Discovery Silver sees two new mines among Porcupine, Ont. assets
Discovery Silver Corp. [DSV-TSXV, DSVSF-OTCQX] is putting the emphasis on exploration in a bid to optimize the potential of the Ontario gold mining assets it acquired from Newmont Corp. [NEM-NYSE] earlier this year.
The company is currently executing a 140,000-metre drill program, which is expected to be completed in 2026, it said in a report containing its financial and operating results for the third quarter and first nine months of 2025.
Discovery Silver moved to establish itself as a new Canadian gold producer with multiple operations in January, 2025. when it announced details of a definitive deal with Newmont to acquire the U.S. company’s 100% interest in its Porcupine operations based in and near Timmins, Ont., for US$425 million.
Discovery’s Porcupine Operations cover approximately 1,400 square kilometres in and near Timmins. Porcupine consists of the Hoyle Pond, Pamour and Hollinger mine properties, the Dome mine property and milling facility, and numerous near-mine and regional exploration targets.
The Complex includes the Borden Mine property and a large land position near Chapleau, Ontario. Current operations include the Hoyle Pond and Borden underground mines, with the Pamour open-pit project currently ramping up towards commercial levels of production. All mineralization is processed at Dome, including mineralization from Borden, which is trucked 190 kilometres to the mill. The Dome Mill is a 12,000 tonne-per-day processing facility that in recent years has operated at rates below optimal levels.
“A key component of the tremendous potential at Porcupine involves exploration,’’ said Discovery CEO Tony Makuch. “Last week, we issued our first exploration update, which included excellent results from resource conversion and expansion drilling at Hoyle Pond, Pamour, as well as encouraging results from Owl Creek, which confirm the presence of high-grade mineralization three kilometres to the west of Hoyle Pond,’’ Makuch said. “We also announced the commencement of drilling programs at Dome Mine and the TVZ Zone,’’ he said. “Dome and TVZ have to potential to become two new mining operations that could substantially grow production and value creation in Timmins.’’
With $341.5 million in cash at September 30, 2025, and the $250 million RCF, the company is well capitalized to fund growth and optimization plans for Porcupine, and current expenditure plans at the company’s other key asset, the Cordero silver project, in Chihuahua State, Mexico.
Meanwhile, the company reported gold production of 63,154 ounces in the third quarter, up from 50,552 ounces in the second quarter of 2025. A key highlight of the third quarter was cash flow, with net cash from operating activities of $153.5 million and free cash flow of $86.8 million. Revenue in the third quarter of 2025 totaled $237 million, resulting from gold sales of 66,200 ounces at an averaged realized gold price of US$3489 per ounce.
Year to date production totaled 113,706 ounces.
Discovery shares rose 4.8% or 32.5 cents Thursday to $7.05. The shares trade in a 52-week range of $6.81 and 65 cents.