Discovery Mining Clears Major Hurdle for Cordero Silver Project

Discovery Mining (TSX: DSV, US-OTC: DSVSF) has secured two crucial environmental and land-use permits from the Mexican government for its Cordero silver project, clearing a major hurdle for the project's development. The permits, approved by Mexico’s environmental department SEMARNAT, complete the federal environmental approval process, allowing the Canadian miner to move forward with development planning and financing.

Despite this milestone, Discovery still needs to finalize development plans and secure financing before construction can begin. The company is updating its February 2024 feasibility study to reflect current capital and operating costs, evaluating energy sources, and working on upgrading the local water-treatment plant.

Analysts reacted positively to the news. National Bank Financial’s Rabi Nizami called it a major milestone, suggesting the project is now more financeable and strategically valuable. BMO Capital Markets’ Kevin O’Halloran described the permits as the final major hurdle, with first production expected in the second half of 2029. BMO values Cordero at $2.73 billion using a long-term silver price of $47 per oz.

Discovery acquired Cordero in 2019 and has invested over $100 million (C$140 million) in exploration and technical work. The 2024 feasibility study outlines a 19-year mine producing an average of 37 million oz. of silver equivalent annually during its first 12 years, with average all-in sustaining costs below $12.50 per silver-equivalent oz. The project holds 327 million proven and probable tonnes, making it one of the world’s largest undeveloped silver reserves.