Salazar Resources Reports El Domo After-Tax NPV (8% Discount Rate) of US$573 Million, Representing a 121% Increase Compared to the October 2021 Feasibility Study

Salazar Resources Limited has released an updated NI 43-101 Technical Report for its Curipamba–El Domo polymetallic project, prepared by SRK Consulting with an effective date of December 31, 2025. The update highlights a 121% increase in the after-tax net present value at an 8% discount rate, which now stands at US$573 million, up from US$259 million in the October 2021 feasibility study. The after-tax internal rate of return has improved to 45%, compared to 32% previously, with a payback period of three years.

The project’s mine life extends to 13 years, comprising roughly 11.5 years of operation plus 1.5 years of construction, with first commercial concentrates expected in mid-2027. The project is fully funded to production, and Salazar’s 25% interest is carried through to commercial production with no additional construction financing obligations.

Updated mineral resources reflect a 27% increase in Measured & Indicated tonnage to 11.4 Mt and a 245% jump in Inferred resources. Mineral reserves for the open pit rose 10% to 7.13 Mt, with contained metal increases across all commodities. The study utilizes higher metal price assumptions than the 2021 study: US$10,700/t copper and US$3,000/oz gold for resource estimates, and US$9,250/t copper and US$2,600/oz gold for reserve prices.

The construction budget remains consistent with the February 2026 update at US$283.7 million, up from US$248 million in 2021. The significant expansion in net present value stems from higher metal prices, an updated mine plan, improved metallurgy, and the extended mine life.

Salazar Resources Limited (SRL) holds a 25% attributable share in a project with a US$573 million after-tax net present value (NPV), implying an intrinsic value of roughly US$143 million for the company. This figure more than doubles the firm’s current market capitalization of approximately C$62 million. Even when accounting for minority-interest and joint-venture cash-flow splits—where Salazar receives only 25% after full payback and the partner retains a priority return—the valuation signal remains strong. The previous NPV of US$259 million had already indicated a significant discount, and this upgrade further crystallizes the value gap.

The updated report incorporates a higher construction budget of US$284 million and a six-month delay to a mid-2027 start date, as previously disclosed in February 2026. Despite these adjustments, the project’s economics have improved. The project remains fully funded by Silvercorp Metals, which insulates Salazar from capital calls. New resource and reserve estimates indicate growth potential, with approximately 8 million tonnes of mineralized material remaining outside the current mine plan, offering scope to extend the mine life.

The stock has historically reacted positively to progress at El Domo, though the full extent of this NPV upgrade was not widely anticipated. While the market had priced in the construction start and metallurgical improvements, the 121% increase in NPV, driven largely by sustained higher metal prices and resource growth, exceeds routine expectations. Management’s emphasis on the project “significantly upgrades our flagship asset” and its “transitioning from study to cash generation” aligns with the data. Operating costs and capital remain manageable, and the carry structure protects shareholders, marking a material positive for the stock and its valuation.

Salazar Resources Limited (TSX-V: SRL) is a Canadian-listed junior exploration and development company focused on Ecuador. Its flagship asset is a 25% fully-carried interest in the Curipamba–El Domo copper-gold-zinc-silver project, operated by Silvercorp Metals Inc. (75%). The project is under construction with first production expected mid-2027.

El Domo is a high-grade, polymetallic VMS-style deposit with robust economics. The updated reserve base supports a 13-year mine life, processing approximately 666,000 tonnes per annum. Salazar also holds a portfolio of 100%-owned early-stage exploration projects across Ecuador, including the Monja, Santiago, Tarqui-Quimi, El Tigre, and Pijilí concessions. These offer discovery upside, with several displaying porphyry and epithermal mineralization. The company’s strategy combines near-term production exposure through El Domo with exploration upside from its wholly-owned pipeline.