Overview
14.58 Km2
Property1
10 years
Reserve Life
Primary Copper
Zinc, Lead & Silver By-products
24 Mlb
Annual Copper Production2
Open Pit
Mine
US$1.26/lb CuEq
LOM AISC3
Relevant Agreements
An Investment Protection Agreement, executed with the Government of Ecuador, provides El Domo with various benefits until March 2033.
Salazar Joint Venture
Silvercorp owns a 75% stake in Salazar Holdings, whose wholly owned subsidiary, Curimining S.A. (“Curimining”), owns the El Domo project.
Under the joint venture agreement governing El Domo, Silvercorp:
- Funds 100% of the capital costs to production
- Receives 100% of first $30M in free cash flows
- Receives 95% of the free cash flow until all of its investments since October 2017 are repaid, less the Salazar historical investment of $19.8M
Thereafter, project cashflows will be shared 75% Silvercorp & 25% Salazar.
Wheaton Stream
A streaming agreement with Wheaton Precious Metals provides $175.5M in funding available in four installments during construction.
Wheaton is entitled to 50% of payable gold production (until 145,000 ounces are delivered, 33% thereafter) and 75% of payable silver production (until 4,600,000 ounces are delivered, 50% thereafter) in return for payments equal to 18% of the spot prices for the gold and silver delivered, until the value of gold and silver delivered net of the payments is equal to $175,500,000, after which the payment will increase to 22% of the spot prices.
The PMPA covers only the volcanogenic massive sulphide (VMS) potential in the district that can be economically processed at the El Domo mill.
Work History
El Domo is a flat-lying tabular-shaped volcanogenic massive sulphide (VMS) deposit, with mineralization beginning at 30 metres from surface and dimensions of approximately 800 x 400 metres. Approximately 75,000 metres of diamond drilling have been completed on the Curipamba project – mostly centred on El Domo.
Development Plan
2021 Feasibility Study (Project Scope)
| Open Pit Feasibility Study Results | Feasibility Study Base Case | -15% Price Deck | Spot Prices as of October 19, 2021 |
|---|---|---|---|
| After-Tax NPV (US$ million, 8% discount rate) (1) | $259 | $159 | $423 |
| After-Tax IRR (%) (2) | 32% | 23% | 44% |
| Cumulative First 6 Years of After-Tax Cashflow (US$ million undiscounted) | $495 | $391 | $664 |
| Initial Capital Cost (US$ M, incl. refundable VAT) (3) | $248 | ||
| Total Life of Mine Capital Cost including Closure (US$ M) (4) | $316 | ||
| AISC (US$/lb CuEq Basis) (5) | $1.26 | $1.23 | $1.41 |
| Payback Period (years) | 2.6 | 3.2 | 2.1 |
| Nominal processing capacity (tpd) | 1,850 | ||
| Average annual payable production (Years 1 - 9) (6) |
Cu = 11 kt Au = 26 koz Zn = 12 kt Ag = 488 koz Pb = 0.5 kt |
||
| CuEq = 23 kt | CuEq = 22 kt | CuEq = 21 kt | |
| Metal prices assumed |
$1,700/oz Au $23.00/oz Ag $3.50/lb Cu $0.95/lb Pb $1.20/lb Zn |
$1,445/oz Au $19.55/oz Ag $2.98/lb Cu $0.81/lb Pb $0.98/lb Zn |
$1,766/oz Au $23.29/oz Ag $4.72/lb Cu $1.10/lb Pb $1.70/lb Zn |
Notes:
- Unless otherwise noted in this news release, all currencies are reported in US dollars on a 100% project basis.
- Assumes an 18-month construction period as the basis for the internal rate of return (“IRR”) and net present value (“NPV”) calculations.
- Capital cost estimates are to AACE class 3, are based primarily on contractor quotes and vendor equipment pricing, and include 12% VAT (~$25M total) on the applicable work/materials, as well as an approximate 10% contingency. A development capital package (~$25M) for the progression of early works and project design is assumed to be sunk and not included in the capital cost shown here. It is envisioned to be spent prior to a construction decision.
- Includes credit for $10M salvaged at end of mine life.
- AISC credit for $10M salvaged at end of mine life and excludes sunk and pre-production cost. IRR and cash cost per pound are not measures recognized under IFRS and are referred to as non-GAAP measures. Refer to the “Non-GAAP Financial Measures” section of the Management’s Discussion and Analysis for the three and twelve months ended December 31, 2021 for reconciliations of these non-GAAP measures. All-in sustaining cost per pound represents mining, processing, site general and administrative costs, royalties, refining, penalties, concentrate transport, and sustaining capital divided by payable copper equivalent pounds.
- Copper Equivalent Calculation: (Payable Metals NSR Ag, Zn, Pb, Au) / (Payable Metals NSR Cu) * (Payable Copper t)
New Budget Construction Status
El Domo’s construction capital cost is estimated at US$240.5 million, compared to US$247.6 million in the 2021 Feasibility Study.
Mine construction started in January 2025, and Silvercorp plans to achieve construction completion in late 2026.
Curipamba Exploration Potential
The El Domo VMS deposit is located within the larger Curipamba property, which consists of seven concessions covering approximately 215 square kilometres.
