Discovery Silver (TSX: DSV) started off the year with a steady performance at its Porcupine operations, churning out 60,269 ounces of gold during the first quarter. While the output represents a dip from the 66,718 ounces produced in the final months of 2025, the company is signaling that the quieter start was largely by design.
Management remains tied to its full-year production target of 260,000 to 300,000 ounces. The expectation is for a back-weighted year, with volume anticipated to climb as mill throughput ramps up and the Hollinger open pit returns to the fold.
Financially, the company benefited from a favorable pricing environment, realizing an average gold price of $4,908 per ounce during the period from the sale of 59,445 ounces.
The quarterly results were a tale of two mines. Performance at Hoyle Pond was a bright spot, where gold production surged 44% over the previous quarter. This was fueled by a significant jump in average ore grades. Conversely, the Borden mine saw lower planned grades due to the specific sequence of mining, which pulled against the gains seen elsewhere.
Processing also faced some friction. The Dome Mill handled roughly 700,000 tonnes of material, but mechanical availability in the crushing circuits limited overall capacity. Despite these bottlenecks, the mill managed to hit its operating capacity of over 12,000 tonnes per day on several occasions during the quarter.
Beyond the mill, the company has been active on the expansion front. The quarter was marked by the acquisition of Glencore’s Kidd operations, a move intended to bolster Discovery’s processing and tailings infrastructure. The integration of these assets is expected to provide more breathing room for future growth at Hoyle Pond and other regional projects.
‘The addition of these assets will deliver many benefits to Discovery, including providing opportunities to significantly increase processing and tailings capacity and add extremely valuable infrastructure that can facilitate the development of TVZ and support the future expansion of Hoyle Pond and Pamour,” commented CEO Tony Makuch.
With a stockpile of 1.3 million tonnes of ore ready for processing and mining rates at Hollinger already exceeding 2,000 tonnes per day by the end of March, the company is banking on a more productive second half as it works to achieve guidance.
Discovery Silver last traded at $10.13 on the TSX.
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