VANCOUVER, Dec. 12 /CNW/ - Endeavour Silver Corp. (EDR: TSX, EXK: AMEX,
EJD: DBFrankfurt) announces the acquisition of an option to purchase the
San Pedro properties, located about 6 km northwest of Endeavour's operating
Porvenir Mine, in the Guanacevi silver district, Durango State, Mexico.
The 15 San Pedro properties (330 hectares) cover the heart of the
historic San Pedro sub-district north of Guanacevi, and include the famous
El Soto, Nuevo Australia, Noche Buena and Buena Fe silver mines. They boost
Endeavour's land holdings in Guanacevi by 53% to 957 hectares, and give the
Company a major new prospective area to explore for high grade silver
Like the Guanacevi district, the San Pedro sub-district was originally
founded in the late 1500's for its famously high grade silver ores. However,
unlike Guanacevi, the silver mineralization at San Pedro is found in manto
orebodies where high angle vein structures crosscut the shallow dipping
contact of Cretaceous conglomerates with overlying Tertiary andesites. For
complete details on the Guanacevi Mines Project click <a href="http://www.edrsilver.com/s/Guanacevi.asp">here</a>.
By the early 1900's, the El Soto and Nueva Australia mines were developed
and producing from 9 levels and 12 shafts down to a maximum depth of 167 m. In
1921, the Mexico Consolidated Mining and Smelting Co. Ltd. reported that the
rich silver manto ores at El Soto-Nueva Australia typically graded
1000-2000 gpt silver, 1-30 gpt gold, and 1-10% lead-zinc, with direct shipping
smelter ores assaying up to 20,000 gpt silver.
East and down-dip of El Soto-Nueva Australia lie the Noche Buena and
Buena Fe Mines, which recorded minor historic production, but similar high
grade ores. In this area, the hangingwall andesites are strongly altered to
clay and adularia, mineralized with pyrite and anomalous in silver, suggesting
buried mineralization at depth. Dr. Larry Buchanan, author of some of the most
definitive technical papers on epithermal vein systems, visited the San Pedro
sub-district in 1993 and wrote, "The Buena Fe area presents a very attractive
exploration target for major tonnages of manto ore. The size and intensity of
the geochemical anomalies and of the wallrock alteration suggest that the
Buena Fe area may host as much mineralization as has been mined in the past
from San Pedro."
He estimated past production from El Soto-Nueva Australia and other mines
in San Pedro at around 450,000 tonnes grading 1500 gpt silver and 1.5 gpt
gold, or 25 million oz silver-equivalent. Endeavour believes this historic
estimate to be reasonably accurate based on the known extent of underground
mine workings at San Pedro. However, the Company has not independently
verified this historic estimate and so it should not be relied upon.
Endeavour can acquire a 100% interest in the San Pedro properties, by
paying 120,000 common shares and issuing 60,000 warrants to purchase
60,000 shares at US$4.69 within a 1 year period, upon receipt of regulatory
approval and a further 570,776 shares within a 24 month period. The vendor
will retain a 1% net smelter royalty on mineral production.
In addition, the Company will provide the Vendor with up to US$400 per
meter to advance the Buena Fe adit during the 24 month option period. Any ores
produced from this tunnel will be used to repay Endeavour's investment, after
which the net profits will be shared equally (50/50) with the Vendor.
In this way, Endeavour anticipates generating positive cash flow to help
pay for the exploration programs on the properties. A Phase 1 program of
IP-Resistivity geophysics and geological mapping is expected to commence in
Q1, 2008 in order to help target the prospective vein-manto intersections for
Bradford Cooke, Chairman and CEO, commented, "The San Pedro properties
not only substantially expand Endeavour's prospective land-holdings at its
Guanacevi Mines Project, they also provide the Company with most of the
San Pedro sub-district to explore for new high grade silver manto deposits. We
are thrilled by the opportunities for new silver discoveries at San Pedro."
For management profiles click <a href="http://www.edrsilver.com/s/Management.asp">here</a>.
Barry Devlin, M.Sc., P. Geo., the Vice President of Exploration for
Endeavour, is the Qualified Person who reviewed this news release.
Endeavour Silver Corp. (EDR: TSX, EXK: AMEX, EJD: DBFrankfurt) is a
small-cap silver mining company focused on the growth of its silver
production, reserves and resources in Mexico. The expansion programs now
underway at Endeavour's two operating mines, Guanacevi in Durango and
Bolanitos in Guanajuato, coupled with the Company's aggressive acquisition and
exploration programs in Mexico, should enable Endeavour to join the ranks of
top primary silver producers worldwide.
ENDEAVOUR SILVER CORP.
/s/ "Bradford Cooke"
Bradford J. Cooke
Chairman and CEO
The TSX Exchange has neither approved nor disapproved the contents of
this news release.
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its
operations constitute "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995. All statements
that are not historical facts, including without limitation statements
regarding future estimates, plans, objectives, assumptions or expectations of
future performance, are "forward-looking statements". We caution you that such
"forward looking statements" involve known and unknown risks and uncertainties
that could cause actual results and future events to differ materially from
those anticipated in such statements. Such risks and uncertainties include
fluctuations in precious metal prices, unpredictable results of exploration
activities, uncertainties inherent in the estimation of mineral reserves and
resources, fluctuations in the costs of goods and services, problems
associated with exploration and mining operations, changes in legal, social or
political conditions in the jurisdictions where the Company operates, lack of
appropriate funding and other risk factors, as discussed in the Company's
filings with Canadian and American Securities regulatory agencies. Resource
and production goals and forecasts may be based on data insufficient to
support them. Godfrey Walton, M.Sc., P.Geo., President and COO is the
Qualified Person for the Company as required by NI 43-101. The Company
expressly disclaims any obligation to update any forward-looking statements.
We seek safe harbour.
For further information:
For further information: Hugh Clarke, Toll free: (877) 685-9775, tel:
(604) 685-9775, fax: (604) 685-9744, email: email@example.com;
or visit our website, www.edrsilver.com