Discovery Silver hits key milestone at Mexico project
Discovery Silver Corp. [DSV-TSXV, DSVSF-OTCQX] said Thursday it has submitted an environmental impact assessment (MIA) for its 100% owned Cordero silver project which is located in Chihuahua State, Mexico.
The company said the MIA is one of the principal permits required for the development of Cordero and encapsulates extensive social and environmental work programs completed by the company’s team in Mexico since 2020 with multiple reviews by third party consultants.
“The submission of our MIA represents a major milestone for the company,’’ said Discovery Silver CEO Tony Makuch. “The submission is supported by comprehensive environmental and social baseline assessment work and outlines detailed plans for the responsible and sustainable development of the Cordero project,’’ he said.
On Thursday, Discovery Silver shares were largely unchanged on the news easing 1.14% or $0.01 to 86 cents on volume of 145,830. The shares are currently trading in a 52-week range of $1.61 and 72 cents.
The company has said the project is expected to have significant positive direct and indirect socioeconomic impacts, employing an expected peak local workforce of 1,000 employees, and delivering direct tax revenues of US$1.2 billion.
Other impacts include US$4 billion of expected goods and services purchased locally within Mexico over the project’s projected 18-year mine life.
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 conjunction 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).