Endeavour Silver Continues to Report Promising Bolanitos Mine Results

on Sep 28, 2012
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On September 24, the Vancouver-based silver producer Endeavour Silver (NYSE:EXK, TSE:EDR, FRA:EJD) reported that exploration drilling at the company’s Bolanitos mine continued to deliver promising results. The mine is located in Mexico’s Guanajuato State, with Mexico developing an increasing reputation as a top destination for silver exploration and development.

As noted in Endeavour Silver’s press release, the latest drilling results at the Bolanitos mine indicated intersection of high silver and gold grades over mineable widths, extending the already known mineralised zone in the Daniela vein to more than 950 metres long, still open for expansion. “Exploration drilling of the Daniela vein near the Bolanitos mine continues to extend the high grade silver-gold mineralisation to the north. Daniela was discovered near the Lucero vein in late 2010 but the drill results since then have shown it to be our best new discovery yet,” noted Bradford Cooke, Endeavour Silver’s Director and CEO in the company press release. “An updated resource estimate will be prepared at year-end and the Daniela vein is already in development as part of the 2012 mine plan for the Lucero-Karina-Fernanda-Daniela area.”

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!m[](/uploads/story/479/thumbs/pic1_inline.png)The mining news website Mining.com recently wrote that the Canadian silver producer reported positive drill results from the Bolanitos mine earlier in September, which in turn sent the company shares up almost 2 percent. On September 27, Endeavour Silver’s shares surged 3.17 percent at 10:15 a.m. in New York.

Endeavour Silver is one of the silver producers which have been taking advantage of Mexico’s favourable mining environment. Recently, Resource Investing News reported that the country was an attractive silver mining destination, quoting the financial services company Zeal, which said that almost 60 percent of all silver companies owned a project in Mexico. In addition to being the world’s top silver producer, the country also boasts a mining-friendly environment. Social unrest for instance which can be a serious impediment to mining activities, with South Africa being the most recent example, does not seem to be a problem in Mexico.

In addition, the government has also created favourable mining conditions for foreign investors by refraining from special industry taxes or royalties although there are concerns that those circumstances might change. The presidential elections in July, however, did not have a significant impact on the course of business and investment. Resource Investing News quotes Meghan Brush, investor relations at the silver miner IMPACT Silver (CVE:IPT, PINK:ISVLF, FRA:IKL) as saying that the company, which has three producing mines in Mexico, did not expect much of a difference in government policies which directly affect mining.

Mexico’s favourable investment climate seems to be paying off, with Bloomberg reporting at the end of July that mining investment in the country jumped 69 percent to $5.6 billion (£3.5 billion) in 2011, according to Camimex, the country’s mining chamber. In addition, Mexico was the top destination in Latin America for investment in exploration for non-iron metals in 2011 and the fourth in the world behind Canada, Australia and the United States. “We’re seeing that Mexico can compete with anywhere in Latin America in attracting mining investment,” pointed out Sergio Almazan, head of Camimex, as quoted by Bloomberg. “As long as metals prices remain at good levels, we’ll continue to see this interest in investing.”

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