Discovery Silver (TSX-V: DSV) on Tuesday announced the results of a Preliminary Feasibility Study (“PFS”) on its 100% Proved Cordero Silver Project located in the state of Chihuahua, Mexico.
Read: Discovery Silver Announces Excellent Economics for its Cordero Project in Mexico
The company noted that the study showed “excellent” economics for the project, with a 5% after-tax NPV basis of $1.2bn and an IRR of 28% (Ag – $22.00/oz, Au – $1.600 /oz, Pb – $1.00/lb and Zn – $1.20/lb).
Annual production over the life of the mine is expected to average 33 Moz AgEq. Over years 5 to 12, average production will be 40 Moz AgEq, with a peak production of 52 Moz AgEq in year 11.
“These production levels position Cordero as one of the largest primary silver mines in the world,” the company said in a statement.
Discovery also said that, with the PFS, the mineral resource estimate for Cordero has been updated to include an additional 67,800m of drilling, adding that measured and indicated resources have increased by 35% to 1,132 Moz AgEq, And the estimated resources have increased. 40% to 119 Mosaic AgEq.
Tony Makuch, CEO, said: “We are very pleased with the results of our pre-feasibility study. The PFS uniquely positions Cordero in the silver development sector with a long mine life of 18 years and 35 Moz AgEq in the first 12 years of the mine. This represents an increase of approximately 40% in total ounces produced compared to our 2021 PEA.
“Despite significant cost increases across the industry over the past year, cost savings from streamlined process design and improved metallurgical performance have resulted in a highly capital efficient project with excellent margins.”
“We are now looking forward to taking the project towards feasibility studies and unlocking additional value through the many optimization opportunities we have already identified,” he added.
Read: Discovery Silver excellent silver-gold results from second phase of drilling at Cordero
Discovery’s flagship project is the 100% well-known Cordero Project, one of the world’s largest silver reserves. PFS summarized in today’s release that Cordero has the potential to become a highly capital efficient mine that offers a combination of margin, size and scalability.