Discovery silver project approval: capex, pit design and NPV notes for engineers
Reviewed by Tom Sullivan

First reported on MINING.com
30 Second Briefing
Discovery Mining has secured SEMARNAT approval of both the environmental impact assessment and Change of Land Use permits for its Cordero open-pit project in Chihuahua, clearing the final major federal hurdle for a 19-year mine planned to produce 37 million oz silver equivalent per year in its first 12 years at sub-$12.50/oz AISC for the first eight. The February 2024 feasibility study outlines 327 million tonnes of proven and probable reserves grading 29 g/t silver, 0.08 g/t gold, 0.41% lead and 0.72% zinc, with initial capex estimated at $606 million and after-tax NPV of $1.2 billion at $22/oz silver. Analysts now see improved financeability and optionality on power supply (natural gas versus grid) and potential mine-life expansion from a further 240 million tonnes of measured and indicated resources outside the current pit shell.
Technical Brief
- SEMARNAT approvals cover both the environmental impact assessment and Change of Land Use, completing federal-level environmental permitting.
- Discovery is updating the February 2024 feasibility study to current capital and operating cost assumptions before financing.
- Power-supply trade-off under review: dedicated natural gas versus connection to the Mexican grid as primary source.
- The company is coordinating with local water-treatment plant operators on an upgrade to support project water quality/volume needs.
- BMO Capital Markets models first production in H2 2029 and assigns Cordero a US$2.73 billion value at US$47/oz silver.
- Scotiabank currently carries Cordero at about C$3.4 billion, representing roughly 32% of its total asset value estimate.
- Since acquiring Cordero in 2019, Discovery has invested over US$100 million (C$140 million) in exploration and technical work.
- About 240 million tonnes of measured and indicated resources sit outside the current feasibility pit shell, underpinning potential pushback or satellite pits.
- Cordero’s approval is cited by SCP Resource Finance as evidence that large greenfield open pits with existing concessions can still advance under Mexico’s current administration.
Our Take
With Cordero in Chihuahua and Vizsla Silver’s Panuco project in Sinaloa both in our recent Mexico coverage, operators in the Central Mexican Silver Belt are facing a dual reality of tier-one silver-gold project economics alongside heightened security and social-risk considerations for workforce and logistics planning.
Scotiabank’s C$3.4 billion asset value and BMO’s US$2.73 billion valuation for Cordero signal that Discovery Mining is being priced in our database more like a large, near-term producer than a typical single-asset developer, which can influence how contractors and offtakers negotiate terms ahead of a 2029 start.
The combination of relatively low all-in sustaining costs and substantial lead-zinc by-product credits at Cordero positions it, within our 1263 Mining stories, among the more resilient polymetallic silver projects to downside silver-price scenarios, which is material for lenders stress-testing the US$606 million initial capex.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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