January 13, 2023
Guanaceví mine surpasses $1 BILLION in revenue since acquisition!
The Guanaceví mine, located in Durango, Mexico, is the backbone on which Endeavour Silver Corp. was founded. Marking the Company’s first acquisition in May of 2004, Guanaceví has outlived multiple cycles to surpass USD$1 billion in revenue in 2022, a significant milestone, nearly two decades later.
The little (mining) engine that could
Certainly not a bad bargain for an initial purchase price of $7 million in 2004. With over $250 million in capital expenditures and $26 million in exploration investments, there has been a significant transformation over the 18 years in our hands. It truly is the mine that keeps on giving.
Located in a historic silver mining district along the five-kilometre Santa Cruz belt, when the mine was acquired, we hired Luis Castro, who is still our VP of Exploration –to manage our exploration program. Using modern exploration techniques, his drilling results uncovered the first high-grade orebody, within an impressive six months, and the Company developed its first silver mine to production in 2005. Subsequently, Endeavour entered a period of rapid growth and started laying roots in the community.
Growing hand-in-hand with the community
When Endeavour first arrived in Guanaceví, the remote town perched atop a mountain had a population of less than 1,000. Our team immediately collaborated with the local municipal government and ejido to establish positive relations, understand community needs and build support. By 2007, our significant contributions to community development included funding for public health services (doctors, nurses, medical clinics and ambulances), ATM bank machines, garbage trucks and road upgrades, all of which made the town a more livable and prosperous place.
Today, more than 14,000 people live in the Guanaceví town, and Endeavour is proudly its largest employer. Our mining operation provides steady employment to over 550 people and engages 325-plus contractors.
Transforming for future success
The Guanaceví mine has not always been fruitful. In 2018, a series of unforeseen events led to negative financial and operating results. Following the implementation of remedial measures in 2019, the operation completed an operational turnaround that materially improved mine safety, productivity and profitability.
The transformation was realized through a significant improvement in workplace culture, key management changes and new investments to enhance worker comfort and productivity. During the COVID lockdowns, we built a new spacious camp at the site with an expansive cafeteria and furnishings where employees can unwind after work. We also made improvements to the site infrastructure, including a new cone crusher and the development of a new ore body that significantly improved mineral quality.
Congratulations and a heartfelt thanks to the many dedicated employees and contractors of Endeavour who have supported the project over the years and contributed to the Guanaceví mine’s first billion dollars of revenue. We are immensely proud of this milestone, and as we look ahead, we optimistically see a bright future. Backed by a resilient team, recent site investments and strong community relationships, this key asset of the Company is well-positioned for continued success – and may ultimately deliver another $1 billion dollars of production!
Guanaceví Mine – A History in Numbers
(2004 – 2022, all dollar amounts presented are in US dollars)
6.0 million tonnes
48.4 million silver oz
120k gold oz
58 million oz silver equivalents (80:1)
Operating Cashflow (before taxes):
Free Cash flow (after taxes):
Successful exploration drilling at Guanacevi has kept the mine in operations since 2004
A reminder that all our employees practice “Te Cuido” a philosophy that keeps us proactive and focused on our safety standards.
Endeavour Silver Executive Management team and Board Members (left to right): Donald Gray, COO; Amy Jacobsen, Director; Galina Meleger, VP Investor Relations; Nicholas Shakesby, VP Operations; Dan Dickson, CEO; Rex McLennan, Chairman; Christine West, CFO; Luis Castro, VP Exploration.