Silverco Mining (TSXV: SICO) has released a preliminary economic assessment for its producing La Negra Mine in Mexico, outlining an after-tax net present value of US$329 million at a 5% discount rate.
The base case carries an after-tax internal rate of return of 131% and a 2-year payback, with undiscounted after-tax free cash flow of US$438.8 million. Those figures assume silver at US$50 per ounce, copper at US$4.50 per pound, lead at US$0.88 per pound and zinc at US$1.30 per pound.
At spot prices as of September 17, including silver at US$65 per ounce, the after-tax NPV rises to US$531.9 million.
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The study outlines an 8.2-year underground operation feeding the existing 2,500 tonne-per-day flotation mill, which produces lead-silver, copper-silver and zinc concentrates. Steady-state throughput is slated to begin in the second half of 2027. Average annual output is pegged at 4.1 million silver equivalent ounces, with silver accounting for roughly 65% of revenue.
That average is weighted toward the back half of the mine life. Silver feed grades are forecast at 71 g/t in 2027 before climbing above 145 g/t from 2031 onward, lifting annual output from 2.3 million silver equivalent ounces to roughly 5.5 million ounces. Part of that stems from the high-grade La Negra zone being scheduled late in the plan while historic workings are surveyed, which the company views as an opportunity to pull production forward.
With the mine and mill already built, initial capital comes in at US$20.9 million, largely covering a new mining fleet and a dry-stack tailings facility. Sustaining capital, including closure, totals US$82.0 million.
Cash operating costs are estimated at US$15.70 per payable silver equivalent ounce, while all-in sustaining costs average US$24.86 per ounce on a co-product basis. On a by-product basis, AISC falls to US$11.41 per ounce of silver.
The study is built on an updated mineral resource estimate.
- Indicated resources of 15.23 million tonnes grading 201 g/t silver equivalent (106 g/t silver, 0.59% lead, 1.81% zinc and 0.47% copper)
- Containing 98.2 million silver equivalent ounces (51.9 million ounces silver, 199 million pounds lead, 608 million pounds zinc, and 158 million pounds copper)
- Inferred resources of 2.26 million tonnes grading 174 g/t silver equivalent (92 g/t silver, 1.00% lead, 1.92% zinc and 0.21% copper)
- Containing 12.6 million silver equivalent ounces (6.72 million ounces silver, 49.7 million pounds lead, 95.7 million pounds zinc, and 10.6 million pounds copper)
“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,” said President and CEO Mark Ayranto, adding that the company expects “a meaningful step-up in throughput in 2027.”
The new Epiroc fleet is due through the fourth quarter of 2026 and the first quarter of 2027, with the filtered tailings facility targeted for completion in the first half of 2027. A 15,000-metre drill program, the first large-scale exploration campaign at the property in two decades, is also underway.
Silverco also plans to restart its Cusi Silver Complex in the second half of 2026, part of a stated goal to reach 10 million silver equivalent ounces of annual production within three years.
Silverco Mining last traded at $9.82 on the TSX Venture.
