Dan Dickson CEO ENDEAVOUR SILVER
Could you provide an overview of Endeavour’s two producing silver mines, Guanaceví and Bolañitos?
We are a mid-tier silver producer with a guidance between 7 to 7.9 million oz AgEq from our two underground epithermal vein system mines in Mexico: Guanaceví and Bolañitos. Guanaceví is our largest asset, contributing 5–6 million oz AgEq annually, with 80% of revenue from silver and 20% from gold. Bolañitos, a smaller operation, produces approximately 2.5 million oz AgEq, but with a reverse revenue split—80% gold, 20% silver. Our 2024 production guidance reflects a temporary setback at Guanaceví, where a trunnion failure in the ball mill reduced throughput for four months. In 2022 and 2023, we produced over 9 million oz AgEq. Nevertheless, our production profile is set to transform once we bring the Terronera project online, which will become Endeavour Silver’s largest mine. Endeavour’s goal is to become a senior silver producer. When will Terronera enter production and what impact will this new mine have on Endeavour’s growth?
We expect to commission the mine in Q2 of this year and ramp up commercial production by mid-year. Terronera will produce 7 million oz AgEq anually, comprising 4–4.5 million oz silver and 35–40,000 oz gold. Not only will it effectively double our production, but it will also impact our positioning in terms of mine life and production costs. Another standout feature at Terronera is its low-cost profile. Could you also tell us about the Pitarilla development project in Durango?
We acquired Pitarilla from SSR Mining in 2022 and are currently advancing it through a feasibility study expected in early 2026. As Terronera enters production, we plan to move our development team from Terronera to Pitarilla and replicate our success. We believe Pitarilla can produce anywhere between 6 to 8 million oz AgEq, along with zinc and lead byproducts.
David Wolfin CEO AVINO SILVER & GOLD MINES
Could you introduce Avino Silver & Gold and provide an overview of your flagship Avino mine in Durango?
Avino Silver & Gold is a silver exploration and production company. Our primary asset is the Avino silver mine, originally discovered in 1558 by Captain Hernán Cortés' expedition. In addition to Avino, we have two key development projects in close proximity: the La Preciosa project, located 19 km from the Avino mill, and the Oxide Tailings project, which has a 2024 pre-feasibility study (PFS). Our strategic goal is to transition from a single-asset producer to a three-mine operation within five years, establishing Avino as an intermediate silver producer with an annual production target of 8–10 million oz/y. In 2024, we produced 2.65 million oz AgEq. Financially, we reported a significant increase in cash flow, rising from US$7.8 million in Q3 to US$26 million in Q4, supported by US$5 million in financing and the remainder generated from operations. For fiscal year 2025, we have allocated US$13–$18 million in growth capital expenditures. Avino has recently obtained all permits to start the development of the La Preciosa Property. Could you comment on the next steps?
The project is considered one of the largest undeveloped primary silver resources in Mexico, containing over 100 million oz AgEq in the indicated category. Getting the permits is a game-changer. We are advancing underground development to access the two primary ore zones. All going well, we should enter production by the end of 2025. Can you also briefly explain the value of the Oxide Tailings project?
We identified 6.7 million tons in proven and probable reserves that we plan to re-process using leaching. Based on the 2024 PFS at current metal prices, we are looking at about 43% after-tax IRR. We want to take it step by step, starting with bringing La Preciosa online, and then do a DFS on the tailings project and cost it out.