Endeavour Silver hints at mine-life extension in Mexico

New drilling by Endeavour Silver (TSX: EDR; NYSE: EXK) at its Terronera silver and gold operation in west-central Mexico produced high-grade results that highlight exploration potential beyond the existing mine plan.

Hole TRU-001 at Terronera cut 10 metres grading 282 grams silver per tonne and 1.8 grams gold from about 121 metres depth, Vancouver-based Endeavour said Thursday in a statement. Hole TRU-003, meanwhile, intersected 9 metres of 150 grams silver and 6.3 grams gold from about 109 metres downhole.

Endeavour’s drilling program, its first at Terronera since 2020, is aimed at expanding mineralization beyond the mine plan. Since 2025, Endeavour has completed 43 holes covering 7,015 metres on the nearby La Luz system and 10 holes for 1,904 metres on the main Terronera vein.

“We view the results as strongly supportive of Terronera’s resource growth and mine life extension potential, with high-grade results at La Luz a particular highlight and broader mineralized widths at Terronera reinforcing the quality and continuity of the broader vein system,” National Bank Financial mining analyst Alex Terentiew said Thursday in a note.

“In our view, the results add not only confidence to Terronera’s long-term production outlook and incremental exploration upside but also introduce the potential for La Luz’s high gold grades to continue for longer than currently planned.”

Tests continue

Two drill rigs are now turning at Terronera. They are expected to continue testing the extension of mineralization through the middle of the fourth quarter, Endeavour said.

Other highlights included hole TRU-004, which cut 6 metres of 119 grams silver and 4.05 grams gold from about 86 metres depth, and hole TRU-006, which intersected 6.6 metres of 130 grams silver and 3.1 grams gold from about 202 metres downhole.

At La Luz, where mining is expected to begin next year, all 20 assays released Thursday came in under 3 metres in length. They included hole LL-44, which cut 2.95 metres grading 176 grams silver and 3.84 grams gold from 120 metres downhole.

Several holes drilled below the current resource at La Luz show that mineralization remains open along strike and at depth, Endeavour said.

“By advancing mine development, we are better positioned to establish underground drill platforms that allow us to efficiently test priority targets and quickly improve our understanding of the district vein systems,” chief operating officer Luis Castro said in the statement.

The new drill results “highlight the opportunity to grow resources, extend mine life and unlock additional value across the broader Terronera property,” he added.

Newest mine

Located in Jalisco State, about 160 km west of Guadalajara, Terronera is Endeavour’s newest producing mine. It reached commercial production in October 2025 and has an expected operating life of 10 years.

Terronera is projected to produce between 2.4 million and 2.6 million oz. of silver this year, along with up to 36,000 oz. gold, as output ramps up.

Mining activities in the first half of 2026 are focusing on lower-grade areas of the deposit. Operations are scheduled to shift into higher-grade areas by the second half, which is expected to improve grade averages.

Terronera holds 7.38 million proven and probable tonnes grading 197 grams silver and 2.25 grams gold for contained metal of 46.7 million oz. silver and 534,000 oz. gold, according to a December 2024 resource.

Endeavour shares fell 1.2% to C$12.34 Thursday morning in Toronto, valuing the company at about C$3.7 billion ($2.6 billion).