El Salvador president proposes bill to overturn metals mining ban
In 2017, El Salvador became the first country in the world to ban forms of metals mining.
Endeavour Silver (TSX: EDR; NYSE: EXK) is pushing ahead to start its Terronera silver-gold project in Jalisco state, Mexico, by the end of this year. Concrete work is well advanced at the site, and vertical construction is underway.
Following a thorough risk analysis last year, the company has updated the initial capital cost, schedule, and execution plan.
“Given the trends that we have seen at our existing Mexican operations, Terronera is being advanced against headwinds, which include a stronger Mexican peso, ongoing inflation and tight markets for equipment and bulk materials such as steel, piping and electrical supplies,” said Dan Dickson, Endeavour’s CEO.
“We remain confident in our commissioning schedule, our updated capital cost estimate, and our ability to address these challenges as we advance the project for the benefit of all stakeholders,” he added.
The revised capex is $271 million, up less than 20% from earlier estimates.
Mill equipment costs contributed an additional $11 million, primarily for electrical equipment costs. Structural steel fabrication will require an extra $8 million due to both higher steel prices and design changes made during detailed engineering. The cost of the tailings storage facility has risen by $5.5 million following final geotechnical studies and modifications.
An extra $13.9 million has been added for mine development, equipment and infrastructure through the commissioning phase. Much of that cost is for mobile equipment costs at both the Terronera and La Luz mines. The permanent camp ran $2.2 million over budget.
The Terronera project is located within the Sierra Madre volcanic belt, which hosts most of Mexico’s silver and gold deposits.
Both the Terronera and La Luz underground deposits will be mined using a combination of long hole and cut and fill methods. The mineral processing plant will have a capacity of 2,000 t/d. The feasibility study sees the project producing 4 million oz. of silver and 38,000 oz. of gold annually over a 10-year life.
Terronera has proven and probable reserves of 7.4 million tonnes grading 197 g/t silver and 2.25 g/t gold (88.8 million oz. of silver equivalent). Endeavour gave no measured and indicated resource, but the inferred material at Terronera is 1.1 million tonnes grading 322 g/t silver and 0.21 g/t gold.
