Silverco confirms low-cost, rapid payback viable at revamped Cusi mine
TSX-V-listed Silverco Mining has confirmed in a preliminary economic assessment (PEA) of the Cusi mine, in Mexico, that a low-capital restart and production of 2.5-million ounces of silver equivalent are possible.
The mine has an after-tax net present value (NPV) of $104-million and an internal rate of return (IRR) of 94% with payback within nine months at base case silver prices of $44.58/oz.
In a higher price scenario of $75/oz, the project’s NPV increases to $312-million, IRR to 185% and payback period to six months.
The PEA determines a life-of-mine all-in sustaining cost of $26.75/oz for Cusi, with only $19.2-million of capital expenditure required for restart of the mine.
Silverco aims to restart the mine’s processing operations later this year, with full ramp-up targeted for mid-2027.
The company is undertaking a 30 000 m surface and underground drilling programme to grow the resource base and extend mine life.
Early restart work is already underway at the mine and mill, including dewatering and mine rehabilitation, and discussions are underway to select an underground contractor.
Silverco president and CEO Mark Ayranto says the PEA confirms Cusi as one of the most compelling primary silver restart opportunities globally.
“With low upfront capital, rapid payback and strong leverage to rising silver prices, Cusi is positioned to deliver near-term production and cashflow. Importantly, ongoing drilling and restart work provide clear upside to both scale and mine life,” he concludes.
Ayranto is confident the company has sufficient funds on hand to refinance the restart of the Cusi mine and continue the ongoing drill programme.
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