February 1, 2011 / 2:57 PM / 7 years ago

UPDATE 1-Endeavour Silver sets 2011 capex for Mexico properties

* Plans to drill 41,400 meters in 175-holes in 2011

* Will start surface exploration drilling at San Sebastian

* Says identifies high-grade silver/gold mineralized zones

Feb 1 (Reuters) - Canada’s Endeavour Silver Corp (EDR.TO) said it plans to spend $9.2 million in 2011 on its exploration and drilling program in Mexico, and expects to drill more in 2011 than last year.

The Vancouver-based mineral company said it plans to drill 47,000 meters in 175-holes in 2011 to test multiple exploration targets within three of the mining districts where it is currently active in Mexico.

It also plans to conduct drilling in any new targets it may acquire during the year.

Last year the company — which owns and operates two high grade, underground, silver-gold mines in Mexico — drilled about 41,400 meters in 148 drill holes.

Endeavour, which said last week that it expects costs to come down in 2011 and forecast strong production growth, also said it will commence surface exploration drilling on the San Sebastian properties, which were acquired in February last year, in Jalisco state, Mexico. [ID:nSGE70I0CP]

The company said surface sampling has identified numerous high-grade silver and gold mineralized zones at San Sebastian that will be tested in 2011.

Endeavour shares, which have gained 85 percent in value over the past one year, were up 3 percent at C$6.38 on Tuesday on the Toronto Stock Exchange.

Reporting by Isheeta Sanghi in Bangalore; Editing by Prem Udayabhanu isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net

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