Silverco PEA outlines low-cost path to La Negra Mine revival

Silverco Mining Ltd., a Vancouver-based silver mining company, has released a Preliminary Economic Assessment (PEA) for its 100%-owned La Negra Mine in Querétaro, Mexico. The PEA, completed in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects, outlines a robust and financially viable mine plan that could see the company return to historic production levels with significant growth potential.

The PEA, which was prepared by independent Qualified Persons from SGS Canada Inc., projects an 8.2-year mine life and steady-state throughput of 2,500 tonnes per day (tpd) beginning in the second half of 2027, following the arrival and commissioning of the new mining fleet and completion of the dry-stack tailings project. This mine plan is expected to deliver an average annual production of 4.1 million ounces of silver equivalent (AgEq), with approximately 65% of revenue derived from silver.

Key to the PEA's success is the company's low capital requirements, which total only $20.9 million. This low initial investment is expected to deliver a 15.7x after-tax net present value (NPV) to initial capital ratio at base case metal prices. The PEA also projects an after-tax NPV (5%) of $329 million, FCF of $438.8 million at $50/oz silver, and after-tax NPV (5%) of $531.9 million, FCF of $696.2 million at current spot price, and after-tax NPV (5%) of $991.0 million, FCF of $1,248.5 million at the last twelve month high (LTM).

The PEA also includes a robust production profile, with a life-of-mine average all-in sustaining costs (AISC) of $24.86/AgEq oz payable AgEq. This production profile is expected to be supported by a new MRE with a solid foundation for future exploration and development. The MRE, based on a validated database of 39,471 surface and underground drill holes and channels totaling 320,458 meters, includes 15.23 million metric tons at 201 grams per tonne (g/t) AgEq for 98.2 million ounces of AgEq, and 2.26 million metric tons at 174 g/t AgEq for 12.6 million ounces of AgEq.

The PEA also identifies multiple organic growth opportunities, including mine plan optimization to convert resources and prioritize mining of high-grade areas, and exploration upside from near mine high-grade silver targets and a potential higher-grade carbonate replacement deposit (CRD) system.

Beyond the base case, the company sees considerable organic upside at La Negra through mine plan optimization and its recently announced 15,000-metre exploration program, testing for high-grade extensions. The La Negra Mine is located in Querétaro State, Mexico, approximately 150 kilometres from the city of Querétaro, and the property encompasses a 2,157 hectare land package which includes an underground mine and on-site 2,500 tpd processing facility. The project is fully permitted, and the Company is installing a filtered tailings facility, targeted for completion and ramp-up in H1 2027, to expand tailings capacity and reduce the operation's water footprint.

The PEA is preliminary in nature, with Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. The Company has no Mineral Reserves at La Negra. The production schedule underlying the PEA includes approximately 79% Indicated and 21% Inferred Mineral Resources by tonnage. There is no certainty that Inferred Mineral Resources will be upgraded to Indicated or Measured Mineral Resources with further exploration, or that any Mineral Resource will be converted to a Mineral Reserve.