Silvercorp Metals Reports Positive Preliminary Economic Assessment for Condor Gold Project in Ecuador

Silvercorp Metals Inc. reported results from a Preliminary Economic Assessment for its Condor gold project in Ecuador, based on a Mineral Resource Estimate prepared in accordance with NI 43-101 standards. The PEA outlined an after-tax NPV (5%) of $522 million and IRR of 29% at base-case metal prices, with these figures rising substantially to an after-tax NPV (5%) of $1.56 billion and IRR of 61% at near-spot prices. The project demonstrates robust economics with a projected 13-year mine life producing payable gold, silver, zinc, and lead, initial capital costs of $292 million, a three-year post-tax payback period, and an average life-of-mine all-in sustaining cost of $1,258 per ounce of gold net of by-product credits.

The significance of these results lies in their demonstration of the Condor project's economic viability and potential value creation for shareholders. The substantial increase in projected value at near-spot prices highlights the project's sensitivity to current market conditions and suggests significant upside potential if metal prices remain strong. The relatively modest initial capital requirement of $292 million combined with the three-year payback period indicates manageable financing requirements and rapid return on investment, making the project attractive to potential investors and financiers.

These PEA results represent a crucial milestone in the development of the Condor project, providing preliminary economic validation that supports advancing the project through subsequent development stages. The positive financial metrics strengthen Silvercorp's position in the mining sector and demonstrate the company's ability to identify and develop valuable mineral assets. The project's multi-commodity production profile, including gold, silver, zinc, and lead, provides natural diversification against price volatility in any single metal market, potentially enhancing long-term stability and profitability.

The announcement matters because it provides concrete economic data that investors can use to assess the project's potential contribution to Silvercorp's overall value proposition. The strong IRR and NPV figures suggest the Condor project could become a significant contributor to the company's production profile and financial performance. For more detailed information about the company's activities and announcements, investors can access the company's newsroom at https://ibn.fm/SVM. The full press release containing complete PEA results and technical details is available at https://ibn.fm/ggjQY for those seeking comprehensive information about the assessment methodology and assumptions.

The implications of this announcement extend beyond immediate financial metrics to broader strategic considerations for Silvercorp Metals. The successful advancement of the Condor project supports the company's growth strategy and demonstrates execution capability in bringing projects through early-stage development. The positive economic assessment may facilitate future financing discussions, partnership opportunities, and regulatory approvals necessary for project advancement. As mining projects typically require substantial capital investment and face numerous development hurdles, this positive PEA represents an important validation of technical and economic assumptions that will guide future decision-making regarding the Condor project's development timeline and funding requirements.