With the completion of the acquisition of Adventus Mining, and the recent receipt of regulatory approvals, Silvercorp Metals (TSX: SVM) this morning announced that it has begun the process for construction at the El Domo copper-gold project in Ecuador.
In connection with the decision, the company has hired the former manager of B2Gold Nunavut, Jaymes Dircks, as the general manager of the Ecuadorian subsidiary that holds El Domo, whom will lead the construction of the project. A mining engineer has also been hired that has experience in constructing large scale open pittable copper mines.
A feasibility study completed in 2021 by Adventus Mining outlined a ten year mine life for the El Domo project, based on an open pit design. The study outlined average annual production of 21,390 tonnes per annum of copper equivalent, resulting in a net present value of US$259 million, based on copper price of US$3.31 per pound, and a gold price of US$1,630 an ounce.
Going forward, Silvercorp has indicated that it intends to conduct further metallurgical test work to improve flow recoveries following a review of metallurgical studies conducted to date for the project, with the company operating under the belief it can improve recovery rates. Silvercorp also intends to focus on advancing a power supply for the mine, completing detailed engineering work, and reviewing and selecting vendors for the construction of the project.
Silvercorp Metals last traded at $5.30 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.
