In an Aug. 30 research report, BMO Capital Markets analyst Andrew Kaip explained the impact of Endeavour Silver Corp.'s (EDR:TSX; EXK:NYSE; EJD:FSE) results from "nine drill holes from the Santa Cruz vein at Guanaceví," one of its three mines in Mexico. He wrote that "these holes extend the boundaries of the current resource area with the highlight hole grading 786 g/ton silver and 0.71 g/ton gold over 3.4m."
BMO estimated "that the length-weighted average grade of the nine holes is 409 g/ton Ag and 0.59 g/ton Au over an average width of 2.1m" and concluded that "the average grades compare favorably to the Guanaceví reserve grade of 260 g/ton Ag and 0.62 g/ton Au."
The drill results also showed that "new ore grade mineralization has been discovered within a shallow, parallel splay of the Santa Cruz vein known as the La Negra vein," Kaip indicated.
The analyst further explained, "Hole NE-01 (La Negra) was drilled along strike from level 10 of the mine (below the workings near the Garibaldi shaft) while the underground holes in the Santa Cruz vein defined mineralization below existing mine workings toward the northwest. The results should help to offset depletion at year-end."
In terms of next steps for Endeavour at the Guanaceví mine, Kaip noted, "An additional 15 holes have been completed and are awaiting assay results. The 2017 drill program is now essentially completed and the process of year-end resource/reserve estimation will commence."
BMO Capital has a Market Perform rating and $3.50 per share target price on Endeavour. The company's stock is currently trading at about $2.98 per share.
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.
Additional disclosures about the sources cited in this article
