- Silvercorp Metals (SVM, Financial) to start El Domo Project production by end of 2026.
- Construction costs estimated at $240.5M, slightly reducing from 2021's $247.6M projection.
- CRCC 14 Bureau Group awarded Package #1 for site preparation and related tasks.
Silvercorp Metals Inc. (SVM) has formally announced its construction budget for the El Domo Project, targeting operational production by the end of 2026. The total estimated construction cost is set at $240.5 million, marking a slight reduction from the $247.6 million estimate provided in the 2021 feasibility study.
The project will be developed through five structured bid packages. Specifically, Package #1, which encompasses site preparation, roads, channels, and Tailings Storage Facility (TSF) construction, has been awarded to CRCC 14 Bureau Group Co. in January 2025 for $47.5 million. This indicates substantial progress as the group has begun site work.
The construction scheme involves stripping a total of 5.4 million cubic meters of sediments and waste rocks, with 3.5 million cubic meters of non-acid generating waste rock slated for dam construction. The processing plant's construction and equipment installation are projected to complete by November 2026, allowing for the commissioning of the plant by December 2026.
Silvercorp has prudently revised its cost structure from the 2021 feasibility study. Direct costs have decreased by $32.6 million to $159.5 million, while contingency funds have increased by $9.9 million to $31.9 million. Similarly, owner's costs have risen by $20 million to $30 million, reflecting a more conservative financial approach to address potential challenges.
The company also plans for a dual power supply strategy, establishing both grid power and standby diesel generators to mitigate potential climate-related power reliability issues in Ecuador. The dual approach aligns with Silvercorp's commitment to risk management and project execution amidst evolving environmental conditions.
