06:55 AM EST, 11/13/2024 (MT Newswires) -- Endeavour Silver Corp. ( EXK ) was at last look up near 0.7% in US premarket trade after it reported Wednesday an update on the 2024 exploration and evaluation initiatives at its 100% owned Pitarrilla project. It said engineering firms have been retained to commence technical studies for the basis of a future economic study.

Since acquiring the Pitarrilla project in July 2022, a statement noted, Endeavour has re-logged historic drill core to further understand the geology and mineralization controls of the deposit. Priority has been focused on identifying and defining numerous high-grade feeder structures that are interpreted to be the source of the silver, lead and zinc sulphide mineralization, and that extend through the high-grade manto, originally identified by SSR Mining. The company published a technical report dated November 21, 2022 outlining Mineral Resource Estimates.

Endeavour said it has refurbished an existing underground ramp and extended it over 1.3 kilometres. The ramp has been developed through the projected feeder structures and crosscuts have been made for drill stations to further interpret and test the high-grade zones and its feeder structures with core drilling at various angles. The ramp lies directly above the manto. This work confirmed management's interpretation and identified at least four structures that extend through the manto: Palmito vein, Danna vein, Victoria vein and Casas Blancas vein. During development of the ramp, additional mineralized structures were also identified, including the Norma vein, Danna hanging wall (HW) vein and Pena dike. Further work and interpretation are required to understand the significance and extent of these additional structures. In the ramp, the Pena dyke is the thickest structure with channel samples averaging 4.5 metres to 4.7 metres in width, oriented near perpendicular to strike. It added results from the 16 channel samples are presented.

Since August, the company said it had completed nine diamond drill holes, six from surface and three from underground drill stations. The three holes from underground were targeted to intersect the manto and multiple veins, while the holes drilled from surface were directed to intersect the Casas Blancas vein. It added all holes successfully intersected the targeted mineralization, supporting managements geological interpretation and the potential of underground bulk tonnage mining.

Based on the re-logging of historic drill holes resulting in re-interpreting the geologic model along with current activities, it is estimated that all four primary feeder veins have a vertical extent of approximately 600 to 800 metres and strike lengths approaching 700 metres; these veins appear open to depth. Danna is the largest vein with an approximate 800 metre vertical extent and a strike length approaching 500 metres. Thicknesses can vary but are typically three metres wide (ETW). This work is being performed to understand the potential for an underground bulk tonnage mining scenario, which would focus mining activities on the high-grade structures and manto.

"The combined favorable grades, strike length, vertical extent, and vein proximity, along with the manto's size and continuity, make the deposit attractive for underground bulk mining," said Don Gray, Chief Operating Officer. "Our exploration team's careful attention while relogging the historic drill results provided an alternative geologic model. Not only are ongoing drilling and underground development work confirming this model, but they are also validating our original decision to acquire Pitarrilla. We are quite confident Pitarilla will create significant shareholder value and prove to be Endeavour's next cornerstone asset."

The company also announced that SGS Canada Inc., SGS Bateman, JDS Energy & Mining, T Engineering, Stantec and SRK Consulting have been retained to begin preliminary work on the project. This work will include the metallurgical testing program with a comprehensive review of historical test data, flowsheet evaluation, mine design, rock mechanics evaluation, backfill testing and design, hydrology investigations, and tailing storage facility design. The work will build on the SSR Mining's extensive previous work and will be used to advance the project to the development stage, forming the basis for an economic study by the end of 2025.

EDR was up 2.1% on the TSX yesterday.