Discovery Silver eyes mine construction in Mexico

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Discovery Silver Corp. [DSV-TSXV, DSVSF-OTCQX] has released an update on its 100% owned Cordero silver project which is located in Chihuahua State, Mexico.

“We have made excellent progress so far this year on the critical de-risking items for Cardero – surface rights, water, power, permitting, and the feasibility study – as we systematically advance Cardero towards a construction decision,’’ said Discovery Silver President and CEO Tony Makuch.

“We recently secured surface rights covering the proposed open pit and key infrastructure locations at the project. We have also identified the potential sources of water for the project and recently acquired a significant volume of water rights. We received two power studies earlier this year, confirming there is sufficient capacity in the existing grid to supply the project for mine operations and establishing the work required to access the grid,” Makuch said.

“We are putting the final touches to our Environmental Impact Statement, a significant step in the permitting process for Cordero and the culmination of detailed social and environmental assessment work completed by the company.”

Cardero is supported by a strong balance sheet of $45 million. Since acquiring the project in August, 2019, Discovery’s focus has been on leveraging the under-explored higher-grade zones within the larger mineralized system with the objective of defining a high-margin project with scale.

In January, 2023, the company released a pre-feasibility study incorporating close to 300,000 metres of drilling, as well as additional metallurgical testwork and engineering studies. The study outlines Cordero’s potential to become the become one of the biggest silver-producing mines globally.

The study envisages an 18-year mine life with average annual production of 33 million ounces of silver equivalent (AgEq) at an average all-in-sustaining cost (AISC) of US$12.82 an ounce in years one to 12. The initial capital expenditure is forecast to be US$455 million.

The company has said the feasibility study is already being advanced and is expected to be completed in the first quarter of 2024.

In conjuction with the pre-feasibilty study, the mineral resource estimate for Cordero was updated to incorporate an additional 67,800 metres of drilling. The measured and indicated resource now stands a 1,132 Moz AgEq at an average grade of 49 g/t AgEq. (716 million tonnes of 20 g/t silver, 0.06 g/t gold, 0.29% lead and 0.54% zinc).

On top of that is an inferred resource of 167 million ounces of AgEq at an average grade of 35 g/t AgEq (145 million tonnes grading 14 g/t silver, 0.02 g/t gold, 0.23% lead and 0.38% zinc).

On Thursday, Discovery Silver shares were trading at 85.5 cents in a 52-week range of $1.61 and 72 cents.

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