Southern Silver Exploration (TSXV: SSV) is drilling to expand its Cerro Las Minitas project in Mexico as a silver deficit heightens the need for new supply, a London conference heard.
The company aims to add up to 8 million tonnes in shallow and deep resources to the project 900 km northwest of Mexico City, VP of exploration Robert MacDonald told The Northern Miner’s International Metals Symposium.
A preliminary economic assessment (PEA) in June projected a 17-year mine life for a US$388 million project. It has an after-tax net present value of US$501 million at a 5% discount rate. At current silver prices, the NPV rises to US$850 million.
“We’re delivering robust project economics with no royalties, low-cost infrastructure and strong leverage to rising silver prices,” MacDonald said on Dec. 1. “Cerro Las Minitas sits just 200 metres from a federal highway, offering exceptional access.”
The study estimated the project, near Durango city, will generate gross revenue of US$4.4 billion. This is up US$765 million from the 2022 PEA. Silver and gold represent 45% of total revenues, and zinc represents 35%.
The company plans to boost throughput above 5,300 tonnes per day. This could raise production rates while keeping efficiency.
Watch the full presentation below:
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