preparation area
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June 12, 2013


Foundry steel roof
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Reagents building
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Fine Crushing metal detector and weight meter
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Flotation area Ball Hoppers
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Concrete access road to Flotation area
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Main building lighting
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June 05, 2013


Mill #1 in operation
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Main Building roof installed
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Filter Plant steel erection
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Foundry roof installation
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Flotation area
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Main Building side cladding
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May 23, 2013


Panorama from SE
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Main building with overhead crane installed
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Filter Press Building
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Concentrate Thickener in operation
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Mill #2
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Control Room panels
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May 15, 2013


Fine Crushing Plant
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CV-108 Conveyor discharging on Fine Ore Bin #2
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Conditioner fed by Mill overflow cyclones
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Mill #3 Load Test
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Outotec Flotation Cells
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General Plant view
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May 8, 2013


Overview of Plant from SE
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View of Plant from NE
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Conveyor from Primary Crusher
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Thickener being filled with water
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Foundry under construction
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Reagent Storage Building
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Flotation Tanks ready for filling
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Shuttle Conveyor feeding Fine Ore Bins
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Conveyor feeding Coarse Ore Bin
(Primary Crusher in background)
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Scalper Screen
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Truck dumping first load of mine feed for El Tajo
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Conveyor from Fine Crushing Plant to Fine Ore Bins
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April 30, 2013


Scalper and Tertiary Screens in Fine Crushing Plant
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Primary Crusher and Conveyor CV-01
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MCC Room already energized
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Rougher & Cleaner Flotation Cells and Pumps
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Relaim Water Pond & Tail and Concentrate Thickeners
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Control Room Panel on screen
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April 24, 2013


Overview of Plant
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Primary Crusher
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Fine Crushing Plant scalper and tertiary screens installed
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Conveyors CV-07 and CV-08
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Installing feed and reclaim pipes to Reclaim Water Tank
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Wiring of PLC cabinets in Control Room
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April 17, 2013


Primary Crusher installed on foundations
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Cyclones trash screen platform
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MCC Room start of cabling
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Rougher and Cleaner Flotation Cells
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Main Transformers installed
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Fine Crushing Plant Substation
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April 10, 2013


Bridge for Thickener in storage yard
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Foundations for Primary Crusher
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Top view of Flotation Cells
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View of 3 Mills
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Platform for Cyclones
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Fine Crushing Plant with Control Room
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April 3, 2013


Panorama of Overall Plant
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Installing cabinets in MCC room
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Installation of cable trays in Milling area
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March 27, 2013


Mill #3 motor installed and service platform being erected
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Installation of steel platform on top of Ore Bins
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MCC Building with Control Room & Offices
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Installating top platforms on Rougher Flotation Tank Cells
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Walls installation completed on Tailings and Concentrate Thickeners
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MCC equipment arrives on site
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March 20, 2013


Overview of plant
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Flotation cells and mills
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Primary crushing area
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MCC building & control room
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Reagent shed
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Fine crushing plant
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March 11, 2013


MCC Building steel erection
in progress
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Mill level retaining wall
under construction
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Thickener steel being erected
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Flotation level support steel
being erected
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Mill #3 installation in progress
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Reagent building floor slab
being reconditioned
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February 21, 2013


February 13, 2013


January 30, 2013


January 16, 2013


January 8, 2013


Operating Mines - Endeavour Silver Corp. has three producing silver mines in Mexico, the Guanaceví Mine in the state of Durango and the Bolañitos and El Cubo mines in the state of Guanajuato.

With the acquisition of the El Cubo mine, 2013 production was 6.8 million ounces of silver and 75,578 ounces of gold, equal to 11.3 million ounces of silver equivalent, at cash costs of $7.92 per ounce of silver (net of gold credits).

Growth Plans- The Company plans additional growth by exploration and development of its existing properties and is actively looking for acquisitions with existing or near term silver production.

Exploration - In addition, the company has a portfolio of exploration properties which will undergo exploration and drilling in 2014.
 

1.2
Million
Ounces of Silver
Produced in 2013
$67
Million
Capital Investment
Program Completed
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