Silverco Mining Begins Underground Development at Cusi, Restart Remains on Budget and on Schedule

Silverco advances Cusi restart, but all value hinges on long-term, unproven projections.

Risk flags

• ●The economic projections (NPV, IRR, payback) are based on a preliminary economic assessment (PEA), which is not a feasibility study and carries a high degree of uncertainty. PEAs often overstate project value due to optimistic assumptions and lack of detailed engineering or permitting analysis.
• ●There is no disclosure of current financial position, cash balance, or detailed funding sources for the US$19.2 million capital budget. Without evidence of secured financing, there is a risk that the company may not be able to complete the restart or may require dilutive equity or expensive debt.
• ●All production targets and cost estimates are forward-looking and contingent on successful completion of construction, commissioning, and ramp-up. Delays, cost overruns, or operational setbacks could materially impact the timeline and economics.
• ●The company provides no updated reserve or resource statement, and the only reference to exploration is qualitative. Without current resource data, the longevity and scalability of the operation remain unverified.
• ●The aspirational goal of becoming a 10 million ounce per year producer within three years is unsupported by binding agreements, operational milestones, or third-party validation, making it speculative and potentially misleading for investors.

Bottom line

This update confirms that Silverco is making tangible progress on the Cusi restart, with major refurbishment milestones achieved and a strong safety record. Yet, all projected value—production, cash flow, and economic returns—remains at least two years away and is based entirely on preliminary studies and optimistic management targets. The absence of current financial disclosures, funding details, and updated resource figures leaves a significant credibility gap between the narrative and the evidence. Investors should treat all forward-looking statements as speculative until the company demonstrates actual production, cash flow, and completion of the restart. The most important takeaway is that while the project is advancing, none of the promised financial benefits are realised or de-risked, and the investment case is not actionable until more concrete results and funding clarity are provided.

Announcement summary

(TSXV: SICO) Silverco Mining Ltd. provided an update on restart activities at its 100% owned Cusi Property in Chihuahua, Mexico, reporting that overall restart progress is approximately 68% complete and the Company remains on budget and schedule to deliver first concentrate in Q4 2026. The Cusi restart capital budget is US$19.2 million, with more than 240 Silverco and contractor personnel working at Cusi and 192,900 exposure hours worked with zero lost time injuries in 2026. Refurbishment of the Mal Paso process plant is over 65% complete, and the crushing circuit is approximately 89% complete. The 2026 PEA outlined average annual silver equivalent production of approximately 2.5 Moz at site all-in-sustaining costs of US$26.75/oz payable AgEq from 2028 to 2032, with an after-tax NPV of US$104.1 M and IRR of 94.8% at a silver price of US$44.58/oz, and an after-tax NPV of US$312.2 M and IRR of 186.9% at US$75.00/oz. The payback period is projected at 0.9 years at US$44.58/oz and 0.5 years at US$75.00/oz. The company projects first concentrate production in Q4 2026 and targets becoming a 10 million ounce per year silver equivalent producer within three years. Exploration drilling is ongoing, targeting the high potential San Miguel and San Juan deposits.

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