Since buying the undertaking in 2019, Discovery Silver has targeted on the underexplored higher-grade areas throughout the bigger mineralized system, with the target of defining and finally creating what it views as a high-margin undertaking with scale.
In keeping with the corporate, its flagship silver undertaking boasts “glorious economics”, together with a base case after-tax NPV (utilizing a 5% low cost charge) of $1.2 billion and an IRR of 38%, as proven within the PEA report.
The big-scale asset would have a 16-year mine life with common annual manufacturing of 26 Moz AgEq at an AISC of $12.35/oz AgEq.
Preliminary improvement capex for the undertaking is $368 million, which provides a an NPV-to-capex ratio of three.2x. The post-tax payback interval is 2 years underneath the bottom case situation.
“With annual AgEq manufacturing averaging greater than 26 Moz over a 15-plus-year mine life, we consider this PEA clearly positions Cordero as a Tier 1 silver asset,” Taj Singh, President and CEO of Discovery Silver, commented in a information launch.
“This spectacular scale of manufacturing is achieved by way of modest improvement capex of $368 million and returns glorious margins with AISC averaging lower than $12.50/AgEq oz over the lifetime of the mine. These prices spotlight the advantages of current native infrastructure, glorious metallurgy, and a straight-forward open-pit mine with glorious grades and a low strip ratio,” he added.
Importantly, the metrics demonstrated within the PEA are supported by a mine plan with greater than 99% of tonnes processed within the measured and indicated class, and a easy and traditional course of design based mostly on the corporate’s metallurgical testwork program earlier this 12 months.
In keeping with Singh, this would supply his firm with a “large head begin” because it appears to be like forward to the supply of a Prefeasibility Research (PFS) on Cordero in 2022.
Shares of Discovery Silver rose 4.4% by 12:20 p.m. ET, giving the Toronto-based silver miner a market capitalization of C$614.5 million.