Mexico

Terronera Project

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Categories

Overview

Mine TypeUnderground
StageConstruction
Commodities
  • Silver
  • Gold
Mining Method
  • Cut & Fill
  • Transverse stoping
  • Shrinkage stoping
  • Longitudinal stoping
  • Sub-level stoping
Backfill type ... Lock
Production Start... Lock
Mine Life... Lock
ShapshotEndeavour Silver Corp. is pleased to provide a construction update for its Terronera Project. Early works have continued since the first quarter of 2022. Overall construction progress is 30% complete.

The Company remains focused on advancing the Terronera Project to initial production. Upcoming major milestones include:
• Awarding the mill construction contract to begin mobilization for Q4 2023 construction.
• Receiving major mill component deliveries in Q3 including the SAG mill, hydrocyclone separator, thickener components and apron feeders.
• Advancing development for Portal 1 decline.
• Advancing Portal 2 and Portal 4 development for initial ore access in Q1 2024.

Owners

SourceSource
CompanyInterestOwnership
Endeavour Silver Corp. 100 % Indirect
Endeavour Silver holds the Terronera Project through its 100% owned Mexican subsidiary, Endeavour Gold Corporation S.A. de C.V. (Endeavour Gold). Endeavour Gold holds the Terronera Project through its 100% owned subsidiaries Terronera Precious Metals S.A. de C.V. (TPM) and Minera Plata Adelante S.A. de C.V. (MPA).

Contractors

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Deposit type

  • Epithermal
  • Vein / narrow vein
  • Breccia pipe / Stockwork

Summary:

The deposits within the San Sebastián del Oeste district are considered to be examples of lowsulphidation epithermal deposits. The San Sebastián del Oeste area, including the Terronera Project, is underlain by an intermediate to felsic volcanic and volcaniclastic sequence correlated with the middle to lower Cretaceous Lower Volcanic Group of the Sierra Madre Occidental geological province. This volcano-sedimentary sequence consists of shale, sandstone, and narrow calcareous-clayey interbeds overlain by tuffs, volcanic breccias, and lava flows of mainly andesitic composition. The volcano-sedimentary units crop out in the north-central part of the district. Further to the north, granitic to granodioritic intrusive rocks are present. In the San Sebastián del Oeste district, silver and gold mineralization represents the upper portion of an epithermal vein system. Illite, sericite, and adularia are characteristic alteration assemblages that typically occur in the veins and in the vein wall rocks. In higher elevation areas, where limited mining (colonial-era artisanal mining), has occurred, such as the El Hundido and Real de Oxtotipan mines, the quartz is amorphous and milky white, indicative of a low-temperature environment. The epithermal veins' silver-gold ± base metal mineralization is hosted in structurally controlled quartz and quartz breccia veins. The principal Terronera Vein has been traced by drilling for 1.5 km on strike and from the surface to the maximum depth of drilling at 546 m. The Terronera Vein strikes at approximately 145° and dips 80° east. The actual width of the principal Terronera Vein ranges from 1.5 to 15 m and averages 3.9 m. In addition to the main Terronera Vein, there are additional hanging wall and footwall veins. The veins are primarily hosted in volcanic flows, pyroclastic, and epiclastic rocks and associated shales and their metamorphic counterparts (Lewis and Mulahwi (2012); Munroe (2013)). Metallic minerals include galena, argentite, and sphalerite associated with quartz, calcite, and pyrite gangue constituents. Munroe (2013) reported that high silver and gold values from 2011 sampling of underground workings in the Terronera Vein were primarily obtained from crystalline quartz veins, drusy in places, with limonite and manganese oxides lining box works after sulphides and fine-grained disseminated pyrite and traces of dark grey sulphides, probably silver sulphides. Regionally, known deposits contain polymetallic sulphide mineralization in wide vein structures. The veins at higher elevations may represent the tops of ore shoots containing significant silver and gold mineralization at depth. High-level hydrothermal systems form low-sulphidation epithermal deposits from depths of ~1 km to surficial hotspring settings. Deposition is related to regional-scale fracture systems related to grabens, (resurgent) calderas, flow-dome complexes, and rarely, maar diatremes. Extensional structures in volcanic fields (normal faults, fault splays, ladder veins, and cymoid loops) are common; locally graben or caldera-fill clastic rocks are present. High-level (subvolcanic) stocks and dikes and pebble breccia diatremes occur in some areas. Locally resurgent or domal structures are related to underlying intrusive bodies. Most types of volcanic rocks can host the deposit type; however, calc-alkaline andesitic compositions predominate. Some deposits occur in areas with bimodal volcanism and extensive subaerial ash-flow deposits. A less common association is with alkalic intrusive and shoshonitic volcanic rocks. Clastic and epiclastic sediments can be associated with mineralization that develops in intra-volcanic basins and structural depressions. Ore zones are typically localized in structures but may occur in permeable lithologies. Upwardflaring ore zones centred on structurally controlled hydrothermal conduits are typical. Large (> 1 m wide and hundreds of metres in strike length) to small veins and stockworks are familiar with lesser disseminations and replacements. Vein systems can be laterally extensive, but ore shoots have a relatively limited vertical extent. High-grade mineralization is commonly found in dilational zones in faults at flexures, splays, and cymoid loops. Textures typical of low-sulphidation deposits include open-space filling, symmetrical and other layering, crustification, comb structure, colloform banding, and multiple brecciation. Deposits can be strongly zoned along strike and vertically. Deposits are commonly zoned vertically over 250 to 350 m from a base metal-poor, gold–silver-rich top to a relatively silver-rich base metal zone, and an underlying base metal-rich zone grading at depth into sparse base metal, pyritic zone. From surface to depth, metal zones can contain gold–silver–arsenic– antimony–mercury, gold–silver–lead–zinc–copper, or silver–lead–zinc. In alkalic host rocks, tellurides, vanadium-mica (roscoelite), and fluorite may be abundant, with lesser molybdenite. The Terronera orebody is tabular, with a strike length of approximately 1,200 m, a thickness between 3 and 15 m, extending from surface to 570 m deep. The orebody is oriented southeast-northwest and dips on average 75° to 80° towards 050°. The footwall rock is mainly rhyolite (uniaxial compressive strength (UCS) approximately 92 MPa), with the hanging wall rock predominantly andesite (UCS approximately 175 MPa); the ore zone is termed the Terronera Vein (UCS approximately 62 MP based on limited samples). The La Luz orebody is also tabular and steeply dipping, with a strike length of 500 m, thickness of 1 to 1.5 m, extending from 60 m below surface to a depth of 250 m. The orebody is oriented east-west and dips 80° towards 005°. The La Luz Vein is very narrow and is wholly contained in an andesite (UCS = 115 MPa) rock unit that forms both the footwall and hanging wall.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityProductUnitsLOM
Silver Concentrate kt 192
Silver Payable metal koz 39,341
Silver Metal in concentrate koz 40,948
Gold Payable metal koz 393
Gold Metal in concentrate koz 407
Silver Equivalent Payable metal koz 70,310

Operational metrics

Metrics
Daily ore mining rate  ....  Subscribe
Daily processing capacity  ....  Subscribe
Ore tonnes mined, LOM  ....  Subscribe
Tonnes processed, LOM  ....  Subscribe
* According to 2023 study.

Production Costs

CommodityUnitsAverage
Credits (by-product) Silver USD  ....  Subscribe
Total cash costs Silver USD  ....  Subscribe
All-in sustaining costs (AISC) Silver USD  ....  Subscribe
Assumed price Silver USD  ....  Subscribe
Assumed price Gold USD  ....  Subscribe
* According to 2023 study / presentation.
** Net of By-Product.

Operating Costs

Currency2023
UG mining costs ($/t milled) USD 30.6 *  
Processing costs ($/t milled) USD  ....  Subscribe
G&A ($/t milled) USD  ....  Subscribe
* According to 2023 study.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Equipment leasing costs $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Closure costs $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
UG OpEx $M USD  ......  Subscribe
Processing OpEx $M USD 188
G&A costs $M USD 80.5
Total OpEx $M USD  ......  Subscribe
Mining Taxes $M USD  ......  Subscribe
Income Taxes $M USD  ......  Subscribe
Total Taxes $M USD  ......  Subscribe
Royalty payments $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
Net revenue (LOM) $M USD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 5% $M USD  ......  Subscribe
After-tax NPV @ 5% $M USD  ......  Subscribe
After-tax NPV @ 10% $M USD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
Pre-tax payback period, years  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required May 15, 2023
....................... Subscription required ....................... Subscription required Subscription required May 15, 2023
....................... Subscription required ....................... Subscription required Subscription required May 15, 2023
....................... Subscription required ....................... Subscription required Subscription required Jul 31, 2023

EmployeesYear
...... Subscription required 2021

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