• Ongoing mining operation with extensive mine life
• Upgraded Mineral Resources to 3.60Mt of Measured and Indicated (“M&I”) Resources from 0.98Mt in the 2022 Mineral Resource Estimate and 11.89Mt of Inferred Resources from 14.94Mt with a new resource block model - 3X growth in M&I Resources when compared to the previous reported estimate see news release dated February 14, 2023
• Open at depth with known resource just below surface
• Expanded plant capacity from 600 to 720 tpd with installation of new jaw crusher (announced in April 2022)
• Commercial production declared in January 2023
• PEA for Tangana Mining Unit extension adds 1500 tpd capacity – expected by 2026
Table 1 – Nueva Recuperada Mineral Resources (effective date October 31, 2022)
Notes:
The independent QP for the mineral resource estimate, as defined by NI 43‑101, is David Heyl, P.Geo. The effective date is October 31, 2022.
The estimate is reported for an underground, conventional cut and fill scenario.
The mineral resource estimate includes two resource models: 1) A block model defined for the core of the resource, estimated through the drilling and mine development; geo-statistical method is the reverse of the distance; 2) a polygonal model for some of the inferred resources based on veins outcrops and surface sampling.
The approximate cut-off grade applied to all resources is $60/t.
These Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability.
The Mineral Resource estimate follows CIM Definition Standards.
The QPs of this PEA are not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing, or other relevant issues that could materially affect the Mineral Resource estimate other than those disclosed in this NI 43-101 compliant Technical Report.
TANGANA PROJECT
The Tangana Project is a large, cashflow-positive, silver mining unit.
Potential for new discoveries is high; the Tangana project extends across over a 10 km length and current production covers only 10% of the resource.
Project Highlights
• High grade >14 oz/t AgEq
• Wider veins 2-3m
• Bulk tonnage potential
• Significant exploration potential
• Commercial production declared in January 2023
• Seven main structures
- High-Grade veins, three main structures – Tangana West, Tangana Main and Tangana East
- Current production is focused on 10% of the resource
- 2023 PEA outlines future growth potential with a new mill and dry stacked tailings
Current Production & Target Development
• 481,040 oz AgEq in Q3 2022, 395,000 oz AgEq in Q4 2022
• New power installation delivered in January 2023
• More than 6,000 m of development in 2022
• Gold content drives increasing sales values
• Operational slow down in December due to supply shortages
Key Catalysts
Tangana Project
Complete 15,500 meters of diamond drilling to support PEA
Submit the Environmental and Social Impact Assessment (ESIA) to expand mining and processing capacity to 2,500 tpd
Advance 9,000 meters underground to exploit multiple veins at the Tangana Mining Unit to access sufficient stoping blocks to profitably sustain commercial production
Other projects in the Nueva Recuperada Silver District
Plata Project (previously Esperanza) - Begin operations in this silver-polymetallic project containing several intermediate sulfidation, epithermal high-grade vein targets.
Satellite Projects - Map and sample Tangana West and Pucapunta silver-(gold)polymetallic mineralized structures
Ccasahuasi Project - Commence drilling of a breccia-hosted disseminated gold target located adjacent to Tangana
TECHNICAL REPORT
Silver X filed an independent technical report titled “Nueva Recuperada, Huancavelica, Peru. Preliminary Economic Assessment” in connection with the Nueva Recuperada Silver District, including a preliminary economic assessment on the Tangana Mining Unit extension. The Technical Report, prepared by LOM Consultants Ltd, is dated April 4, 2023, with an effective date of October 31, 2022.
Silver X has begun updating the Environmental and Social Impact Assessment (ESIA) for its Nueva Recuperada Project. The environmental studies and community consultations for the ESIA allow for collaborative discussions with stakeholders while providing the company with a clear path to expanding operations. We are very proud to have a strong social license to operate at Nueva Recuperada and we will continue reducing and mitigating our environmental impact while sharing the economic benefits of resource development with our stakeholders. Read more about the ESIA here.
Resource disclosure:
(1) Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves. The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as Indicated Mineral Resources. It is uncertain if further exploration will result in upgrading them to the Indicated Mineral Resources category. Effective date January 1, 2022.
(2) Inferred Resources: “An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
An Inferred Mineral Resource is based on limited information and sampling gathered through appropriate sampling techniques from locations such as outcrops, trenches, pits, workings and drill holes. Inferred Mineral Resources must not be included in the economic analysis, production schedules, or estimated mine life in publicly disclosed Pre-Feasibility or Feasibility Studies, or in the Life of Mine plans and cash flow models of developed mines. Inferred Mineral Resources can only be used in economic studies as provided under NI 43-101.” (CIM, 2014).
(3) Indicated Resources: “An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve.
Mineralization may be classified as an Indicated Mineral Resource by the Qualified Person when the nature, quality, quantity and distribution of data are such as to allow confident interpretation of the geological framework and to reasonably assume the continuity of mineralization. The Qualified Person must recognize the importance of the Indicated Mineral Resource category to the advancement of the feasibility of the project. An Indicated Mineral Resource estimate is of sufficient quality to support a Pre-Feasibility Study which can serve as the basis for major development decisions.” (CIM, 2014).
(4) Measured Resources: “Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation.
A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proved Mineral Reserve or to a Probable Mineral Reserve. Mineralization may be classified as a Measured Mineral Resource when the nature, quality, amount and distribution of data are such as to leave no reasonable doubt, in the opinion of the Competent Person determining the Mineral Resource, that the tonnage and grade of the mineralization can be estimated to within close limits, and that any variation from the estimate would be unlikely to significantly affect potential economic viability.
This category requires a high level of confidence in, and understanding of, the geology and the controls of the mineral deposit. Confidence in the estimate is sufficient to allow the application of technical and economic parameters and to enable an evaluation of economic viability with a high level of confidence. Measured Resources can be converted to Mineral Reserves if certain Modifying Factors are appropriate. Modifying Factors are considerations used to convert Mineral Resources to Mineral Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors. Modifying Factors are also used to convert Mineral Reserves into Mineral Resources as is applicable as changes mandate such conversions ”(CIM, 2014).
