Trading
Symbols:
SVM (TSX/NYSE American)
SRL (TSXV), SRLZF (OTCQB)
VANCOUVER, BC, Jan. 7, 2025
/PRNewswire/ - Silvercorp Metals
Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE
American: SVM), its Ecuadorian subsidiary Curimining S.A.
("Curimining"), and Salazar Resources Limited ("Salazar", together
with Silvercorp and Curimining, the "Companies"), are pleased to
provide a progress report on the El Domo Project (the "Project").
The Companies are still targeting to bring the Project into
production in the second half of 2026 and have recently
awarded the earthworks contract to a large international
mining contractor with over 10 years of experience working in
Ecuador (see below).
Progress Report
Since Silvercorp completed its acquisition of Adventus Mining
Corporation ("Adventus") by way of a plan of arrangement on
July 31, 2024, the Companies
have made substantial progress in advancing the Project, highlights
include:
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a.
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Streamlined the
Ecuadorian Operations: Optimized the organization chart by
moving the management team and personnel to the El Domo and Condor
project sites from the Quito office, and by initiating the winding
down or transfer of most of the non-core regional projects.
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b.
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Continued Community
Engagement: Maintained open lines of communication with local
communities and government representatives, keeping them informed
of changes in the Project ownership and leadership, as well as on
construction plans.
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c.
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Advanced Detailed
Engineering:
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a)
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Reviewed the previous
technical work, including interviewing all consulting firms to
confirm all previous studies and detailed engineering designs for
optimization;
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b)
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Optimized design with
Klohn Crippen Berger (KCB) for the Tailing Storage Facilities
(TSF), starter dam and impound area, Saprolite Waste Dump (SWD),
and non-contact water channels;
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c)
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Selected a new site for
the process plant so that its preparation will provide the required
non-acid generating rocks for the construction of the starter dam
of the TSF, while minimizing trucking distances;
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d)
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Optimized open pit mine
design for mining, stripping, and scheduling, and coordinated the
mining schedule with ongoing tailings dam raises using stripped
waste rock;
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e)
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Commenced metallurgical
test work on selective flotation – potentially leading to higher
recoveries and improved payabilities (see Silvercorp's August 21,
2024 press release); and
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f)
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Started Detailed
Engineering Design (EP) for the process plant, including engaging a
consulting engineer, equipment selection, purchasing and detailed
engineering drawings.
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d.
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Advanced Project
Infrastructure:
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a)
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Optimized designs for a
new public bypass road and internal operational haul
roads;
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b)
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Executed a powerline
contract with the Ecuadorian state-owned power company (CNEL EP).
The construction contractor will be selected once the updated
engineering design is completed; and
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c)
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Commenced permitting
for standby diesel power generation for the dry season, as climate
change has impacted the power supply situation in Ecuador.
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e.
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Produced Project
Materials Balance: including total cubic metres of
cutting, filling, cement, and amount of high-density polyethylene
material, and bill of quantities for the major construction
projects of the mine and process plant, which are divided into
three bidding packages:
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a)
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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;
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b)
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Bid Package 2: Mining,
stripping and ongoing tailings dam raises using stripped waste
rocks; and
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c)
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Bid Package 3:
Construction of the process plant, tailings discharge and back
water systems, water treatment plants, permanent camp, and other
site infrastructure.
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f.
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Adopted "Unit Cost"
Criteria (as compared to "Open Book") for potential
contractors to bid on the three construction packages outlined
above. For example, "Unit Cost" for blasting or cutting one cubic
metre of rock or saprolite, then loaded and trucked to, within two
kilometres, shall include all personnel and management cost, plus
any profit contractor intends to have for the work. Monthly total
payments will be based on measured cubic metres of
cutting.
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Award of Commercial Contract for Bid Package 1
The Companies invited three mining contractors with operations
at Ecuadorian mining or construction sites, and the forth
contractor which Curimining had engaged previously, and the
Companies received a total of four bids based on the "Unit Cost"
criteria.
After interviews, visiting their current operating sites in
Ecuador, and considering the total
bid price, the Companies have awarded Bid Package 1 to CRCC 14
Bureau Group CO., Ltd., 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 sectors.
The Companies plan to award Bid Packages 2 and 3 in Q1 2025 to
ensure the project stays on schedule to start production in the
second half of 2026.
About Silvercorp
Silvercorp is a Canadian mining company producing silver, gold,
lead, and zinc with a long history of profitability and growth
potential. The Company's strategy is to create shareholder value by
1) focusing on generating free cashflow from long-life mines; 2)
organic growth through extensive drilling for discovery; 3) ongoing
merger and acquisition efforts to unlock value; and 4) a long-term
commitment to responsible mining and ESG. For more information,
please visit our website at www.silvercorpmetals.com.
About the El Domo Project
El-Domo is a high-grade copper-gold project located in
Central Ecuador, approximately 150
km northeast of the major port city of Guayaquil – about a 3-hour
drive. The project concessions span low-lying hills and plains
between 300 to 900 masl. El Domo is a flat-lying tabular shaped VMS
deposit, with mineralization beginning at 30 metres from surface
and dimensions of approximately 800 x 400 metres. Three
well-maintained gravel roads provide direct site access to El
Domo.
For further information:
Silvercorp Metals Inc.
Lon Shaver
President
Phone: (604)
669-9397
Toll Free 1(888) 224-1881
Email: investor@silvercorp.ca
Website:
www.silvercorpmetals.com
CAUTIONARY DISCLAIMER - FORWARD-LOOKING
STATEMENTS
This news release includes "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the
meaning of applicable securities laws relating to, among other
things the discussions regarding strategies for the development of
El Domo; the potential for higher recoveries and improved
payabilities based on metallurgical test work on selective
flotation; the obtaining of approvals and permits for the Project
and the timing thereof; timing of the awarding of Bid Packages 2
and 3; the start of construction and production at the Project and
the timing thereof. By their very nature, forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Such factors include, amongst others,
risks related to the exploration, development, production,
recoveries and other anticipated or possible future developments at
the Project, including, without limitation, that exploration,
development and production activities will not occur or be as
anticipated; failure to obtain key permits and approvals and to
start construction; the outcome of the an Extraordinary Protection
Action (the "EPA") filed with the Constitutional Court of
Ecuador by a group of plaintiffs
concerning the environmental consultation process for the Project;
and general economic, business and political conditions.
Forward-looking information may in some cases be identified by
words such as "will", "anticipates", "expects", "intends" and
similar expressions suggesting future events or future
performance.
We caution that all forward-looking information is inherently
subject to change and uncertainty and that actual results may
differ materially from those expressed or implied by the
forward-looking information. A number of risks, uncertainties and
other factors, including the EPA, impacts of the EPA or subsequent
litigation on the Project; outcome of other future litigation or
regulatory actions; regulatory environment and political climate in
Ecuador; integration and
operations of Adventus; environmental risks; natural
disasters; dependence on management and key personnel; risks and
hazards of mining operations; and the other risk factors described
in the Company's Annual Information Form and other filings with
Canadian and U.S. regulators
on www.sedarplus.ca and www.sec.gov; could cause
actual results and events to differ materially from those expressed
or implied in the forward-looking information or could cause our
current objectives, strategies and intentions to change.
Accordingly, we warn investors to exercise caution when considering
statements containing forward-looking information and that it would
be unreasonable to rely on such statements as creating legal rights
regarding our future results or plans. We cannot guarantee that any
forward-looking information will materialize and you are cautioned
not to place undue reliance on this forward-looking information.
Any forward-looking information contained in this news release
represent expectations as of the date of this news release and are
subject to change after such date. However, we are under no
obligation (and we expressly disclaim any such obligation) to
update or alter any statements containing forward-looking
information, the factors or assumptions underlying them, whether as
a result of new information, future events or otherwise, except as
required by law. All of the forward-looking information in this
news release is qualified by the cautionary statements herein.
A comprehensive discussion of other risks that impact Silvercorp
can also be found in their public reports and filings which are
available under its profile at www.sedarplus.ca.
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SOURCE Silvercorp Metals Inc