Endeavour Silver Corp. (NYSE:EXK) (TSX:EDR) announces it has entered into an agreement with Lincoln Mining Corporation to purchase a 100% interest in the La Bufa exploration property located adjacent to Endeavour’s existing exploration properties in the Guadalupe y Calvo gold-silver district, Chihuahua, Mexico.
Endeavour will issue 90,000 common shares in consideration for the purchase on or before September 19, 2014, less that number of shares equal to an amount of US$19,000 plus 5% interest advanced by Endeavour to Lincoln on July 29, 2014. The agreement is subject to a due diligence period ending September 12, 2014 and the common shares of Endeavour will be subject to a four-month hold period from date of issue. The property is subject to a 2% net smelter return royalty on mineral production payable to a subsidiary of Almaden Minerals Ltd.
The La Bufa property covers 2,311 hectares over a nine kilometre length along the northwest trending El Rosario vein system which produced approximately 2 million ounces (oz) gold and 28 million oz silver according to Mexican government records. La Bufa surrounds the El Rosario historic mine owned by Endeavour and is in turn surrounded by additional Endeavour properties totalling 54,872 hectares.
Terry Chandler, Endeavour’s Vice President of Corporate Development, commented, “The acquisition of the La Bufa property completes Endeavour’s consolidation of historic mining properties within the prospective Guadalupe y Calvo gold-silver district. We can now turn our focus in 2015 to more advanced exploration of this prospective, high grade, gold-silver vein district in order to expand the resources.”
Lincoln has invested over US$5.3 million since 2008 acquiring and exploring the property. Previous exploration work over the past ten years by Lincoln and others at La Bufa includes 37 drill holes totalling 10,569 metres (m) of core. Drilling highlights included 4.1 grams per tonne (gpt) gold and 281 gpt silver over a 2.5 m core length (15.4 oz per ton silver equivalent (Ag Eq) over and 8.2 feet (ft)); and 10.7 gpt gold and 516 gpt silver over a 1.5 m core length (33.8 oz per ton Ag Eq over 4.9 ft). Endeavour cautions that these drill results are historic and have not yet been independently verified by Endeavour.
These drill intersections are located within 400 m of Endeavour’s El Rosario property where Endeavour currently reports indicated resources of 1,861,000 tonnes grading 119 gpt silver and 2.38 gpt gold for 7,147,300 oz of silver and 142,500 oz of gold (15.7 million oz Ag Eq); and inferred resources of 154,000 tonnes grading 94 gpt silver and 2.14 gpt gold for 464,600 oz silver and 10,600 oz gold (1.1 million oz Ag Eq), pursuant to Endeavour’s most recent NI 43-101 report.
Endeavour is a mid-tier silver mining company focused on growing production, reserves and resources in Mexico. Since start-up in 2004, Endeavour has posted nine consecutive years of accretive growth of its silver mining operations. Endeavour’s three silver-gold mines in Mexico combined with its strategic acquisition and exploration programs should facilitate Endeavour’s goal to become a premier senior silver producer.
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