Endeavour raises initial capex for Terronera project in Mexico to US$332mn

Vancouver-based Endeavour Silver has revised the initial capital cost estimate for its Terronera gold and silver underground project in Jalisco state to US$332mn, up from the previously announced and revised figure of US$271mn. 

“The project team conducted a comprehensive review of the remaining Terronera completion costs. The company forecasts initial capital costs to be US$332 million,” Endeavour said in a release. 

The following table contains a breakdown of the capex costs:

	2024 Revised Scenario Initial Capex (millions)	2025 Updated Scenario Initial Capex (US$ millions)	Variation
Mining	US$83.80	US$100.20	US$16.40
Mineral Processing Plant	US$64.80	US$78.00	US$13.20
Site Infrastructure	US$56.20	US$58.40	US$2.20
Total Direct Costs	US$204.80	US$236.60	US$31.80
Owner Costs	US$33.30	US$50.30	US$17.00
Project Indirect Costs	US$24.20	US$45.10	US$20.90
Contingency	US$8.70	-	(US$8.70)
Total Indirect Costs	US$66.20	US$95.40	US$29.20
Total (Direct & Indirect)	US$271.00	US$332.00	US$61.00

The company explained that the increase in mining costs by approximately US$16mn is related to the extended project schedule and increased waste rock disposal costs, including hauling, disposal at the temporary waste dump and construction of the permanent waste rock dump.

Mineral processing plant costs, which include the lower platform and tailing facility construction, are estimated to be approximately US$13mn over budget. 

"These costs include additional work for expediting structural steel fabrication, blasting required for lower platform excavation, offsite materials purchased for tailing facility construction, extra work required for supporting the cut above the lower platform elevation and contractor indirect costs," the company stated.

The US$2.2mn increase for site infrastructure is related to the additional scope for constructing the mill shop, warehouse and assay/met lab, and temporary power generation.

"Total project indirect costs increased by US$29 million, offset with the US$8.7 million contingency. Owner costs increased due to additional engineering, construction management, enlarging the camp capacity and adding several administrative support buildings (e.g., offices and training),” Endeavour said. “Project indirect costs increased due to the extended project schedule and a larger workforce, overlapping project construction and completion activities,” it added.  .

Additionally, the Canadian company reported that Terronera's surface construction progress is nearly 90% complete.

"Endeavour Silver's Terronera Project is nearing completion," COO Don Gray said. "Dry commissioning is advancing well on the Upper Platform, and we're completing final installations and the last of the punch list items. Our team's efforts are concentrated on timely completion of the Lower Platform, where structural steel is advancing to install the tailing filters."

"We're focused on maintaining our construction schedule and momentum to have Terronera ready for full commissioning in early Q2 2025," Gray added.

In January, the company reported that the Terronera project experienced delivery delays of structural steel components during December, which "adversely impacted" overall project productivity and expected commissioning timelines.

Endeavour initially expected to begin commissioning systems near the end of last year.

In addition to development of its new cornerstone mine in Jalisco state, the miner has a portfolio of exploration projects in Mexico, Chile and the US, helping it achieve its goal of becoming a premier senior silver producer.