Silvercorp Announces the Construction Plan and Schedule for the Development of the Chaarat ZAAV Project
Silvercorp Metals Inc. has announced a budget of US$196.3 million for its joint venture, Chaarat ZAAV CJSC (ZAAV), which will include the development of the Tulkubash gold project (Phase 1) and initial expenditures to advance the Kyzyltash project (Phase 2). The forecast spending for 2026 is US$57 million, while the forecast for 2027 is US$139 million.
Silvercorp holds a 70% interest in ZAAV and serves as the operator, while Kyrgyzaltyn holds a 30% free-carried interest. ZAAV owns a 100% interest in a mining license covering approximately 7 square kilometers that includes the fully-permitted Tulkubash and Kyzyltash gold projects, as well as surrounding exploration licenses totaling 27.42 square kilometers in the Tien Shan area of the Kyrgyz Republic.
The budget for the development of the two phases includes various cost items, such as the open pit mining and waste dump for Tulkubash, which is estimated at US$51.5 million. The overall costs for Phase 1 development of Tulkubash are projected to be US$166.3 million, with an additional US$30 million allocated for Phase 2 development of Kyzyltash, making the total for both phases US$196.3 million.
Silvercorp's Phase 1 aims to establish a 4 million tonnes per year open-pit mine/heap leach operation at Tulkubash, with the project design based on prior Bankable Feasibility Studies. The company anticipates publishing an updated feasibility study by July 2026, which is currently under preparation by LogiProc.
For the Phase 2 development at Kyzyltash, Silvercorp will focus on in-fill drilling to upgrade inferred resources into higher categories and will conduct economic assessments and engineering studies throughout 2026 and 2027. This phase will ultimately support the establishment of a 3 to 4 million tonnes per year open pit or underground mine, utilizing flotation, bacterial oxidization, and carbon in leach processes.
Silvercorp is a Canadian mining company known for producing silver, gold, lead, and zinc, with a focus on creating shareholder value through projects based on free cash flow generation and responsible mining practices.