Discovery Mining Clears Key Permits for Cordero Silver Project

Discovery Mining (TSX: DSV, US-OTC: DSVSF) has cleared a major hurdle for its Cordero silver project after receiving two key permits from the Mexican government. The environmental impact assessment and Change of Land Use permits were approved by Mexico’s environmental department, SEMARNAT, completing the project’s federal environmental approval process. While this milestone is significant, Discovery still needs to finalize development planning and secure financing before construction can begin.

Analysts view the permit approval as a major step forward for the project. National Bank Financial mining analyst Rabi Nizami noted that Cordero is now more financeable and strategically valuable, with greater optionality for joint ventures or outright sale. Other analysts, including those from SCP Resource Finance and BMO Capital Markets, also expressed optimism, highlighting the project’s scale and the ability for large greenfield projects to advance under the current administration.

Cordero, located in Mexico’s Central Mexican Silver Belt, is one of the world’s largest undeveloped silver reserves. The 2024 feasibility study outlined a 19-year mine with an average annual production of 37 million ounces of silver equivalent during its first 12 years. Initial capital costs were estimated at $606 million, with an after-tax net present value of $1.2 billion using a silver price of $22 per ounce.

Discovery shares fell 2.3% to C$11.92 in Toronto trading on Tuesday, despite the positive news. The stock has nearly tripled over the past year, reflecting strong investor interest in the project’s potential.