Silver Tiger Metals (TSXV: SLVR) finally received the required permits and approvals from the Mexican Federal Environmental Department for the construction of their El Tigre Stockwork silver-gold project in the state of Sonora, Mexico.
The approval, which permits the development of the open pit mining plan, represents one of the first approvals granted by the Mexican government for open pit mining in years, suggesting a resumption of prior policies from the government is finally underway.
The El Tigre project, based on a 2024 preliminary feasibility study completed by Silver Tiger, suggests that the project has a net present value of US$222 million on an after-tax basis, alongside an internal rate of return of 40% and a payback period of just 2.0 years.
That estimate, conducted at base case silver pricing of $26 an ounce, outlines plans for an open pit mining operation with a life of mine of ten years, with estimated annual production of 4.8 million ounces of silver equivalent. Initial capital costs are estimated at just $86.8 million, including contingencies of $9.3 million, while total cash costs are estimated at $12.00 an ounce of silver equivalent. All in sustaining costs are expected to come in slightly higher at $14.00 per silver equivalent ounce.
Silver Tiger has indicated that it is now ready to advance the project towards construction, with prior estimated suggesting the mine will take 18 months to construction.
Silver Tiger Metals last traded at $0.71 on the TSX Venture.
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