Positive Feasibility Results Establish Cordero As A Leading Development-Stage Silver Project

TORONTO –  Discovery Silver Corp. reported on the Feasibility Study (FS) on Cordero silver project located in Chihuahua State, Mexico. Reported large-scale, long-life production: 19-year mine life with average annual production of 37 Moz AgEq in Year 1 to Year 12. Low costs, high margins & low capital intensity: average AISC of less than $12.50 over the first eight years of the mine life placing Cordero in the bottom half of the cost curve. Low capital intensity: initial development capex of $606 million resulting in an attractive after-tax NPV-to-capex ratio of 2.0. Attractive project economics: Base Case after-tax NPV5% (“NPV”) of $1.2 billion and IRR of 22% with NPV expanding to $2.2 billion in Year 4. Tier 1 reserve base: Reserves of Ag – 302 Moz, Au – 840 koz, Pb – 3.0 Blb and Zn – 5.2 Blb, positioning Cordero as one of the largest undeveloped silver deposits globally. Clear upside potential: 240Mt of Measured & Indicated Resource sit outside the FS pit highlighting the potential to materially extend the mine life at modestly higher silver prices.

Substantial socio-economic contribution: an initial investment of over $600 million, 2,500 jobs created during construction, $4 billion of goods and services purchased and estimated tax contributions of over $1.4 billion within Mexico. Industry-leading environmental standards: third-party reviews of proposed environmental practices to ensure adherence to both Mexican regulatory standards and Equator Principles 4. The Study also incorporates investment in infrastructure and technology to recycle wastewater from local communities with discharged water representing the primary source of water for mine operations.

Tony Makuch, CEO, said, “Our Feasibility Study has delivered outstanding results that clearly establish Cordero as one of the world’s leading development-stage projects. Cordero is the largest undeveloped silver project globally based on both reserves and annual production and has low unit costs in support of high margins and substantial cash flow generation. Cordero is also extremely capital efficient, with an initial NPV to Capex ratio of 2.0x, with the NPV almost doubling to over $2 billion by year four following completion of the Phase 2 mill expansion that is primarily funded by internal cash flow. With more than 300 Moz of silver reserves, a mine life of close to 20 years and significant extension potential, Cordero is uniquely positioned to play a key role in closing market deficits in the silver space and in supplying future consumption in high-growth areas including the battery vehicle and solar power sectors.

“Importantly, Cordero will have a major positive socio-economic impact locally in Parral, in the Chihuahua region and at the national level. Cordero will create up to 2,500 jobs during the construction period, 1,000 direct jobs over the mine life, will purchase in excess of $4 billion of goods and services from local and regional suppliers, and will generate $1.4 billion of tax revenues at all levels of government. As part of our proactive approach to water management, we also plan to invest in infrastructure and technology that will support recycling of wastewater produced from local communities for use as our primary source of water for the Project. Our team in Mexico has already won numerous awards for social responsibility, environmental protection and workplace culture and we look forward to expanding on these efforts as part of our commitment to the sustainable development of Cordero and our adherence to the highest industry standards for environmental protection, water management, social responsibility and health and safety.”