Silvercorp Metals Inc. has released positive results from a Preliminary Economic Assessment for its Condor gold project in Ecuador, revealing strong economic potential for the multi-metal deposit. The assessment, based on a Mineral Resource Estimate prepared according to NI 43-101 standards, outlines an after-tax net present value of $522 million at a 5% discount rate and an internal rate of return of 29% using base-case metal prices. The financial metrics improve substantially at near-spot prices, with the after-tax NPV rising to $1.56 billion and IRR increasing to 61%.
The project envisions a 13-year mine life producing payable gold, silver, zinc, and lead, with initial capital costs estimated at $292 million. The assessment projects a three-year post-tax payback period and an average life-of-mine all-in sustaining cost of $1,258 per ounce of gold net of by-product credits. The company's strategy focuses on creating shareholder value through generating free cash flow from long-life mines, organic growth through extensive drilling, ongoing merger and acquisition efforts, and commitment to responsible mining and ESG principles. The full technical details of the assessment are available in the company's official release at https://ibn.fm/ggjQY.
Silvercorp, a Canadian mining company with operations producing silver, gold, lead, and zinc, has demonstrated a history of profitability and maintains growth potential through projects like Condor. The positive PEA results come as the company continues to execute its development strategy while maintaining focus on responsible mining practices throughout its operations. The Condor project represents a significant development opportunity in Ecuador's mining sector, with the detailed economic assessment providing investors and stakeholders with comprehensive data on the project's potential viability.
The company maintains additional information and updates through its dedicated newsroom at https://ibn.fm/SVM, where interested parties can access ongoing developments related to the project and corporate activities. This assessment matters because it demonstrates the project's economic robustness at a time when mining companies face increasing capital costs and regulatory scrutiny. The strong financial metrics, particularly the substantial improvement at near-spot prices, suggest resilience against market volatility and provide confidence in the project's long-term viability.
The implications extend beyond Silvercorp's corporate growth to Ecuador's broader mining sector development, potentially attracting further investment to the region. The project's multi-metal nature provides diversification benefits, while the commitment to responsible mining practices addresses growing investor concerns about environmental and social governance. The assessment provides concrete data for stakeholders evaluating the project's contribution to Silvercorp's portfolio and the economic development potential for Ecuador's mining industry.
