Mexico-focused Endeavour Silver Corp. on July 11 increased its 2016production guidance and said it now expects to produce 9 million to 9.8 millionsilver equivalent ounces at a throughput of 2,900 tonnes to 4,800 tonnes perday. The move reflects the higher metal prices and renewed focuson growth.
The output will include 49,000 ounces to 54,000 ounces ofgold, and 5.5 million ounces to 6 million ounces of silver in the full year.
In late January, Endeavour said it expects in the rangeof 4.9 million ounces to 5.3 million ounces, and gold production between 47,000ounces and 52,000 ounces, for silver equivalent production of between 7.9million ounces and 8.5 million ounces.
In the second quarter, the company's silver equivalentproduction totaled 2.6 million ounces. Gold production rose 17% year over yearto 15,649 ounces, and silver production dropped 14% year over year to 1.6million ounces.
Quarterly sales were up 11% for gold to 15,364 ounces, anddown 22% for silver to about 1.5 million ounces, on a yearly basis.
In the first half, Endeavour's production rose 8% from thesame period a year earlier to 31,609 ounce for gold, and fell 16% to 3.1million ounces for silver.
The company now intends to invest US$17.4 million in 2016,mainly for mine development at Guanacevi, compared to its previous guidance of US$11.3million.
As part of its revised operating plan for the second half ofthe year, Endeavour intends to invest US$2.8 million, as part of a three-yearUS$8.4 million capital investment, to start mine development and ramp down intothe Santa Cruz Sur ore-body to access an indicated resource of over 650,000tonnes grading 250 g/t of silver and 0.70 g/t of gold.
The company also plans to spend US$1.7 million to developthe Bolañitosorebody, and invest US$1.6 million to extend the V-Asunción ramp for anadditional 1.6 kilometers.
The company will not ramp down production at to care and maintenanceby year-end as previously announced, and will aim to return production to 1,500tonnes per day with additional mine development.