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Discovery Silver delivers ‘excellent’ project economics for Cordero with after-tax NPV of $1.2 billion

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(Kitco News) - Discovery Silver (TSX-V: DSV) today announced positive results from its Preliminary Economic Assessment (“PEA”) on its 100%-owned Cordero silver project located in Chihuahua State, Mexico.

The company said that the PEA delivers excellent project economics, with an after-tax NPV5% of $1.2 B (C$1.5 B) and IRR of 38% in Base Case scenario (metal prices: Ag - $22.00/oz, Au - $1,600/oz, Pb - $1.00/lb and Zn - $1.20/lb).

Importantly, Discovery Silver noted exceptional silver price leverage, as in Upside Case scenario (metal prices: Ag - $27.50/oz, Au - $1,880/oz, Pb - $1.10/lb and Zn - $1.45/lb), the project generates an after-tax NPV5% of $1.9 B (C$2.4 B) and IRR of 55%.

Annual production over the project's mine life of 16 years is expected to average 26 Moz AgEq with production averaging over 33 Moz AgEq when fully ramped up (Years 5 – 12); this positions Cordero as one of the largest silver mines globally, the company added.


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Discovery Silver pointed out that the project is low-cost with AISC of $12.35/oz AgEq; with low initial development capex of $368 M and rapid post-tax payback of 2.0 years for Base Case and 1.4 years for Upside Case.

The company said that the PEA results provide it with a “huge head start” as Discovery Silver looks ahead to the delivery of a Prefeasibility Study on Cordero in 2022.

Discovery's flagship project is its 100%-owned Cordero project, one of the world's largest silver deposits. The PEA completed in November 2021 demonstrates that Cordero has the potential to be developed into a highly capital efficient mine that offers the combination of margin, size and scaleability.

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