Resource Company Acquires Option to Purchase Silver-Gold Properties In Mexico

By: AllPennyStocks.com News

February 10, 2010
In the week when Canada hosts athletes from all over the world -- seeking gold, silver or bronze awards -- a Canadian mining firm is making waves in warmer climates with the discovery of rich deposits of silver and gold. Endeavour Silver Corporation (TSX:EDR) (AMEX:EXK), based out of the Olympic city of Vancouver, announced in the second week of February that it had picked up an option to buy the ancient San Sebastian silver-gold properties in Jalisco State in Mexico (another former Olympic site at that) from IMMSA (Grupo Mexico), one of that country’s largest miners.

Dating back to the mid-16th century, the historic San Sebastian del Oeste is located approximately 155 kilometres southwest of Guadalajara and 40 km northeast of Puerto Vallarta, accessible by paved and gravel roads. One small, high-grade, underground silver-gold mine, known as Santa Quiteria (75 tonnes per day), continues to operate in the district. The San Sebastian properties being acquired by Endeavour surround the Santa Quiteria mine and represent a new, district-scale, silver-gold exploration opportunity for the Company.

The 3,320-hectare property covers a low sulfidation, epithermal vein system in four mineralized vein sub-districts. Each vein cluster spans about three-by-three kilometres in area. One vein alone ranges up to 15 metres thick, and the Santa Quiteria mine averages about 280 grams per tonne (g/t) silver and 0.5 g/t gold over a three-to-four-metre width. This high-grade mineralized zone appears to extend into the San Sebastian properties both along strike and immediately down dip.

It’s obvious EDR believes in the potential of this property; acquiring a 100% interest in the San Sebastian properties from IMMSA means parting with cash payments totaling $2.75 million U.S., and another $2 million U.S. on exploration over three years.

EDR is a small-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. Since starting up in 2004, Endeavour has posted five consecutive years of growing silver production and resources. The organic expansion programs now underway at Endeavour's two operating silver mines in Mexico combined with its strategic acquisition program should help propel Endeavour to become the next premier mid-tier primary silver producer.

Volume in this up-and-coming stock may not have suggested a Hollywood opening; only about 180,000 shares traded on the day of the news about San Sebastian, inferring that EDR may be one of the best-kept secrets in the junior mining community. In any event, the news sent the price nearly 1% higher on February 9 to $3.42, still a bargain, given its early-January peak for the last 52 weeks of $4.57. EDR’s gulch was $1.37, back in the dog days of March 2009.

With Canada poised to strike gold many times over the next two weeks in Vancouver, this company that calls Vancouver home hopes to reach the “podium” just as often with small cap investors.

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