Silvercorp Sets US$196.3 Million Budget to Advance Chaarat ZAAV Gold Project in Kyrgyz Republic

• The Board of Chaarat ZAAV CJSC has approved a US$196.3 million budget covering Phase 1 construction of Tulkubash and early-stage advancement of Phase 2 Kyzyltash.
• Spending is planned at US$57 million in 2026 and US$139 million in 2027, through the joint venture in which Silvercorp holds a 70 percent interest and acts as operator.
• Tulkubash is designed as a 4 million tonne per year open pit and heap leach operation, with an updated feasibility study expected by July 2026.
• Five mining contractors have submitted initial quotes for open pit and waste handling work, supporting a budget of US$51.5 million for that portion of construction.
• A 50,000 to 60,000 metre drilling program is underway at Kyzyltash in 2026 to upgrade the resource and support studies toward a 2028 construction start.

Silvercorp Metals Inc. (TSX/NYSE American: SVM) is a Canada-based mining company producing silver, gold, lead, and zinc. Its stated strategy centres on generating free cash flow from long-life mines, growing its resource base through exploration drilling, pursuing mergers and acquisitions, and maintaining a long-term commitment to responsible mining and environmental, social, and governance practices.

US$196.3 Million Approved Budget Covers Phase 1 Tulkubash Construction and Phase 2 Kyzyltash Advancement

The Board of Directors of Chaarat ZAAV CJSC, the joint venture that holds the Tulkubash and Kyzyltash gold projects in the Tien Shan area of the Kyrgyz Republic, has approved a combined budget of US$196.3 million. The budget covers full construction of the Tulkubash open pit and heap leach operation, known as Phase 1, along with initial work to advance the Kyzyltash sulfide deposit, known as Phase 2. Planned spending is US$57 million in 2026 and US$139 million in 2027.

Silvercorp holds a 70 percent interest in the joint venture and serves as operator, while Kyrgyzaltyn holds the remaining 30 percent on a free-carried basis. The joint venture holds a mining license covering approximately 7 square kilometres that hosts the fully permitted Tulkubash and Kyzyltash projects, along with surrounding exploration licenses covering 27.42 square kilometres that include the Karator and Ishakuld gold zones.

The budget was developed using initial, non-binding quotes from mining contractors and recent material cost enquiries in China, along with vendor quotes for major processing equipment. Silvercorp expects to publish an updated feasibility study for Tulkubash, currently in progress, by July 2026.

Heap Leach Mine Design and Contractor Selection Supporting the 2026 to 2027 Tulkubash Build

Tulkubash is designed as an open pit mine feeding a heap leach operation processing 4 million tonnes of oxidized ore per year. The design is based on feasibility studies completed in 2018, localized for Kyrgyzstan in 2020, and further updated in 2021 by LogiProc with support from Ausenco's Canadian branch.

The processing sequence involves crushing ore to a target size, stacking it on a heap leach pad, and applying a leaching solution that is collected and processed through a carbon absorption, desorption, and recovery plant to produce gold doré bars.

Five mining contractors, four of which operate in Kyrgyzstan, have visited the site and submitted initial quotes for open pit mining, stripping, and waste handling, supporting a budget of US$51.5 million for that scope, based on a fixed cost per cubic metre of rock removed. The heap leach facility, comprising the crusher, leach pad, and recovery plant, carries a total capital cost estimate of US$75.6 million. BGRIMM of Beijing has been contracted to finalize the crusher and recovery plant design to Kyrgyzstan standards, with completion expected by March 2027. Supporting infrastructure, including a temporary camp and road upgrades in 2026 followed by a maintenance workshop and storage facilities in 2027, is budgeted at a combined US$8 million.

Kyzyltash Sulfide Resource Drilling and Studies Targeting a 2028 Construction Start

Kyzyltash is planned as a 3 to 4 million tonne per year operation combining open pit and underground mining, with processing through flotation, bacterial oxidation, and carbon in leach.

During 2026, the joint venture plans to drill between 50,000 and 60,000 metres at Kyzyltash, with three contractors operating twelve drill rigs across the Contact Zone and Main Zone. The program includes in-fill drilling to convert inferred resources to higher confidence categories, along with step-out drilling to expand the resource base. Geotechnical, hydrological, metallurgical, and environmental studies are also underway, with total 2026 spending for the Kyzyltash program budgeted at US$15 million, based on actual drilling contract quotes.

In 2027, the joint venture plans to complete a Preliminary Economic Assessment and a further 60,000 metres of drilling to support a Pre-Feasibility Study, to be submitted to the Kyrgyz government for permitting review, at a budgeted cost of US$15 million. A Feasibility Study and detailed engineering design are targeted for 2028, alongside the planned start of construction.

Milestones and Next Steps

Near-term milestones include the updated Tulkubash feasibility study, expected by July 2026, and the finalized crusher and recovery plant design, expected by March 2027. The 2026 Kyzyltash drilling program is currently underway. For 2027, the Preliminary Economic Assessment and Pre-Feasibility Study for Kyzyltash are scheduled, followed by a Feasibility Study, detailed engineering design, and the planned start of construction in 2028.

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