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Drilling Expands Silver Company's Resource Area
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Recent drill results announced by this explorer extended the limits of mineralization at one of its Mexican silver mines.

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.

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