Silver Elephant to Submit Environmental Impact Assessment for 12,000 Tonne-per-Day Pulacayo-Paca Processing Plant; Environmental License Decision Expected by June 2027

Silver Elephant advances permitting for a 12,000 tpd plant, but value is years away.

What the company is saying

Silver Elephant Mining Corp. (TSX:ELEF, OTCQB:SILEF, FSE:1P2) is positioning its Pulacayo-Paca project in Bolivia as a future district-scale silver producer by announcing the near-term submission of an Environmental Impact Assessment Study for a proposed 12,000 tonne-per-day processing plant. The company highlights that the plant will be dual-circuit, handling up to 10,000 tpd of sulphide and 2,000 tpd of oxide materials, with feed sourced from Pulacayo, Paca, and Apuradita. The narrative emphasizes recent permitting milestones, notably the July 2026 approval of the Environmental Categorization Form and the project's Category 1 classification, which requires the most comprehensive assessment under Bolivian law. Management stresses that environmental and socioeconomic baseline studies are on track for December 2026 completion, and that public consultations are ongoing. The company references robust production and processing records from each deposit, including recent concentrate sales from Apuradita and historical mining at Paca and Pulacayo, to support the technical basis for the new plant. The tone is optimistic, projecting improved profit margins and expansion potential, but it also acknowledges that no current feasibility study or economic analysis underpins the new plant proposal.

What the data suggests

The company has achieved concrete permitting progress, with the Environmental Categorization Form approved in July 2026 and the EEIA-AI nearly complete, targeting submission by December 2026. Production data show 261,530 wet tonnes of oxide material mined at Paca (October 2023–November 2024) grading 183 g/t silver, with recoveries of 85–95%, and 4,547 tonnes of sulphide material mined at Apuradita yielding 24,538 ounces of silver and 20 tonnes of lead in three concentrate batches. Resource estimates for Pulacayo and Paca are substantial, with Pulacayo holding 1,090,000 tonnes of Indicated Oxide Resources at 125 g/t Ag and 24,600,000 tonnes of Indicated Sulphide Resources at 76 g/t Ag, 1.63% Zn, and 0.70% Pb; Paca holds 1,095,000 tonnes of Indicated Oxide Resources at 185 g/t Ag and 20,595,000 tonnes of Indicated Sulphide Resources at 46 g/t Ag, 1.07% Zn, and 0.67% Pb. Cost assumptions for pit optimization are detailed: mining at US$2.00/t, processing and G&A at US$12.50/t (sulphide) and US$23.50/t (oxide), haulage at US$0.50–2.00/t, and an exchange rate of C$1.00 = US$0.75. No current feasibility study or economic analysis supports the new plant; the only economic model is a historical 2012 study using $28.00/oz silver, $0.89/lb lead, and $1.00/lb zinc, which the company explicitly states is not current. The Apuradita operation lacks a resource estimate and is not based on a reserve. The evidence supports technical and permitting progress but does not substantiate economic viability or near-term cash flow.

Analysis

The announcement is upbeat, emphasizing progress toward permitting a large-scale processing plant and highlighting recent production and resource milestones. However, the majority of the key claims regarding the new plant—such as submission of the Environmental Impact Assessment, anticipated government approval, and construction commencement—are forward-looking and contingent on regulatory decisions expected no sooner than mid-2027. While the company provides detailed operational and resource data for past activities, there is no current feasibility study or economic analysis for the proposed plant, nor any disclosure of committed funding or binding construction contracts. The narrative suggests imminent transformation ('expand Pulacayo-Paca into an integrated district-scale operation'), but the actual measurable progress is limited to permitting steps and small-scale production. The capital intensity is high, with significant investment implied for the plant, yet returns are long-dated and uncertain. The gap between narrative and evidence is most pronounced in the forward-looking language about plant construction and profit improvement, which are not yet substantiated by approvals or financing.

Risk flags

• ●Permitting risk is significant, as the project requires a Category 1 environmental license under Bolivian law, with approval not expected until at least mid-2027. Any delays or additional requirements from regulators could push back the construction timeline and increase costs.
• ●Execution risk is high due to the absence of a current feasibility study or economic analysis for the proposed 12,000 tpd plant. The only available study is historical and not applicable to the current project scope, leaving capital and operating costs, project economics, and funding requirements undefined.
• ●Financing risk is material, as there is no disclosure of committed funding, binding construction contracts, or joint-venture agreements. The company is only in discussions with potential EPCM partners, and the capital intensity of a 12,000 tpd plant implies substantial funding needs that remain unaddressed.
• ●Resource risk exists at Apuradita, where ongoing mining is not supported by a mineral resource or reserve estimate. This raises questions about the sustainability and predictability of feed for the new plant from this source.
• ●Disclosure risk is present because the company provides detailed technical and permitting data but omits current financial figures, cash balances, or profitability metrics, making it difficult for investors to assess the company's financial health and ability to execute the project.

Bottom line

Silver Elephant is advancing the permitting process for a large-scale processing plant at its Pulacayo-Paca project in Bolivia, with submission of the Environmental Impact Assessment targeted for December 2026 and a government decision expected by June 2027. The company demonstrates operational capability through recent production at Paca and Apuradita, and holds substantial silver, zinc, and lead resources at Pulacayo and Paca. However, no current feasibility study or economic analysis supports the new plant, and the only economic data are from a decade-old study that is not applicable to the present project. The timeline to any cash flow is long, with construction and production dependent on regulatory approval, financing, and execution of a capital-intensive build. Investors should focus on the company's ability to secure permitting, publish a current feasibility study, and line up project funding before assigning value to the proposed expansion. The most important takeaway is that while technical and permitting progress is real, the path to revenue and profitability remains uncertain and distant.

Announcement summary

(TSX:ELEF) (OTCQB:SILEF) (FSE:1P2) Silver Elephant Mining Corp. announced it is preparing to submit the Environmental Impact Assessment Study for a proposed 12,000 tonne-per-day mineral processing plant at its Pulacayo-Paca silver mining project in the Potosí Department of Bolivia by the end of December 2026. The company expects a government decision to issue the Plant's environmental license by mid-2027. The Plant is designed as a dual-circuit facility with a processing capacity of up to 10,000 tpd of sulphide materials and up to 2,000 tpd of oxide materials. Feed for the Plant will be sourced from the Pulacayo, Paca, and Apuradita deposits. In July 2026, Bolivia's national environmental authority approved the Environmental Categorization Form (FNCA) for the Plant and classified the project as Category 1, requiring a detailed Environmental Impact Assessment Study (EEIA-AI) including public consultation. The EEIA-AI is substantially complete, with environmental and socioeconomic baseline studies advancing toward a targeted December 2026 completion. The dry-season field campaign concluded in September 2026, and the wet-season campaign is scheduled from November to mid-December 2026. Socioeconomic baseline studies and public consultations are planned throughout November and December 2026. The company is scheduled to submit the EEIA-AI to the Ministry of Mining and Metallurgy by the end of December 2026 and anticipates a decision on the Environmental Impact Declaration (DIA) by June 2027. Construction of the Plant is expected to commence following receipt of the approved DIA. The Plant design includes a tailings storage facility, waste rock storage areas, and supporting infrastructure. Apuradita, located next to the Paca deposit, has supplied mineralized materials for the company's silver-lead concentrate production since January 2026. Pulacayo-Paca is administered by Corporación Minera de Bolivia (COMIBOL) under a Mining Production Contract (MPC) entered into on October 3, 2019, covering 2,803 hectares for a term of up to 30 years. The Apuradita mining concession is held by the company's subsidiary under a mining administrative contract with the Autoridad Jurisdiccional Administrativa Minera (AJAM) and is not part of the MPC. Between October 2023 and November 2024, the company mined and delivered 261,530 wet tonnes of oxide material from the Paca open pit grading 183 g/t silver to a third-party toll-processing plant, which reported silver recovery of between 85 and 95%. Peak mining rates at Paca averaged 1,022 tonnes per day in October 2024. At Apuradita, the company produced and sold three concentrate batches totaling 84.7 dry tonnes of concentrate containing 24,538 ounces of silver and 20 tonnes of lead from 4,547 tonnes of mineralized material grading 297 g/t silver and 0.9% lead. Concentrate grades increased from 5,916 g/t silver and 14.4% lead in the first batch to 12,283 g/t silver and 31.34% lead in the third batch. Between 2011 and 2013, Apogee Silver Ltd. carried out a trial underground mining program at Pulacayo, toll-milling more than 11,000 tonnes of mineralized materials with average head grades of 249 g/t silver, 2.31% lead, and 2.49% zinc, achieving an average overall silver recovery of 82.7%. The Pulacayo deposit was previously the subject of a 2012 feasibility study prepared for Apogee, which evaluated an underground mine and a 1,000 tpd flotation concentrator. The feasibility study used metal prices of $28.00 per ounce of silver, $0.89 per pound of lead, and $1.00 per pound of zinc as the base case. The study is historical and not current, and the company is not treating it as current. The mineral resource estimate for Pulacayo and Paca deposits, effective October 13, 2020, was prepared by Mercator Geological Services Limited. Pulacayo contains 1,090,000 tonnes of Indicated Oxide Mineral Resources grading 125 g/t Ag, and 24,600,000 tonnes of Indicated Sulphide Mineral Resources grading 76 g/t Ag, 1.63% Zn, and 0.70% Pb. Paca contains 1,095,000 tonnes of Indicated Oxide Mineral Resources grading 185 g/t Ag, and 20,595,000 tonnes of Indicated Sulphide Mineral Resources grading 46 g/t Ag, 1.07% Zn, and 0.67% Pb. 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. The Paca Mineral Resource Estimate predates subsequent oxide mining activities between 2023 and 2026, which have resulted in material extraction and modifications to the open-pit geometry. No mineral resource estimate has been prepared for the Apuradita underground workings, and mining operations at Apuradita are not based on a mineral resource or mineral reserve estimate.

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