Canada’s Endeavour Silver (TSX:EDR), (NYSE:EXK) announced Tuesday it had completed the acquisition of Silver Standard Resources’ (TSX:SSO) exploration properties in the historic silver mining district of Hidalgo de Parral, in the southern Mexican state of Chihuahua.
After a cautious start of the year, when it slashed output at some of its mines due to soft silver prices, Endeavour Silver is now ramping up investment to access new ore bodies at its Guanaceví mine in Durango state, as well as at its Bolañitos and El Cubo mines in Guanajuato state.
The acquisition of El Parral properties, a 3,432-hectares group of assets that are accessible by paved highway, is part of the Vancouver-based miner recent emphasis on expanding its presence in Mexico.
As part of that deal, Endeavour has issued 1,198,083 common shares to Silver Standard, and has agreed to spend US$2 million on exploration over the two-year period following the closing date.
In addition, the company is currently working on eight drill rigs at five projects to grow its resource base. Work continues on both the pre-feasibility study for Terronera and a preliminary economic assessment for El Compás, due to be completed by the end of the year, the company said.
The Parral mining district was a major producer of silver, lead and zinc during the middle of the last century, with its history of silver mining dating back to the 16th Century.