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Silver X (TSXV:AGX / OTCQB:AGXPF) recently released the findings of its Preliminary Economic Assessment (PEA), with an effective date of May 31, 2025, focusing on the Nueva Recuperada district-scale project. The study underscores the potential of the project to operate at a sustained capacity, drawing scrutiny from investors keen on silver production.
Positive
After-tax NPV of $439 million at 5% discount
Average annual production ~6.2 million ounces AgEq
Life of Mine of 14 years at 3,000 tpd
Initial CapEx of $82 million including 13% contingency
After-tax payback period of 3.0 years
Cumulative after-tax cashflow of $606 million over 13 years
Negative
PEA includes inferred resources considered too speculative
Production decision not based on mineral reserves or feasibility
Risk that mineral grades may be lower than expected
Increased economic and technical failure risk without feasibility study
10/17/2025 – 02:35 PM
VANCOUVER, BC – Silver X Mining Corp. (TSXV:AGX)(OTCQB:AGXPF)(F:AGX) has unveiled its Preliminary Economic Assessment (PEA), signaling district-scale ambitions with a planned combined mining and processing capacity of 3,000 tonnes per day (tpd) and annual potential exceeding 6 million ounces of silver equivalent (AgEq). The PEA, while promising, warrants careful analysis due to its preliminary nature and reliance on inferred mineral resources.
The study presents a compelling vision of two operating mines, Tangana and Plata, poised to potentially establish Silver X as a significant player among mid-tier silver producers. The plan centers around leveraging resources from both mines, with dedicated milling facilities at each site.
José García, CEO of Silver X, highlighted the company’s long-held belief in Nueva Recuperada’s district-scale potential, emphasizing the 14-year mine life and projected average annual production exceeding six million ounces of silver equivalent.
The PEA’s validation of operating two milling facilities – one at Tangana and another dedicated to Plata – as both achievable and value-accretive is significant. This strategy could allow for a more streamlined and efficient processing operation, potentially optimizing resource extraction and reducing operational costs.
“Strong investor support in our recent oversubscribed bought deal reinforces that this vision is widely shared,” added Mr. García. “This financing gives us the flexibility to immediately begin executing the development plan – upgrading and expanding resources, optimizing mine operations, and accelerating the restart at the Plata Mining Unit.”
**Key PEA Highlights:**
* **Net Present Value (NPV):** After-tax NPV of $439 million at a 5% discount rate. Investors should note the discount rate sensitivity of this metric.
* **Annual Production:** Average annual production of approximately 6.2 million ounces of silver equivalent (AgEq), excluding the first and last years of the mine life (LOM).
* **Mine Life:** A 14-year Life of Mine (LOM) with a maximum combined mining and processing capacity of 3,000 tpd.
* **Capital Expenditure (CapEx):** Initial CapEx of $82 million, which includes a 13% contingency, earmarked for a new processing facility, dry-stacked tailings, and mine development. This relatively low initial CapEx could be attractive, but investors should scrutinize the contingency provisions.
* **Payback Period:** After-tax payback of 3.0 years.
* **Operating Costs:** LOM Cash Costs of $11.8/oz AgEq and LOM All-In Sustaining Costs (AISC) of $15.8/oz AgEq.
* **Cash Flow:** Cumulative cash flow of $606 million after tax over 13 years, based on the base case scenario.
[1] AgEq ounces were calculated based on all metals produced and mined using the estimated prices based on CIBC’s August 2025 prices consensus. The assumptions underlying these price estimates are important considerations for investors.
[2] Cash costs and AISC are non-IFRS financial ratios. These are based on non-IFRS financial measures that do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. Investors should be wary of such non-standardized measures.
The PEA was prepared by qualified professionals in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and has an effective date of May 31st, 2025.
**Cautionary Statement Regarding PEA:**
It is crucial to acknowledge the preliminary nature of the PEA. It incorporates inferred mineral resources, considered geologically speculative and carries no guarantee of economic viability.
**Qualified Persons:**
The technical content was reviewed and approved by several qualified persons, each specializing in different aspects of the project, and their expertise is a valuable asset for the company. Specifically, A. David Heyl (Geology), Edgard Vilela (Mining), Donald Hickson (Mine Waste & Environmental Management), and Adam Johnston (Metallurgy) contributed to the assessment.
**Production Decision Caveat:**
The decision to commence production at Nueva Recuperada predates a formal economic assessment, pre-feasibility study, or feasibility study of mineral reserves. Therefore, the production plan bears increased uncertainty and economic risks.
**About Silver X:**
Silver X Mining Corp. is developing the Nueva Recuperada Project in Peru.
**Analysis:**
Silver X’s PEA presents a potentially lucrative venture, with a reasonable initial CapEx and attractive payback period. However, the reliance on inferred mineral resources introduces a significant element of risk. The PEA should be viewed as an early-stage assessment, and the company will need to aggressively pursue further exploration and resource definition to upgrade the resource classification and de-risk the project. Securing the necessary permits and maintaining social license, particularly in a region with long-standing mining operations, will also be critical to Silver X’s success. Investors should carefully consider the sensitivity of the NPV to discount rates and metal price fluctuations. This project warrants further monitoring as Silver X progresses through the development stages.
Nueva Recuperada PEA: Key Takeaways
What are the main PEA financial metrics for Silver X (AGXPF) dated May 31, 2025?
PEA shows After-tax NPV $439M (5%), Initial CapEx $82M, and after-tax payback 3.0 years.
How much silver equivalent does Silver X (AGXPF) expect to produce annually in the 2025 PEA?
The PEA forecasts approximately 6.2 million ounces AgEq per year (excluding first and last LOM years).
What is the planned mining and processing capacity in Silver X’s (AGXPF) PEA?
The study assumes a combined mining and processing capacity of 3,000 tonnes per day across two mills.
Does the Silver X (AGXPF) PEA rely on proven mineral reserves?
No; the PEA includes inferred mineral resources and is not based on mineral reserves or a feasibility study.
What are the reported LOM cash costs and AISC in the Silver X (AGXPF) PEA?
LOM cash costs are $11.8/oz AgEq and LOM AISC is $15.8/oz AgEq.
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