VANCOUVER, BC (By Silvercorp, 3.Nov.2026, Words: 398) — Silvercorp Metals Inc. announces an update for its budget and construction schedule for the construction of the El Domo project.
The construction budget for the project has been updated to $298.2mn, an increase of $14.6mn compared to the $283.6mn estimate dated 4 Feb. 2026 (for reference, the 2021 feasibility study budget was $248mn). The main items of increase or decrease are as follows:
- Diesel fuel adjustment: Ecuador eliminated diesel subsidies, resulting in the diesel price increasing from under $3/gallon in Dec. 2024 to $5.64/gallon in Oct. 2026, an increase of $2.7/gallon. As a result, the fuel adjustment for Package #1 is $3.6mn and for Package #2 is $4.7mn, totaling $8.3mn for remaining construction.
- Enhancement work for water management related infrastructure: due to the heavy rainfall, additional work to upgrade the designs and enhance the construction for reinforcement results in $3.5mn, plus site cleaning costs of $1.2mn, for a $4.7mn budget addition. This is added to the Package #1 TSF budget.
- Equipment and facilities for site power supply: $2.4mn increase mainly due to the additional demand for the power cables and power distribution facilities based on the detailed engineering design.
- Construction on processing plant: $3.7mn increase according to actual bill of quantities in the Package #3 construction contract.
- New Items:
- Two cofferdams and pipes beneath the TSF Starter Dam to drain the water from the impoundment area during the construction period, plus cemented roadside ditches are required to divert water from the construction site, at a cost close to $2mn. This is added to the Package #1 TSF budget.
- Two new reactive power compensators (SVG) are estimated at $2mn plus other power supply related items of $1.3mn for a total of $3.3mn.
- Two cofferdams and pipes beneath the TSF Starter Dam to drain the water from the impoundment area during the construction period, plus cemented roadside ditches are required to divert water from the construction site, at a cost close to $2mn. This is added to the Package #1 TSF budget.
- Savings of $9.8mn were mainly achieved through: (i) using rocks from the process plant site preparation for haul road construction instead of purchasing for $1.8mn; (ii) eliminating the West non-contact Water Channel for $1.5mn, as the explosives magazine site has effectively diverted surface water, (iii) reducing the permanent camp size for $0.7mn as the construction camp currently in use is satisfactory for long-term use, and (iv) reducing of contingency for $2.7mn.
Due to the extended rainfall experienced at site caused by Super El Niño, the El Domo completion date is expected to be delayed by four months. The company is now forecasting that the El Domo project is scheduled to be in production by 1 Nov. 2027.
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