Endeavour Silver has resumed processing at the Guanacevi mine in Mexico following a primary ball mill trunnion failure on August 12.
The company said temporary modifications have allowed the regrind mill to function as the primary ball mill, currently milling at 400 tonnes per day, with potential for 500 t/d, about half of its planned production capacity of 1,200 t/d.
The miner said operations will continue at a reduced rate, focusing on high-grade ore while stockpiling remaining material. Contract mining and third-party material purchases are on hold until full capacity is restored. The estimated cash shortfall during this period is less than US$5 million over 15 weeks, officials added.
The initial quotes received for new trunnion fabrication and installation are approximately $500,000 over 16 weeks. Company management is examining alternatives to reduce downtime. Additionally, production is expected to decrease by 900,000-1.1 million silver ounces and 2,000-3,000 gold oz.
In the meantime, due to the reduced capacity, Endeavour said its costs could be higher than its guidance, and as such it has withdrawn its cost guidance due to the uncertainties.
Source: Endeavour Silver
