Salazar Resources Announces Update on Construction Plan and Schedule for the Development of the El Domo Project

Core Viewpoint - Salazar Resources Limited provides an update on the construction plan and schedule for the El Domo Project, which is a joint venture with Silvercorp Metals Inc. targeting production by the end of 2026 at an estimated cost of $240.4 million, slightly lower than the previous estimate of$247.6 million from the 2021 feasibility study [1][3][24]. Group 1: Joint Venture and Ownership - Silvercorp holds a 75% interest in the joint venture for the El Domo mine, while Salazar has a 25% carried interest [2]. - Once commercial production is achieved, Silvercorp will receive 95% of the dividends until its investment is recouped, after which dividends will be shared on a 75%/25% basis [4]. Group 2: Construction and Cost Estimates - The total estimated capital cost for the El Domo Project is $240.4 million, with a breakdown of costs across various packages [3][24]. - The construction schedule includes significant expenditures in fiscal years 2026 and 2027, with direct costs totaling$159.4 million, VAT at $19.1 million, and contingencies at$31.9 million [6][24]. Group 3: Detailed Engineering and Infrastructure - Advanced detailed engineering has been conducted for the tailings storage facilities, open pit mine design, and project infrastructure, with contracts awarded for site preparation [7][8]. - The construction of a power line and standby diesel generators is also in progress, with the power line expected to be completed in 13-17 months [16]. Group 4: Mining and Production Plans - The joint venture plans to commence stripping of the open pit in August 2025, with an estimated 5.4 million cubic meters of sediments and waste rocks to be stripped [12]. - By the end of 2026, the project expects to produce 43,000 tonnes of ore, with 550,000 cubic meters of ore ready for mining [12]. Group 5: Cost Comparison and Adjustments - The updated cost estimates reflect a reduction of $32.6 million in direct costs compared to the 2021 feasibility study, attributed to savings from employing a unit cost contract and detailed engineering [24]. - The contingency costs have increased by$9.9 million, while owner's costs have risen by $20 million [24].