Silverco Mobilizes Underground Mining Contractors at Cusi Property
Silverco Mining Ltd. (SICO) has initiated contractor mobilization at its 100% owned Cusi Property in Mexico, marking a critical milestone in its mine restart strategy. Two local contractors are managing development across the Promontorio and San Miguel zones, with first ore targeted for late Q3 2026 at Promontorio and H1 2027 at San Miguel. The company remains on track to produce its first concentrate in Q4 2026, aiming to operate two producing silver mines in Mexico by year-end, supported by a PEA highlighting strong economics and a low upfront capital requirement.
Mafrissa Transportes y Maquinaria S.A. de C.V., focused on underground development, mining support, heavy equipment rental, and haulage, and Rencer Servicio a la Mineria, S.A. de C.V., a local firm with prior Cusi experience, have been contracted for development and production mining activities. The Promontorio Zone, which was recently mined in 2023, has been fully dewatered and rehabilitated by Silverco. Underground drilling is active and has recently intersected new mineralization within the planned mine development footprint, with first ore expected late Q3 2026. The San Miguel Zone is highly prospective but unmined under modern operations. It requires the development of a new portal and ramp, with first ore expected to ramp up over H1 2027.
Mill rehabilitation is underway alongside contractor mobilization. First concentrate production is scheduled for Q4 2026, with the company targeting two producing silver mines in Mexico by the end of 2026. Significant catalysts are expected through H2 2026 related to restart and productivity improvements at Cusi and La Negra, alongside sizable exploration programs at both projects.
A Preliminary Economic Assessment (PEA) referenced in an April 13, 2026 release outlines the following metrics:
- Average annual silver equivalent production: ~2.5 Moz (2028–2032)
- Site all-in-sustaining costs (AISC): US$26.75/oz payable AgEq
- Base case silver price (US$44.58/oz): After-tax NPV of US$104.1M, IRR of 94.8%, payback period of 0.9 years
- High case silver price (US$75.00/oz): After-tax NPV of US$312.2M, IRR of 186.9%, payback period of 0.5 years
- Upfront capital requirement: US$19.2M
- Revenue mix: 90% from silver
Mark Ayranto, CEO, stated: "Mobilization of contractors is an important milestone in our Cusi restart plan. The two contractors now active at Cusi are well-established and experienced local firms with extensive underground mining experience. With this work and the mill rehabilitation work underway, we remain on schedule to produce first concentrate in Q4 2026 and exit 2026 with two producing silver mines in Mexico. We look forward to providing additional updates from both Cusi and La Negra over the coming weeks with significant catalysts expected through H2 2026 relating to restart and productivity improvement activities at Cusi and La Negra respectively, and sizable exploration programs at both projects."
The Qualified Person for the technical information is Nico Harvey, P.Eng., Vice President Project Development, who is not independent of the Company.