Endeavour Silver Provides Update on Guanacevi Trunnion Failure

Core Viewpoint - Endeavour Silver Corp. has resumed processing at the Guanacevi mine site following a primary ball mill trunnion failure, implementing temporary modifications to maintain operations at reduced capacity [1][2]. Group 1: Operational Updates - Processing at the Guanacevi mine has resumed with a temporary setup using a regrind mill as the primary ball mill, currently milling at a rate of 400 tonnes per day (tpd), with potential to reach near 500 tpd during this phase [2]. - Mining operations will continue at a reduced rate, focusing on high-grade ore while stockpiling other materials, with contract mining and third-party purchases halted until full capacity is restored [3]. - The estimated cash shortfall during the 15-week reduced processing period is projected to be less than US$5 million, which includes costs associated with stockpiling ore [3]. Group 2: Production Forecast - The reduced processing period is expected to decrease Guanacevi's production by 0.9 million to 1.1 million silver ounces and by 2,000 to 3,000 gold ounces compared to the original plan [5]. - Annual consolidated silver production for 2024 is now expected to range from 4.4 to 4.6 million ounces, with gold production between 36,000 and 38,000 ounces, and silver equivalent production forecasted to total between 7.3 million and 7.6 million ounces [5]. Group 3: Cost Implications - Operating costs and all-in sustaining cost metrics are anticipated to be higher than previously guided for 2024 due to the reduced operating capacity [6]. - The company has withdrawn its cost guidance due to the uncertainties and variables involved in the current situation [6]. Group 4: Community and Workforce Engagement - Constructive discussions have been held with the workforce, communities, and suppliers to address the implications of the temporary operational changes [4]. - Initial quotes for the trunnion fabrication and installation have been obtained, with an estimated cost of US$0.5 million and a 16-week installation period [4].