Silvercorp Announces the Construction Plan and Schedule for the Development of the Chaarat ZAAV Project
Rhea-AI Summary
Silvercorp (TSX/NYSE American: SVM) approved a US$196.3 million budget for joint venture Chaarat ZAAV to develop the Tulkubash (Phase 1) and Kyzyltash (Phase 2) gold projects in Kyrgyzstan. Planned spending is US$57.3 million in 2026 and US$139.0 million in 2027.
Phase 1 allocates US$166.3 million to build a 4 Mtpa open-pit heap leach mine at Tulkubash, including mining, heap leach, crusher, ADR plant and power station. Phase 2 earmarks US$30 million for 2026–2027 drilling and studies at Kyzyltash ahead of planned 2028–2031 development.
AI-generated analysis. Not financial advice.
Positive
- ZAAV Board approves US$196.3 million two-phase development budget
- US$166.3 million allocated to Tulkubash heap leach mine construction (Phase 1)
- US$30 million committed to Kyzyltash drilling and studies for Phase 2
- 50,000–60,000 m Kyzyltash drilling program budgeted at US$15 million in 2026
- Further 60,000 m Kyzyltash drilling and PEA/PFS work budgeted at US$15 million in 2027
- Updated Tulkubash feasibility study targeted for completion by July 2026
Negative
- Total planned capital spend of US$196.3 million represents large funding commitment
- Heap leach system budget may change after BGRIMM redesign and finalization by March 2027
News Market Reaction – SVM
On the day this news was published, SVM declined 1.68%, reflecting a mild negative market reaction. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $40M from the company's valuation, bringing the market cap to $2.33B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Peers on Argus
SVM traded lower while key silver peers like EXK, MAG, AG, and TGB also declined, indicating the move occurred alongside broader Basic Materials weakness.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jun 12 | Reserve update | Positive | +7.5% | Major Mineral Reserve increase and longer mine life at Ying district. |
| May 26 | Earnings report | Positive | -4.3% | Fiscal 2026 revenue and cash flow growth with strong adjusted earnings. |
| May 25 | Listing application | Positive | +5.6% | Proposed Hong Kong listing and related global equity offering plans. |
| May 22 | Dividend declaration | Positive | +5.6% | Announcement of semi-annual dividend to shareholders with set record date. |
| May 22 | Results timing update | Neutral | -3.3% | Change in release date and call timing for Fiscal 2026 results. |
Recent news generally leads to aligned price moves, though strong earnings have triggered some selling pressure.
Regulatory & Risk Context
Short interest appears elevated, suggesting potential for sharper price swings and squeeze dynamics if sentiment changes quickly.
Market Pulse Summary
This announcement details a US$196.3 million multi‑year plan to build Tulkubash and advance Kyzyltash, expanding Silvercorp’s gold pipeline beyond China. Investors may track feasibility milestones, drilling results, and capital allocation relative to existing Ying cash flows.
Key Terms
bankable feasibility studies financial
jorc code regulatory
heap leach technical
preliminary economic assessment (pea) financial
bacterial oxidization ("biox") technical
carbon in leach ("cil") technical
AI-generated analysis. Not financial advice.
Trading Symbol: TSX/NYSE American: SVM
ZAAV is a joint venture company with Silvercorp holding a
Cost Items | Total ($ Million) | 2026 ($ Million) | 2027 ($ Million) |
Phase 1 Development of Tulkubash | |||
Mining | |||
Open Pit and Waste Dump | 51.5 | 10.6 | 40.9 |
Mine Pit Water Treatment Plant | 3.0 | - | 3.0 |
Mine Auxiliary Facilities | 8.0 | 2.1 | 5.9 |
Heap Leach System | |||
Heap Leach | 22.7 | 8.4 | 14.3 |
Crusher | 26.5 | 4.5 | 22.0 |
ADR Plant | 13.7 | 2.3 | 11.4 |
Power Station | 5.3 | 1.5 | 3.8 |
Process Plant Auxiliary Facilities | 6.0 | 2.1 | 3.9 |
Commissioning | 1.4 | - | 1.4 |
General and Administration | 14.0 | 7.2 | 6.8 |
Contingency | 14.2 | 3.6 | 10.6 |
Total Phase 1 | 166.3 | 42.3 | 124.0 |
Phase 2 Development of Kyzyltash | |||
Drilling + Studies | 30.0 | 15.0 | 15.0 |
Total Phase 1 & 2 | 196.3 | 57.3 | 139.0 |
Phase 1 Development of Tulkubash
Silvercorp is committed to finance and advance the construction of Tulkubash as a 4 million tonnes of oxidized ore per year open-pit mine/heap leach operation. The Tulkubash project design is based on the Bankable Feasibility Studies completed by Tetra Tech (Joint Ore Reserves Committee ("JORC") Code standard) in 2018, expertized and localized for
The Phase 1 Operation Process Flowsheet is a standard heap leach flow sheet, and consists of: 1) ore mined from the open pit is sent to the crushing plant, lower grade ore is sent to the LG Ore Stockpile and waste rock is sent to the Waste Rock Storage; 2) ore is crushed to a target size of P80 of 12.5 mm; 3) crushed ore is trucked and stacked on the Heap Leach Pad; 4) heap leaching comprises a barren solution dripping and a pregnant solution collection system; and 5) carbon absorption, desorption and recovery (ADR plant) and gold refinery building will produce gold doré bars.
Open Pit Mining, Stripping, and Waste Storage
The construction contract for the open pit and waste storage work will be based on fixed "unit cost" criteria for each cubic metre of rock removed. To date, five mining contractors, four of them with operations in
Mine Auxiliary Facilities
The Company plans to set up a temporary camp, a powder magazine and carry out road upgrades in 2026, with an estimated cost of
Heap Leach System
The heap leach facility involves the construction of a Crusher, Heap Leach Pad and an ADR Plant at a total capital cost of
Phase 2 Development of Kyzyltash (2028-2031):
Silvercorp and ZAAV will invest in the development of the Kyzyltash sulfide deposit as a 3 to 4 million tonnes per year open pit/underground mine, plus flotation, bacterial oxidization ("BIOX") and carbon in leach ("CIL"). To advance development of Kyzyltash, ZAAV will carry out in-fill drilling to convert inferred resources into higher categories, and complete a series of studies, including a Preliminary Economic Assessment (PEA), a Feasibility Study and Detailed Engineering Design.
During 2026, ZAAV plans to conduct a 50,000 to 60,000 metre drilling program, including both in-fill and step-out drilling to convert inferred resource into measured & indicated categories, and to make discoveries to expand the resource base. Currently, three contractors with 12 drill rigs are drilling at the Kyzyltash sulfide zone, including the Contact Zone (CZ) and the Main Zone (MZ). Drilling is generally conducted on spacing grids ranging from 80m×40m to 40m×40m.
In addition to geological drilling, geotechnical and hydrological, metallurgical and environmental studies will also be carried out, with a total budget of
In 2027, ZAAV plans to complete a PEA and undertake a further 60,000 m of drilling to support a Pre-Feasibility study (PFS), with the objective of submitting the study to the government for review and permitting. The total budget for the year is
In 2028, ZAAV plans to complete a Feasibility Study and detailed engineering design for construction, and to commence construction.
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 cash flow from long life mines; 2) organic growth through extensive drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) long term commitment to responsible mining and ESG. For more information, please visit our website at www.silvercorpmetals.com.
For further information
Silvercorp Metals Inc.
Lon Shaver
President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: investor@silvercorp.ca
Website: www.silvercorpmetals.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 statements regarding the construction schedule, duration, and costs for the development of the Tulkubash/Kyzyltash gold projects, ore tonnage in 2026 and subsequent three year production, and striping ratio etc. 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. 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 fluctuating commodity prices; recent market events and condition; estimation of mineral resources, mineral reserves and mineralization and metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; climate change; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into existing operations; permits and licences for mining and exploration in China; title to properties; non-controlling interest shareholders; acquisition of commercially mineable mineral rights; financing; competition; operations and political conditions; regulatory environment in China; regulatory environment and political climate in Bolivia and Ecuador; integration and operations of Adventus; environmental risks; natural disasters; dependence on management and key personnel; foreign exchange rate fluctuations; insurance; risks and hazards of mining operations; conflicts of interest; internal control over financial reporting as per the requirements of the Sarbanes-Oxley Act; outcome of current or future litigation or regulatory actions; bringing actions and enforcing judgments under U.S. securities laws; cyber-security risks; public health crises; the Company's investment in New Pacific Metals Corp. and Tincorp Metals Inc.; and the other risk factors described in the Company's Annual Information Form and other filings with Canadian and U.S. regulators on www.sedarplus.ca and www.sec.gov; 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 represents expectations as of the date of this news release and is 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.
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SOURCE Silvercorp Metals Inc.