Silvercorp Metals Inc. has released a Preliminary Economic Assessment for its Condor gold project in Ecuador, indicating strong potential for a low-cost underground mining operation. The Canadian precious metals producer, which operates mines in China, is expanding its presence in Ecuador with this project alongside its El Domo copper-gold mine currently under construction. The PEA results suggest the Condor project could deliver significant financial returns while operating at competitive costs.
The assessment estimates the Condor project would produce over 100,000 ounces of gold annually over a 13-year mine life. The all-in sustaining cost is projected at $1,258 per ounce net of by-product credits, positioning the operation favorably against industry benchmarks. At a base case gold price of $2,600 per ounce, the PEA reports an after-tax net present value of $522 million and an after-tax internal rate of return of 29%. These financial metrics improve substantially at higher gold prices, reaching $1.5 billion in NPV and 60% IRR at $4,300 per ounce.
Silvercorp's expansion into Ecuador represents a strategic diversification beyond its established operations in China. The company's growth projects in Ecuador, including the El Domo copper-gold mine, are funded by its strong balance sheet and cash flow from its Chinese mines. The company recently reported one of its strongest quarterly performances from its China operations, providing financial stability for international expansion. More information about the El Domo project can be found at https://ibn.fm/fugAc.
The Condor project's development timeline aligns with Silvercorp's broader growth strategy in South America. While the El Domo mine is expected to begin production in 2027, the Condor project represents additional production capacity that could further establish Silvercorp as a significant precious metals producer in the region. The company's ability to fund these developments internally reduces reliance on external financing and demonstrates operational strength. Details about the company's recent performance are available at https://ibn.fm/Ff3L3.
Preliminary Economic Assessments provide initial estimates of a project's economic viability and are subject to further technical studies and regulatory approvals. The positive results from the Condor project assessment suggest promising potential for development, though actual outcomes may vary based on future studies, market conditions, and operational factors. The project's underground development approach aims to minimize environmental impact while maintaining cost efficiency, reflecting evolving industry standards for responsible mining practices.
