Business
Salazar Resources Announces Update on Construction Plan and Schedule for the Development of the El Domo Project
Vancouver, British Columbia--(Newsfile Corp. - April 23, 2025) - SALAZAR RESOURCES LIMITED (TS...
About this update from Salazar Resources Limited
[{"type":"text","content":"Salazar Resources Announces Update on Construction Plan and Schedule for the Development of the El Domo ProjectVancouver, British Columbia--(Newsfile Corp. - April 23, 2025) - SALAZAR RESOURCES LIMITED (TSXV: SRL) (OTCQX: SRLZF) (FSE: CCG) (\"Salazar\" or the \"Company\") provides an update on El Domo Construction.Silvercorp Metals Inc. (\"Silvercorp\") and the Company are in a joint venture (\"Joint Venture\") for the development of the El Domo mine with Silvercorp holding a 75% interest and the Company a 25% carried interest. Silvercorp (TSX: SVM) (NYSE American: SVM) is operator of the Joint Venture and has been moving forward with construction of the El Domo mine. Silvercorp has recently provided an update to the Company on the development plans as the Joint Venture moves to bring El Domo into production. The Joint Venture is targeting the start of production for the Project by the end of 2026 at an estimated cost of $240.4 million, comparable to the $247.6 million estimate in the feasibility study (NI 43-101 Technical Report - Feasibility Study - Curipamba El Domo Project, Central Ecuador) published in 2021 (\"2021 Feasibility Study\"). The Company holds a 25% free carried interest on the Project and, once commercial production is achieved, Silvercorp will receive 95% of the dividends from the Project until its aggregate investment, has been recouped minus the approximate Salazar carrying value of US$ 20 million, after which dividends will be shared on a 75%/25% pro-rata basis with Salazar. The payback time is estimated to be 2.6 years according to the 2021 Feasibility Study, which is bound to improve with this updated plan and budget. The Company is thrilled to see the advances in the construction of the Project and is committed to continue supporting Silvercorp with its local expertise.As discussed in its January 7, 2025 Press Release, the Joint Venture has been building upon the 2021 Feasibility Study, with work to date focusing on: Advanced Detailed Engineering for: a) Optimized design with Klohn Crippen Berger (\"KCB\") for the Tailings Storage Facilities (\"TSF\"), Saprolite Waste Dump (\"SWD\"), and non-contact water channels; b) Optimized open pit mine design for mining, stripping, and scheduling, and coordinated the mining schedule with ongoing tailings dam construction by internal mining engineers; and c) by Yanta...