(Kitco News) Discovery Silver is scaling up gold production in Canada while continuing to advance its flagship silver project in Mexico, positioning the company to generate near-term cash flow alongside longer-term development optionality.
The shift follows Discovery’s April 2025 acquisition of Newmont’s Porcupine complex in Northern Ontario, which moved the company from a silver-focused developer into gold production in the Timmins camp. Senior Vice President of Investor Relations Mark Utting told Kitco Mining that the portfolio now offers “dual exposure on the precious metal side.”
Porcupine produced more than 66,000 ounces of gold in the fourth quarter of 2025 and approximately 180,000 ounces from the April acquisition close through year end, according to the company. Utting said the complex provides immediate cash flow and a foundation for growth in one of Canada’s most established gold districts, which has produced more than 70 million ounces historically.
Discovery is treating Porcupine as an asset with expansion potential rather than a mature operation, with Utting noting that limited investment under previous ownership left room to improve production, costs, and mine life through targeted capital spending. “There has been a lack of investment in these assets for several years,” he said.
Current priorities include underground development, ventilation upgrades, optimization of haulage fleets, and improvements to mill performance. Utting said restoring the mill to a consistent throughput of about 12,000 tons per day is a key operational objective as the company works to improve reliability and output.
Discovery ended 2025 with more than $410 million in cash, no debt, and access to a $250 million revolving credit facility. Utting said the balance sheet gives the company flexibility to fund growth internally while maintaining discipline. “You can’t let a running gold price influence how you manage your business too much,” he said, adding that productivity and cost control are critical to sustaining margins.
One of the company’s largest potential growth drivers is the planned restart of the historic Dome Mine, which sits adjacent to Discovery’s processing facilities and hosts an estimated 11 million ounces of gold. Studies are underway to evaluate a return to production, which could add roughly 200,000 to 250,000 ounces of annual output if advanced.
Based on work underway across the Porcupine complex, Utting said Discovery sees a path to increasing gold production toward 500,000 to 750,000 ounces per year over the next three to five years. He said the company is pursuing growth alongside capital discipline, with an emphasis on margin expansion rather than reliance on higher metal prices.
While Canadian gold production underpins near-term cash flow, Discovery continues to advance its Cordero silver project in Mexico. Utting said permitting remains the key milestone, but noted that regulatory conditions have begun to improve under Mexico’s new administration, including renewed momentum for open-pit approvals.
As Cordero advances, Utting said Discovery aims to minimize shareholder dilution by prioritizing internal cash flow, balance sheet strength, and non-equity financing options. “We value minimizing dilution as much as any other shareholder,” he said.
With gold production supporting operations in Canada and silver development progressing in parallel, Utting said Discovery remains focused on building long-term value while maintaining a conservative financial profile.
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