Guanaceví Mill Operating at Full Capacity After Trunnion Installation

Rhea-AI Summary

Endeavour Silver (NYSE: EXK; TSX: EDR) has successfully completed the installation of its primary ball mill trunnion at the Guanaceví mine, returning operations to full capacity. Following a trunnion failure in August, the facility operated at reduced capacity of 620 tonnes per day (tpd) for 15 weeks. The new trunnion, installed on November 30 with subsequent alignment testing, has restored the plant to its designed capacity of 1,200 tpd. The total cost for fabrication and installation amounted to just over US$400,000.

Positive

• Plant operations restored to full capacity of 1,200 tpd from reduced 620 tpd
• Relatively low cost of US$400,000 for trunnion replacement and installation
• Successful maintenance of partial operations during repair period minimized financial impact

Negative

• 15-week period of reduced production capacity (48% of normal capacity)
• Unexpected equipment failure and maintenance expense

Insights

Mining Operations Analyst

The successful restoration of full capacity at Guanaceví's processing mill marks a significant operational milestone for Endeavour Silver. The return to 1,200 tpd from the reduced capacity of 620 tpd represents a 94% increase in processing capability. The relatively modest cost of $400,000 for the trunnion replacement and minimal downtime demonstrates efficient crisis management. The interim solution of operating at reduced capacity helped maintain cash flow and preserve workforce stability.

The operational recovery should positively impact Q4 2024 production metrics and 2025 outlook. While the 15-week reduced capacity period will affect annual production targets, the swift resolution and cost-effective solution ($400,000 is minimal for such critical infrastructure) indicate strong operational management. The maintenance of partial operations during repairs helped mitigate revenue loss and maintain workforce continuity, which is important for mining operations.

VANCOUVER, British Columbia, Dec. 17, 2024 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) is pleased to announce the successful fabrication and installation of its primary ball mill trunnion at the Guanaceví mine.

Guanaceví processing resumed to full capacity this week after the trunnion failure in August (see news release dated August 19 here). After a 15-week period of operating at a reduced capacity averaging 620 tonnes per day (tpd), the newly fabricated trunnion was installed on November 30 with alignment testing occurring over the ensuing two weeks, restoring the plant to its designed capacity of 1,200 tpd. The total cost of fabrication and installation was just over US$400,000.

"We are happy to be back to full capacity at the Guanaceví mine," said Dan Dickson, Chief Executive Officer. "Again, I’d like to emphasize the ingenuity, dedication, and hard work our team showed when faced with this challenge. Finding alternatives for the plant to continue to operate at reduced capacity minimized the financial and social impact on the Company and the surrounding communities.”

About Endeavour Silver – Endeavour is a mid-tier precious metals company with a strong commitment to sustainable and responsible mining practices. With operations in Mexico and the development of the new cornerstone mine in Jalisco state, the company aims to contribute positively to the mining industry and the communities in which it operates. In addition, Endeavour has a portfolio of exploration projects in Mexico, Chile, and the United States to facilitate its goal to become a premier senior silver producer. 

Contact Information
Allison Pettit, Director Investor Relations
Tel: (877) 685 - 9775
Email: apettit@edrsilver.com
Website: www.edrsilver.com
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FAQ

What was the impact of the trunnion failure on EXK's Guanaceví mine production?

The trunnion failure reduced production capacity to 620 tpd from 1,200 tpd for 15 weeks, operating at approximately 48% of normal capacity.

How much did the Guanaceví mill trunnion replacement cost EXK?

The total cost for fabrication and installation of the new trunnion was just over US$400,000.

When did EXK's Guanaceví mill return to full capacity?

The Guanaceví mill returned to full capacity in December 2024, following the November 30 trunnion installation and two weeks of alignment testing.

What is the full processing capacity of EXK's Guanaceví mill?

The Guanaceví mill's designed processing capacity is 1,200 tonnes per day (tpd).