Endeavour Silver Corp.

Endeavour Silver Corp.

March 02, 2005 12:59 ET

Guanacevi Process Plant Receives Top Marks From Engineering Audit, Replacement Value Estimated to be US $19.4 Million, Potential to Substantially Expand Plant Output


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ENDEAVOUR SILVER CORP.

TSX VENTURE SYMBOL: EDR

MARCH 2, 2005 - 12:59 ET

Guanacevi Process Plant Receives Top Marks From
Engineering Audit, Replacement Value Estimated to be
US $19.4 Million, Potential to Substantially Expand
Plant Output

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 2, 2005) - Endeavour
Silver Corp. (TSX VENTURE:EDR) announces the Guanacevi process plant has
received top marks for its operations in a recently completed
engineering audit.

Summit Valley Equipment and Engineering Inc., a widely recognized expert
in process plant evaluations and operations, was commissioned to conduct
a full review of the plant, including the condition of all equipment,
the capacity of each circuit, and the efficiency of plant operations.
Summit Valley commented that the plant is clean and well maintained; the
equipment is all brand name, the work force is well trained, very stable
and morale is high.

The Guanacevi process plant was built initially in the 1970's by the
Mexican government as a custom flotation circuit to service the many
small silver mines then operating in the Guanacevi district. It was
partly refurbished and expanded in the 1980's, then sold in 1992 to
Metalurgica Guanacevi SA de CV ("MG") who completed construction of a
cyanide leach circuit.

Given the plant is a fully permitted, operating facility complete with
land ownership, townsite and all related infrastructure, its replacement
value is estimated at US $19.4 million. Endeavour has acquired a 51%
interest in the Guanacevi process plant for US $1.7 million and holds an
option to acquire the remaining 49% interest for US $2.3 million.

In February, the plant averaged 220 tpd, a substantial increase over one
year ago but well below its design capacity. Only the leach circuit was
in use because it gives higher silver recoveries and higher payable
silver from the North Porvenir and other stockpiled ores compared to
flotation.

Because there are two distinct circuits in the plant, the overall plant
capacity depends on the different ore types being processed. Summit
Valley identified the capacities of each circuit as follows:

1) Crushing - 1000 to 1200 tpd for 3/8" and 5/8" crush sizes.

2) Grinding - 520 tpd at 90% availability and 80% passing 200 mesh grind
size.

3) Leaching - 960 tpd.

4) Precipitation - 400 tpd producing a high grade silver precipitate for
shipping to the smelter or pouring dore bars.

5) Bulk flotation - 400 tpd, producing a medium grade concentrate for
shipping to the smelter.

6) Selective flotation - 200 tpd, producing a high grade zinc con and a
high grade lead-silver con for shipping to the smelter.

7) Tailings Re-treatment - 160 tpd, pumping old oxidized tailings back
into the leach circuit.

Because the North Porvenir ores are readily leachable, with 88% silver
recoveries and 98.5% payable silver in precipitate, an initial increase
in plant throughput to 520 tpd in the leach circuit alone is
recommended. Several minor bottlenecks will need to be addressed in
order for the plant to operate at this rate.

A second increase to 960 tpd in the leach circuit will require either an
expansion of the tailings re-treatment system or the addition of another
ball mill, which would require a doubling of the coarse and fine ore
bins and an expansion of the precipitation circuit. The existing ball
mills could then also be utilized to service the flotation circuits,
which can be readily expanded to 520 tpd, giving the Guanacevi process
plant an overall capacity of up to +1400 tpd, depending on the ore types
to be processed.

Milling costs are currently averaging around US $19 per tonne ($1.36 per
oz silver produced) for ore leaching and US $9 per tonne ($4.29 per oz
silver produced) for tailings re-treatment. At 520 tpd, these costs
should come down substantially.

Endeavour Silver Corp. (TSX VENTURE:EDR) is a small-cap exploration and
mining company focused on aggressively expanding its portfolio of high
grade silver-gold properties, reserves and production in Mexico. Canarc
Resource Corp. (TSX:CCM) holds a minority shareholding in the Company.

On Behalf of the Board of Directors,

ENDEAVOUR SILVER CORP.

Bradford J. Cooke, Chairman and CEO


-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Endeavour Silver Corp.
    Hugh Clarke
    (604) 685-9775 or Toll Free: 1-877-685-9775 (Canada & U.S.)
    (604) 685-9744 (FAX)
    investorrelations@edrsilver.com
    www.edrsilver.com
    The TSX Exchange has neither approved nor disapproved the contents of
    this news release.