4 replies to this topic

[SilentOne]

If there is one silver junior to own, this looks like it. Way undervalued compared to its peers and great production growth profile. And yes it already produces lots of silver.

Eric Hommelberg wrote a piece on EDR this week. He is very astute.

cheers,

john

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Endeavour Silver Corp.: Guanacevi Project Production Update
Tuesday September 6, 5:25 pm ET

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 6, 2005--Endeavour Silver Corp. (TSX VENTURE:EDR - News; FWB:EJD) announces that production from its Guanacevi Project continues to climb on a monthly basis. Production in July 2005 totaled 108,000 oz silver, up 26% from June 2005 and up 163% from the average monthly production in fiscal Q1 (March-May) 2005.
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The steadily growing output of the Guanacevi Project can be attributed to increasing production from the new North Porvenir mine in the Santa Cruz property. In July, North Porvenir produced 6,890 tonnes grading 575 gpt (16.8 opt) silver and 0.96 gpt (0.027 opt) gold for an average throughput of 230 tonnes per day, up 211% from the average daily throughput from North Porvenir in fiscal Q1, 2005.

North Porvenir now represents about 90% of the mill production at this time. The balance of production (10%) comes from toll milling of third party ores and the reprocessing of old plant tailings. Significant unused capacity remains to be filled at the Guanacevi plant.

In May 2004, the Company entered into option agreements to acquire a 100% interest in the producing Santa Cruz silver-gold mine, certain mining concessions and the Guanacevi mineral processing plant, all located in Durango, Mexico. Endeavour has already announced the general terms of its agreements but provides more details herein for the benefit of shareholders. The option agreement provides that the acquisition of the mine will be accomplished through the acquisition of all the issued and outstanding shares of Minera Santa Cruz y Garibaldi S.A. de C.V. ("Minera Santa Cruz").

Pursuant to the Sale and Purchase of Shares with Reservation of Ownership Agreement dated May 17, 2004, the Company has earned a 51% option interest in the shares of Minera Santa Cruz y Garibaldi, S.A. de C.V. ("Minera Santa Cruz") by payments totaling US $852,143 to January 28, 2006, the Company has the "option" to pay US $423,571 in order to not relinquish its 51% interest in Minera Santa Cruz, upon such payment and on such date would Minera Santa Cruz become a 51% subsidiary of the Company. Should the Company decide not to pay the US $423,571 on January 28, 2006, the Company relinquishes all its 51% option interest in Minera Santa Cruz. The Company has the option to increase its interest from 51% to 100% by payments of US $423,571 on January 28, 2006, US $637,858 on January 28, 2007 and another US $637,858 on January 28, 2008.

Pursuant to the MG Sale and Purchase of Assets with Reservation of Ownership Interest Agreement dated May 17, 2004, the Company has earned a 51% option interest in the processing plant from Metalurgica Guanacevi, S.A. de C.V. ("Metalurgica Guanacevi") by payments totaling US $1,714,286 to January 28, 2005. On January 28, 2006, the Company has the "option" to pay US $571,429 in order to not relinquish its 51% interest in the processing plant. If the Company decides to not pay the US $571,429 on January 28, 2006, the Company relinquishes all its 51% option interest in the processing plant.

The Company has the option to increase its interest from 51% to 100% by payments of US $571,429 on January 28, 2006, US $857,142 on January 28, 2007 and another US $857,143 on January 28, 2008.

Godfrey Walton, M.Sc, P.Geo., is the Qualified Person supervising the exploration, development and operation of the Guanacevi Project.

Endeavour Silver Corp. (TSX VENTURE:EDR - News; FWB:EJD) is a silver mining company focused on growth of its silver resources and production in Mexico. The expansion program now underway at the high grade, producing Santa Cruz silver mine in Durango, Mexico has the potential to make Endeavour one of the top five primary silver producers worldwide.

On Behalf of the Board of Directors,


Bradford J. Cooke, Chairman and CEO

[SilentOne]

Here are some other silver juniors to watch. I have owned FR.V and GGC.V this year but traded these positions only. EDR will remain a buy & hold from here (I hope!),

Emerging Silver Producers

Apex Silver (NYSE: SIL)
Market Cap on 7/25/05: $662.82 MM

Genco Resources (TSX-V: GGC)
Market Cap on 5/25/05: C$19.63 MM

Endeavour Silver (TSX-V: EDR)
Market Cap on 7/25/05: C$33.04 MM

First Majestic (TSX-V: FR)
Market Cap on 7/25/05: C$43.99 MM

Macmin Silver (ASX: MMN)
Market Cap on 7/25/05: AUD$36.01 MM

Sterling Mining (Pink Sheets: SRLM)
Market Cap on 7/25/05: $49.50 MM

Silvercorp Metals (TSX-V: SVM)
Market Cap on 7/25/05: C$115.27 MM

cheers,

john

PS Off on a Norwegian cruise next week. Hopefully I come back to some pleasant surprises.

[PorkLoin]

John, thanks for the informative post! Looking at those market capitalizations, it wouldn't take much for a real launching. Long-term I think the declining US Dollar and an overall bull market in commodities should make for some big moves up. Shorter-term I have some real doubts (and of course I may just be missing out on lower prices to buy). I bet you will LOVE that cruise.

Best,

Doug

[PorkLoin]

Hey John/SilentOne, Are you watching Endeavor? What do you think -- consolidation? Doug

[SilentOne]

Hi Doug, I took some profits on EDR.V last week. I sold 2/3 of it at $2.45CDN and will add back within a couple of weeks. I'm not worried about the downside too much here, just hope it doesn't get away from me on the upside. The juniors sure have been a few perky in this sector. cheers, john