VANCOUVER - Silvercorp Metals Inc . (TSX: NYSE:SVM) (NYSE American: SVM) and its partners are moving forward with construction preparations for the El Domo (NASDAQ:DOMO) copper-gold project in Ecuador, aiming for production in 2026. The project, operated by Silvercorp's subsidiary Curimining S.A., and in partnership with Salazar Resources Limited (TSXV: SRL) (OTCQB: SRLZF), has entered a phase of detailed engineering and selection of vendors for the anticipated construction.
The company has recently appointed Jaymes Dircks as the General Manager of Curimining to lead the project's construction phase. Dircks, who has over three decades of experience in mining development, previously oversaw construction projects at B2Gold (NYSE:BTG) Corp. and Sabina Gold & Silver Corp. His expertise is expected to be crucial in the development of El Domo, which is located approximately 150 km northeast of Guayaquil, Ecuador.
In addition to Dircks' appointment, Silvercorp has hired a senior mining engineer with expertise in large-scale open-pit copper mines to bolster its team. The company is focusing on several priority projects, including metallurgical test work to enhance metal recoveries, power supply advancement, and infrastructure optimization based on the 2021 Feasibility Study.
The metallurgical test work is particularly significant as it may notably improve the project's economics. A review of a 2019 study suggested that sequential flotation of copper could lead to higher gold and silver recoveries compared to the current bulk flotation process. As a result, Silvercorp plans to conduct further metallurgical drilling to optimize the process.
El Domo is a high-grade copper-gold deposit with mineralization beginning 30 meters from the surface. The project has direct access via well-maintained roads and is expected to produce three different concentrates through a flotation process.
Silvercorp, a Canadian mining company, has a history of profitability and growth potential. It aims to generate shareholder value through free cash flow from long-life mines, organic growth via extensive drilling, and strategic mergers and acquisitions.
The information for this article is based on a press release statement from Silvercorp Metals Inc.
InvestingPro Insights
As Silvercorp Metals Inc. and Salazar Resources Limited progress with the El Domo copper-gold project, investors are closely monitoring the financial health and market performance of the companies involved. Salazar Resources Limited, in particular, presents several noteworthy metrics and InvestingPro Tips that could influence investor decisions.
One InvestingPro Tip highlights Salazar Resources Limited's strong liquidity position, as the company holds more cash than debt on its balance sheet. This is a positive sign for stakeholders, as it suggests the company has a buffer to manage potential risks associated with the construction and future operation of the El Domo project.
Additionally, Salazar Resources Limited boasts impressive gross profit margins, with a reported 61.43% for the last twelve months as of Q1 2023. This figure indicates that the company is effectively managing its cost of goods sold and has a healthy profitability potential.
InvestingPro Data also reveals a Price / Book multiple of 0.5, suggesting that the company's stock may be undervalued relative to its book value. This could be of interest to value investors looking for opportunities in the mining sector.
Furthermore, Salazar Resources Limited has experienced a strong return over the last three months, with a price total return of 31.86%. This performance reflects investor confidence and could be a sign of the company's growth trajectory as it embarks on the El Domo project with Silvercorp.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available for Salazar Resources Limited on the InvestingPro platform, offering a comprehensive view of the company's financials and market performance.
The information provided here is a snapshot of Salazar Resources Limited's financial health and market status, serving as a valuable resource for investors and stakeholders considering the company's involvement in the El Domo project.
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