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« Silver will keep outshining gold: Sprott | Main | The Accumulator Trade 2 Open 07 March 2011 »
Tuesday
Mar082011

Endeavour Silver Expands Its Silver/Gold Resources for 7th Consecutive Year

EXK Chart 09 March 2011.JPG

We'll kick off with a few words from the company Chairman, Bradford Cooke, then we will highlight the reserves and conclude with some commentary on Endeavour Silver Corporation's (EXK) chart.


"We are gratified to see our combined reserves and resources rise once again to a record high last year, notwithstanding our 6th consecutive year of production growth. The numbers speak to the ability and success of our exploration team at discovering new, high grade silver-gold deposits year after year within these historic Mexican silver districts."

"Last year, it was our Epsilon/La Blanca/Noche Buena discoveries in the San Pedro area of Guanacevi, the Lucero/Karina/Fernanda/Daniela discoveries in Guanajuato and the San Juanico extension in Parral that helped drive our resource growth. In 2011, Endeavour will continue to focus on the organic growth of its reserves/resources in Guanacevi and Guanajuato through its ongoing strategic acquisition and exploration programs within these districts."

"However, we are also looking to new acquisitions such as the San Sebastian properties in Jalisco and other pending property deals to help fuel our resource growth this year. Management will continue to evaluate M&A opportunities as a means to accelerate Endeavour's growth profile."


Bradford Cooke, Chairman and CEO.


The Reserve/Resources are highlighted as follows, to see the tables please go to their site by clicking this link.

Silver Proven and Probable Reserves down 19% to 13.4 million ounces (oz); Guanacevi 12.0 million oz and Guanajuato 1.4 million oz

Gold Proven and Probable Reserves down 9% to 40,000 oz; Guanacevi 22,000 oz and Guanajuato 18,000 oz

Silver Equivalent Proven and Probable Reserves down 18% to 15.9 million oz; Guanacevi 13.4 million oz and Guanajuato 2.5 million oz

Silver Indicated Resources up 16% to 27.4 million oz; Guanacevi 17.2 million oz, Guanajuato 7.6 million oz and Parral 2.6 million oz

Gold Indicated Resources up 53% to 182,000 oz; Guanacevi 34,000 oz, Guanajuato 101,00 oz and Parral 47,000 oz

Silver Equivalent Indicated Resources up 19% to 37.3 million oz; Guanacevi 19.2 million oz, Guanajuato 13.1 million oz and Parral 5.0 million oz

Silver Inferred Resources up 62% to 29.7 million oz; Guanacevi 14.5 million oz, Guanajuato 7.3 million oz, Parral 2.7 million oz and Arroyo Seco 5.2 million oz

Gold Inferred Resources up 52% to 169,000 oz; Guanacevi 30,000 oz, Guanajuato 100,000 oz, Parral 37,000 oz, Arroyo Seco 2,000 oz

Silver Equivalent Inferred Resources up 52% to 38.9 million oz; Guanacevi 16.3 million oz, Guanajuato 12.8 million oz, Parral 4.5 million oz, Arroyo Seco 5.3 million oz

Mineral resources are exclusive of the mineral reserves

Proven Reserves are determined as being with 10 meters of development while Probable reserves are a further 15 meters. In both cases mine plans have been developed on the reserves.

Mine plans are developed on the Reserves and Indicated Resources but the Resources are discounted in the mine plan.

Mineral reserves have demonstrated economic viability whereas mineral resources do not

2009 silver equivalents based on 65:1 silver:gold ratio, base metals not included

2010 silver equivalents based on 50:1 silver:gold ratio for exploration and 65:1 for the mines, base metals not included

All assumptions used are listed at the bottom of the reserve and resource summary table

EXK has pushed through resistance at the $7.5 level and rallied quickly to $10.00 on very heavy volume. EXK has tripled in price since August 2010 on the back of the excellent progress that they have made coupled with an explosive silver price. The technical indicators are in the overbought zone suggesting that a breather may be on the cards. The RSI is standing at 74.73 the moment and the STO is close to the top of its range. However, as we have witnessed in the past these indicators can stay high for extended periods of time as stock prices consolidate and even move higher.

Everything does of course depend on silver prices which are rising across every stock exchange in the world except the NYSE. We have wrote about this aberration on a number of occasion, it is as though silver has the plague when it opens in the big apple where it takes a regular beating. The time is coming when even they will realise that you cannot stop the tide from coming in and then we will get a glimpse of the true value is silver.

In conclusion we will not be selling any of this stock and will look to either buy on a dip or chance our arm with an options trade on Endeavour.

Endeavour Silver Corporation has a market capitalization of around $680.64 million and is well positioned to benefit from the silver bull market which has in our very humble opinion a long way to run, so keep an eye on them as this company offers good exposure to silver prices and no doubt is a candidate for acquisition by those seeking to boost their own dwindling reserves.

Endeavour Silver Corporation is traded in Canada, USA and Europe on the following three stock exchanges:

(TSX: EDR)
(NYSE-AMEX: EXK)
(DB-Frankfurt: EJD)

So they have plenty of exposure to the investment market.


PS: Just in case you missed it we have just closed an option play on www.silver-prices.net with an average profit of 96.5% on Silver Wheaton Call Options. Click here to read more.

Many thanks to those of you who have recently signed up for options trading service, its very much appreciated. Please be patient as we have a number of new trades on the drawing board and as you are aware the timing of them is critical to their success.

We now have 65 winners out of 67 options trades, or a 97.00% success rate If you have any questions regarding these trades please address them through their site where they will be handled quickly and I hope efficiently.

sk chart 19 Feb 2011.JPG



The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today, before we decide to cap membership.

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.


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Reader Comments (2)

EXK or SLW who will increase the most?

March 9, 2011 | Unregistered Commentersilver bug

Good question. Both are top tier. Very different companies. I see SLW as a highly leveraged proxy for silver and EXK as a growth company that happens to mine silver, a vital and disappearing commodity. Seems logical to own both. I do.

I'm guessing EXK will increase the most, at least partly due to its lower price, even though that sounds silly. People are more willing to pony up. Also, it has the chance to become a mainstream stock bought by institutions. SLW is already there, but EXK is a mining outfit and, by definition, riskier. SLW is locked into substantial profits even if silver gets whacked. Not so EXK.

So, my best guess...EXK more upside potential...and more downside risk. Both are gems.

March 9, 2011 | Unregistered Commenterfallingman

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