According to the news released by Silvercorp's WeChat official account on December 23rd, Silvercorp Metals Inc. (hereinafter referred to as "Silvercorp") recently announced that its Condor gold project located in Zamora-Chinchipe Province, Ecuador, has completed the Preliminary Economic Assessment Report ("PEA") in accordance with the NI43 - 101 standard. This PEA focuses on two high - grade underground ore bodies. The total resources amount to 81 tons of gold with an average grade of 2.15 grams per ton, 570 tons of silver with an average grade of 14.2 grams per ton, as well as 23,000 tons of lead (with an average grade of 0.06%) and 223,000 tons of zinc (with an average grade of 0.54%), showing great resource potential. It is planned to mine 1.8 million tons of ore annually. Over the 13 - year mine life, the total ore mined will be 21.33 million tons, producing 43 tons of gold, 164 tons of silver, and 110,000 tons of zinc. The initial capital investment for this project is $292 million. The after - tax payback period is only 3 years, and the All - In Sustaining Cost (AISC) is $1,258 per ounce of gold (including by - product credits). This cost level is highly competitive in the current gold market. Calculated at the benchmark price of $2,600 per ounce, the project's after - tax net present value (NPV5%) is $522 million, and the after - tax internal rate of return (IRR) is 29%. If referring to the recent spot price of $4,300 per ounce, the project's after - tax NPV will soar to $1.559 billion, and the IRR will exceed 60%, further expanding the profit margin.
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