Endeavour in silver at San Pedro (October 13, 2008)

Vancouver — Endeavour Silver (EDR-T, EXK-x) continues to hit high silver grades at its San Pedro properties, about 7 km northwest of its Guanacevi mine in Durango state, Mexico.

Endeavour cut as much as 0.3 metre grading 1,295 grams silver per tonne, 0.45 gram gold, 1.46% lead and 2.95% zinc from about 156 metres depth in hole NB2-1. An intercept in hole NB1-2 returned 2 metres grading 810 grams silver, 0.2 gram gold, 2.32% lead and 4.01% zinc starting at 120 metres.

On news of the drill results, Endeavour’s share price climbed 28 to close at $2.49.

The latest eight holes showing mineralization add to impressive mid-summer results at San Pedro. Endeavour hit a whopping 1.2 me-of tres grading 6,680 grams silver, 11.2 grams gold, 1.49% lead and 2.52% zinc starting at 249 metres in hole EPS3-1.

With an eye cast on expansion of silver production, which rose to 2.1 million oz. in 2007 from 350,000 oz. in 2004, Endeavour expects to calculate a resource for San Pedro by the end of the year.

As it stands, Endeavour holds reserves of 1.3 million proven and probable tonnes grading 349 grams silver and 0.67 gram gold. It has a further 1.8 million tonnes grading 242 grams silver and 0.84 gram gold in the measured and indicated categories.

Most of the company’s production comes from the Guanacevi mine. It produced 1.9 million oz. silver and 4,000 oz. gold at a cash cost US$8.16 per oz.netof gold in 2007.

Its other operating mine, Guanajuato, about 600 km southeast of Guanacevi, produced 228,000 oz. silver and 2,400 oz. gold in 2007. Although cash costs jumped to US$20 per oz. in 2007 — largely due to upgrades and rehabilitation of underground working there — Endeavour expects costs to decline in 2008. Taking gold credits into consideration, 2006 cash costs were US$5.82 per oz.

Endeavour CEO Bradford Cooke remains confident on that score. In September, he said in a statement that Guanajuato in particular was doing better than planned in increasing production for the third quarter, and that cash costs continue to decline as production rises.

Endeavour has about 50 million shares issued.