Silverco Mining Ltd. press release

Silverco Mining Releases Robust PEA for the Cusi Mine Highlighting High-Margin, Low Capital Restart

2026-04-13

TSXV - TSX Venture Exchange · Silver · Zinc · Lead · Gold · Canada · Technical Studies

Vancouver, British Columbia--(Newsfile Corp. - April 13, 2026) - Silverco Mining Ltd. (TSXV: SICO) (OTCQB: SICOF) (the "Company") is pleased to announce the results of an independent Preliminary Economic Assessment ("PEA") for the restart of its 100%-owned Cusi Mine located in Chihuahua, Mexico.

Key Highlights:

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After-tax NPV (5%) of US$104.1 million ("M"), IRR of 94.8% and a payback period of 0.9-years at base case average silver price of US$44.58/ounce ("oz").

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After-tax NPV (5%) of US$312.2 M, IRR of 186.9% and a payback period of 0.5-years at the upside case of US$75.00/oz.

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Average annual production of ~2.5 Moz silver equivalent (“AgEq”)1(2028-2033) with ~90% revenue from silver.

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Life-of-mine AISC of US$26.75 per payable oz AgEq.

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Initial capital of only US$19.2 M, delivering 5.4x after-tax NPV/to initial capital at base case metal prices.

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Restart of processing targeted for late 2026 with full ramp-up by mid-2027

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30,000 metre surface and underground drill program underway targeting infill, resource growth and mine life extension.

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Early restart work is underway at the mine and mill and discussions are underway to select an underground contractor.

Mark Ayranto, President and CEO, commented:

"We believe the PEA confirms Cusi as one of the most compelling primary silver restart opportunities globally. With low upfront capital, rapid payback, and strong leverage to rising silver prices, Cusi is positioned to deliver near-term production and cash flow. Importantly, ongoing drilling and restart work provide clear upside to both scale and mine life.

We have sufficient funds currently on hand to finance the restart and continue our previously announced 30,000 m drill program that is testing for on strike and downthrown extensions, in addition to infill drilling. Work is also well underway at the mine and mill to support the restart, including dewatering and mine rehabilitation, hiring of key discipline managers, and commencement of the bid process for an underground mine contractor. With concentrate production scheduled to begin in late 2026 and full ramp-up by mid-2027, we are looking at a very rapid timeline to meaningful production and cash flow."

The results of the PEA are preliminary in nature and include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves.

A report supporting this news release will be available on SEDAR+ (www.sedarplus.ca) and on the Company's website (www.silvercomining.com) within the next 45 days. All dollar amounts referenced in this news release are in United States dollars (USD or US$) unless otherwise noted.

PEA Overview

The PEA was prepared by JDS Energy & Mining Inc. ("JDS"), Forte Dynamics ("Forte"), and SGS Geological Services ("SGS").

The PEA outlines a low-capital restart of an existing underground mine with an initial approximately nine-year mine life and steady-state throughput of 1,200 tonnes per day (“tpd”). Production is scheduled to begin in late 2026, with full ramp-up by mid-2027, and average annual output of 2.47 million oz AgEq produced from 2028-2033.

Table 1: PEA Summary Table

| | Units | | | Mill Feed | | | | Mine Life | years | 8.3 | | Mine Throughput | Mt/annum | 4.4 | | Milling Throughput | t/d | 1,200 | | Silver Recovery | % | 84.0% | | Lead Recovery | % | 91.5 | | Zinc Recovery | % | 73.0 | | Gold Recovery | % | 79.0 | | Average AgEq Produced(1) | M AgEqoz/year | 2.1 (peak 2.8) | | Average AgEq Payable(1) | M AgEqoz/year | 1.7 (peak 2.4) | | Financial Analysis - Base Case (Average Ag - $44.58/oz)(2) | | | | Pre-Tax NPV5% | $M | 188.2 | | Pre-Tax IRR | % | 155.7 | | Pre-Tax Payback | years | 0.6 | | After-Tax NPV(5%) | $M | 104.1 | | After-Tax IRR | % | 94.8% | | After-Tax Payback | years | 0.9 | | Financial Analysis - Upside Case (Fixed Ag - $75/oz)(2) | | | | After-Tax NPV(5%) | $M | 312.2 | | After-Tax IRR | % | 186.9 | | After-Tax Payback | years | 0.5 | | Capital Costs | | | | Initial(3) | $M | 19.2 | | Sustaining, including closure | $M | 140.6 | | Operating Costs | | | | Mining | $/t | 40.27 | | Processing | $/t | 23.23 | | G&A | $/t | 9.03 | | Contingency | $/t | 3.63 | | Cash Operating Costs | $/AgEqoz | 17.24 | | Site AISC | $/AgEqoz | 26.75 |

Notes:

1. Average Produced and Payable excludes values from 2026 2. Metal prices for Lead, Zinc, and Gold for both Base and Upside cases are $0.91/lb, $1.21/lb, and $3,000/oz respectively. 3. Initial capital is inclusive of all capital spend and owners costs to end of Q1 2027 and includes revenue generation during commissioning period from Q4 2026 to Q1 2027

Silver Revenue

The Cusi Project's economic profile is defined by its substantial leverage to silver prices, with 88% of the projected life-of-mine Net Smelter Return (NSR) revenue generated directly from silver production. The remaining 12% of the NSR revenue is comprised of by-product metals, including lead (8%), gold (3%), and zinc (1%), as calculated using the PEA's metallurgical recovery, metal price assumptions, and payabilities.

[](https://images.newsfilecorp.com/files/10393/292137_silvercofig1.jpg)

Figure 1 - Life-of-Mine Net Smelter Return by Metal

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/10393/292137_silvercofig1.jpg

Mining activities will focus on three primary zones: Promontorio, San Miguel, and Eduwiges. Initial production will prioritize the Promontorio zone to leverage extensive existing underground infrastructure and advanced mine development. Development of the newly defined San Miguel zone is slated to proceed concurrently, with a target to be fully ramped up by the end of H1 2027. The extraction will utilize conventional sublevel long-hole open stoping in a retreat strategy, performed by specialized contract miners. To optimize grade delivery, the Company will employ a stockpiling strategy for lower-grade material.

Table 2: Production Schedule

| | Units | Y-1 | Y1 | Y2 | Y3 | Y4 | Y5 | Y6 | Y7 | Y8-9 | LOM | | Mill Feed | | | | | | | | | | | | | Milled (kt) | Kt | 40 | 370 | 432 | 432 | 432 | 432 | 432 | 432 | 554 | 3,556 | | Ag Feed Grade | g/t | 175.3 | 162.6 | 186.7 | 160.3 | 193.5 | 125.6 | 132.7 | 158.8 | 101.3 | 151.0 | | Au Feed Grade | g/t | 0.06 | 0.17 | 0.21 | 0.22 | 0.13 | 0.15 | 0.10 | 0.13 | 0.10 | 0.15 | | Pb Feed Grade | % | 0.25 | 0.50 | 0.73 | 078 | 0.92 | 1.57 | 1.15 | 0.83 | 0.43 | 0.85 | | Zn Feed Grade | % | 0.28 | 0.46 | 0.75 | 1.88 | 1.21 | 1.92 | 1.85 | 1.18 | 0.68 | 1.10 | | Metal Recovered to Concentrate | | | | | | | | | | | | | Ag | Koz | 188 | 1,624 | 2,178 | 1,871 | 2,258 | 1,465 | 1,548 | 1,853 | 1,516 | 14,502 | | Au | Koz | 0.1 | 1.6 | 2.3 | 2.4 | 1.5 | 1.7 | 1.0 | 1.4 | 1.4 | 13.4 | | Pb | Mlbs | 0.2 | 3.8 | 6.4 | 6.8 | 8.0 | 13.6 | 10.1 | 7.2 | 4.8 | 60.9 | | Zn | Mlbs | 0.2 | 2.7 | 5.2 | 6.1 | 8.4 | 13.3 | 12.8 | 8.2 | 6.1 | 63.1 | | AgEq Produced (1) | koz | 198 | 1,818 | 2,534 | 2,346 | 2,821 | 2,377 | 2,308 | 2,416 | 1,950 | 18,768 | | Payable Metals | | | | | | | | | | | | | Ag | Koz | 179 | 1,543 | 2,069 | 1,777 | 2,145 | 1,392 | 1,471 | 1,761 | 1,441 | 13,777 | | Au | Koz | 0.0 | 1.0 | 1.6 | 1.7 | 0.7 | 1.0 | 0.3 | 0.7 | 0.5 | 7.4 | | Pb | Mlbs | 0.1 | 2.5 | 4.9 | 5.3 | 6.5 | 12.1 | 8.6 | 5.7 | 2.9 | 48.6 | | Zn | Mlbs | 0.0 | 0.0 | 0.4 | 0.5 | 0.7 | 1.1 | 1.0 | 0.7 | 0.1 | 4.4 | | AgEq Payable (2) | koz | 181 | 1,644 | 2,268 | 2,037 | 2,398 | 1,823 | 1,766 | 2,004 | 1,589 | 15,711 |

Notes:

1. AgEq Produced represents the total value of all recovered metals expressed in silver ounces. This is calculated by converting byproduct metal production (gold, lead, and zinc) into silver ounces based on the relative value of their price assumptions compared to the silver price assumption. 2. AgEq Payable represents the total value of all payable metals expressed in silver ounces. This is calculated by converting byproduct payable metal (gold, lead, and zinc) into silver ounces based on the relative value of their price assumptions compared to the silver price assumption.

[](https://images.newsfilecorp.com/files/10393/292137_silvercofig2.jpg)

Figure 2: Life-of-Mine Payable Revenue by Metal and Silver Equivalent Production

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/10393/292137_silvercofig2.jpg

The Cusi underground mine is located approximately 120 kilometre ("km") West from the city of Chihuahua and 20 km south of Cuauhtemoc city. The location allows for access to an experienced labour pool with a population of more than one million people. Ore will be transported from the mine via 30-tonne highway trucks to the Company's existing 1,200 tpd processing facility, located approximately 40 km from the mining areas. The mill utilizes a conventional comminution and flotation circuit designed to produce a high-value bulk lead-silver concentrate. The project currently maintains constructed tailings storage capacity for the first 12 months of production. Permitting is already in place for additional capacity required by the end of 2027.

[](https://images.newsfilecorp.com/files/10393/292137_silvercofig3.jpg)

Figure 3 and 4 - Cusi Property Location (Left) and Property Claims (Right)

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/10393/292137_silvercofig3.jpg

[](https://images.newsfilecorp.com/files/10393/292137_67cbaf69f4928a63_005full.jpg)

Figure 5 - Cusi Mine Layout

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/10393/292137_67cbaf69f4928a63_005full.jpg

[](https://images.newsfilecorp.com/files/10393/292137_67cbaf69f4928a63_006full.jpg)

Figure 6 - Promontorio and San Juan Mine Design - Long Section View, Looking North

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/10393/292137_67cbaf69f4928a63_006full.jpg

[](https://images.newsfilecorp.com/files/10393/292137_67cbaf69f4928a63_007full.jpg)

Figure 7 - San Miguel Mine Design - Long Section View, Looking North

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/10393/292137_67cbaf69f4928a63_007full.jpg

[](https://images.newsfilecorp.com/files/10393/292137_67cbaf69f4928a63_008full.jpg)

Figure 8 - Eduwiges Mine Design - Long Section View, Looking North

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/10393/292137_67cbaf69f4928a63_008full.jpg

Forecast Operating Cost Estimates

Operating costs were estimated as a combination of historical operating costs at Cusi (based on data from 2022 and 2023 operations at a reduced throughput), updated with new contractor rates for development, reagent and consumable pricings, and benchmarked against comparable Mexican operations. Operating costs include a contingency of 5%.

Life-of-mine cash operating costs have been estimated at $76.15/t and all-in-sustaining-costs ("AISC") are estimated at $26.75/AgEq oz.

Table 3: Operating Cost Estimates

| Operating Costs | LOM Total ($M) | Unit Cost ($/AgEq oz) | Unit Cost ($/t) | | Mining | $139.0 | $9.12 | $40.27 | | Processing | $80.2 | $5.26 | $23.23 | | General & Administrative | $31.2 | $2.04 | $9.03 | | Contingency (5%) | $12.5 | $0.82 | $3.63 | | Total Cash Operating Costs | $262.9 | $17.24 | $76.15 | | TC/RCs & Royalties | $4.35 | $0.29 | $1.26 | | Total Cash Costs | $267.2 | $17.53 | $77.38 | | Net Sustaining Capital Costs | $140.6 | $9.22 | $40.72 | | Total Site AISC(1) | $407.8 | $26.75 | $118.13 |

Notes:

1. PEA AISC excludes exploration and corporate costs. AISC does include grade control and infill drilling.

Life-of-Mine Capital Summary

The initial net capital requirements are forecasted to be $19.2 M. This includes revenue contributions from initial concentrate production during ramp-up. The initial construction capital estimate consists primarily of mine development at both Promontorio and San Miguel, refurbishment of the existing 1,200 tpd mill, installation of a tailing's thickener for reduced water consumption, capitalized operating costs during the ramp-up phase, miscellaneous mine and surface infrastructure upgrades, and working capital. Working capital has been excluded from capital but included within the financial model. Initial capital costs include 25% contingency.

Sustaining capital is estimated at $140.6 M over the life-of-mine, primarily related to ongoing underground mine development and associated infrastructure, tailings expansions, underground grade control drilling, and closure costs. Sustaining capital includes an average of 22% contingency.

Table 4: Life-of-Mine Capital Estimates

| LOM Capital | Cost ($M) | | Construction Capital (1) | $47.5 | | Commissioning Revenue(2) | ($28.3) | | Net Initial Capital | $19.2 | | Sustaining Capital | $109.3 | | Closure | $31.3 | | Net Sustaining Capital | $140.6 | | Total LOM Capital | $159.8 |

Notes:

1. Construction capital includes all capital and operating cost from initial restart works to achieving commercial throughput. This period is forecasted until the end of Q1 2027. Concentrate production is planned to begin at the start of Q4 2026. Continued ramp up to full throughput is completed by end of H1 2027. 2. Commissioning revenue is all revenue generated up to the end of Q1 2027.

Metal Price Assumptions

The base case utilizes fixed metal prices for gold, lead, and zinc. Silver uses a simplified silver curve starting at $65/oz for 2026 and tapering off to a long-term price of $38/oz beginning in year 5. The average life-of-mine realized price is $44.58/oz. The silver prices in the early years of the project are based on the restart of production in late 2026, current spot prices and consensus price projections. Base case silver prices are discounted on average approximately 13% below consensus pricing of 32 banks and financial institutions.

The upside case utilizes a fixed average silver price of $75.00/oz. Other metal prices remain unchanged from the base case assumptions.

Table 5: Base Case Metal Price Assumptions

| | Life of Mine | 2026 | 2027 | 2028 | 2029 | 2030+ | | Ag ($/oz) | $44.58 | $65 | $60 | $55 | $45 | $38 | | Au ($/oz) | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | | Pb ($/lb) | $0.91 | $0.91 | $0.91 | $0.91 | $0.91 | $0.91 | | Zn ($/lb) | $1.29 | $1.29 | $1.29 | $1.29 | $1.29 | $1.29 |

Forecast Return Estimates

The economic analysis outlines a base case after-tax Net Present Value ("NPV") of $104.1M at a 5% discount rate with a payback of 0.9-years. The upside case outlines an after-tax NPV of $312.2M with a payback of 0.5-years at the same discount rate.

Table 6: Project Pre and Post-tax Economics

| | Base Case ($44.58/oz Ag) | Upside Case ($75/oz Ag) | | | | Metric | Pre-Tax | After-Tax | Pre-Tax | After-Tax | | Total Cash Flow | $230.8M | $128.6M | $641.5M | $391.6M | | NPV (5%) | $188.2M | $104.1M | $513.7M | $312.2M | | Internal Rate of Return | 155.7% | 94.8% | 294.0% | 186.9% | | Payback Period | 0.6 years | 0.9 years | 0.2 years | 0.5 years |

Sensitivity Analysis

The project economics are most sensitive to metal prices, followed by operating costs and capital expenditure. The table below shows the after-tax NPV(5%) at varying multipliers applied to each parameter.

[](https://images.newsfilecorp.com/files/10393/292137_silvercofig9.jpg)

Figure 9: Project Sensitivity

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/10393/292137_silvercofig9.jpg

Table 7: After-Tax Silver Price Sensitivity

The table below shows the after-tax NPV at a 5% discount rate and Internal Rate of Return (IRR) at various silver price assumptions, with all other metal prices held constant.

| Silver Price ($/oz) | After-Tax NPV(5%) ($M) | After-Tax IRR (%) | Payback Period (yrs) | | $15 | ($148.7) | n/a | n/a | | $30 | ($5.4) | 1.7% | 6.1 | | $45 | $101.4 | 56.7% | 1.8 | | $44.58 (Base Case) | $104.1 | 94.8% | 0.9 | | $60 | $206.8 | 115.8% | 0.9 | | $75 (Upside Case) | $312.2 | 186.9% | 0.5 | | $100 | $486.7 | 348.5% | 0.1 | | $120 | $626.2 | 541.2% | 0.0 |

Notes:

1. The approximate break-even price for the project considering initial capital is approximately $30/oz silver.

Mining Overview

The PEA envisions a multi-front mining operation focused on three primary mineralized zones: Promontorio, San Miguel, and Eduwiges. These zones consist of multiple vein structures, providing the operation with significant operational flexibility through a variety of active working fronts. To ensure operational redundancy and a consistent mill feed, each zone is accessible via its own independent ramp and portal system, ensuring operational redundancy. Underground development and production mining will be executed by mining contractors, allowing the Company to leverage external expertise and equipment to optimize the restart.

The primary extraction method selected for the Cusi Mine is conventional sub-level long-hole stoping utilizing a retreat strategy. This method provides a balance of high productivity and effective ground control. Under the current mine plan, stopes will be left open, with sill pillars retained every three levels to maintain long-term structural integrity. To maximize the recovery of high-value ore, sill pillars in higher-grade zones will be extracted and replaced with cemented rock fill (CRF). Additionally, rib pillars will be utilized as necessary based on local geotechnical requirements and vein morphology.

To optimize the feed grade to the processing facility, a strategic stockpiling program will be implemented at surface. Lower-grade material will be staged at dedicated laydowns outside the mine portals and blended as needed. Ore will then be transported by 30-tonne highway trucks to the 1,200 tpd processing facility located approximately 40 km from the mining areas. This integrated approach to mining and logistics is designed to maintain a steady throughput while prioritizing high-margin production during the initial years of the restart.

Table 8: Annual Mine Schedule

| | Units | Y-1 | Y1 | Y2 | Y3 | Y4 | Y5 | Y6 | Y7 | Y8-9 | LOM | | | | | | | | | | | | | | | Mined Tonnes | Kt | 40 | 370 | 432 | 432 | 432 | 432 | 432 | 432 | 554 | 3,556 | | Ag Grade | g/t | 172.6 | 155.4 | 174.0 | 143.7 | 181.9 | 122.7 | 130.3 | 147.9 | 167.9 | 151.0 | | Au Grade | g/t | 0.06 | 0.16 | 0.20 | 0.20 | 0.13 | 0.14 | 0.09 | 0.12 | 0.07 | 0.15 | | Pb Grade | % | 0.26 | 0.49 | 0.71 | 0.71 | 0.88 | 1.41 | 1.08 | 0.75 | 0.05 | 0.85 | | Zn Grade | % | 0.28 | 0.44 | 0.80 | 0.86 | 1.16 | 1.74 | 1.74 | 1.10 | 0.02 | 1.10 | | Operating Development | m | 546 | 5,844 | 6,400 | 5,978 | 5,221 | 3,809 | 3,866 | 301 | 0 | 31,966 | | Capital Development | m | 3,008 | 5,160 | 6,117 | 5,030 | 4,101 | 2,458 | 2,362 | 108 | 0 | 28,344 |

Approximately 1% of resources used in the PEA are Measured, 41% are Indicated and 58% are Inferred. For the first 2 years the mine plan, 2026 and 2027, the mined material is 63% Measured and Indicated and 37% Inferred.

Metallurgy & Processing Overview

Processing design criteria and metallurgical recoveries were determined by Forte. The Cusi Project utilizes an existing, centralized processing facility located approximately 40 km from the primary mining zones, with ore delivered to the site via a fleet of 30-tonne highway trucks. The mill is engineered for a nominal throughput of 1,200 tpd and employs a conventional mineral processing flowsheet consisting of multi-stage comminution followed by a flotation circuit to produce a high-value bulk lead-silver concentrate.

The metallurgical recovery assumptions utilized in the PEA were established through the results of a modern metallurgical test work program in combination with long-term historical production data. Recent test work was specifically conducted on representative mineralized samples from both the Promontorio and San Miguel zones. The results of this test work were found to be highly consistent with the mine's historical mill performance, providing a robust empirical basis for the forecast recoveries. By combining the recent test work results with the project's established operational history, the PEA utilizes the following recovery assumptions of 84.0% for silver, 91.5% for lead, 79.0% for gold and 73.0% for zinc.