Silver Tiger Announces a PEA for the Underground with an After Tax NPV of US$304m and an Updated PFS for the Stockwork Zone with an After Tax NPV of US$456m at the El Tigre Silver-Gold Project, Sonora, Mexico
Silver Tiger Unleashes Dual-Engine Economics at El Tigre as Combined NPV Eclipses Two Billion Dollars at Spot Prices
The news dated January 20, 2026, reveals a transformative economic update for the El Tigre Project in Sonora, Mexico. Silver Tiger has delivered a Preliminary Economic Assessment (PEA) for an Underground (UG) operation alongside an updated Pre-Feasibility Study (PFS) for the Stockwork Zone (Open Pit).
Key financial metrics at base case prices: - Underground PEA: After-tax NPV (5%) of US$304M, IRR of 42.8%, 15-year mine life. - Stockwork PFS: After-tax NPV (5%) of US$456M, IRR of 65.7%, 10-year mine life.
Critically, management highlights that at current spot prices, the combined after-tax NPV (5%) for both projects skyrockets to approximately US$2.15 billion (US$950M for Stockwork and US$1.20B for Underground). The company is moving toward a construction decision for the Stockwork Zone while fast-tracking the Underground development as a "bolt-on" project.
This update is a material game-changer. Previous data from October 2024 and mid-2025 focused almost exclusively on the Open Pit with a US$222M NPV. The addition of the Underground PEA and the optimization of the Stockwork Zone have more than tripled the project's base-case valuation.
- Economic Scale: The transition from a US$222M project to a US$760M (base case) or US$2.15B (spot case) combined project elevates Silver Tiger from a junior explorer to a significant mid-tier developer.
- Capital Efficiency: Initial Capex for the Stockwork Zone is US$86.8M and the Underground is US$83.5M. For a project with a combined NPV over US$2B at spot, the capital intensity is remarkably low.
- Resource Conversion: The company is successfully converting its 150,000 meters of drilling into actionable economic studies, de-risking the "Sulfide Zone" and "Shale Zone" which were previously just exploration targets.
Silver Tiger Metals Inc. is a Canadian developer focused on the El Tigre Silver-Gold Project in Sonora, Mexico. The property covers 28,414 hectares and hosts the historic El Tigre Mine, which produced 67.4 Moz silver and 353,000 oz gold at high grades before closing in 1930. The project is now split into two main components: the Stockwork Zone (open pit heap leach) and the Underground (high-grade veins and sulfide zones). The project is situated in the Sierra Madre Occidental, a prolific district hosting major mines like Santa Elena and Las Chispas.