Silvercorp Metals announced the results of a new Preliminary Economic Assessment for its Condor Gold Project in Ecuador, a 13‑year underground operation that will produce gold, silver, lead and zinc. The assessment is based on a 30.10‑tonne Mineral Resource Estimate (MRE) that was updated on November 30 2025 and shows an average gold grade of 2.15 g/t, silver at 14.20 g/t, lead at 0.06 % and zinc at 0.54 % across the mine life.
Capital costs for the project total $292 million in initial spend and $382 million in sustaining capital. The PEA projects a post‑tax payback period of roughly three years, a cumulative after‑tax net present value of $522 million at a 5 % discount rate, and an internal rate of return of 29 % when gold is priced at $2,600 per ounce. Net smelter return is estimated at $179 per tonne of ore, underscoring the project’s strong profitability profile.
Strategically, Condor expands Silvercorp’s portfolio beyond its China‑focused silver operations. Located in Zamora‑Chinchipe province, the project offers a high‑grade, multi‑metal resource that can generate cash flow to fund further Latin American expansion. The company’s management has positioned the project as a key element of its long‑term growth plan, leveraging cash from its Chinese operations to finance new ventures.
The assessment also highlights significant risks. The resource is largely inferred, which introduces geological uncertainty. Moreover, Ecuador has a history of social and environmental opposition to mining projects; local communities and Indigenous groups have protested similar ventures, and legal challenges could delay or halt development. These headwinds could affect the project’s timeline and cost profile.
President Lon Shaver said the Condor PEA “diversifies our revenue streams and reduces geographic concentration risk.” He added that the company’s focus on high‑grade, low‑cost projects in Latin America aligns with its broader strategy of building a balanced, cash‑generating portfolio.
Analysts have responded positively to the announcement, upgrading the company to a Buy rating and citing the project’s robust economics and strategic fit with Silvercorp’s expansion plans. The upgrade reflects confidence that the Condor project will strengthen the company’s financial position and support future growth initiatives.
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