Shares of Endeavour Silver (NYSE: EXK; TSX: EDR) surged to a new 52-week high on Monday after the company announced that its new Terronera mine in Jalisco, Mexico, has surpassed 77% completion.
Its stock rose to $5.23 apiece during early trading hours in New York, before pulling back to $5.10 by 11:00 a.m. ET. The company has a market capitalization of approximately $1.25 billion.
According to the company, surface mill and infrastructure construction have reached 90%, with more than $258 million of the project’s budget spent to date. Project commitments total $270 million, representing 99% of the $271 million capital budget.
During the third quarter, 1,051 meters were developed underground, bringing the project’s total to 5,544 meters.
Underground explosive magazines have been completed, and the application for an explosive use permit has been submitted, with approval expected later this year.
According to the company, the focus continues on the lower platform, where concrete work is well underway, and on the tailing storage facility, where underdrain embankment fill and pipe installation are advancing at a good pace.
“We’re in the final construction phase with the finish line in sight,” commented Don Gray, chief operating officer at Endeavour Silver.
Commissioning of the mine is expected in the fourth quarter, with an anticipated 10-year mine life. The Terronera project is situated within the Sierra Madre volcanic belt, which hosts most of Mexico’s silver and gold deposits.
Terronera has total proven and probable reserves of 7.4 million tonnes, grading 197 g/t silver and 2.25 g/t gold. The mine consists of the Terronera and La Luz underground deposits, both of which will be mined using a combination of long-hole and cut-and-fill methods. The processing plant will have a capacity of 2,000 tonnes per day.
A feasibility study forecasts that the project will produce 4 million oz. of silver and 38,000 oz. of gold annually the 10-year period.
