Silver Elephant Reclaims Pulacayo-Paca Silver Mining Project Following Favorable Ruling by Bolivian Supreme Tribunal of Justice

Silver Elephant regains Pulacayo-Paca mining rights after Bolivian Supreme Court ruling.

What the company is saying

Silver Elephant Mining Corp. announces a decisive legal victory in Bolivia, with the Supreme Tribunal of Justice ruling in favor of its subsidiary Apogee Minerals Bolivia S.A. regarding the Pulacayo-Paca Mining Production Contract. The company frames this as the restoration of its exclusive right to develop and mine the Pulacayo-Paca silver project across 2,803 hectares for up to 30 years, emphasizing the annulment of a prior COMIBOL board resolution and related administrative actions that had canceled the contract. The narrative is technical and fact-driven, highlighting detailed mineral resource estimates, operational metrics, and cost assumptions, while referencing the involvement of CEO and Chairman John Lee. The company also mentions its Kentucky zinc-germanium-gallium project, positioning it near a $7.4-billion critical minerals smelter under construction, but does not overstate its immediate impact. The tone is confident and focused on the legal and operational facts, with technical content prepared under the supervision of Carlos Zamora, a Certified Professional Geologist, and resource estimates validated by independent Qualified Person Matthew Harrington.

What the data suggests

The ruling restores Apogee’s exclusive mining rights to Pulacayo-Paca, a project with previously reported Indicated Mineral Resources of 106.7 million ounces of silver and Inferred Mineral Resources of 13.1 million ounces as of October 13, 2020. Pulacayo’s Indicated resources total 26,350,000 tonnes containing 70.2 million ounces silver, 903.7 million pounds zinc, and 386.0 million pounds lead, with 133.4 million ounces silver equivalent, while Paca’s Indicated resources are 21,690,000 tonnes with 37.0 million ounces silver, 485.8 million pounds zinc, and 304.2 million pounds lead, totaling 70.2 million ounces silver equivalent. Inferred resources for Pulacayo and Paca are 1,670,000 tonnes and 3,395,000 tonnes, respectively. The resource estimates are based on 96,021 meters of drilling, with 73,016 meters at Pulacayo and 19,916 meters at Paca. Mining between October 2023 and November 2024 extracted 261,530 wet tonnes of oxide material grading 183 g/t silver from Paca. Cost assumptions used in resource modeling include mining costs of US$2.00/t, processing and G&A costs of US$12.50/t (sulphide) and US$23.50/t (oxide), haulage of US$0.50/t (Pulacayo) and US$2.00/t (Paca), and oxide silver recovery of 80%. The Kentucky project is mentioned as being near a $7.4-billion smelter, but no operational or financial data are provided for this asset. All resource figures predate recent mining and are not adjusted for subsequent extraction.

Analysis

The announcement's tone is positive but proportionate to the disclosed facts. The core news—a favorable Bolivian Supreme Tribunal of Justice ruling restoring the Pulacayo-Paca Mining Production Contract—is a realised, material legal milestone, not a forward-looking aspiration. The release provides detailed, dated mineral resource estimates, operational drilling and mining metrics, and cost assumptions, all of which are specific and supported by technical sources. While the company references a zinc-germanium-gallium project in Kentucky and a nearby $7.4-billion smelter under construction, these are mentioned factually without overstating their immediate impact or implying direct benefit. The forward-looking content is limited to standard resource estimate caveats and future operational intentions, which are clearly separated from the realised legal and operational updates. There is no evidence of exaggerated claims or narrative inflation; the language is factual and technical.

Risk flags

• ●Political and regulatory risk in Bolivia remains high, as the project’s history includes contract cancellation by COMIBOL and subsequent legal proceedings. Future administrative or political actions could again threaten project continuity.
• ●Resource estimates are based on data as of October 2020 and do not account for material extracted since then, introducing uncertainty about the current scale and grade of remaining resources.
• ●The company provides detailed cost assumptions for resource modeling but does not disclose actual financial results, production revenues, or current cash balances, making it difficult to assess financial resilience or funding needs.
• ●Operational execution risk is present, as the company must now translate legal victory into tangible project advancement, including updated technical studies, permitting, and potential financing for further development.
• ●The Kentucky zinc-germanium-gallium project is referenced in proximity to a $7.4-billion smelter, but no evidence is provided of direct economic benefit or operational integration, so any implied strategic value is unsubstantiated.

Bottom line

Silver Elephant Mining Corp. has secured a major legal win, regaining exclusive rights to the Pulacayo-Paca silver project in Bolivia after the Supreme Tribunal of Justice annulled prior contract cancellations and administrative actions. The project boasts significant historical resources—over 106 million ounces of silver Indicated and 13 million ounces Inferred as of October 2020—supported by extensive drilling and recent mining activity. The company’s disclosure is detailed on technical and legal fronts but lacks current financial or updated resource data, leaving the scale of remaining resources and near-term economics unclear. Political and regulatory risks in Bolivia are material, and operational progress will require updated studies and potentially new capital. The Kentucky project is mentioned but not substantiated with operational data. The most important takeaway is that Silver Elephant now has a clear legal pathway to advance Pulacayo-Paca, but investors will need to see updated technical, operational, and financial disclosures to assess the project’s real value and timeline to production.

Announcement summary

(TSX:ELEF, OTCQB:SILEF, FSE:1P2) Silver Elephant Mining Corp. announced that the Bolivian Supreme Tribunal of Justice has ruled in favor of its Bolivian subsidiary, Apogee Minerals Bolivia S.A., in the administrative judicial review proceedings regarding the Pulacayo-Paca Mining Production Contract (MPC). The MPC, dated October 3, 2019, between Apogee and Corporación Minera de Bolivia (COMIBOL), grants Apogee exclusive rights to develop and mine the Pulacayo-Paca silver mining project, covering 2,803 hectares, for up to 30 years. Apogee was formally notified of the ruling on November 5, 2026. The Court annulled the COMIBOL Board Resolution dated December 16, 2024, which had canceled the MPC, and nullified subsequent administrative proceedings brought by COMIBOL and the Bolivian Ministry of Mining and Metallurgy against Apogee. The Court found that COMIBOL did not properly consider the approvals, permits, and authorizations it had issued to Apogee, and that the MPC was terminated without legal basis or proper procedure. The Pulacayo-Paca project has previously reported Indicated Mineral Resources of 106.7 million ounces of silver and Inferred Mineral Resources of 13.1 million ounces of silver, as estimated by Mercator Geological Services Limited with an effective date of October 13, 2020. The Pulacayo deposit's total Indicated resources are 26,350,000 tonnes containing 70.2 million ounces of silver, 903.7 million pounds of zinc, and 386.0 million pounds of lead, with 133.4 million ounces silver equivalent. Pulacayo Inferred resources are 1,670,000 tonnes containing 7.2 million ounces of silver, 71.8 million pounds of zinc, and 18.4 million pounds of lead, with 11.4 million ounces silver equivalent. The Paca deposit's total Indicated resources are 21,690,000 tonnes containing 37.0 million ounces of silver, 485.8 million pounds of zinc, and 304.2 million pounds of lead, with 70.2 million ounces silver equivalent. Paca Inferred resources are 3,395,000 tonnes containing 6.0 million ounces of silver, 51.1 million pounds of zinc, and 43.7 million pounds of lead, with 9.2 million ounces silver equivalent. Sulphide recoveries used in the resource estimate are 89.2% for silver, 91.9% for lead, and 82.9% for zinc. Pit optimization assumed mining costs of US$2.00/t, processing and G&A costs of US$12.50/t (sulphide) and US$23.50/t (oxide), haulage of US$0.50/t (Pulacayo) and US$2.00/t (Paca), oxide silver recovery of 80%, and an exchange rate of C$1.00 = US$0.75. Pulacayo out-of-pit resources assumed underground mining at US$35/t and processing and G&A costs of US$20/t. A total of 96,021 meters of drilling has been completed on the Pulacayo-Paca project: 5,009 meters by Apex Silver Mines Limited (1994–1998), 85,024 meters by Apogee Silver Ltd. (2002–2014), and 6,258 meters by Silver Elephant (2019–2022). The mineral resource estimate is supported by 73,016 meters of drilling at Pulacayo and 19,916 meters at Paca. Between October 2023 and November 2024, the company mined 261,530 wet tonnes of oxide material grading 183 g/t silver from Paca by open-pit mining. The technical contents of the release were prepared under the supervision of Carlos Zamora, a member of the American Institute of Professional Geologists and Certified Professional Geologist since 2024, who is an employee of the company. The mineral resource estimate was prepared by Mercator Geological Services Limited under the supervision of Matthew Harrington, P.Geo., an independent Qualified Person. Silver Elephant also operates a zinc-germanium-gallium mining project in Kentucky, which is near the $7.4-billion critical minerals smelter under construction. John Lee is CEO and Chairman of Silver Elephant Mining Corp.

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