Silverco Releases Positive PEA for Producing La Negra Mine Outlining a Low Capital, 8.2 Year Mine Life Generating After-Tax NPV of $329 Million
Silverco Releases Positive PEA for Producing
La Negra Mine Outlining a Low Capital, 8.2
Year Mine Life Generating After-Tax NPV of
$329 Million
Vancouver, British Columbia--(Newsfile Corp. - September 21, 2026) - Silverco Mining Ltd. (TSXV:
SICO) (OTCQB: SICOF) (the
"Company"
) is pleased to announce the results of an independent
Preliminary Economic Assessment ("PEA") completed for its 100%-owned La Negra Mine located in
Querétaro, Mexico. The PEA and supporting Mineral Resource Estimate ("MRE") were prepared in
accordance with National Instrument 43-101 -
Standards of Disclosure for Mineral Projects
("NI 43-
101") by independent Qualified Persons from SGS Canada Inc. ("SGS"). All dollar amounts referenced
in this news release are in United States dollars (USD or US$) unless otherwise noted.
Key Highlights:
Attractive Base Case Economics, with Leverage to Silver Prices -
After-tax net present value
("NPV") (5%) of $329 million ("M") and after-tax free cash flow ("FCF") of $438.8M at $50/oz silver
("Ag").
After-tax NPV (5%) of $531.9 M, FCF of $696.2 M at current spot price
1
After-tax NPV (5%) of $991.0 M, FCF of $1,248.5 M at the last twelve month high ("LTM")
Robust Production Profile -
Average annual production of 4.1 Moz silver equivalent ("AgEq")
produced over an 8.2-year mine life, with approximately 65% of revenue from silver.
Life-of-mine average all in sustaining costs ("AISC") of $24.86/AgEq oz payable AgEq
Low Capital Requirements -
Initial capital of only $20.9 M, delivering a 15.7x after-tax NPV to
initial capital ratio at base case metal prices.
Of the $20.9 M, at the spot price case, only $4.7 M is necessary to be funded off the balance
sheet.
New MRE with Solid Foundation for Future:
Indicated resources of 15.23 Mt at 201 g/t AgEq
for 98.2M AgEq oz and Inferred resources of 2.26Mt at 174 g/t AgEq for 12.6 M AgEq oz.
Opportunities for Optimization -
Multiple organic growth opportunities exist including;
Mine plan optimization to convert resources and prioritize mining of high-grade areas
Exploration upside from near mine high grade silver targets and a potential higher-grade
carbonate replacement deposit (CRD) system.
Mark Ayranto, President and CEO, commented:
"La Negra has a long history of reliable silver production, and this PEA lays out a clear, low-capital
path to return to historic production levels with opportunities identified to optimize and extend the mine
life through expansion and conversion of our new Indicated Resource of nearly 100 million silver
equivalent
2
ounces. In the short time that we have been operating La Negra, we have already begun
to see notable improvements in mined silver grades and recoveries. With our new mining fleet
beginning to arrive in late Q4 2026 and our dry-stack tailings project on track for completion and
ramp-up in H1 2027, we expect to see a meaningful step-up in throughput in 2027, driving positive
impacts to silver equivalent production and AISC.
Beyond the base case, we see considerable organic upside at La Negra through mine plan
optimization and our recently announced 15,000 metre exploration program testing for high-grade
extensions - the first large-scale exploration campaign at the property in two decades. Combined with
the ongoing restart of Cusi, this PEA underscores Silverco's rapid growth trajectory as a multi-asset
Mexican silver producer and sets us well on our path to become a 10- million-ounce-per-year silver
equivalent producer within three years."
PEA Overview
The PEA outlines an 8.2-year mine life and steady-state throughput of 2,500 tonnes per day ("tpd")
beginning in H2 2027, following arrival and commissioning of the new mining fleet and completion of the
dry-stack tailings project, with average annual output of 4.1 million oz AgEq produced.
Table 1 - PEA Summary
Units
Average LOM
Mill Feed
Mine Life
years
8.2
Mine Throughput
Mt/year
0.85
Milling Throughput
t/d
2,500
Silver Recovery
%
83.6
Lead Recovery
%
81.5
Zinc Recovery
%
81.9
Copper Recovery
%
77.8
Average AgEq Produced
(1)
M AgEqoz/year
4.1
Average AgEq Payable
(1)
M AgEqoz/year
3.6
Metal Prices
Silver
$/oz
50
Copper
$/lb
4.50
Lead
$/lb
0.88
Zinc
$/lb
1.30
Financial Analysis - Base Case
Pre-Tax NPV(5%)
$M
545
Pre-Tax IRR
%
227
Pre-Tax Payback
years
1.3
After-Tax NPV(5%)
$M
329
After-Tax IRR
%
131
After-Tax Payback
years
2.0
Capital Costs
Initial
$M
20.9
Sustaining, including closure
$M
82.0
Operating Costs
Mining
$/t
36.07
Processing
$/t
23.43
G&A
$/t
8.08
Subtotal Operating Costs
$/t
67.58
TC/RCs & Royalties
$/t
29.51
Sustaining Capital
$/t
9.90
Total Operating Costs
$/t
107.00
Cash Operating Costs
$/AgEqoz payable
15.70
Site AISC Co-Product
$/AgEqoz payable
24.86
Site AISC By-Product
$/Ag
11.41
Notes:
(1)
Average Produced and Payable excludes production from 2026 half year.
The PEA is preliminary in nature, it includes Inferred Mineral Resources that are considered too
speculative geologically to have the economic considerations applied to them that would enable them to
be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. Mineral
Resources that are not Mineral Reserves do not have demonstrated economic viability. The Company
has no Mineral Reserves at La Negra.
The production schedule underlying the PEA includes approximately 79% Indicated and 21% Inferred
Mineral Resources by tonnage. There is no certainty that Inferred Mineral Resources will be upgraded to
Indicated or Measured Mineral Resources with further exploration, or that any Mineral Resource will be
converted to a Mineral Reserve.
A report supporting this news release will be available on SEDAR+ (
www.sedarplus.ca
) and on the
Company's website (
www.silvercomining.com
) within the next 45 days.
Project Location
The La Negra underground mine is in Querétaro State, Mexico, approximately 150 kilometres from the
city of Querétaro. The property encompasses a 2,157 hectare land package which includes an
underground mine and on-site 2,500 tpd processing facility utilizing a conventional comminution and
flotation circuit to produce three concentrates: lead-silver, copper-silver, and zinc. The project is fully
permitted, and the Company is installing a filtered tailings facility, targeted for completion and ramp-up in
H1 2027, to expand tailings capacity and reduce the operation's water footprint.
Figure 1 - La Negra Property Location
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10393/315153_954029d394f4fa13_002full.jpg
Figure 2 - La Negra Property Claims
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10393/315153_954029d394f4fa13_003full.jpg
Mineral Resource Estimate
The La Negra MRE is based on a validated database which includes data from 39,471 surface and
underground drill holes and channels totaling 320,458 m. The resource database totals 50,456 assay
intervals representing 102,803 m.
The MRE is geologically and structurally controlled, allowing for enhanced geologic and grade continuity.
Resource estimation was completed for each mineral domain using inverse distance squared (ID²)
interpolation method on 2.00 m capped composites and considering as-built depletion models where
available. The MRE is exclusive of mined out material.
Table 2 - La Negra Mine Underground Mineral Resource Estimate at a Base Case Cut-off Grade
of 80 g/t AgEq
Mine
Resource
Class
Tonnes
(MT)
Grade
Contained Metal
Ag (g/t)
Pb (%)
Zn (%)
Cu (%)
AgEq (g/t)
Ag (Moz)
Pb (Mlbs)
Zn (Mlbs)
Cu (Mlbs)
AgEq
(Moz)
La Negra
Mine
Indicated
15.23
106
0.59
1.81
0.47
201
51.9
199
608
158
98.2
Inferred
2.26
92
1.00
1.92
0.21
174
6.72
49.7
95.7
10.6
12.6
Notes:
1)
See notes below Table 3 which apply to this table.
Table 3 - Mineral Resource by Area, at a Base Case Cut-off Grade of 80 g/t AgEq
Mine Area
Resource
Class
Tonnes
(MT)
Grade
Contained Metal
Ag (g/t)
Pb (%)
Zn (%)
Cu (%)
AgEq (g/t)
Ag (Moz)
Pb (Mlbs)
Zn (Mlbs)
Cu (Mlbs)
AgEq
(Moz)
Negra
Indicated
5.34
158
1.04
2.27
0.39
264
27.1
121.8
267.4
46.2
45.3
Inferred
0.22
247
1.81
4.48
0.36
417
1.8
8.9
22.1
1.8
3.0
Cobriza
Indicated
0.86
71
0.33
0.68
0.61
146
2.0
6.2
12.9
11.6
4.0
Inferred
Monica
Indicated
1.71
93
0.53
1.20
0.28
155
5.1
20.0
45.2
10.6
8.5
Inferred
Bicentenario
Indicated
1.09
61
0.22
1.41
0.48
141
2.2
5.3
33.9
11.6
5.0
Inferred
Maravillas
Indicated
0.97
111
0.47
3.05
0.72
255
3.5
10.1
65.1
15.3
7.9
Inferred
0.05
48
0.14
1.75
0.29
119
0.1
0.2
2.0
0.3
0.2
Trinidad
Indicated
2.82
71
0.26
1.33
0.66
165
6.5
16.4
83.0
40.8
14.9
Inferred
Gaby/Lupita
Indicated
0.77
51
0.14
1.20
0.54
130
1.3
2.3
20.2
9.2
3.2
Inferred
Northwest
Indicated
1.68
82
0.46
2.17
0.34
172
4.4
16.9
80.1
12.7
9.3
Inferred
1.70
73
0.88
1.71
0.20
146
4.0
32.9
64.1
7.4
8.0
Valenciana
Indicated
Inferred
0.28
98
1.24
1.22
0.17
162
0.9
7.7
7.6
1.1
1.5
Notes:
1
.
The effective date of the La Negra Mineral Resource Estimate ("MRE") is July 1, 2026.
2
.
The MRE was prepared by Allan Armitage, Ph.D., P.Geo. of SGS Geological Services, an independent Qualified Person as defined by NI
43-101. Dr. Armitage completed site visits to the project on March 23-24, 2026 and June 12-13, 2026.
3
.
The classification of the current MRE into Indicated and Inferred is consistent with current 2014 CIM Definition Standards - For Mineral
Resources and Mineral Reserves.
4
.
All figures are rounded to reflect the relative accuracy of the estimate and numbers may not add due to rounding.
5
.
The MRE is presented undiluted and in situ, constrained by continuous 3D wireframe models, and are considered to have reasonable
prospects for eventual economic extraction. The MRE is exclusive of mined out material.
6
.
Mineral Resources which are not mineral reserves do not have demonstrated economic viability. An Inferred Mineral Resource has a
lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is
reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued
exploration.
7
.
The La Negra MRE is based on a validated database which includes data from 39,471 surface and underground drill holes and channels
totaling 320,458 m. The resource database totals 50,456 assay intervals representing 102,803 m.
8
.
The MRE for La Negra is based on 30 three-dimensional ("3D") mineral resource models and 18 mine as-built depletion models.
9
.
Grades for Ag, Pb, Zn and Cu were estimated for each mineralization domain using 2.00 m capped composites assigned to that domain.
To generate grade within the blocks, the inverse distance squared (ID
2
) interpolation method was used for all domains. An average
density value was assigned to each domain.
10
.
Underground Mineral Resources are reported at a base case cut-off grade of 80 g/t AgEq. The underground Mineral Resource grade
blocks are quantified above the base case cut-off grade and within the constraining mineral resource domains (considered mineable
shapes).
11
.
AgEq Cut-off grades consider metal prices of $38.00/oz Ag, $4.80/lb Cu, $0.90/lb Pb and $1.35/lb Zn and metal recoveries 80.2% for Ag,
79.2% for Cu, 80.3% for Pb and 80.7% for Zn.
12
.
The underground base case cut-off grade of 80 g/t AgEq considers a mining cost of $42.00/t rock and processing, treatment and refining,
transportation, and G&A cost of $32.00/t mineralized material.
13
.
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues.
Mining
Mining activities will initially focus on the Valeria Zone within the existing La Negra underground
workings. Ground conditions at La Negra are very favourable, allowing for bulk mining using long hole.
Over the life of the mine, average mining rates, inclusive of waste, are targeted to be in the range of
2,648 tonnes per day ("tpd") and will be supported by the Company's new mining fleet arriving through
Q4 2026 and Q1 2027. To optimize grade delivery, the Company will continue to employ a stockpiling
strategy for lower-grade material and enhance its mine planning, grade control, and dilution practices.
The mine plan and associated cost profile benefit from extensive underground development that is
already in place, allowing for lower development needs, particularly in the initial years of the mine life.
With production and development mining active at La Negra currently, many of the initial areas have
been accessed and the existing underground development has been confirmed to be in good conditions
with limited needs for rehabilitation. While the mine plan benefits from existing development, production
is sourced from new, not remnant mining areas.
A significant contributor to mine production is the La Negra zone. This is one of the higher-grade areas
of the mine, but production from this zone has been conservatively scheduled towards the end of the
mine life to allow for additional underground surveys and infill drilling to be completed to further confirm
historic workings in the area. This work may impact assumptions utilized in the MRE including the
required depletion and buffer, which was conservatively assumed to be a two-meter buffer around
existing workings during stope design. Once this work is complete, there may be an opportunity to
optimize the mine plan to move production from La Negra forward, benefitting production and costs
earlier in the mine life.
Figure 3- La Negra Mine Design - Long Section View, Looking North
To view an enhanced version of this graphic, please visit:
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Figure 4 - Mine Schedule
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10393/315153_silvercofig421092026.jpg
Processing and Metallurgy
The processing facility at La Negra consists of a standard crushing, grinding, flotation, and filtration
circuit producing lead-silver, copper-silver, and zinc concentrates. Crushing is completed using a
primary jaw crusher with secondary and tertiary cone crushers, followed by two parallel ball milling lines
for primary grinding with one additional mill for regrind. Flotation circuit is three stages to recover the
different concentrates. The processing plant flowsheet has been well established and is little changed
over the history of the operation, allowing for operating parameters and recoveries to be well
understood.
Life-of-mine metallurgical recoveries average 83.6% for silver, 77.8% for copper, 81.5% for lead and
81.9% for zinc. Metallurgical recovery assumptions were developed off actual plant performance since
restarting in 2024 up to Q1 2026. Recent optimization work on grade control, improved process controls
and blending strategies suggest that there may be opportunities to optimize recoveries higher than
assumed in the PEA.
Silver reports principally to the lead concentrate, with the balance to the copper and zinc concentrates.
Silver recoveries benefit from higher grades, with the processing plant schedule seeing recovery rise
through the mine life as head grades increases.
Figure 5 - La Negra Simplified Process Plant Circuit
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10393/315153_954029d394f4fa13_006full.jpg
Average annual production over the LOM is forecasted to be 4.1 Moz AgEq produced for total
production of 33.1 Moz AgEq over the LOM.
Table 4 - Production Schedule
Units
2026
(3)
2027
2028
2029
2030
2031
2032
2033
2034
LOM
Mill Feed
Milled (kt)
Kt
240
700
912
912
912
912
912
909
492
6,902
Ag Feed Grade
g/t
55
71
77
80
123
146
149
157
118
114
Cu Feed Grade
%
0.50
0.47
0.42
0.43
0.37
0.34
0.29
0.21
0.19
0.35
Pb Feed Grade
%
0.17
0.33
0.39
0.45
0.76
0.98
1.18
1.19
1.48
0.80
Zn Feed Grade
%
1.48
1.34
1.33
1.54
2.07
2.30
2.46
2.40
1.88
1.92
Recoveries
Ag
%
78.8%
81.1%
81.8%
82.1%
84.6%
85.3%
85.4%
85.6%
84.4%
83.6%
Cu
%
80.3%
80.0%
79.4%
79.5%
78.7%
78.1%
77.2%
74.4%
73.0%
77.8%
Pb
%
74.7%
79.4%
80.2%
80.7%
82.2%
82.7%
83.0%
83.0%
83.3%
81.5%
Zn
%
80.6%
79.9%
79.8%
80.9%
82.6%
83.2%
83.5%
83.4%
82.1%
81.9%
Metal Recovered to Concentrate
Ag
Koz
335
1,293
1,850
1,936
3,052
3,654
3,721
3,932
1,575
21,349
Cu
Mlbs
2.1
5.8
6.6
6.8
5.8
5.3
4.5
3.2
1.5
41.8
Pb
Mlbs
0.7
4.1
6.4
7.3
12.7
16.4
19.9
20.0
13.5
99.9
Zn
Mlbs
6.3
16.6
21.4
25.2
34.5
38.7
41.5
40.3
16.8
240.0
AgEq Produced
(1)
koz
702
2,319
3,111
3,330
4,691
5,416
5,548
5,609
2,377
33,108
Payable Metals
Ag
Koz
293
1,151
1,659
1,732
2,762
3,323
3,388
3,593
1,448
19,350
Cu
Mlbs
2.0
5.6
6.3
6.5
5.6
5.0
4.3
3.0
1.4
39.8
Pb
Mlbs
0.6
3.8
5.9
6.8
11.7
15.2
18.4
18.5
12.5
93.5
Zn
Mlbs
5.2
13.5
17.4
20.6
28.2
31.6
33.9
33.0
13.7
197.1
AgEq Payable
(2)
koz
621
2,072
2,786
2,973
4,204
4,867
4,984
5,049
2,152
29,707
Notes:
1
.
AgEq Produced represents the total value of all recovered metals expressed in silver ounces. This is calculated by converting by-product
metal production (copper, lead, and zinc) into silver ounces based on the relative value of their price assumptions compared to the silver
price assumption.
2
.
AgEq Payable represents the total value of all payable metals expressed in silver ounces. This is calculated by converting by-product
payable metal (copper, lead, and zinc) into silver ounces based on the relative value of their price assumptions compared to the silver price
assumption.
3
.
2026 represents a half year and is from July 1, 2026 onwards
Tailings Management
Tailings are currently deposited conventionally in the on-site tailings storage facility. The Company is
installing a tailings thickener and filter press to move to filtered (dry-stack) deposition, targeted for
commissioning and ramp-up in H1 2027. Filtered deposition is designed to increase operational
flexibility, improve water recovery and reduce the operation's freshwater draw. The improvement in water
management through filtered tailings will allow for throughput to be increased to 2,500tpd. The PEA
includes growth capital for the thickening and filtration plant as well as continued tailings dam expansions
and a further tailings dam in year 2031 within sustaining capital.