Silvercorp Revises El Domo Budget to $284 Million with July 2027 Production Target

• Construction budget increased to $284 million from $240 million, with VAT rate change from 10% to 15% accounting for $16 million of the increase
• Production scheduled for July 2027, a six-month extension from the previous early-2027 estimate
• Company spent $44.5 million in 2025, moved 2.6 million cubic metres of material, and completed archaeological clearance for 1,040 of 1,109 units
• Updated processing design shows 5.4% increase in copper recovery and 6.2% increase in gold recovery compared to previous flowsheet
• Mining contract expected with CRCC 19, which has begun personnel mobilisation to site as of January 2026

Silvercorp Metals Inc. (TSX/NYSE American: SVM) is a Vancouver-based Canadian mining company and a primary producer of silver, gold, lead, and zinc. The company focuses on generating free cash flow from long-life mines, pursuing exploration for new discoveries, evaluating merger and acquisition opportunities, and maintaining responsible mining and environmental, social, and governance practices. Silvercorp operates primarily in China with development projects in other jurisdictions including Ecuador.

Budget Revision Details

The capital cost estimate for El Domo has increased by $44 million to $284 million. The 2021 Feasibility Study estimated $248 million, whilst the March 2025 estimate was $240 million. Ecuador's VAT rate increased from 10% to 15%, adding $16 million to the budget, which represents 36% of the total increase. The company expects to recover this VAT as a tax credit in the first year of operations once concentrate exports begin.

Equipment and material purchases for the processing plant increased by $15 million. This includes approximately $11 million for equipment not included in previous studies, such as a water recycling system from the tailings facility and larger flotation cells and thickeners required to process ore with 25% sulphur content versus the 9% designed for in 2021. Logistics costs increased by $4 million due to sea freight, customs fees, storage, transport, insurance, and import taxes.

Construction costs for the processing plant increased by $7.2 million based on actual construction quotes. Road upgrades added $3.3 million to accommodate 40-foot container trucks on the southern access road. The external powerline budget increased by $2.3 million for third-party supervision and land easements. Previously unaccounted items including Engineer of Record services, quality assurance supervision for tailings facility construction, and site power distribution facilities added $10.1 million. Contingency provisions decreased from 20% ($32 million) to 8% ($17 million), a reduction of $15 million.

2025 Construction Activities

Silvercorp spent $44.5 million in 2025, representing 16% of the total revised budget. The company cleared 1,040 of 1,109 archaeological units, completing permit requirements for earthwork activities. Site preparation involved moving 2.6 million cubic metres of material, including topsoil, saprolite, and andesite for the processing plant, roads, tailings facility, and waste dump.

The company built 8.1 kilometres of internal roads and upgraded one kilometre of external roads. Workers excavated 2.1 kilometres of water channels for site water management. The construction camp was completed with capacity for over 600 beds. On-site blasting at a quarry and from process plant site preparation generated rock for road construction and the tailings facility starter dam. A 5,000-square-metre foundation was laid for a ROM ore shed that will serve as a warehouse during construction.

Yantai Jinpeng Mining Machinery Co. Ltd. completed the detailed process flowsheet, equipment selection, and cost estimates for the processing plant. The updated flowsheet introduces sequential flotation of copper and gold into copper concentrates first. Metallurgical recovery testing shows a 5.4% increase in copper recovery and a 6.2% increase in gold recovery. The company ordered most long-lead major equipment and diesel generator sets, paying $7.2 million toward a total contract price of $16.9 million. The site recorded more than 960,000 work hours with no major incidents whilst implementing environmental management plans.

Contract Developments and Equipment Status

The company is finalising a mining contract with China Railway 19th Bureau Group Co., Ltd. (CRCC 19) on a unit-cost basis. The contract includes two phases: a $35 million construction phase for mining, stripping, and earthworks, and a $63 million operations phase over five years for annual mining and stripping. An additional $8 million covers tailings facility dam construction and management. CRCC 19 operates a regional headquarters in Quito and has over ten years of experience operating a large open-pit copper-gold mine in Ecuador. Personnel mobilisation began in January 2026, with equipment arrivals scheduled for February.

Yantai Jinpeng is expected to complete detailed engineering design for the processing plant by early April 2026, which will form the cost basis for construction bidding. Most equipment has been ordered. The external powerline spans 61.3 kilometres total. The northern section of 27.5 kilometres and three substations, budgeted at $10.15 million, was awarded to two Ecuadorian contractors in September 2025 and recently received approval from Ecuador's national power company (CNEL) to begin construction. The southern 33.8-kilometre section awaits detailed engineering design completion.

The powerline is scheduled for completion in 2027. As a contingency measure, the company ordered 14 megawatts of diesel generator sets for delivery by December 2026. This will ensure power availability for plant commissioning in July 2027 regardless of powerline status.

Project Timeline and Next Steps

The mining contract with CRCC 19 is expected to be executed following the bidding process and negotiation period. Detailed engineering for the processing plant is scheduled for completion by early April 2026, enabling construction bidding to proceed. The diesel generators will arrive by December 2026 for installation. The external powerline's northern section has received regulatory approval to commence construction, whilst the southern section's detailed engineering work continues. Production remains targeted for July 2027.

‍