Endeavour Silver to Suspend Operations at El Cubo Mine, Mexico
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Endeavour Silver, based on an updated review of the reserves and resources, will suspend operations at the El Cubo underground mine in Guanajuato, Mexico. All employees will be laid off and the mine, plant, and tailings facilities will be placed on short term care and maintenance while management conducts an evaluation of the alternatives including final closure.
Mining operations will cease on November 30, 2019 and milling operations will continue for approximately one week until the ore stockpile has been processed and the mill cleaned of concentrates. Suspension costs are estimated to be approximately $3.5-4.0 million, primarily in Q4, 2019 including final severance payments for all employees.
Following suspension of the operations, the company and contract personnel will continue to maintain the security of the mine, plant, and tailings facilities until final closure is completed. Management will evaluate alternatives for the plant and related facilities including moving certain components to development projects such as Terronera and Parral to reduce their future capital costs. The mining equipment will be relocated to Endeavour’s other operating mines, particularly Bolanitos, to help facilitate increasing the mine output to fill the plants to their capacities.
“El Cubo was a good mine for us but our exploration programs in recent years failed to replace reserves and find new resources. We reduced the plant throughput this year in order to explore for new reserves but without success. As forecasted, grades and throughput have been declining all year, which resulted in declining economics of the mine in recent months,” said Bradford Cooke, Endeavour CEO.
“We have started preparations to transition the mine from operations to care and maintenance while we evaluate final closure and will work closely with our employees and the local community to mitigate the impact of the suspension. We would like to thank our employees, contractors and business partners who helped to make El Cubo a core asset in recent years,” added Cooke.
About Endeavour Silver
Endeavour Silver Corp. is a mid-tier precious metals mining company that owns and operates three high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision and exploring its portfolio of exploration and development projects in Mexico and Chile to facilitate its goal to become a premier senior silver producer. Our philosophy of corporate social integrity creates value for all stakeholders.
To stop by Endeavour Silver’s website, CLICK HERE
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