Endeavour Silver Eyes 25M Ounces as Terronera, Kolpa and Pitarrilla Advance

Key Points

• Terronera is ramping up after reaching commercial production in October 2025, with throughput near 2,000 tons per day and improving silver recoveries. Cost reductions are expected from LNG power and infrastructure improvements, though an August community blockade temporarily disrupted operations.
• Endeavour is integrating and expanding Peru’s Kolpa mine to 2,500 tons per day and plans an updated resource estimate. The company is also advancing the large Pitarrilla project, targeting a feasibility study, a construction decision around mid-2027 and potential production in 2030.
• Endeavour expects about 14.5 million–15 million silver-equivalent ounces in 2026 and believes output could approach or exceed 25 million ounces as its growth assets mature, although higher operating costs and temporary production disruptions remain risks.

Endeavour Silver NYSE: EXK is advancing a growth plan centered on its Terronera mine in Mexico, the recently acquired Kolpa operation in Peru and the development-stage Pitarrilla project, Chief Executive Officer Dan Dickson said during a company presentation.

Dickson said the company has operated for more than 20 years and historically built its business by acquiring and developing underexplored, operating mines, including Guanacevi and Bolañitos. He said the company had previously faced investor concerns related to shorter mine lives and higher costs, but has sought to shift toward longer-life assets.

“From a running-a-business standpoint, not having a long mine life, like a 10-year reserve life, was always relatively difficult,” Dickson said.

Terronera ramp-up advances

Terronera, discovered by Endeavour in 2013, entered commercial production in October 2025, according to Dickson. He described the Mexican operation as a potentially low-cost asset where gold production is expected to offset silver production costs.

The company has been processing lower-grade material during the early ramp-up phase to optimize plant performance and avoid losing ounces to the tailings facility, he said. Terronera has operated at approximately 2,000 tons per day consistently since 2025, while the company works to improve grinding performance and recovery rates.

Dickson said the feasibility study projected silver recoveries of 89% and gold recoveries of 76%. The company has approached the silver recovery target during the third quarter as grades and recoveries improved, he said.

Endeavour also completed several remaining capital initiatives at Terronera, including a transition from diesel generation to liquefied natural gas power generation and receipt of a waste-dump permit that reduces hauling distances by roughly two kilometers. Those changes have contributed to lower per-ton costs, Dickson said.

The mine experienced what Dickson called an illegal community blockade in August that lasted 10 days. He said the company reached an agreement to lease an additional 125 hectares from the community, with payment of about C$75,000 per hectare, or approximately C$500,000 in total.

Kolpa integration and expansion

Endeavour acquired the Kolpa underground silver-lead-zinc mine in Peru in May 2025 for $145 million. Dickson said the asset has been integrated into Endeavour’s operations relatively quickly and that its expansion to 2,500 tons per day began in March.

The expansion involved a move from conventional wet-stack tailings to dry-stack tailings. Dickson said Endeavour brought experience from its Guanacevi operation, which has used dry-stack tailings for 13 years, while Kolpa’s prior owners had already completed much of the required work.

Kolpa has exceeded its planned 2,500-ton-per-day rate at times, though Endeavour is seeking to manage throughput so it does not place excessive pressure on the resource base or tailings infrastructure, Dickson said.

Endeavour is also pursuing exploration at Kolpa, where production has principally come from the four-kilometer Benaventurada vein. The company expects to release an updated resource estimate near the end of the year or early next year. Dickson said a historical estimate contained 120 million silver-equivalent ounces and that Endeavour expects to meet that level, which would trigger a further C$10 million payment to the vendors.

Pitarrilla feasibility study expected

At Pitarrilla in Mexico, Endeavour is preparing a feasibility study for an underground sulfide operation. Dickson said Pitarrilla is among the world’s largest undeveloped silver assets, with nearly 600 million ounces of silver defined across oxide and sulfide mineralization.

The company is evaluating the sulfide portion through an underground mining plan rather than the previously proposed open-pit approach. Dickson said the project’s expected strength is its volume rather than exceptionally high grades, with grades projected at about 250 grams of silver equivalent over roughly 20 years. Endeavour believes the underground mine could operate for 30 to 40 years.

Pitarrilla is permitted for underground mining and its processing plant is permitted, according to Dickson. Endeavour is pursuing a tailings-dam permit and hopes to make a construction decision around the middle of 2027, with production potentially beginning in 2030.

Dickson said the company expects to produce roughly 15 million silver-equivalent ounces next year and could approach or exceed 25 million silver-equivalent ounces as Terronera reaches capacity, Kolpa expands and Pitarrilla enters production.

Production, costs and Mexico permitting

For 2026, Endeavour guided for 14.5 million to 15 million silver-equivalent ounces. Dickson said the company expects production toward the lower end of that range, partly because higher silver prices have enabled it to incorporate lower-grade material that extends mine life.

A two-week shutdown at Terronera affected higher-grade material processing, while Guanacevi operated at a lower capacity of about 500 tons for roughly two weeks, he said. Endeavour expects to provide additional detail with its third-quarter results.

Costs remain subject to higher diesel, steel, labor, royalty, tax and profit-sharing expenses, Dickson said. He noted that certain costs rise with silver prices and are included in all-in sustaining cost calculations. The company is hedging about 20% of its Mexican peso exposure, while approximately half of its Mexican cost base is denominated in pesos.

On Mexico’s permitting environment, Dickson said permitting slowed during the prior administration but that conditions appear to be improving in 2026. He said government officials and industry discussions have become more constructive, while adding that Endeavour’s principal Terronera permits were obtained in 2016.

“I do think it’s moving forward in a positive direction, and you can feel that,” Dickson said.

About Endeavour Silver (NYSE:EXK)

Endeavour Silver Corp. is a Canadian precious-metals mining company focused on the acquisition, exploration, development, and operation of silver-gold properties. The company's activities include underground mining, mineral processing, project development, and exploration for additional deposits.

Endeavour Silver's operations and development assets are located primarily in Mexico, including the Guanaceví mine in Durango and the Bolañitos district in Guanajuato. The company has also advanced the Terronera project in Jalisco, a silver-gold development intended to support future production.

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