Silvercorp Metals (TSX: SVM) has released its plans for the construction of the El Domo project in Ecuador, which it obtained via the acquisition of Adventus Mining last year. Production at the project is expected to commence by the end of 2026.
Silvercorp has set a budget of $240.5 million for the construction of the new mine, which is slightly lower than the $247.6 million estimate included within a 2021 feasibility study. The reduction follows design optimization efforts on tailings storage facilities, the waste dump, and the open pit mine design.
Project costs have been divided into five categories for bidding by contractors, with direct costs in fiscal 2026 expected to total $68.2 million, while total costs, including taxes, are expected to come in at $102.0 million this year. For fiscal 2027, direct costs are estimated at $91.2 million, with total costs pegged at $138.4 million.
To date, the packages for site preparation and processing plant construction and equipment have been awarded, while the packages associated with open pit mining and stripping as well as site infrastructure have yet to be awarded.
Construction of the required power lines to site meanwhile are expected to begin in May and take 13-17 months to complete, with diesel power generators for use as standby and emergency power already having been sourced. Stripping of the open pit is currently scheduled to begin in August 2025.
The El Domo mine is expected to produce 11,000 tonnes of copper, 26,000 ounces of gold, 12,000 tonnes of zinc, 488,000 ounces of silver and 500 tonnes of lead annually over a nine year mine life once operational.
Silvercorp Metals last traded at $5.01 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
