Silvercorp Metals Announces Preliminary Economic Assessment for Condor Gold Project in Ecuador

Silvercorp Metals Inc. (NYSE-A/TSX: SVM) has reported results from a Preliminary Economic Assessment for its Condor gold project in Ecuador, highlighting the potential for a low-cost underground development. The assessment indicates the project could produce over 100 thousand ounces of gold annually over a 13-year mine life, with an all-in sustaining cost of $1,258 per ounce net of by-product credits. This represents a significant expansion for the Canadian precious metals producer beyond its existing productive mines in China.

The financial metrics outlined in the PEA demonstrate strong economic potential. At a base case gold price of $2,600 per ounce, the project shows an after-tax net present value of $522 million and an after-tax internal rate of return of 29%. These figures increase substantially to $1.5 billion and 60% respectively at a gold price of $4,300 per ounce. The company's growth projects in Ecuador, including the El Domo copper-gold mine currently under construction (https://ibn.fm/fugAc), are funded by Silvercorp's strong balance sheet and cash flow from its Chinese operations, which recently reported one of their strongest quarterly performances (https://ibn.fm/Ff3L3).

The Condor project represents Silvercorp's second development initiative in Ecuador, complementing the El Domo mine expected to begin production in 2027. The PEA results emphasize the project's potential scale and economics as a low-cost underground gold operation. This expansion into Ecuador marks an important strategic move for the company as it diversifies its geographic presence beyond its established Chinese mining camps. The assessment provides preliminary validation of the project's viability and offers investors insight into the company's growth pipeline in a region gaining increasing attention from mining companies.

Silvercorp's ability to fund these development projects through cash flow from existing operations provides financial stability as it pursues expansion. The company maintains its corporate information at https://silvercorpmetals.com/welcome. The Condor project's development timeline and production profile position it as a potential contributor to Silvercorp's production growth in the coming decade, with the underground development approach potentially offering operational advantages in the region's mining landscape.