Discovery Silver Discloses 2024 Program for El Cordero Project

Discovery Silver outlined its plans for 2024 regarding the Cordero project in Chihuahua. The company considers 2024 a transformative year with key milestones, including the completion of a feasibility study (FS) and progress in permitting, project financing, and exploration.

Post-FS, Discovery plans to initiate front-end engineering design (FEED) work, facilitating the ordering of long lead-time items and the awarding of the EPC/EPCM contract. The company aims to explore various financing options throughout 2024, encompassing equity, debt, offtake, joint ventures, partnerships, lease financing, streams, royalties, and other strategic alternatives. “2024 is expected to be a transformational year for the company. Our FS is nearing completion and is on track to be delivered later this quarter. The study will incorporate an additional 35,000m of drilling that highlighted the potential to extend the mine life beyond the 18 years outlined in the Pre-FS, as well as the results from recent metallurgical test work that demonstrated higher silver payabilities [sic] and reduced reagent consumption,” said Tony Makuch, President and CEO, Discovery Silver.

Makuch considers the completion of the FS a significant milestone that could position El Cordero as a distinctive silver development stage asset in the industry, as it is anticipated to achieve an annual AgEq production exceeding 30Moz once operational. Makuch added this production capacity is complemented by an extended mine life and effective capital efficiency resulting from phased expansions in the processing plant. Additionally, operating costs are expected to be situated in the lower half of the cost curve. 

The company noted SEMARNAT is currently reviewing environmental permits required for El Cordero's construction, operation, and closure. The Environmental Impact Assessment (MIA) was formally submitted in August 2023, with ongoing review progress. The Change of Land Use (CUS) submission is anticipated by 3Q24.

Key de-risking initiatives include confirming sufficient power grid capacity, securing surface rights, and assessing hydrology for El Cordero’s Phase 1. Discovery plans to evaluate renewable energy options and advance engineering work for water treatment plant upgrades in 2024.

In exploration, the company plans mapping, sampling of new target areas, and 2,500m of drilling in 2024, including La Perla, Dos Mil Diez, and Porfido Norte, each presenting unique geological characteristics and anomalies, Discovery Silver stressed. The drill program for 2024 may expand based on mapping, sampling, and initial drilling results. Thus, the company remains optimistic about the Cordero project's prospects, emphasizing its commitment to responsible and comprehensive project development.