[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Junior Mining Investor [@9KGOLD](/creator/twitter/9KGOLD) on x 3453 followers Created: 2025-06-21 12:32:53 UTC $DSV.TO $DSVSF Discovery Silver: Low grade yes. Dead? No. Cordero will be developed and be profitable. Permits will be approved this year. Here is the story: The most comprehensive study on the profitability of mining the Cordero silver deposit in Mexico is the Feasibility Study (FS) released by Discovery Silver Corp. on February 20, 2024. Below is a summary of the key findings from this study, along with relevant details from other sources, addressing the profitability and economic viability of the Cordero project: Key Findings from the Feasibility Study (February 2024). Project Overview: The Cordero silver project, located in Chihuahua, Mexico, is one of the world’s largest undeveloped silver deposits. It is fully owned by Discovery Silver and is planned as an open-pit mine with a phased development approach. Reserve Base: The project has proven and probable mineral reserves of XXXXX million tonnes (Mt) containing: - XXX million ounces (Moz) of silver (Ag) at XXXXX g/t, - XXXXXXX ounces of gold (Au) at XXXX g/t, - XXX billion pounds (Blb) of lead (Pb) at 0.44%, - XXX Blb of zinc (Zn) at 0.70%. Production and Mine Life: The FS projects an 18-year mine life with an average annual production of XX Moz of silver equivalent (AgEq) in concentrates. The project is expected to be one of the largest silver producers globally. Capital Costs: - Initial capital expenditure for Phase X (9.6 Mt/a throughput, ~26,000 tpd) is estimated at $XXX million over a two-year construction period, including infrastructure, a power transmission line, water treatment upgrades, pre-stripping, and a tailings storage facility (TSF) for three years. - Expansion and sustaining capital costs are not detailed in the FS summary but are noted to optimize cost efficiency through phased Operating Costs: The FS indicates low unit costs, positioning Cordero in the lower half of the industry cost curve. All-in sustaining costs (AISC) are estimated at $XXXXX per ounce of silver equivalent, slightly higher than the $12.35/oz AgEq from the 2021 Preliminary Economic Assessment (PEA). Economic Metrics: - **Net Present Value (NPV): $XXXX billion at a X% discount rate, slightly lower than the $XXXX billion in the 2021 PEA, reflecting higher initial capital costs. Internal Rate of Return (IRR)**: 28%, down from XX% in the PEA due to increased capital costs and a shift from heap leach to flotation processing, which lowers risk but extends the payback period to XXX years from X years. Payback Period: XXX years, reflecting the phased approach and higher initial investment. Upside Potential: An additional XXX Mt of Measured & Indicated Resources (1,202 Moz AgEq at XX g/t) sit outside the FS pit, suggesting potential to extend the mine life at modestly higher silver prices. Socio-Economic Benefits: The project is expected to create XXXXX jobs during construction, XXXXX direct jobs during operation, contribute $X billion in goods and services, and generate $XXX billion in tax revenue for Mexico. Supporting Studies - Preliminary Economic Assessment (PEA, November 2021): - Forecast a 16-year mine life with XX Moz AgEq annual production. - Initial capital cost of $XXX million, with AISC at $12.35/oz AgEq. - NPV of $XXXX billion at a X% discount rate and IRR of 38%. - Used base-case prices: $22/oz silver, $1,600/oz gold, $1/lb lead, $1.20/lb zinc. Pre-Feasibility Study (PFS, January 2023): - Updated the mine life to XX years with XX Moz AgEq annual production. - Initial capital cost of $XXX million, with AISC at $13.62/oz AgEq. - NPV of $XXXX billion and IRR of 28%, reflecting a XX% increase in output but higher costs compared to the PEA. Mineral Resource Update (January 2023): - Measured & Indicated Resources: XXX Mt at XX g/t Ag, XXXX g/t Au, XXXX% Pb, XXXX% Zn (1,202 Moz AgEq). - Inferred Resources: XXX Mt at XX g/t Ag, XXXX g/t Au, XXXX% Pb, XXXX% Zn (155 Moz AgEq). - The resource expansion was driven by XXXXXX m of additional drilling, particularly at depth and in the Factors Supporting Profitability Low Operating Costs: The project’s low unit costs and position in the lower half of the industry cost curve enhance profitability, especially with rising silver demand driven by industrial applications (e.g., solar and tech). Strategic Location: Located in Chihuahua, a mining-friendly jurisdiction with access to a skilled workforce, nearby highways, and powerlines, reducing logistical costs. No camp is needed due to proximity to Parral (35 km). Environmental and Social Compliance: The project received a Quality Environmental Certification from PROFEPA in 2023, ensuring compliance with Mexico’s environmental regulations. Investments in water recycling and community infrastructure further de-risk the project. Phased Development: The two-phase processing approach (starting at XXX Mt/a, expanding to XXXX Mt/a) optimizes capital efficiency and reduces initial risk by prioritizing higher-grade sulphide material from the Pozo de Plata zone in early Challenges and Risks Increased Capital Costs: The FS estimates a higher initial capex ($606 million) compared to the PEA ($368 million) and PFS ($455 million), which reduced the IRR from XX% to 28%. Political and Regulatory Environment: Mexico’s government under President López Obrador (2018–2024) adopted stricter mining regulations, halting new concessions and increasing scrutiny on environmental and tax compliance. While the Cordero project has progressed with permitting (e.g., Environmental Impact Assessment submitted in August 2023), regulatory delays could impact timelines. Current Status (2024) - Discovery Silver is advancing toward a construction decision, with front-end engineering design (FEED) planned post-FS, alongside securing financing through equity, debt, offtake agreements, or Conclusion The February 2024 Feasibility Study demonstrates that the Cordero silver project is economically viable, with a robust NPV of $XXXX billion, an IRR of 28%, and low operating costs positioning it as a Tier X silver asset. Despite higher capital costs and a longer payback period compared to earlier studies, the project’s scale, low unit costs, and strategic location in Chihuahua support its profitability potential. However, regulatory uncertainties and market skepticism pose risks that Discovery Silver is addressing through permitting progress and exploration to enhance resources. For further details, you can access the full Feasibility Study on Discovery Silver’s website: XXXXX engagements  **Related Topics** [mexico](/topic/mexico) [$dsvsf](/topic/$dsvsf) [$dsvto](/topic/$dsvto) [investment](/topic/investment) [mining](/topic/mining) [Post Link](https://x.com/9KGOLD/status/1936401938779668529)
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Junior Mining Investor @9KGOLD on x 3453 followers
Created: 2025-06-21 12:32:53 UTC
$DSV.TO $DSVSF Discovery Silver: Low grade yes. Dead? No.
Cordero will be developed and be profitable. Permits will be approved this year.
Here is the story:
The most comprehensive study on the profitability of mining the Cordero silver deposit in Mexico is the Feasibility Study (FS) released by Discovery Silver Corp. on February 20, 2024.
Below is a summary of the key findings from this study, along with relevant details from other sources, addressing the profitability and economic viability of the Cordero project: Key Findings from the Feasibility Study (February 2024).
Project Overview: The Cordero silver project, located in Chihuahua, Mexico, is one of the world’s largest undeveloped silver deposits. It is fully owned by Discovery Silver and is planned as an open-pit mine with a phased development approach.
Reserve Base: The project has proven and probable mineral reserves of XXXXX million tonnes (Mt) containing: - XXX million ounces (Moz) of silver (Ag) at XXXXX g/t, - XXXXXXX ounces of gold (Au) at XXXX g/t, - XXX billion pounds (Blb) of lead (Pb) at 0.44%, - XXX Blb of zinc (Zn) at 0.70%.
Production and Mine Life: The FS projects an 18-year mine life with an average annual production of XX Moz of silver equivalent (AgEq) in concentrates. The project is expected to be one of the largest silver producers globally.
Capital Costs: - Initial capital expenditure for Phase X (9.6 Mt/a throughput, ~26,000 tpd) is estimated at $XXX million over a two-year construction period, including infrastructure, a power transmission line, water treatment upgrades, pre-stripping, and a tailings storage facility (TSF) for three years. -
Expansion and sustaining capital costs are not detailed in the FS summary but are noted to optimize cost efficiency through phased
Operating Costs: The FS indicates low unit costs, positioning Cordero in the lower half of the industry cost curve. All-in sustaining costs (AISC) are estimated at $XXXXX per ounce of silver equivalent, slightly higher than the $12.35/oz AgEq from the 2021 Preliminary Economic Assessment (PEA).
Economic Metrics: - **Net Present Value (NPV): $XXXX billion at a X% discount rate, slightly lower than the $XXXX billion in the 2021 PEA, reflecting higher initial capital costs.
Internal Rate of Return (IRR)**: 28%, down from XX% in the PEA due to increased capital costs and a shift from heap leach to flotation processing, which lowers risk but extends the payback period to XXX years from X years.
Payback Period: XXX years, reflecting the phased approach and higher initial investment.
Upside Potential: An additional XXX Mt of Measured & Indicated Resources (1,202 Moz AgEq at XX g/t) sit outside the FS pit, suggesting potential to extend the mine life at modestly higher silver prices.
Socio-Economic Benefits: The project is expected to create XXXXX jobs during construction, XXXXX direct jobs during operation, contribute $X billion in goods and services, and generate $XXX billion in tax revenue for Mexico.
Supporting Studies - Preliminary Economic Assessment (PEA, November 2021): - Forecast a 16-year mine life with XX Moz AgEq annual production. - Initial capital cost of $XXX million, with AISC at $12.35/oz AgEq. - NPV of $XXXX billion at a X% discount rate and IRR of 38%. - Used base-case prices: $22/oz silver, $1,600/oz gold, $1/lb lead, $1.20/lb zinc.
Pre-Feasibility Study (PFS, January 2023): - Updated the mine life to XX years with XX Moz AgEq annual production. - Initial capital cost of $XXX million, with AISC at $13.62/oz AgEq. - NPV of $XXXX billion and IRR of 28%, reflecting a XX% increase in output but higher costs compared to the PEA.
Mineral Resource Update (January 2023): - Measured & Indicated Resources: XXX Mt at XX g/t Ag, XXXX g/t Au, XXXX% Pb, XXXX% Zn (1,202 Moz AgEq). - Inferred Resources: XXX Mt at XX g/t Ag, XXXX g/t Au, XXXX% Pb, XXXX% Zn (155 Moz AgEq). - The resource expansion was driven by XXXXXX m of additional drilling, particularly at depth and in the
Factors Supporting Profitability Low Operating Costs: The project’s low unit costs and position in the lower half of the industry cost curve enhance profitability, especially with rising silver demand driven by industrial applications (e.g., solar and tech).
Strategic Location: Located in Chihuahua, a mining-friendly jurisdiction with access to a skilled workforce, nearby highways, and powerlines, reducing logistical costs. No camp is needed due to proximity to Parral (35 km).
Environmental and Social Compliance: The project received a Quality Environmental Certification from PROFEPA in 2023, ensuring compliance with Mexico’s environmental regulations. Investments in water recycling and community infrastructure further de-risk the project.
Phased Development: The two-phase processing approach (starting at XXX Mt/a, expanding to XXXX Mt/a) optimizes capital efficiency and reduces initial risk by prioritizing higher-grade sulphide material from the Pozo de Plata zone in early
Challenges and Risks Increased Capital Costs: The FS estimates a higher initial capex ($606 million) compared to the PEA ($368 million) and PFS ($455 million), which reduced the IRR from XX% to 28%.
Political and Regulatory Environment: Mexico’s government under President López Obrador (2018–2024) adopted stricter mining regulations, halting new concessions and increasing scrutiny on environmental and tax compliance. While the Cordero project has progressed with permitting (e.g., Environmental Impact Assessment submitted in August 2023), regulatory delays could impact timelines.
Current Status (2024) - Discovery Silver is advancing toward a construction decision, with front-end engineering design (FEED) planned post-FS, alongside securing financing through equity, debt, offtake agreements, or
Conclusion The February 2024 Feasibility Study demonstrates that the Cordero silver project is economically viable, with a robust NPV of $XXXX billion, an IRR of 28%, and low operating costs positioning it as a Tier X silver asset. Despite higher capital costs and a longer payback period compared to earlier studies, the project’s scale, low unit costs, and strategic location in Chihuahua support its profitability potential. However, regulatory uncertainties and market skepticism pose risks that Discovery Silver is addressing through permitting progress and exploration to enhance resources. For further details, you can access the full Feasibility Study on Discovery Silver’s website:
XXXXX engagements
Related Topics mexico $dsvsf $dsvto investment mining