Silverco Mining (TSX-V:SICO) has released a preliminary economic assessment (PEA) for its producing La Negra Mine in Querétaro, Mexico, outlining an 8.2-year mine life.
The study estimates an after-tax net present value (NPV) of US$329 million ($461.93 million), using a 5% discount rate and a base-case silver price of US$50 per ounce.
The PEA also forecasts a 131% after-tax internal rate of return, a two-year payback period, and US$438.8 million in undiscounted after-tax cash flow.
Average annual production is projected at 4.1 million ounces of silver equivalent, with about 65% of revenue derived from silver. Life-of-mine all-in sustaining costs average US$24.86 per payable silver equivalent ounce.
Initial capital is estimated at US$20.9 million, primarily for new mining equipment, dry-stack tailings infrastructure, and underground upgrades.
CEO Mark Ayranto says the study provides a low-capital path towards returning La Negra to historical production levels.
“La Negra has a long history of reliable silver production, and this PEA lays out a clear, low-capital path to return to historic production levels,” Ayranto says.
The mine plan targets steady-state throughput of 2,500 tonnes per day from the second half of 2027, following the arrival of a new mining fleet and completion of the dry-stack tailings project.
A supporting mineral resource estimate contains 15.23 million tonnes (Mt) of indicated resources @ 201 grams per tonne silver equivalent (AgEq) and 2.26Mt of inferred resources @ 174g/t AgEq.
The PEA is preliminary, with inferred resources comprising about 21% of scheduled tonnage. La Negra currently has no mineral reserves, and there is no certainty the assessment will be realised.
Silverco says it has also begun a 15,000m exploration program targeting ‘high-grade’ extensions.
Silverco Mining is a Canadian silver producer that owns La Negra and the past-producing Cusi Silver Complex in Mexico.
Write to France Pinzon at Mining.com.au
Images: Silverco Mining
