- Salazar Resources (SRLZF, Financial) reports that the El Domo mine project is on track for production by the end of 2026.
- The estimated construction cost is $240.4 million, a slight decrease from the initial feasibility study estimate.
- Direct project costs have been reduced by $32.6 million, enhancing overall project efficiency.
Salazar Resources (SRLZF) has provided an update on the development of the El Domo mine in collaboration with Silvercorp Metals, which holds a 75% interest while Salazar maintains a 25% carried interest. The joint venture is progressing towards a targeted production start by the end of 2026, under a revised budget of $240.4 million. This revised cost is slightly less than the $247.6 million estimate from the 2021 feasibility study.
The construction plan is divided into five key bid packages encompassing site preparation, open pit mining, processing plant construction, power line installation, and diesel generator setup. Major project milestones include the initiation of stripping in August 2025, the start of processing plant construction in September 2025, and commissioning scheduled for December 2026.
Through optimized engineering and strategic unit cost contracting, direct project costs have been trimmed by $32.6 million, reducing them to $159.4 million. Post-commercial production, dividends will be distributed with Silvercorp receiving 95% until they recover their initial investment, following which profits will be shared on a 75%/25% basis with Salazar.
The expected payback period for the El Domo project is approximately 2.6 years. Salazar emphasizes its commitment to supporting Silvercorp with local expertise to ensure the project’s successful completion.
