Endeavour Silver Corp is forecasting a more than 20 percent rise in silver production this year over 2008 to 2.7-2.9 million ounces, and expects approximately 10,000 oz gold as a by-product.

Like 2008, the first two quarters of silver production should be relatively flat year-on-year, as the new capital projects get underway. However, silver production should jump in the third and the fourth quarter of 2009, as the three new mines now under development at Guanacevi in Mexico are expected to enter into production this year.

At Guanacevi, after four years of rising production from the Porvenir mine, management plans to bring into production the Alex Breccia, Santa Cruz, and Porvenir Dos ore-bodies in 2009.

As a result of the 2008 capital programs and the depreciation of the Mexican peso relative to the US dollar, the cash cost of production fell to an estimated US$7.50 per oz in the fourth quarter of 2008.
Endeavour expects cash costs to average US$7.50-$8.00 per oz this year and to decline further as production ramps up by the end of 2009.

Assuming the average price of silver is US$12.50-$13.00 in 2009, Endeavour should generate US$12 – $16 million in mine operating cash-flow this year.

In 2009, Endeavour plans to invest up to US$16.8 million in capital projects, with the focus on Guanacevi, where US$14.9 million has been allocated. Approximately US$1.9 million is to be invested at Guanajuato to develop certain of the newly discovered mineralized zones and expand the plant to 600 tonnes per day.

Upon completion of the 2009 expansion projects, the Guanacevi mines production is scheduled to reach 1000 tpd, and the Guanajuato mines production to reach 600 tpd.