Silvercorp Metals posts construction plan for El Domo Project, Ecuador
Silvercorp Metals Inc. [TSX: SVM; NYSE: SVM] reported its construction budget for the development of the El Domo Project, Ecuador. The company is targeting bringing the project into production by the end of 2026 at an estimated cost of $240.5 million, comparable to the $247.6 million estimate in the feasibility study (NI 43-101 Technical Report – Feasibility Study – Curipamba El Domo Project, Central Ecuador) published in 2021.
As discussed in its January 7, 2025 press release, the company has been building upon the 2021 Feasibility Study, with work to date focusing on Advanced Detailed Engineering for an optimized design with Klohn Crippen Berger (KCB) for the Tailings Storage Facilities (TSF), Saprolite Waste Dump (SWD), and non-contact water channels; optimized open pit mine design for mining, stripping, and scheduling, and coordinated the mining schedule with ongoing tailings dam construction by internal mining engineers; and detailed engineering design for the process plant and equipment selection by Yantai Jinpeng Mining Machinery Co., Ltd and Yantai Orient Metallurgical Design and Research Institute Co., Ltd, a China certified Engineering Design, Manufacture and Construction Group which has provided design, equipment, and construction for mining process plants in China and internationally.
Advanced Project Infrastructure for an optimized designs for a new public bypass road and internal operational haul roads; executed a powerline contract with the Ecuadorian state-owned power company (CNEL EP) and initiated bidding process for contractor selection; and permitting and sourcing for standby diesel power generators for the dry season, as climate change has impacted the power supply situation in Ecuador.
Produced Project Materials Balance for bid package 1; Construction of temporary camp, TSF to starter dam phase, SWD, non-contact water channels, internal haul roads, and preparation of the process plant site and permanent camp site; Bid Package 2: Open Pit Mining, stripping and ongoing tailings dam raises using stripped waste rocks; Bid Package 3: Construction of the process plant, tailings discharge and reclaim water systems, water treatment plants, permanent camp, and other site infrastructures; Bid Package 4 for the construction of the Power line; and Bid Package 5 for the diesel power generators.
The commercial contract for Package #1 was awarded in January 2025 to CRCC 14 Bureau Group Co. Ltd. (CRCC 14), a company with a regional headquarters in Quito, and over ten years operating experience in Ecuador building infrastructure in open pit mines and in the heavy civil construction sector. The construction of the power line is expected to be initiated in May 2025 and completed in 13-17 months. The company has also sourced diesel power generators as standby and emergency power to satisfy Ecuador market conditions. The standby diesel power generators are expected to be in operation before the completion of the process plant.
Compared to the cost estimate of $247.6 million in the 2021 Feasibility Study, differences are: direct costs reduced by $32.6 million to $159.5 million from $192 million, due to savings by employing a Unit Cost contract and detailed engineering; VAT reduced by $5.9 million to $19.1 million from $25 million due to reduction of direct costs; contingency increased by $9.9 million to $31.9 million from $22.0 million; and owner’s costs and burn rates increased by $20.0 million to $30.0 million from $10 million.