Silver Tiger Outlines Path to 5+ Moz Annual Silver Production by 2027

• Silver Tiger's El Tigre PFS demonstrates the project's robust economics, with an after-tax NPV of $222 million (at a 5% discount rate) and an impressive IRR of 40%. These figures are based on conservative long-term price assumptions of $26/oz silver and $12,150/oz gold.
• Silver Tiger Metals already holds permits for an 800 tpd underground mine at El Tigre and has submitted amendments to allow for open pit mining and expects to receive the necessary open pit approvals in the first half of 2025, paving the way for a rapid 12-18 month construction period.
• Initial production from the El Tigre open pit is targeted for mid-2026 at a rate of approximately 5 million ounces of silver per year.
• While the PFS only considered open pit mining, there is substantial exploration potential in the historic underground mine areas at El Tigre where multiple high-grade silver zones in the hanging wall and footwall of the old workings were identified as well as a previously unknown bulk tonnage silver-gold-base metal sulfide zone.
• Underground drilling is set to resume imminently with the goal of expanding resources and delivering a Preliminary Economic Assessment (PEA) in the first half of 2025. A longer-term vision of growing production to 8+ Moz silver equivalent per year from the open pit and underground combined.
  

Silver Tiger Metals (TSX-V: SLVR) announced positive results from the Pre-Feasibility Study (PFS) on its wholly-owned El Tigre silver project in Sonora, Mexico. The study outlines a technically simple and economically robust open pit operation with the potential to generate substantial free cash flow over a 10-year mine life.

PFS Highlights Strong Project Economics

The El Tigre PFS base case, using conservative long-term metal price assumptions of $26/oz silver and $2,150/oz gold, delivers the following key metrics:

• After-tax NPV (5% discount) of $222 million and IRR of 40%
• Average annual silver production of 5.0 million ounces at all-in sustaining costs of $12.14/oz
• Initial capital costs of $86 million (including contingency) and payback period of 2 years
• Cumulative after-tax free cash flow of $318 million

At spot prices, the economics are even more compelling, with the NPV rising to over $380 million, IRR increasing to 60%, and payback period shrinking to just 1.5 years. Over the life of mine, El Tigre is expected to generate over $500 million in after-tax free cash flow at current silver and gold prices.

CEO Glenn Jessome emphasized the impressive results:

"You show me a project on this planet where we're going to spend $86 million and ... you make a half more than half a billion dollars over a decade after tax free cash flow."

Interview with President & CEO Glenn Jessome

Fast-Track to Production

A key advantage of the El Tigre project is the potential for quick permitting and development. SLVR already holds permits for an 800 tpd underground operation and has submitted amendments for open pit mining. The company anticipates receiving the open pit approval in the first half of 2025.

Once permitted, Jessome believes El Tigre could be constructed in as little as 12 months, but certainly within the PFS conservative estimate of 18 months.

The initial open pit operation would focus on the highly profitable first three years of production, mining 12-13 million tonnes grading 0.6 g/t AuEq with a strip ratio of just 0.3:1. This "starter pit" contains primarily Proven reserves and would form the basis for project financing.

Underground Expansion Potential

While the PFS focused solely on the open pit, the El Tigre property has significant exploration upside, particularly in the historic underground mine areas. SLVR has identified wide, high-grade silver zones in the hanging wall and footwall of the old workings, as well as a previously unknown bulk tonnage silver-gold-base metal sulfide zone.

Underground drilling is set to resume imminently with the goal of delivering a PEA in the first half of 2025 and a PFS by mid-2026. This would allow SLVR to develop the high-grade underground resources concurrently with the open pit, providing a second phase of growth.

Longer-term, Jessome sees the potential to expand the underground operation to 3,000 tpd, which could boost production to over 8 million ounces of silver equivalent per year. The company has already defined an 11 million tonne underground resource supporting a 30+ year mine life at an 800 tpd rate.

Conclusion

The positive El Tigre PFS is a major milestone for Silver Tiger Metals, demonstrating the economic viability of the project as a near-term, low-cost silver producer. With permits expected shortly and an aggressive development timeline, SLVR is positioning to join the ranks of mid-tier primary silver producers by 2027. The company offers investors exposure to rising silver prices and serves as a compelling acquisition target in a consolidating sector.

The Investment Thesis for Silver Tiger Metals

• El Tigre PFS demonstrates robust economics (40% after-tax IRR) with low capex ($86M) and rapid payback (2 years) at conservative metal prices
• Clear path to near-term production: open pit permits expected in H1 2025, followed by 12-18 month construction timeline
• Significant free cash flow generation (~$50M/year) from open pit to fund underground development
• Exploration upside in underground mine areas, with drilling underway to expand resources and deliver PEA/PFS
• Potential for El Tigre to produce 5 Moz/year from open pit plus 3-4 Moz/year from underground by 2027, catapulting SLVR to mid-tier producer status
• Proven management team with experience developing mines in Mexico
• Attractive valuation relative to advanced-stage silver development peers