Chart courtesy of Stockcharts

As we can see from the above chart Endeavour Silver Corporation (EXK) has taken tea with its 200dma, managed to hold steady and is now heading north. Also note that the MACD has just experienced a golden crossover which is usually very positive for a stock. Silver itself would appear to have reversed its negative trend resulting in a jump in the stock price for most silver producers with Endeavour leading the charge with yesterdays gain of 14.20%.

Coincidental with silvers move higher was a news release from Endeavour that second quarter production showed yet again another increase in production with Silver Up 12% at 578,641 ounces and Gold Up 61% at 2,750 ounces Compared to Q2, 2008.

An excerpt from the news release is follows below:

Gold production rose sharply in the Second Quarter, 2009, up 61% to 2,750 oz compared to Q2, 2008, resulting in silver-equivalent production rising 21% to 762,891 oz compared to Q2, 2008 (assuming a 67:1 silver:gold ratio based on average Second Quarter, 2009 gold/silver prices - base metals not included as silver-equivalents).

At Guanacevi, Q2, 2009 production totalled 411,617 oz silver from 53,936 tonnes (567 tonnes per day) grading 311 grams per tonne (gpt) silver and 0.64 gpt gold (11.4 oz per ton (opT) silver-equivalent), with metal recoveries into dore bars averaging 77.1% for silver and 86.2% gold. At Guanajuato, Q2, 2009 production amounted to 167,023 oz silver from 36,402 tonnes (466 tpd based on a 6 day week) grading 183 gpt silver and 1.93 gpt gold (10.0 opT silver-equivalent), and metal recoveries into dore bars averaged 77.5% for silver and 84.3% for gold.

Considering that the company has been hit by the dreaded flu virus and had de-watering problems then this increase in production is even more impressive.

Bradford Cooke, Chairman and CEO, had this comment regarding Endeavours progress:

“Endeavour enjoyed another strong quarter of production growth in Q2, 2009. In fact, the success enjoyed by our Guanajuato operations team in fast-tracking the new Lucero Vein discovery to production has prompted management to hire 10 new miners to accelerate the development of this exciting new discovery and approve a 20% plant expansion to 600 tonnes per day (tpd) in August. We are now evaluating an additional plant expansion to 800 tpd (1.5 to 2.0 million oz per year depending on grades and recoveries) for next year at Guanajuato.”

These are exciting times for Endeavour Silver and as share holders we are pleased that they take the time to keep us informed about their activities. It is particularly re-assuring to have an insight into their problems and how they are dealing with them as we know that they exist in a variety of forms which hamper progress.

To read the press release in full please click here.

Endeavour Silver Corporation trades as EDR: TSX, EXK: NYSE-AMEX, EJD: DB-Frankfurt, has a market capitalization of $95.43 million and the share price closed yesterday at $1.85.

Have a sparkling day.

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