Discovery silver project clears key Mexico hurdle

AI desk brief

Discovery Silver cleared a major permitting hurdle at its Cordero project in Mexico after SEMARNAT approved the environmental impact assessment and land-use change permit, leaving development planning and financing as the remaining major steps before construction. Analysts said the approvals reduce jurisdictional risk and make the project more financeable, with BMO valuing Cordero at US$2.73bn on a long-term silver price of US$47/oz and Scotiabank flagging meaningful upside from an updated feasibility study using current metals prices.

Cordero remains one of the largest undeveloped silver assets globally, with 302Moz silver, 840,000oz gold and significant lead/zinc by-product credits, plus 240Mt of measured and indicated resources outside the current pit. The 2024 feasibility study outlined a 19-year mine producing an average 37Moz silver-equivalent per year in the first 12 years, with initial capex of US$606m and AISC below US$12.50/oz AgEq in the first eight years; Discovery shares fell 2.3% after the widely anticipated permit news as investors took profits.