Endeavour Silver’s determination to move to the next level became abundantly clear in February when the company exercised an option to purchase the El Porvenir Cuatro properties, and acquired an option to purchase the San Sebastián silver-gold properties in Jalisco State from IMMSA, one of Mexico’s largest mining companies.
       The San Sebastián project surrounds the operating Santa Quiteria mine and represent a district-scale silver-gold exploration opportunity for Endeavour. Vein systems range up to 50 feet thick and carry high grade silver-gold mineralization. The properties cover 13 square miles of a classic, low sulfidation, epithermal vein system organized into four sub-districts – Los Reyes, Santiago de los Pinos, San Sebastián del Oeste and Real de Oxtotipan.
       “San Sebastián represents an attractive first step in our acquisition strategy for 2010, acquiring one or two new district-scale exploration opportunities,” says Cooke, adding that the El Porvenir Cuatro purchase represents the company’s intent to consolidate its Guanacevi and Guanajuato landholdings.
       El Porvenir Cuatro is located just 2.5 km (1.5 miles) northwest of Endeavour’s operating Porvenir Silver Mine within the larger Guanacevi Project. The purchase extends Endeavor’s land position along the prolific Santa Cruz vein system to more than 4.5 km. Exploration drilling last summer resulted in the discovery of a new zone of high grade, silver-gold mineralization assaying as high as 713 gpt silver and 3.85 gpt gold over a 5.67 meter true width and an incredible 3,250 gpt silver and 39.7 gpt gold over a 0.31 meter true width. El Porvenir Cuatro is scheduled to commence production in Q3 2010.
       “Porvenir Cuatro is yet another good example of the value of Endeavour’s business model,” says Cooke. “By acquiring fully built and permitted infrastructure and bringing the funds and expertise needed to make brand new, high grade, silver-gold discoveries in famous old mining districts like Guanacevi, we have repeatedly shortened the mine development cycle for discovery to production from the normal 5-10 years to 6-12 months.”

       Endeavour Silver’s outstanding performance in 2009 – posting a 270% gain in stock value, a 33% reduction in cash costs, a 20% increase in production of silver equivalents, and continuing discovery of multiple new zones of high grade silver and gold – unsurprisingly has caught the attention of leading precious metals analysts.
       “I’m very bullish on silver right now, and...I’m also bullish on Endeavour Silver,” says Brian Lundin in the June 2010 issue of the Gold Newsletter. “Company management has done an outstanding job of cutting costs, increasing production and building reserves through both good times and bad, and I predict even better days lie ahead for the company and its shareholders. It’s a buy near current levels.”
       Haywood Securities notes Endeavour is “aggressively focused on building a sustainable and profitable silver production base.” Sean Brodrick, The Gold Report, says Endeavour’s “growth picture is really good now.”
       CIBC World Markets, Euro Pacific Capital, BMO Capital Markets and Salman Partners have also recommended Endeavour Silver to their clients.

       Endeavour Silver has seen its silver production grow seven-fold in the past five years, from 350,000 ounces in 2004 to 2.6 million ounces in 2009. Production is expected to reach 3.1 million ounces of silver and 15,000 ounces of gold in 2010. Steadily declining cash costs are projected to drop to the mid-$5 per ounce range by year end. Current proven and probable reserves stand at 16.6 million ounces of silver. Measured, indicated and inferred resources add another 41 million ounces of silver to that total.
       In 2009, Endeavour tested six exploration targets as replacements for existing mine reserves. The drilling programs discovered new, high-grade silver-gold mineralized zones adjacent to both the Guanacevi and Guanajuato Projects, including a major step-out to the southeast along strike from the high grade silver-gold Lucero vein identified the previous year.
       Endeavour holds 1,054 hectares (2604 acres) in the historic Guanacevi district, an area that historically has produced over 450 million ounces of silver. Endeavour controls a system of multiple silver veins that encompass an area 10 km long and 5 km wide, and, since 2004, the company has discovered five high-grade silver ore bodies.
       Endeavour’s underground, ramp-accessed Porvenir Mine is the largest mine operating in the Guanacevi district. The mill, which currently processes 800 tonnes per day to recover 79% silver and 84% gold, is being upgraded to a 1200 tpd capacity. The project is accessible by a paved state highway. The company currently is developing three more ore-bodies for future production.
       “The Guanacevi Project is ripe for consolidation to ensure a long mine life,” says Cooke.
       The 2,071 (5118 acres) hectare Guanajuato Project lies within Mexico’s second largest silver mining district which has produced over 1.2 billion ounces of silver. The project encompasses three main silver vein systems spanning a 20 km by 10 km area. Ore from the Cebada and Bolanitos Mines are processed at a 550 tpd plant that produced 192,000 ounces of silver in Q4, 2009. Endeavour has discovered several new high-grade silver-gold vein structures in five distinct prospect areas.
       Both silver projects are on the state power grid and have ample water supplies and labor available. The company continues to strive to improve the quality of life in communities near its Mexican mines by operating continuous safety training programs, protecting the local environment and donating manpower, equipment and funding for local civic and cultural projects.
       Endeavour Silver also holds an option on the 20 hectare El Cometa Property in the historical silver district of Parral, Chihuahua, which historically produced more than 250 million ounces of silver. After just a year of exploration, Endeavour has established an NI 43-101 compliant 2.5 million ounce indicated and inferred silver resource. The company also holds a 100% option on the adjacent San Juanico 17 hectare properties where it is planning an exploration drill program this year.
       2010 definitely will be a busy year for Endeavour as it gears up for a 36,000 meter, 125-hole exploration drilling program at its various properties. The major focus will be to follow up on new discoveries at Guanacevi and Guanajuato to add more ounces to the company’s silver resource portfolio.
       “Silver is truly a dual metal with both monetary and industrial value, and this presents great opportunities for us. Growing demand means one thing – higher prices,” says Hugh Clarke, Endeavour’s V.P. of Corporate Communications. “We just can’t live without silver.”

       As a primary silver producer with metal value ratios of 75% silver and 25% gold, Endeavour Silver provides an outstanding leverage opportunity against silver and gold market prices where, typically, silver lags behind rising gold prices to only later play catch-up.
“Our goal is to become one of the top mid-tier producers of silver,” says Endeavour Silver Chairman and CEO Bradford Cooke. “We have the mines, management, strong organic growth and share structure to out-perform our peer group. Endeavour delivers excellent value to our shareholders.”