Silvercorp Metals Inc. (NYSE-A/TSX: SVM) Announces PEA for the Condor Gold Project in Ecuador, Highlighting Low-Cost Underground Development Potential

Disseminated on behalf of Silvercorp Metals Inc. (NYSE-A/TSX: SVM) and includes paid advertisement.

• Silvercorp Metals is a Canadian company with producing mines in China and development projects in Ecuador
• Silvercorp is constructing the El Domo copper-gold mine in Ecuador, which is expected to begin production in 2027
• The company’s second Ecuadorean project, Condor gold, is supported by  a Preliminary Economic Assessment (“PEA”) that highlights its potential for underground development
• Condor is expected to produce over 100 thousand ounces of gold a year over a 13-year mine life, at an all-in sustaining cost of $1,258/ounce net of by-product credits
• The PEA reports an after-tax net present value of $522 million, and an after-tax internal rate of return of 29% at a base case gold price of $2,600/ounce, increasing to $1.5 billion and 60%, respectively, at $4,300/ounce

Canadian precious metals producer Silvercorp Metals (NYSE American/TSX: SVM) has reported the results of a Preliminary Economic Assessment (“PEA”) for the Condor project in Ecuador, highlighting the potential scale and economics of a low-cost underground gold operation. The company’s growth projects in Ecuador, including the El Domo copper-gold mine currently under construction (https://ibn.fm/fugAc), are funded by its strong balance sheet and cash flow from its mines in China, which recently reported one of their strongest quarterly performances (https://ibn.fm/Ff3L3).

Expansion into Ecuador represents an important new front for the company beyond their productive China camps. The new PEA results for Silvercorp’s Condor gold project in Ecuador estimates an after-tax net present value of $522 million and an after-tax internal rate of return of 29% at base case metal prices of $2,600 per ounce for gold, $31.00 per ounce for silver, $1.27 per pound for zinc, and $0.91 per pound for lead. That present value and rate of return rise to $1.56 billion and 61% when factoring near spot metal prices (https://ibn.fm/hmRcH).

The study outlines a 13 year underground operation at the Camp and Los Cuyes deposits, producing approximately 1.38 million ounces (oz) of payable gold, 5.27 million oz of payable silver, 95.66 million pounds (lbs) of payable zinc and 8.45 million lbs of payable lead, at an all-in sustaining cost of $1,258/oz net of by-products.

Initial capital cost is estimated at $291 million, reflecting several key advantages of Condor. These include mineralization at portal elevation, which allows direct access without the need for ramp development; steeply dipping, continuous mineralization with approximately one-third of mineralization located above the main haulage level; and fair-to-good rock conditions with a thin saprolite cover, which are suitable for longhole stoping.

Silvercorp will continue working toward a new environmental permit, which would allow underground development for exploration tunnels. The planned tunnels into two deposits will enable underground drilling to upgrade mineral resources and explore the on-strike and down-dip extension of the known mineralized zones in them, according to the company.

For more information, visit the company’s website at https://silvercorpmetals.com/welcome.

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