Silvercorp Reports on El Domo Project Development Progress and Awarding the First Construction Contract
Silvercorp Metals (TSX/NYSE: SVM) has reported significant progress on its El Domo Project development, targeting production start in the second half of 2026. Following the acquisition of Adventus Mining in July 2024, the company has streamlined operations, maintained community engagement, and advanced detailed engineering work.
Key developments include optimizing the tailing storage facilities design, selecting a new process plant site, improving open pit mine design, and commencing metallurgical test work. The company has also executed a powerline contract and divided the construction into three bid packages.
Notably, Silvercorp has awarded Bid Package 1 to CRCC 14 Bureau Group CO., , an experienced contractor with over ten years of operations in Ecuador. This package includes construction of temporary camp, tailing storage facilities, and other critical infrastructure. The company plans to award Bid Packages 2 and 3 in Q1 2025.
Silvercorp Metals (TSX/NYSE: SVM) ha riportato progressi significativi nello sviluppo del progetto El Domo, con l'obiettivo di avviare la produzione nella seconda metà del 2026. A seguito dell'acquisizione di Adventus Mining nel luglio 2024, l'azienda ha snellito le operazioni, mantenuto il coinvolgimento della comunità e avanzato il lavoro di ingegneria dettagliata.
I principali sviluppi includono l'ottimizzazione del design delle strutture di stoccaggio dei fanghi, la selezione di un nuovo sito per l'impianto di processo, il miglioramento del design della miniera a cielo aperto e l'avvio dei test metallurgici. L'azienda ha anche firmato un contratto per la linea elettrica e diviso i lavori di costruzione in tre pacchetti d'offerta.
In particolare, Silvercorp ha assegnato il Pacchetto d'Offerta 1 a CRCC 14 Bureau Group CO., un appaltatore esperto con oltre dieci anni di esperienza in Ecuador. Questo pacchetto include la costruzione di un campo temporaneo, delle strutture di stoccaggio dei fanghi e di altre infrastrutture critiche. L'azienda prevede di assegnare i Pacchetti d'Offerta 2 e 3 nel primo trimestre del 2025.
Silvercorp Metals (TSX/NYSE: SVM) ha reportado avances significativos en el desarrollo de su proyecto El Domo, con el objetivo de iniciar la producción en la segunda mitad de 2026. Tras la adquisición de Adventus Mining en julio de 2024, la compañía ha optimizado sus operaciones, mantenido el compromiso con la comunidad y avanzado en trabajos de ingeniería detallada.
Los desarrollos clave incluyen la optimización del diseño de las instalaciones de almacenamiento de relaves, la selección de un nuevo sitio para la planta de procesos, la mejora del diseño de la mina a cielo abierto y el inicio de los trabajos de prueba metalúrgica. La empresa también ha ejecutado un contrato para la línea eléctrica y ha dividido la construcción en tres paquetes de licitación.
Notablemente, Silvercorp ha adjudicado el Paquete de Licitación 1 a CRCC 14 Bureau Group CO., un contratista experimentado con más de diez años de operaciones en Ecuador. Este paquete incluye la construcción de un campamento temporal, instalaciones de almacenamiento de relaves y otra infraestructura crítica. La compañía planea adjudicar los Paquetes de Licitación 2 y 3 en el primer trimestre de 2025.
실버코프 메탈즈 (TSX/NYSE: SVM)는 엘 도모 프로젝트 개발에서 중요한 진전을 보고하며, 2026년 하반기 생산 시작을 목표로 하고 있습니다. 2024년 7월 어드벤투스 마이닝을 인수한 후, 회사는 운영을 간소화하고 커뮤니티와의 소통을 유지하며 상세 엔지니어링 작업을 진행했습니다.
주요 발전 사항으로는 탈피 저장 시설 디자인 최적화, 새로운 프로세스 플랜트 부지 선정, 노천 채굴 설계 개선 및 야금 테스트 작업 시작이 포함됩니다. 회사는 또한 전력선 계약을 체결하고 건설을 세 개의 입찰 패키지로 나누었습니다.
특히, 실버코프는 10년 이상의 에콰도르 운영 경험을 가진 숙련된 계약자 CRCC 14 Bureau Group CO.에 입찰 패키지 1을 수여했습니다. 이 패키지에는 임시 캠프, 탈피 저장 시설 및 기타 중요한 인프라 건설이 포함됩니다. 회사는 2025년 1분기에 입찰 패키지 2와 3을 수여할 계획입니다.
Silvercorp Metals (TSX/NYSE: SVM) a annoncé des progrès significatifs dans le développement de son projet El Domo, visant à démarrer la production dans la seconde moitié de 2026. Suite à l'acquisition d'Adventus Mining en juillet 2024, la société a rationalisé ses opérations, maintenu l'engagement communautaire et fait progresser les travaux d'ingénierie détaillée.
Les développements clés incluent l'optimisation de la conception des installations de stockage des résidus, la sélection d'un nouveau site pour l'usine de traitement, l'amélioration de la conception de la mine à ciel ouvert et le début des tests métallurgiques. L'entreprise a également signé un contrat pour la ligne électrique et a divisé la construction en trois lots d'appel d'offres.
Notamment, Silvercorp a attribué le Lot d'Offre 1 à CRCC 14 Bureau Group CO., un entrepreneur expérimenté avec plus de dix ans d'opérations en Équateur. Ce lot comprend la construction d'un camp temporaire, des installations de stockage des résidus et d'autres infrastructures critiques. L'entreprise prévoit d'attribuer les Lots d'Offre 2 et 3 au premier trimestre 2025.
Silvercorp Metals (TSX/NYSE: SVM) hat erhebliche Fortschritte bei der Entwicklung seines El Domo-Projekts berichtet, mit dem Ziel, die Produktion in der zweiten Hälfte von 2026 zu starten. Nach der Übernahme von Adventus Mining im Juli 2024 hat das Unternehmen die Abläufe optimiert, das Engagement mit der Gemeinschaft aufrechterhalten und die detaillierte Ingenieursarbeit vorangetrieben.
Zu den wichtigsten Entwicklungen gehören die Optimierung des Designs der Tailings-Speichereinrichtungen, die Auswahl eines neuen Standorts für die Prozessanlage, die Verbesserung des Designs der Tagebau-Mine und der Beginn metallurgischer Tests. Das Unternehmen hat auch einen Vertrag für die Stromleitung abgeschlossen und die Bauarbeiten in drei Ausschreibungspakete unterteilt.
Insbesondere hat Silvercorp das Ausschreibungspaket 1 an CRCC 14 Bureau Group CO. vergeben, einen erfahrenen Auftragnehmer mit über zehn Jahren Erfahrung in Ecuador. Dieses Paket umfasst den Bau eines temporären Lagers, der Tailings-Speichereinrichtungen und anderer kritischer Infrastrukturen. Das Unternehmen plant, die Ausschreibungspakete 2 und 3 im ersten Quartal 2025 zu vergeben.
- Project on track for production in H2 2026
- Awarded first major construction contract to experienced contractor
- Optimized facility designs and mining operations for cost efficiency
- Executed powerline contract with state-owned power company
- Climate change impacts requiring additional diesel power generation investment
Insights
The El Domo project development update reveals substantial operational progress, with key milestones achieved in infrastructure planning, engineering optimization and contractor selection. The strategic relocation of the process plant site demonstrates sophisticated project optimization, as it will provide necessary non-acid generating rocks for TSF construction while reducing transportation costs - a critical factor in mining economics.
The adoption of a "Unit Cost" contracting model over an "Open Book" approach is particularly noteworthy, as it typically provides better cost control and reduces financial risk. The selection of CRCC 14 Bureau Group, with its decade-long Ecuadorian experience, suggests strong local operational capability. The targeted production timeline of H2 2026 appears realistic given the current development pace and systematic approach to bid package allocation.
The project's comprehensive materials balance and three-phase bidding strategy indicate thorough planning and risk management. The emphasis on power infrastructure redundancy through standby diesel generation shows prudent adaptation to climate-related challenges in Ecuador's power sector.
The project's environmental engineering aspects show thoughtful consideration of critical factors. The optimization of the Tailings Storage Facility (TSF) and Saprolite Waste Dump (SWD) designs by Klohn Crippen Berger indicates a strong focus on environmental risk mitigation. The integration of non-contact water channels in the design is particularly important for water management and environmental protection.
The ongoing metallurgical test work for selective flotation could lead to improved metal recoveries and reduced environmental footprint. The attention to climate change impacts on power supply and the corresponding infrastructure planning demonstrates environmental awareness and operational resilience planning. These elements suggest a well-considered environmental management approach that should support sustainable operations.
Trading Symbols: SVM (TSX/NYSE American)
SRL (TSXV), SRLZF (OTCQB)
Progress Report
Since Silvercorp completed its acquisition of Adventus Mining Corporation ("Adventus") by way of a plan of arrangement on July 31, 2024, the Companies have made substantial progress in advancing the Project, highlights include:
a. | Streamlined the Ecuadorian Operations: Optimized the organization chart by moving the management team and personnel to the El Domo and Condor project sites from the | |
b. | Continued Community Engagement: Maintained open lines of communication with local communities and government representatives, keeping them informed of changes in the Project ownership and leadership, as well as on construction plans. | |
c. | Advanced Detailed Engineering: | |
a) | Reviewed the previous technical work, including interviewing all consulting firms to confirm all previous studies and detailed engineering designs for optimization; | |
b) | Optimized design with Klohn Crippen Berger (KCB) for the Tailing Storage Facilities (TSF), starter dam and impound area, Saprolite Waste Dump (SWD), and non-contact water channels; | |
c) | Selected a new site for the process plant so that its preparation will provide the required non-acid generating rocks for the construction of the starter dam of the TSF, while minimizing trucking distances; | |
d) | Optimized open pit mine design for mining, stripping, and scheduling, and coordinated the mining schedule with ongoing tailings dam raises using stripped waste rock; | |
e) | Commenced metallurgical test work on selective flotation – potentially leading to higher recoveries and improved payabilities (see Silvercorp's August 21, 2024 press release); and | |
f) | Started Detailed Engineering Design (EP) for the process plant, including engaging a consulting engineer, equipment selection, purchasing and detailed engineering drawings. | |
d. | Advanced Project Infrastructure: | |
a) | Optimized designs for a new public bypass road and internal operational haul roads; | |
b) | Executed a powerline contract with the Ecuadorian state-owned power company (CNEL EP). The construction contractor will be selected once the updated engineering design is completed; and | |
c) | Commenced permitting for standby diesel power generation for the dry season, as climate change has impacted the power supply situation in | |
e. | Produced Project Materials Balance: including total cubic metres of cutting, filling, cement, and amount of high-density polyethylene material, and bill of quantities for the major construction projects of the mine and process plant, which are divided into three bidding packages: | |
a) | Bid Package 1: Construction of temporary camp, TSF to starter dam phase, SWD, non-contact water channels, internal haul roads, and preparation of the process plant site and permanent camp site; | |
b) | Bid Package 2: Mining, stripping and ongoing tailings dam raises using stripped waste rocks; and | |
c) | Bid Package 3: Construction of the process plant, tailings discharge and back water systems, water treatment plants, permanent camp, and other site infrastructure. | |
f. | Adopted "Unit Cost" Criteria (as compared to "Open Book") for potential contractors to bid on the three construction packages outlined above. For example, "Unit Cost" for blasting or cutting one cubic metre of rock or saprolite, then loaded and trucked to, within two kilometres, shall include all personnel and management cost, plus any profit contractor intends to have for the work. Monthly total payments will be based on measured cubic metres of cutting. | |
Award of Commercial Contract for Bid Package 1
The Companies invited three mining contractors with operations at Ecuadorian mining or construction sites, and the forth contractor which Curimining had engaged previously, and the Companies received a total of four bids based on the "Unit Cost" criteria.
After interviews, visiting their current operating sites in
The Companies plan to award Bid Packages 2 and 3 in Q1 2025 to ensure the project stays on schedule to start production in the second half of 2026.
About Silvercorp
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company's strategy is to create shareholder value by 1) focusing on generating free cashflow from long-life mines; 2) organic growth through extensive drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) a long-term commitment to responsible mining and ESG. For more information, please visit our website at www.silvercorpmetals.com.
About the El Domo Project
El-Domo is a high-grade copper-gold project located in
For further information:
Silvercorp Metals Inc.
Lon Shaver
President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: investor@silvercorp.ca
Website: www.silvercorpmetals.com
CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS
This news release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable securities laws relating to, among other things the discussions regarding strategies for the development of El Domo; the potential for higher recoveries and improved payabilities based on metallurgical test work on selective flotation; the obtaining of approvals and permits for the Project and the timing thereof; timing of the awarding of Bid Packages 2 and 3; the start of construction and production at the Project and the timing thereof. By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, risks related to the exploration, development, production, recoveries and other anticipated or possible future developments at the Project, including, without limitation, that exploration, development and production activities will not occur or be as anticipated; failure to obtain key permits and approvals and to start construction; the outcome of the an Extraordinary Protection Action (the "EPA") filed with the Constitutional Court of
We caution that all forward-looking information is inherently subject to change and uncertainty and that actual results may differ materially from those expressed or implied by the forward-looking information. A number of risks, uncertainties and other factors, including the EPA, impacts of the EPA or subsequent litigation on the Project; outcome of other future litigation or regulatory actions; regulatory environment and political climate in
A comprehensive discussion of other risks that impact Silvercorp can also be found in their public reports and filings which are available under its profile at www.sedarplus.ca.
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SOURCE Silvercorp Metals Inc
FAQ
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