Silverco Mining Begins Underground Development at Cusi, Restart Remains on Budget and on Schedule

Silverco Mining Ltd. (SICO) reported that overall restart activities at its 100%-owned Cusi Property in Chihuahua, Mexico, are approximately 68% complete as of July 23, 2026. The company completed the first underground development blast along the main Promontorio ramp, while preparatory works for the San Miguel portal continue to advance.

More than 240 personnel are currently on site. Primary ventilation fans have been delivered and foundation works finished, and the Mal Paso processing plant refurbishment is over 65% complete, with the crushing circuit approximately 89% complete. The restart remains on budget for the US$19.2 million upfront capital requirement and on schedule for first concentrate production in Q4 2026. Safety performance has been strong, with no lost-time injuries recorded across 192,900 exposure hours in 2026.

The company reiterated its 2026 Preliminary Economic Assessment (PEA) economics. Under the base case assuming an average silver price of US$44.58/oz, the project yields an after-tax net present value (NPV) of US$104.1 million, an internal rate of return (IRR) of 94.8%, and a payback period of 0.9 years. Under an upside scenario with silver at US$75/oz, the NPV rises to US$312.2 million with an IRR of 186.9%.

The August 4 release marks the transition from surface rehabilitation to active underground development, staying consistent with all previously stated timelines and budgets. Prior milestones include the completion of dewatering at Promontorio and the start of rehabilitation in January 2026, followed by the commissioning of a Restart Study. In March 2026, a 30,000-meter drill program at Cusi was launched. A PEA was released and filed in April 2026. By May, the La Negra acquisition closed, Q1 2026 financials were reported, and a $62.5 million bought deal was closed. In June, underground mining contractors mobilized and initial Cusi drill assays showing up to 1,712 g/t AgEq were released. July saw additional high-grade Cusi drill results, including 1,100 g/t Ag over 10.3 m, alongside the start of La Negra exploration drilling.

Silverco Mining Ltd. (SICO) announced progress that aligns with expectations established during the contractor mobilization in June 2026 and the original restart roadmap. The company confirmed it is executing the plan without introducing new cost estimates, timeline changes, or production surprises.

The stock has been in a downtrend since February 2026 highs, and this incremental update is unlikely to shift the market’s perception materially. While the news provides comfort regarding execution risk, it does not re-rate the project.

Silverco Mining Ltd. (SICO) is a Canadian-domiciled silver developer and fledgling producer with two assets in Mexico. The Cusi Project in Chihuahua is a 100%-owned past-producing underground silver-lead-zinc-gold mine featuring a 1,200 tpd mill, road access, and grid power. The project is fully permitted and undergoing a low-capital restart costing US$19.2 M, targeting first concentrate in Q4 2026. A 2026 PEA shows robust economics with 2.5 moz AgEq/year, an AISC of US$26.75/oz, and a 90% silver-focused revenue stream.

The company also owns the La Negra Mine in Querétaro, acquired in May 2026 via the all-share purchase of Nuevo Silver. It is an operating underground silver-lead-zinc-copper mine currently running at approximately 55% of its 2,500 tpd capacity. Management targets a throughput increase and a resource update in H2 2026. The company’s stated vision is to become a 10 moz AgEq producer within three years.