Discovery says Cordero PFS delivered 'excellent' project economics with after-tax NPV of $1.2B
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The company said that the study showed "excellent" project economics, with a base case after-tax NPV5% of US$1.2 billion and IRR of 28% (Ag - $22.00/oz, Au - $1,600/oz, Pb - $1.00/lb and Zn - $1.20/lb).
Annual production over the life-of-mine is expected to average 33 Moz AgEq. In Years 5 – Year 12 production averages 40 Moz AgEq with peak production in Year 11 of 52 Moz AgEq.
"These production levels position Cordero as one of the largest primary silver mines globally," the company said in a statement.
Discovery also said that in conjunction with the PFS, the mineral resource estimate for Cordero has been updated to incorporate an additional 67,800 m of drilling, adding that the measured & indicated resource has grown by 35% to 1,132 Moz AgEq, and the inferred resource has grown by 40% to 119 Moz AgEq.
CEO Tony Makuch stated, "We are extremely pleased with the results from our pre-feasibility study. The PFS positions Cordero uniquely in the silver developer space with a long mine life of 18 years and production averaging over 35 Moz AgEq in the first 12 years of the mine life. This represents an approximate 40% increase in total ounces produced compared to our 2021 PEA.
"Despite significant industry-wide cost escalation over the last year, cost savings from a streamlined process design and improved metallurgical performance have resulted in a highly capital efficient project with excellent margins."
"We now look forward to advancing the project toward a feasibility study and surfacing additional value through numerous optimization opportunities we have already identified," he added.
Discovery's flagship project is its 100%-owned Cordero project, one of the world's largest silver deposits. The PFS summarized in today's release demonstrates that Cordero has the potential to be developed into a highly capital efficient mine that offers the combination of margin, size and scalability.
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