Silvercorp Metals Inc. (TSX: SVM, NYSE American: SVM) has taken a meaningful step forward in advancing its Condor gold project in Ecuador by filing the supporting Preliminary Economic Assessment technical report with regulators. Announced on February 2, 2026, the filing formalizes the independent economic evaluation of the project and gives investors access to detailed technical data that underpins Condor’s development potential.
The NI 43-101 compliant report, titled Independent Technical Report for the Condor Gold Project, Zamora Chinchipe Province, Ecuador, was prepared by SRK Consulting (Canada) Inc. and is effective November 30, 2025. The report builds on PEA results released in December 2025 and outlines a case for a low-cost underground mining operation in one of Ecuador’s most prospective mineral belts.
Project Economics and Operating Profile
The PEA outlines a 13-year mine life based on a processing rate of 5,000 tonnes per day, or approximately 1.8 million tonnes per year. Mining would focus on the high-grade Camp and Los Cuyes deposits within the Zamora copper-gold belt.
Over the life of the mine, payable production is estimated at approximately 1.375 million ounces of gold, with average annual output of around 113,000 ounces during the first 12 years. The project is also expected to produce about 5.266 million ounces of silver, along with zinc and lead by-products totaling roughly 104 million pounds.
Using base case metal prices of $2,600 per ounce gold, $31 per ounce silver, $1.27 per pound zinc, and $0.91 per pound lead, the project generates an after-tax net present value of $522 million at a 5 percent discount rate and an internal rate of return of 29 percent. Payback is estimated at three years from the start of commercial production.
At higher gold prices that better reflect current market conditions, the upside becomes more pronounced. At approximately $4,300 per ounce gold, the after-tax NPV increases to roughly $1.56 billion, while the IRR rises to 61 percent.
All-in sustaining costs are estimated at $1,258 per ounce of gold, net of by-product credits. Initial capital expenditure is projected at $292 million. The mine design benefits from portal-level access, steeply dipping ore bodies suitable for longhole stoping, and favorable rock conditions, which together help support capital efficiency and operating cost control.
Resource Base and Path Forward
The PEA is supported by an updated mineral resource estimate effective February 28, 2025. Indicated resources total approximately 0.62 million ounces of gold at an average grade of 1.90 grams per tonne, while inferred resources are estimated at roughly 1.97 million ounces at 2.03 grams per tonne.
Silvercorp plans to continue de-risking the project through permitting and underground development work. Near-term priorities include securing permits for exploration tunnels by mid-2026, constructing underground access between Camp and Los Cuyes, and completing targeted drilling aimed at upgrading resources and extending high-grade zones. These steps are intended to support a potential future feasibility study.
Condor represents Silvercorp’s second major development project in Ecuador, alongside the El Domo copper-gold project currently under construction. Together, they expand the company’s footprint in Latin America and diversify production beyond its established operations in China.
Why This Matters
For investors, the filing of the PEA technical report provides independently validated insight into Condor’s scale, economics, and development potential. With strong projected margins, meaningful sensitivity to gold prices, and a clear path toward further de-risking, Condor has the potential to become a significant contributor to Silvercorp’s future production and cash flow profile in a favorable gold market environment.
Silvercorp continues to position itself as a profitable precious metals producer focused on disciplined growth, balance sheet strength, and long-term shareholder value.
Forward-looking information is subject to risks and uncertainties. Read full DISCLAIMER.
