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El Domo - Curipamba Project Fully Permitted to Start Construction

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Silvercorp Metals and Salazar Resources have announced that the El Domo-Curipamba Project in Ecuador has received the Resolution of Change of Phase from the Ministry of Energy and Mines. This approval advances the project from the Economic Evaluation Phase to the Exploitation Phase, allowing for the start of construction and subsequent mine operation. This resolution is equivalent to the Exploitation Agreement for large-scale mines in Ecuador.

Dr. Rui Feng, Chairman and CEO of Silvercorp, stated that this is the final major approval required for full stage construction to begin. Fredy E. Salazar, President and CEO of Salazar, expressed gratitude to the team for achieving this milestone and anticipates El Domo becoming the next major industrial mine in Ecuador.

Silvercorp Metals e Salazar Resources hanno annunciato che il progetto El Domo-Curipamba in Ecuador ha ricevuto la Risoluzione di Cambio di Fase dal Ministero dell'Energia e delle Miniere. Questa approvazione fa avanzare il progetto dalla Fase di Valutazione Economica alla Fase di Sfruttamento, consentendo l'inizio della costruzione e successiva operazione della miniera. Questa risoluzione è equivalente all'Accordo di Sfruttamento per miniere su larga scala in Ecuador.

Il Dr. Rui Feng, Presidente e CEO di Silvercorp, ha dichiarato che questa è l'ultima approvazione principale necessaria per l'inizio della costruzione a pieno stadio. Fredy E. Salazar, Presidente e CEO di Salazar, ha espresso gratitudine al team per aver raggiunto questo traguardo e prevede che El Domo diventi la prossima grande miniera industriale in Ecuador.

Silvercorp Metals y Salazar Resources han anunciado que el Proyecto El Domo-Curipamba en Ecuador ha recibido la Resolución de Cambio de Fase del Ministerio de Energía y Minas. Esta aprobación hace avanzar el proyecto de la Fase de Evaluación Económica a la Fase de Explotación, permitiendo el inicio de la construcción y la posterior operación de la mina. Esta resolución equivale al Acuerdo de Explotación para minas a gran escala en Ecuador.

El Dr. Rui Feng, Presidente y CEO de Silvercorp, afirmó que esta es la última aprobación principal necesaria para comenzar la construcción en pleno. Fredy E. Salazar, Presidente y CEO de Salazar, expresó su gratitud al equipo por alcanzar este hito y anticipa que El Domo se convierta en la próxima gran mina industrial en Ecuador.

실버코프 메탈스(Silvercorp Metals)와 살라자르 리소스(Salazar Resources)는 에콰도르의 엘 도모-쿠리팜바 프로젝트가 에너지 및 광업부로부터 단계 변경 결의안을 받았다고 발표했습니다. 이 승인은 프로젝트를 경제 평가 단계에서 착취 단계로 이전하며, 건설 시작 및 이후 광산 운영이 가능하게 합니다. 이 결의안은 에콰도르의 대규모 광산에 대한 착취 계약에 해당합니다.

실버코프의 회장 겸 CEO인 루이 펑(Dr. Rui Feng)은 이것이 전체 단계 건설을 시작하기 위해 필요한 마지막 주요 승인라고 언급했습니다. 살라자르의 회장 겸 CEO인 프레디 E. 살라자르(Fredy E. Salazar)는 이번 이정표를 달성한 팀에 감사의 뜻을 표하며, 엘 도모가 에콰도르의 다음 주요 산업 광산으로 발전할 것이라고 예상했습니다.

Silvercorp Metals et Salazar Resources ont annoncé que le projet El Domo-Curipamba en Équateur a reçu la Résolution de Changement de Phase du Ministère de l'Énergie et des Mines. Cette approbation fait progresser le projet de la Phase d'Évaluation Économique à la Phase d'Exploitation, ce qui permet de commencer la construction et l'exploitation subséquente de la mine. Cette résolution est équivalente à l'Accord d'Exploitation pour les mines à grande échelle en Équateur.

Dr. Rui Feng, Président et CEO de Silvercorp, a déclaré que cela constitue la dernière approbation majeure requise pour le début de la construction complète. Fredy E. Salazar, Président et CEO de Salazar, a exprimé sa gratitude à son équipe pour avoir atteint ce jalon et prévoit qu'El Domo devienne la prochaine grande mine industrielle en Équateur.

Silvercorp Metals und Salazar Resources haben bekannt gegeben, dass das El Domo-Curipamba-Projekt in Ecuador die Änderungsresolution des Ministeriums für Energie und Bergbau erhalten hat. Diese Genehmigung bringt das Projekt von der wirtschaftlichen Evaluierungsphase in die Ausbeutungsphase, was den Beginn des Baus und den anschließenden Betrieb der Mine ermöglicht. Diese Resolution ist dem Ausbeutungsvertrag für großangelegte Minen in Ecuador gleichzusetzen.

Dr. Rui Feng, Vorsitzender und CEO von Silvercorp, erklärte, dass dies die letzte wichtige Genehmigung ist, die für den Beginn des vollständigen Bauvorhabens erforderlich ist. Fredy E. Salazar, Präsident und CEO von Salazar, sprach seinem Team Dank aus, dass dieses Meilenstein erreicht wurde, und erwartet, dass El Domo zur nächsten großen Industriemine in Ecuador wird.

Positive
  • Received final major approval (Resolution of Change of Phase) for the El Domo-Curipamba Project
  • Project advances to Exploitation Phase, allowing construction and mine operation to begin
  • El Domo-Curipamba positioned to become the next major industrial mine in Ecuador
Negative
  • None.

Insights

The issuance of the Resolution of Change of Phase for the El Domo-Curipamba Project is a significant milestone for Silvercorp Metals and Salazar Resources. This approval essentially green-lights the project for full construction, marking a important transition from exploration to exploitation.

The project's advancement to the Exploitation Phase is particularly noteworthy in the Ecuadorian context, where it's now on par with large-scale mines like Fruta del Norte and Mirador. This regulatory clearance not only validates the project's viability but also signals government support for mining development in Ecuador.

For investors, this news is overwhelmingly positive. It substantially de-risks the project, potentially accelerating the timeline to production and cash flow. However, the real test lies ahead in execution and capital management during the construction phase.

This regulatory approval is a major catalyst for both Silvercorp Metals and Salazar Resources. It unlocks significant value in their asset portfolio and paves the way for potential revenue generation in the medium term.

Investors should note that while this is a positive development, it also marks the beginning of a capital-intensive phase. The companies will likely need to secure substantial funding for construction, which could impact their balance sheets and cash flows in the short term.

The market's reaction to this news will be important to watch, as it may lead to a re-rating of both stocks. However, prudent investors should also consider the execution risks and potential timeline to production when evaluating the long-term impact on company valuations.

The advancement of the El Domo-Curipamba Project to the Exploitation Phase underscores the importance of responsible mining practices in Ecuador. Dr. Rui Feng's commitment to modern, responsible development aligns with growing ESG expectations in the mining sector.

Investors should closely monitor how Silvercorp and Salazar engage with local communities and manage environmental impacts during construction and operation. Strong ESG performance can mitigate risks and enhance the project's long-term sustainability.

The companies' ability to deliver on their promises of community benefits and contribute positively to Ecuador's economy will be important for maintaining their social license to operate. This aspect is increasingly important for mining companies' valuations and access to capital in today's market.

Silvercorp Metals Inc. logo (CNW Group/Silvercorp Metals Inc)

Salazar Resources logo (CNW Group/Silvercorp Metals Inc)

Trading Symbols:         SVM (TSX/NYSE American), SRL (TSXV), SRLZF (OTCQB)

VANCOUVER, BC, Aug. 6, 2024 /PRNewswire/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) and Salazar Resources Limited ("Salazar") (TSXV: SRL) (OTCQB: SRLZF) are pleased to announce that the Ministry of Energy and Mines of the Government of Ecuador ("MEM") has issued a Resolution of Change of Phase for the El Domo-Curipamba Project (the "Project").

The Resolution of Change of Phase advances the legal status of the Project from the Economic Evaluation Phase to the Exploitation Phase and allows for the start of construction and subsequent operation of the mine. The Change of Phase for a medium-scale project, such as El Domo – Curipamba, is equivalent to the Exploitation Agreement for large-scale mines in Ecuador such as Fruta del Norte and Mirador.

Dr. Rui Feng, Chairman and CEO of the Company, commented: "The Resolution of Change of Phase is the final major approval required for full stage construction to start for the El Domo-Curipamba Project. With the achievement of this important milestone, we reaffirm our commitment to modern, responsible development that will benefit the communities where we operate and the Country of Ecuador as a whole."

Fredy E. Salazar, President and CEO of Salazar, commented: "First, I want to thank the team for achieving this milestone, which reflects their continued dedication over the past years. We look forward to El Domo becoming the next major industrial mine in Ecuador."

About Silvercorp

Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company's strategy is to create shareholder value by 1) focusing on generating free cashflow from long-life mines; 2) organic growth through extensive drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) a long-term commitment to responsible mining and ESG. For more information, please visit our website at www.silvercorpmetals.com.

About Salazar

Salazar Resources Limited is focused on creating value and positive change through discovery, exploration, and development in Ecuador. The team has an unrivalled understanding of the geology in-country and has played an integral role in the discovery of many of the major projects in Ecuador, including the two newest operating gold and copper mines. Salazar Resources has a wholly owned pipeline of copper-gold exploration projects across Ecuador with a strategy to make another commercial discovery and farm-out non-core assets. The Company actively engages with Ecuadorian communities and together with the Salazar family it co-founded The Salazar Foundation, an independent non-profit organization dedicated to sustainable progress through economic development. The Company already has carried interests in three projects. At its maiden discovery, Curipamba, Salazar Resources has a 25% stake fully carried through to production. At two copper-gold porphyry projects, Pijili and Santiago, the Company has a 20% stake fully carried through to a construction decision.

For further information:

Silvercorp Metals Inc.                                                                   

Salazar Resources Ltd.

Lon Shaver                                                                                     

Nick DeMare

President                                                                                         

Director

Phone: (604) 669-9397                                                               

Phone: (604) 685 9316

Toll Free 1(888) 224-1881


Email: investor@silvercorp.ca                                                     

Email: ndemare@chasemgt.com

Website: www.silvercorpmetals.com                                       

Website: www.salazarresources.com


CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS

This news release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable securities laws relating to, among other things the discussions regarding strategies for the development of El-Domo; the adoption of a strategy and the timing thereof; the obtaining of key approvals, permits and environmental licensing approval for the El-Domo and the timing thereof; the start of construction at El Domo and the timing thereof. By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, risks related to the exploration, development, production, recoveries and other anticipated or possible future developments at El Domo, including, without limitation, that exploration, development and production activities will not occur or be as anticipated and that environmental licensing will not be approved; failure to obtain the environmental licensing approval for the El-Domo along with other key permits and approvals and to start construction; the  outcome of the appeal (the "Appeal") to the provincial court of the ruling made by the local court in Las Naves Canton, Bolívar Province, Ecuador in respect of litigation brought by a group of plaintiffs concerning the environmental consultation process for the Project; and general economic, business and political conditions. Forward-looking information may in some cases be identified by words such as "will", "anticipates", "expects", "intends" and similar expressions suggesting future events or future performance.

We caution that all forward-looking information is inherently subject to change and uncertainty and that actual results may differ materially from those expressed or implied by the forward-looking information. A number of risks, uncertainties and other factors, including the Appeal or subsequent developments in the litigation and potential  impacts of the Appeal or such subsequent litigation developments on the Project, could cause actual results and events to differ materially from those expressed or implied in the forward-looking information or could cause our current objectives, strategies and intentions to change. Accordingly, we warn investors to exercise caution when considering statements containing forward-looking information and that it would be unreasonable to rely on such statements as creating legal rights regarding our future results or plans. We cannot guarantee that any forward-looking information will materialize and you are cautioned not to place undue reliance on this forward-looking information. Any forward-looking information contained in this news release represent expectations as of the date of this news release and are subject to change after such date. However, we are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing forward-looking information, the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. All of the forward-looking information in this news release is qualified by the cautionary statements herein.

A comprehensive discussion of other risks that impact Silvercorp can also be found in their public reports and filings which are available under its profile at www.sedarplus.ca.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/el-domo---curipamba-project-fully-permitted-to-start-construction-302215194.html

SOURCE Silvercorp Metals Inc

FAQ

What is the significance of the Resolution of Change of Phase for Silvercorp's El Domo-Curipamba Project?

The Resolution of Change of Phase is the final major approval required for full stage construction to start on the El Domo-Curipamba Project. It advances the project from the Economic Evaluation Phase to the Exploitation Phase, allowing for the start of construction and subsequent mine operation.

How does the Change of Phase for El Domo-Curipamba compare to approvals for large-scale mines in Ecuador?

The Change of Phase for the medium-scale El Domo-Curipamba Project is equivalent to the Exploitation Agreement required for large-scale mines in Ecuador, such as Fruta del Norte and Mirador.

What is the next step for Silvercorp Metals (SVM) following this approval?

With the Resolution of Change of Phase obtained, Silvercorp Metals (SVM) can now proceed with full stage construction of the El Domo-Curipamba Project, moving towards mine operation in Ecuador.

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