Endeavour Silver Corp. · TSX:EDR
Endeavour Silver — Investor Presentation (November 2008)
27 slides from Endeavour Silver's investor presentation, November 2008
Slide 1: Expanding Silver Production, Reserves & Resources in Mexico
Expanding Silver Production, Reserves & Resources in Mexico Institutional Presentations November 2008
Slide 2: Cautionary Note: Forward Looking Statements, Mineral Resource Estimates
Cautionary Note: Forward Looking Statements, Mineral Resource Estimates This presentation by Endeavour Silver Corp. (“Endeavour”) may include statements concerning future operations, prospects, strategies, plans, projections, forecasts, financial conditions and economic performance, as well as goals
Slide 3: Introduction: Who is Endeavour?
Introduction: Who is Endeavour? • Endeavour Silver Corp: One of North America’s fastest growing silver mining companies • Core Assets: Guanacevi Silver Mine in Durango State and Guanajuato Silver Mine in Guanajuato State, Mexico • Goal: Become a top mid-tier primary silver producer 3
Slide 4: Endeavour: At A Glance
Endeavour: At A Glance • Exchange Listings: TSE: EDR, AMEX: EXK • Shares Issued: 49.0 Million • Share Price: (Oct 30/08) US$1.00 Per Share • Market Cap: US$49 Million • Daily Volume: 335,000 Shares • Working Capital: (Sep 30/08) US$10.9 Million • 2007 Reserves/Resources: 42 Million Oz Ag • 2008 Prod
Slide 5: Highlights: Why Own Endeavour
Highlights: Why Own Endeavour √ Pure Silver Leverage √ The Mexico Advantage √ Quality Core Assets √ Experienced Management Team √ Proven Track Record √ Strong Organic Growth √ Additional Acquisition Growth √ Attractive Market Capitalization 5
Slide 6: Silver vs. Gold
Silver vs. Gold Silver typically lags gold, then plays catch-up, resulting in highly leveraged investment opportunities. Silver: gold ratio now 75:1! Gold Silver 6
Slide 7: Core Assets: Two Producing Silver Mines, Two Exploration Projects
Core Assets: Two Producing Silver Mines, Two Exploration Projects Business Model: • Acquire under-explored mines in historic silver districts that are built, permitted and about to close • Invest the capital and expertise needed to discover new ore-bodies and re-open the mines • Consolidate district
Slide 8: Guanacevi: A Top Mexican Silver District
Guanacevi: A Top 5 Mexican Silver District District Highlights: • Located in the Sierra Madre Occidental gold-silver belt • Produced over 450 million oz silver historically • Multiple silver veins span 10 km x 5 km area • Classic epithermal ore-bodies in Lower Tertiary andesites • Accessed by paved
Slide 9: Guanacevi: Underground, Mechanized, Ramp Access Mine
Guanacevi: Underground, Mechanized, Ramp Access Mine 2008 Summary Reserves: P+P: 14.2 million oz Ag Resources: M+I: 13.3 million oz Ag Inf: 8.5 million oz Ag Production Forecast: 2.0 million oz Ag Throughput: 750 tonnes per day Recoveries: 70% Ag, 75% Au Underground Development: 4,000m Porvenir is t
Slide 10: Guanacevi: Upgrading the Plant to 1200 TPD Capacity
Guanacevi: Upgrading the Plant to 1200 TPD Capacity Capital Projects: 9 Expand milling circuit 9 Expand leach circuit 9 Re-habilitate flotation circuit 9 New Merrill Crowe circuit 9 New silver refinery • New lab, warehouse, security (in progress) • Expand tailings pond (in progress) Currently operat
Slide 11: Guanacevi: Reserves/Resources Longitudinal Section
Guanacevi: Reserves/Resources Longitudinal Section Endeavour Discovered Four New Silver Deposits In Three Years December 31, 2007 NI 43-101 Reserves & Resources: Red: P+P Reserves: 1.22 million tonnes @ 360 gpt Ag, 0.61 gpt Au =14 million oz Silver Blue: M+I Resources: 1.20 million tonnes @ 345 gpt
Slide 12: Guanacevi: Several Recent Discoveries In San Pedro Area
Guanacevi: Several Recent Discoveries In San Pedro Area 2008 Drill Program: 20,000 m Recent Drill Results Hole Length Silver Gold Lead Zinc (#) (m) (gpt) (gpt) (%) (%) NB1‐1 1.6 551 0.1 1.29 0.69 NB1‐2 2.30 810 0.2 2.32 4.01 incl. 0.45 3,068 0.7 8.51 15.66 NB1‐3 2.40 388 0.29 1.35 2.7 incl. 0.35 1,1
Slide 13: Guanajuato: The 2nd Largest Silver District In Mexico
Guanajuato: The 2nd Largest Silver District In Mexico District Highlights: • Located in the Sierra Madre silver belt • Produced over 1.2 billion oz silver historically • Three main silver vein systems span 20 km x10 km area • Classic epithermal ore-bodies in Lower Tertiary andesites • Accessed by al
Slide 14: Guanajuato: Underground, Mechanized and Track, Shaft Access Mines
Guanajuato: Underground, Mechanized and Track, Shaft Access Mines 2008 Summary Production Forecast: 0.3 Million Oz Ag Resources: Indicated: 42,000 tonnes @ 194 gpt Ag, 2.10 gpt Au = 262,000 oz Ag Inferred: 321,000 tonnes @ 218 gpt Ag, 2.10 gpt Au = 2.24 million oz Ag Throughput: 100 tpd rose to 400
Slide 15: Guanajuato: Only Ten Years Old, 500 TPD Plant Capacity
Guanajuato: Only Ten Years Old, 500 TPD Plant Capacity Capital Projects: 9 Rehabilitate conveyors 9 Rehabilitate cone crusher 9 Re-configure flotation circuit 9 New concentrate load-out 9 Expand tailings pond • New assay lab (in progress) • New security (in progress) Now operating at 400 tpd or 80%
Slide 16: Guanajuato: Reserves/Resources Longitudinal Sections
Guanajuato: Reserves/Resources Longitudinal Sections Drill targets Drill targets Drill targets Drill targets Grey: Old Stopes, Red: Historic Reserves 7.3 million oz Ag Eq. 16
Slide 17: Guanajuato: Several Recent Discoveries in Cebada and Bolanitos Areas
Guanajuato: Several Recent Discoveries in Cebada and Bolanitos Areas 2008 Drill Program: 22,000 m Recent Drill Results Hole Length Silver Gold (#) (m) (gpt) (gpt) MV‐1 1.8 312 2.03 SJS‐1 9.5 374 3.14 incl. 1.9 1,147 1.33 incl. 0.6 1,160 3.97 incl. 0.6 917 15.6 CE378‐1 1.80 194 3.59 CE378‐2 1.70 316
Slide 18: Silver Production: Six-Fold Growth Over Three Years
Silver Production: Six-Fold Growth Over Three Years Annual Silver Production (millions oz) Capacity 4.5 4.5 GJTO 4 3.5 3 2.30(E) 2.14 2.5 2 GCVI 1.35 1.5 0.95 1 0.35 0.5 0 2004 2005 2006 2007 2008 18
Slide 19: Reserves/Resources: Ten Year Mine-Life at Plant Capacity
Reserves/Resources: Ten Year Mine-Life at Plant Capacity Total Silver Reserves and Resources (millions oz) Target 100 100 90 80 70 55 (E) 60 41 42 (50) 50 40 30 14 20 10 0 2004 2005 2006 2007 2008(E) 19
Slide 20: Cash Costs: Reducing Operating Costs
Cash Costs: Reducing Operating Costs Cash Cost Per Oz ($US) $9.38 10 $9.00 (E) $7.10 Target 8 $6.55 - $7.00 $5.90 6 4 2 0 2004 2005 2006 2007 2008(E) 20
Slide 21: 2008 Second Quarter: Accomplishments
2008 Second Quarter: Accomplishments 9 Revenues up 58% to $10.1 million 9 Production up 20% to 517,000 oz 9 Mine Operating Earnings up 171% to $1.9 million 9 Cash Costs down 1% to $9.62 per oz 9 Expanded leach circuit capacity at Guanacevi to 1200 tpd 9 Refurbished three production shafts at Guanaju
Slide 22: 2008 Second Half: Objectives
2008 Second Half: Objectives • Expand silver production by 50% to 1.3 million oz • Reduce cash costs by 10% to $9.00 per oz • Commence production from Alex Breccia zone at Guanacevi mine • Re-commission floatation circuit at Guanacevi plant • Develop mine access to “3785” zone at Guanajuato mine • E
Slide 23: Our People: Talented, Committed, 600 Strong
Our People: Talented, Committed, 600 Strong 23
Slide 24: Management Team: Wealth of Experience
Management Team: Wealth of Experience • Bradford Cooke, M.Sc, P.Geo. – Chairman, CEO, and Director, Professional Geologist - 30 years experience in project management and financing with Shell, Chevron, Noranda and Canarc. • Godfrey Walton, M.Sc, P.Geo. – President, COO, and Director, Professional Ge
Slide 25: Capitalization Summary: Structured For Growth
Capitalization Summary: Structured For Growth • AMEX Ticker EXK • TSX Ticker EDR • Share Price (Oct 30/08) US$1.00 • Daily Volume 335,000 • Shares Outstanding 49.0 million • Market Capitalization US$49 million • Options 5.7 million • Warrants 0.3 million • Fully Diluted 55.0 million • Working Capita
Slide 26: Value Proposition
Value Proposition • Our goal is to become one of the top mid-tier producers of silver (5-10 million oz per year) • We’ve already grown silver production 6 fold in our first 3 years (2.1 million oz in 2007) • Organic potential to grow silver production another +200% by expanding the mines to fill the
Slide 27: Contact Us
Contact Us Endeavour Silver Corp. #301-700 West Pender Street Vancouver, BC, V6C 1G8 Canada hugh@edrsilver.com www.edrsilver.com Phone: 1-604-685-9775 Fax: 1-604-685-9744 Canada and US Toll-Free: 1-877-685-9775 27
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