Silver X Mining Corp. (TSXV:AGX) revealed encouraging findings from a new Preliminary Economic Assessment (PEA) for its Nueva Recuperada silver project located in central Peru. The study, prepared in accordance with National Instrument 43-101, outlines a large-scale project with combined mining and processing capabilities of 3,000 tonnes per day (tpd).
The PEA forecasts annual metal production exceeding 6 million ounces of silver equivalent (AgEq) over a 14-year mine life. The study projects a robust after-tax net present value (NPV) of $440 million at a 5% discount rate. Life of mine cash costs are estimated at $11.8 per ounce AgEq, and all-in sustaining costs (AISC) at $15.8 per ounce AgEq.
José García, CEO of Silver X, expressed satisfaction with the PEA results. He emphasized the findings confirm Nueva Recuperada as a significant silver project with long-term operational potential. He highlighted the company’s existing operational mines, Tangana and Plata, as assets that will support Silver X‘s growth into a mid-tier silver producer. García stated the company’s value is significantly higher than its current market valuation, and the PEA is a crucial step in realizing that potential.
The PEA supports Silver X‘s plan to significantly increase production in the coming years. This involves expanding the existing Recuperada mill to 1,500 tpd and building a new 1,500 tpd mill at the Tangana Mining Unit. The Recuperada mill will primarily process ore from the Plata Mining Unit.
García also noted the company’s ongoing drilling campaigns. These initiatives aim to expand resources and improve resource categories at both Tangana and Plata, where higher-grade mineralization is expected. He indicated confidence that upcoming drilling will result in a substantial resource upgrade in the near future.
The PEA details an initial capital expenditure of $82 million, including contingency, for a new processing facility, dry-stacked tailings, and mine development. The company anticipates a significant increase in production, potentially up to six times within the next few years.
Silver X‘s Nueva Recuperada project is expected to comprise two separate mining operations: Tangana, the company’s flagship operation, and Plata, located in the southern part of the district. The combined operation positions Silver X as a major polymetallic silver project in South America.
The company is also progressing with an Environmental and Social Impact Assessment (ESIA) for the Tangana Mining Unit, anticipating final approval before the end of 2025.
The PEA’s financial summary includes an after-tax internal rate of return (IRR) of 69%, and an after-tax NPV (at a 5% discount rate) to initial capital expenditure ratio of 5.4. The after-tax payback period is estimated at three years.
Independent qualified persons, including David Heyl, Edgar Vilela, and Donald Hickson, reviewed and approved the technical content of the release. The technical report will be filed with SEDAR and posted on the company’s website within 45 days. The company emphasizes that the PEA is preliminary and includes inferred mineral resources; therefore, there is inherent uncertainty regarding its realization. The company also notes that the decision to begin production is based on economic models and existing estimates of inferred mineral resources, not on a feasibility study.
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