Silver Tiger Announces a PEA for the Underground with an After Tax NPV of US$304M and an Updated PFS for the Stockwork Zone with an After Tax NPV of US$456M at the El Tigre Silver-Gold Project, Sonora, Mexico
NEWS RELEASE SILVER TIGER ANNOUNCES A PEA FOR THE UNDERGROUND WITH AN AFTER TAX NPV OF US$304M AND AN UPDATED PFS FOR THE STOCKWORK ZONE WITH AN AFTER TAX NPV OF US$456M AT THE EL TIGRE SILVER-GOLD PROJECT, SONORA, MEXICO
HALIFAX, NOVA SCOTIA – January 20, 2026 – Silver Tiger Metals Inc. (TSXV:SLVR and OTCQX:SLVTF) ("Silver Tiger" or the “Corporation”) is pleased to announce the results of a Preliminary Economic Assessment (“PEA”) on the underground at El Tigre and an updated Pre-Feasibility Study (“PFS”) on the Stockwork Zone for its 100% owned, silver-gold El Tigre Project (the "Project" or "El Tigre") located in Sonora, Mexico. The bolt-on PEA is centred on the underground mining economics of the high-grade El Tigre, Sulphide, Black Shale and Seitz Kelly zones. The underground PEA and updated PFS is based on new consensus economics metal prices of $38 per ounce
| silver and $3,200 per ounce gold. | The PEA mine design can be constructed independently of the Stockwork Zone |
| development and is focused on the underground Mineral Resource. Prospective areas exist outside of the areas defined | |
| by the PEA and PFS with the historic “El Tigre North Mine” Mineral Resource located 700 metres to the North (see | |
| Exploration Potential section below). |
Highlights of the PEA, with a base case silver price of $38/oz and gold price of $3,200/oz are as follows (all figures in US dollars unless otherwise stated):
- After-Tax net present value (“NPV”) (using a discount rate of 5%) of $304 million with an After-Tax IRR of 42.8% and Payback Period of 2.6 years (Base Case);
- 15-year UG mine life with 3-year historical tailings processing recovering a total of 38 million payable silver equivalent ounces (“AgEq”) or 453 thousand gold equivalent ounces (“AuEq”), consisting of 34 million silver ounces and 130 thousand gold ounces;
- Total Project undiscounted after-tax cash flow of $496 million;
- Initial capital costs of $83.5 million, including $10.9 million in contingency costs, over an expected 18-month build, and sustaining capital costs of $213 million over the life of mine (“LOM”);
- The 2026 PEA mine plan is designed as stand-alone to the PFS, with a potential overlap of initial capital cost of $17M (e.g., grid power, offices);
- Average LOM operating cash costs of $1,351/oz AuEq, and all in sustaining costs (“AISC”) of $2,019/oz AuEq or Average LOM operating cash costs of $16.05/oz AgEq, and AISC of $23.98/oz AgEq;
- Average annual production of approximately 2.3 million AgEq oz or 27.8 thousand AuEq oz, consisting of 2.1 million silver ounces and 8.0 thousand gold ounces (refer to Table 10 footnotes for conversion to Eq ozs); and
- PEA Study of the Southern Veins does not include the 38 million ounces AgEq contained in the Northern Veins (see details in updated Mineral Resource Estimate below).
Highlights of the updated PFS, with new base case silver price of $38/oz and gold price of $3,200/oz are as follows (all figures in US dollars unless otherwise stated):
- After-Tax net present value (“NPV”) (using a discount rate of 5%) of $456 million with an After-Tax IRR of 65.7% and Payback Period of 1.4 years;
- 10-year mine life recovering a total of 43 million payable silver equivalent ounces (“AgEq”) or 509 thousand payable gold equivalent ounces (“AuEq”), consisting of 9 million silver ounces and 408 thousand gold ounces;
- Total Project undiscounted after-tax cash flow of $625 million;
- Initial capital costs of $86.8 million, which includes $9.3 million of contingency costs, over an expected 18month build, expansion capital of $20.1 million in year 3 and sustaining capital costs of $6.2 million over the life of mine (“LOM”);
- Average LOM operating cash costs of $997/oz AuEq, and all in sustaining costs (“AISC”) of $1,238/oz AuEq or Average LOM operating costs of $11.7/oz AgEq, and all in sustaining costs (“AISC”) of $14.5/oz AgEq;
- Average annual production of approximately 4.8 million AgEq oz or 56.5 thousand AuEq oz; and
- Three (3) years of production in the Proven category in the Phase 1 Starter Pit with 60% of overall final pit Mineral Reserve in Proven category.
Glenn Jessome, President and CEO, stated “This updated PFS for the Stockwork Zone and initial PEA for the underground provide the first look at the combined economics of El Tigre. At current spot silver and gold prices, the Stockwork Zone Project generates an after-tax NPV of approximately $950 million US dollars and the underground project generates an after-tax NPV of approximately $1.20 billion US dollars at a discount rate of 5%. At current spot silver and gold prices, the Stockwork Zone Project generates approximately $1.30 billion US dollars of net cashflow after tax over life of mine and the underground project generates approximately $1.85 billion US dollars of net cashflow after tax over life of mine.” Mr. Jessome further stated, “In the backdrop of all-time high silver and gold prices we are completing detailed engineering and proceeding to build the Stockwork Zone Project.” Mr. Jessome continued, “The underground at El Tigre is a standalone bolt-on project and we intend to complete development for this low capex underground project and advance towards production as quickly as possible.”
Underground Preliminary Economic Assessment Summary
The PEA was prepared by independent consultants P&E Mining Consultants Inc. (“P&E”), with metallurgical test work completed by SGS Lakefield, geotechnical work by WSP Canada Ltd., process plant design and costing by D.E.N.M. Engineering Ltd., and environmental and permitting led by CIMA Mexico.
The 2026 PEA underground mine and mineral processing plan is scheduled over a production period of ~17 years. The mine plan portion of the Mineral Resource Estimate for the El Tigre 2026 PEA totals 5.0 Mt at average grades of 331.7 g/t AgEq, 251.3 g/t Ag, 0.91 g/t Au, 0.03% Cu, 0.10% Pb and 0.17% Zn (base metals provide no economic benefit under the proposed cyanidation process). Approximately 85% of the mine plan portion of the Mineral Resource, including historical tailings and low-grade stockpile mineralization, is classified as Measured and Indicated.
Following are tables and figures showing key assumptions, results, and sensitivities.
Figure 1: El Tigre –UG PEA Stopes and Development by Zone (Southern Veins)
Figure 1: El Tigre Underground Stope and Development Visualization
Table 1: El Tigre UG PEA Key Economic Assumptions and Results
| Assumption / Result | Unit | Value | Assumption / Result | Unit | Value |
|---|---|---|---|---|---|
| Plant Feed Processed | kt | 5,023 | Net Revenue | US$M | 1,665.4 |
| Waste Rock Mined | kt | 2,439 | Initial Capital | US$M | 83.5 |
| Silver Grade | g/t | 251.3 | Sustaining Capital | US$M | 213.6 |
| Gold Grade | g/t | 0.91 | Mining and Haulage Costs | $/t processed | 62.49 |
| Silver Recovery (UG) | % | 84 | Processing Costs (UG and Stockpile) | $/t processed | 41.55 / 24.25 |
| Gold Recovery (UG) | % | 90 | G&A Costs | $/t processed | 18.71 |
| Silver Price | US$/oz | 38.00 | Operating Cash Cost | US$/oz AgEq | 16.0 |
| Gold Price | US$/oz | 3,200 | All-in Sustaining Cost | US$/oz AgEq | 24.0 |
| Payable Silver Metal | Moz | 33.6 | After-Tax NPV (5% discount) | US$M | 304.0 |
| Payable Gold Metal | koz | 130 | Pre-Tax NPV (5% discount) | US$M | 487.3 |
| Payable AgEq | Moz | 38.5 | After-Tax IRR | % | 42.8 |
| Production and Reclamation | years | 18 | Pre-Tax IRR | % | 65.2 |
| Average Feed Processed | tpd | 800 | After-Tax Payback Period | years | 2.6 |
Figure 2 : El Tigre UG PEA Cash Flow Profile by Year
Figure 2 above highlights the after-tax cash flows of $496 million associated with the UG component of the Project. The economics of the Project have been evaluated based on the base case scenario $38/oz silver price, and gold price of $3,200/oz. As illustrated in the following sensitivity tables, the Project remains robust even at lower commodity prices or with higher costs.
Table 2: El Tigre PEA Gold and Silver Price Sensitivities
| Sensitivity | -20% | -10% | Base Case | +10% | +20% |
| Silver Price (US$/oz) | 30 | 34 | 38 | 42 | 46 |
| Gold Price (US$/oz) | 2,560 | 2,880 | 3,200 | 3,520 | 3,840 |
| After-Tax NPV (5%) (US$M) | 153.9 | 229.1 | 304.0 | 378.9 | 453.9 |
| After-Tax IRR (%) | 24.8 | 33.8 | 42.8 | 51.8 | 61.0 |
| After-Tax Payback (years) | 3.5 | 3.0 | 2.6 | 2.2 | 1.9 |
Table 3: El Tigre PEA Operating Cost and Capital Cost Sensitivities
| Sensitivity | -20% | -10% | Base Case | +10% | +20% |
| Operating Costs – NPV (US$M) 5 | 354.9 | 329.5 | 304.0 | 278.6 | 253.2 |
| Operating Costs – IRR (%) | 48.2 | 45.5 | 42.8 | 40.1 | 37.4 |
| Capital Costs – NPV (US$M) 5 | 337.1 | 320.6 | 304.0 | 287.5 | 271.0 |
| Capital Costs – IRR (%) | 55.1 | 48.4 | 42.8 | 38.1 | 34.0 |
Capital and Operating Costs
Capital and Operating costs are listed in Table 4 below. The El Tigre Underground Project has been envisioned as an independent underground operation at a processing rate of 800 tonnes per day with a mine life of 15 years. Before full UG production, historical stockpile material (119 kt @176 g/t Ag and 0.85 g/t Au) is processed in Year-1. After UG production is complete in Year 15, historical tailings (904 kt @ 77.6 g/t Ag and 0.27 g/t Au) will be processed for an additional three years.
If the 2026 PEA mine plan was to be implemented after mining commenced as detailed in the PFS sections of the Technical Report, there would be a potential savings in PEA initial capital costs of approximately $17.0M. The savings would consist of infrastructure such as the electrical powerline for grid power, and camp and office facilities, plus much of the owner’s costs.
Water supply to the process plant is provided by pumping nearby water from dewatering wells to the process area water distribution system, and high voltage grid power will be installed by the local utility to supply process and infrastructure electrical requirements.
Table 4: LOM Capital Cost Estimate
| 2026 PEA Capital Cost Summary Initial Sustaining Total Item ($k) ($k) ($k) | |||||||
|---|---|---|---|---|---|---|---|
| Process Plant Directs | 22,298 | - | 22,298 | ||||
| Process Plant Indirects | 8,811 | - | 8,811 | ||||
| Underground Mining | 49,518 | 173,508 | 223,026 | ||||
| Infrastructure | 6,449 | - | 6,449 | ||||
| Dry Stack Tailings | 3,978 | 12,230 | 16,208 | ||||
| Owner’s Costs | 10,743 | - | 10,743 | ||||
| Pre-production revenues | (29,175) | - | (29,175) | ||||
| Subtotal | 72,622 | 185,738 | 258,360 | ||||
| Contingencies @ 15% | 10,893 | 27,861 | 38,754 | ||||
| Total | 83,515 | 213,599 | 297,114 |
Mining
The El Tigre Underground Project is planned as a contractor-operated longhole mining operation with cemented paste backfill supplemented by minor mechanized cut and fill mining and recovery of existing low grade and tailings stockpiles. Underground mining contributes approximately 4,000 kt of mineralized material, with 119 kt from an historical low grade stockpile and 904 kt from an historical tailings stockpile, for a total of 5,022.8 kt grading over the LOM on average 331.7 g/t AgEq, 251.3 g/t Ag, 0.91 g/t Au, 0.033% Cu, 0.099% Pb and 0.166% Zn; base metals provide no economic benefit under the cyanidation process. Underground production is scheduled at 290 kt per annum (“ktpa”), giving an underground mine life of approximately 15 years and an overall Project life of approximately 18 years. Process plant commissioning with low grade stockpile material is planned in Year -1, and processing of historical tailings stockpile at 365 ktpa is scheduled for three years after underground mining is depleted.
Metallurgy
A metallurgical test program was carried out by SGS Lakefield of Ontario, Canada. The program included grinding and flotation work. The samples comprised of drill core sampling rejects representing the various zones of the Mineral Resource. This test program estimated average gold and silver respective hardrock metallurgical recoveries of 84.4% and 89.7% for silver and gold respectively. While base metals were recoverable, it was determined that the mined value of copper, lead and zinc does not justify the recovery cost of their respective metallurgical circuits.
Stockwork Zone Updated Pre-Feasibility Study Summary
The updated PFS used higher metal prices than the 2024 PFS (see release dated Oct 22, 2024) and was prepared by independent consultants P&E Mining Consultants Inc. (“P&E”), with metallurgical test work completed by McClelland Laboratories, Inc., Sparks, Nevada, process plant design and costing by D.E.N.M. Engineering Ltd., environmental and permitting led by CIMA Mexico and geotechnical design by WSP Canada Ltd.
The base case LOM is scheduled over a period of ten years (one year of preproduction and nine production years). The Proven and Probable Mineral Reserve Estimate for the El Tigre Project totals 40.3 Mt at average grades of 0.40 g/t Au and 14.9 g/t Ag. Approximately 60% of the Mineral Reserve is classified as Proven.
Surface mining will be initiated in Year -1 (pre-stripping period) and will be completed in Year 9. The initial ore heap leaching rate (Years 1 to 3) is 7,500 tpd (2.74 Mta). In Year 4 the crushing rate will increase to 15,000 tpd (5.5 Mtpa) and this rate is maintained to the end of the mine life. The El Tigre Mine is planned to be a contract mining operation. Over the LOM, 68.3 Mt of waste rock will be mined, with 40.3 Mt ore, for a total of 108.6 Mt at a strip ratio of 1.7:1.
After-Tax net present value (“NPV”) (using a discount rate of 5%) of $456 million with an After-Tax IRR of 65.7% and Payback Period of 1.4 years over 10-year mine life recovering a total of 43 million payable silver equivalent ounces (“AgEq”) or 509 thousand payable gold equivalent ounces (“AuEq”), consisting of 9 million silver ounces and 408 thousand gold ounces. Total Project undiscounted after-tax cash flow of $625 million with initial capital costs of $86.8 million, which includes $9.3 million of contingency costs, over an expected 18-month build. An expansion capital allocation of $20.1 million is planned in year 3 with sustaining capital costs of $6.2 million over the life of mine (“LOM”). Following are tables and figures showing key assumptions, results, and sensitivities.
Table 5: El Tigre PFS Key Economic Assumptions and Results(1-2)
| Assumption / Result | Unit | Value | Assumption / Result | Unit | Value |
|---|---|---|---|---|---|
| Total OP Plant Feed Mined | kt | 40,292 | Net Revenue | US$M | 1,623.9 |
| Operating Strip Ratio | Ratio | 1.7:1 | Initial Capital Costs | US$M | 86.8 |
| Silver Grade1 | g/t | 14.9 | Expansion Capital Costs | US$M | 20.1 |
| Gold Grade1 | g/t | 0.40 | Sustaining Capital Costs | US$M | 6.2 |
| Silver Recovery (Oxide/Sul.)2 | % | 45 / 40 | Mining Costs | $/t Material | 2.24 |
| Gold Recovery (Oxide/Sul.)2 | % | 83 / 56 | Processing Costs (Phase 1 and Phase 2) | $/t Feed | 5.79/4.74 |
| Silver Price | US$/oz | 38.00 | G&A Costs | $/t Feed | 1.27 |
| Gold Price | US$/oz | 3,200 | Operating Cash Cost | US$/oz AgEq | 11.7 |
| Payable Silver Metal | Moz | 8.57 | All-in Sustaining Cost | US$/oz AgEq | 14.5 |
| Payable Gold Metal | koz | 408 | After-Tax NPV (5% discount) | US$M | 455.6 |
| Payable AgEq | Moz | 42.9 | Pre-Tax NPV (5% discount) | US$M | 737.2 |
| Mine Life | Yrs | 10 | After-Tax IRR | % | 65.7 |
| Average mining rate | t/day | 30,000 | Pre-Tax IRR | % | 87.7 |
| After-Tax Payback Period | Yrs | 1.4 |
1. Grades shown are LOM average process plant feed grades include only OP sources. Mining losses and external dilution of 3.7% were incorporated in the mining schedule.
2. Column testing indicated both variable gold and silver recovery for the oxide material vs the previously reported non-discounted PEA (83% and 64%) at a 3/8-in crush size. In the process design and financial model for the PFS process design and financial model recoveries have been discounted by 3% for leaching in the field versus optimum conditions in the laboratory and shown accordingly. The presence of transition and sulphide zones has affected both the gold and silver recoveries and are shown as separate recoveries. These are reasonable and appropriate for use in this PFS design and economic analysis.
Figure 3: PFS El Tigre Cash Flow Profile by Year
Figure 3 above highlights the after-tax cash flows of $625 million associated with the El Tigre Project. The economics of the Project have been evaluated based on the base case scenario $38/oz silver price and gold price of $3,200/oz. As illustrated in the following sensitivity tables, the Project remains robust even at lower commodity prices or with higher costs.
Table 6: El Tigre PFS Gold and Silver Price Sensitivities
| Sensitivity | -20% | -10% | Base Case | +10% | +20% |
| Silver Price (US$/oz) | 30 | 34 | 38 | 42 | 46 |
| Gold Price (US$/oz) | 2,560 | 2,880 | 3,200 | 3,520 | 3,840 |
| After-Tax NPV (5%) (US$M) | 303.9 | 379.8 | 455.6 | 531.5 | 607.4 |
| After-Tax IRR (%) | 49.9 | 58.1 | 65.7 | 73.0 | 79.9 |
| After-Tax Payback (years) | 1.7 | 1.5 | 1.4 | 1.3 | 1.2 |
Table 7: El Tigre PFS Operating Cost and Capital Cost Sensitivities
| Sensitivity | -20% | -10% | Base Case | +10% | +20% |
| Operating Costs – NPV (US$M) 5 | 502.0 | 478.8 | 455.6 | 432.5 | 409.3 |
| Operating Costs – IRR (%) | 70.7 | 68.2 | 65.7 | 63.2 | 60.6 |
| Capital Costs – NPV (US$M) 5 | 470.2 | 462.9 | 455.6 | 448.3 | 441.0 |
| Capital Costs – IRR (%) | 77.7 | 71.2 | 65.7 | 61.1 | 57.0 |
Capital and Operating Costs
The El Tigre Project has been envisioned starting at a processing rate of 7,500 tonnes per day for years 1-3 and then 15,000 tonnes per day by year 4 after 1.5 years of construction for ramp up in year 3.
The process plant is comprised of conventional three (3) stage crushing to an optimum -3/8 inch (10 mm) crush size. The crushed material will be conveyed and loaded on the lined pad areas. A series of pumping and piping will allow irrigation of the stacked heap material and subsequent production of pregnant solution to flow to the respective impoundment pond. The pregnant solution will be pumped to the recovery facility consisting of the Merrill – Crowe process (zinc precipitation) and refinery to produce the gold and silver dore for marketing. The process barren solution will be recycled (with NaCN addition) and pumped back to the heap for further leaching. The process plant location will be adjacent to the pad and pond infrastructure area.
Water will be supplied from dewatering wells. Power to the El Tigre Property will be supplied by the national grid via a 72 km 34.5 kV overhead power line. The routing of the power line will be from Nacozari de Garcia. Overhead power lines will connect 13.8 kV, three phase and 60 Hz via a sub-station located near the process plant area. Expansion capital includes the cost to increase the process plant capacity from 7,500 tonnes per day to 15,000 tonnes per day as noted in Year 4 of operation.
Life of Mine (LOM) capital costing is listed below in Table 8, indicating Initial, Expansion and Sustaining Capital:
Table 8: LOM Capital Cost Estimate
| Type | Initial | Expansion | Sustaining | Total |
|---|---|---|---|---|
| (US$k) | (US$k) | (US$k) | (US$k) | |
| Process Plant direct costs | 42,851 | 13,584 | 1,600 | 58,034 |
| Mining direct costs | 2,660 | 4,362 | 3,956 | 10,978 |
| Pre-stripping | 3,362 | 3,362 | ||
| Infrastructure | 20,489 | 20,489 | ||
| Process indirect costs (with EPCM) | 8,121 | 8,121 | ||
| Total | 77,483 | 17,946 | 5,556 | 100,985 |
| Contingency (12%) | 9,298 | 2,199 | 622 | 12,118 |
| Total with Contingency | 86,780 | 20,145 | 6,178 | 113,103 |
Mining
The El Tigre Mine is planned to be a contract-operated mine. The Mining Contractor will undertake all drilling, loading, hauling, and mine site maintenance activities. A separate Blasting Contractor will provide blast hole loading, charging and detonating services using an ammonium nitrate fuel oil mixture. The Owner will provide overall mine management and technical services, such as mine planning, grade control, geotechnical, and surveying services. It is expected that mid-sized diesel hydraulic excavators and diesel-powered front-end loaders will be used. The anticipated truck size is 91 tonnes, similar to the CAT 777 truck, although alternate truck sizes may eventually be used.
Metallurgy
A detailed metallurgical test program was carried out by McClelland Laboratories, Inc., Sparks, Nevada on six (6) El Tigre starter pit samples. The program included crushing, coarse bottle rolls, and column testing at both 80% passing 3/8 inch and 1/2 inch (10 and 12 mm) crush size for five (5) of the six samples. One low grade sample was only crushed to 80% passing 1-1/2 inch (38 mm) as an indication of low grade leachability. The leach samples comprised of drill core sample representing the starter pit and during the testing process it became apparent that the presence of transition and sulphide zones are in the starter pit thus affecting the base design recoveries. This variable test program (column and coarse bottle roll) estimated oxide average gold and silver respective metallurgical recoveries of 86% Au and 48% Ag at the 3/8 inch (10 mm) crush. The transition and sulfide zones had estimated recoveries of 59% Au and 43% Ag. Further percolation testing also confirmed no requirement for agglomeration of the crushed material is required prior to loading on the leach pad.
Mineral Reserves
The Mineral Reserves are summarized in Table 9. Note that 85% of Total Probable and Proven tonnes are contained within Oxide material (15% in Sulphide or Transition) with 83% gold recovery.
The Mineral Reserves are the portion of the Mineral Resource that has been deemed economically mineable by the surface mining production plan. The Mineral Reserves consist only of Mineral Resources classified as Measured or Indicated converted to Proven and Probable. Inferred Mineral Resources are considered as waste in the PFS.
Table 9: PFS Mineral Reserves Summary (1-7)
| Classification | Ore Tonnes | Au | Ag | AuEq | AgEq | Contained Au | Contained Ag | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (k) | (g/t) | (g/t) | (g/t) | (g/t) | (koz) | (koz) | |||||||||
| Proven | |||||||||||||||
| Oxide | 19,564 | 0.4 | 16.4 | 0.5 | 83.4 | 252 | 10,316 | ||||||||
| Sulphide | 4,655 | 0.52 | 7.6 | 0.58 | 65.2 | 78 | 1,137 | ||||||||
| Total Proven | 24,220 | 0.43 | 14.7 | 0.52 | 79.9 | 329 | 11,453 | ||||||||
| Probable | |||||||||||||||
| Oxide | 14,800 | 0.37 | 13.7 | 0.45 | 74.3 | 176 | 6,519 | ||||||||
| Sulphide | 1,272 | 0.43 | 33.8 | 0.73 | 82.1 | 18 | 1,382 | ||||||||
| Total Probable | 16,073 | 0.37 | 15.3 | 0.47 | 74.9 | 194 | 7,901 | ||||||||
| Proven and Probable | |||||||||||||||
| Oxide | 34,365 | 0.39 | 15.2 | 0.48 | 79.5 | 428 | 16,834 | ||||||||
| Sulphide | 5,928 | 0.5 | 13.2 | 0.61 | 68.8 | 95 | 2,520 | ||||||||
| Total 2P | 40,292 | 0.4 | 14.9 | 0.5 | 77.9 | 523 | 19,354 |
1) The Mineral Reserve estimate was prepared in accordance with 2014 CIM Definition Standards by Andrew Bradfield, P.Eng.
2) The effective date of the Mineral Reserve is October 22, 2024.
3) Au price of US$1,900/oz and Ag price of US$23/oz are assumed.
4) The Mineral Reserves are based on the surface mine production schedule.
5) Mineral Reserves include a combined ore loss and dilution of 2.9%.
6) Oxide and Sulphide Mineral Reserves are reported using a cut-off grade of 0.11 g/t AuEq and 0.16 g/t AuEq, respectively. Ore and waste rock mining cost of $2.60/t was assumed, with a process cost of $4.33/t (assumes 15,000 tpd production), G&A cost of $1.00/t, a royalty of 0.5% of revenue, and pit slopes ranging from 46 to 49 degrees. Heap leach recoveries were Oxide 83% Au and 40% Ag, Sulphide 56% Au and 40% Ag.
7) Rounding of some figures may lead to minor discrepancies in total.
Mineral Resource Estimate Summary
The basis for the PFS is the Mineral Resource Estimate completed by P&E for the El Tigre Project located in Sonora State, Mexico, which has an effective date of June 20, 2025. Changes over the previous 2024 MRE, are due to 1) change in cut- off grade, 2) additional drilling completed on the underground Mineral Resource, 3) extensive relogging was completed to improve confidence in UG and 4) more selective modeling was utilized in high-grade veins. A summary of the Mineral Resource Estimate is provided in Table 10 below.
Mineral Resource Estimate Highlights
- 113% Increase in Grade of Out-of-Pit M&I Resource (543 g/t AgEq vs 255) over 2024 MRE
- 6% Increase in Contained Ounces M&I Resources (314 Moz AgEq vs 283) for a higher grade, more refined underground model
- 25% Increase in Contained Ounces of In-Pit M&I Resource (190 Moz AgEq vs 152 Moz AgEq) over 2024 MRE due to cutoff changes
Table 10: Mineral Resource Estimate (1-14)
| Classification | Cut-off AuEq (g/t) | Tonnes (k) | Ag (g/t) | Ag (koz) | Au (g/t) | Au (koz) | Cu (%) | Pb (%) | Zn (%) | AgEq (g/t) | AgEq (koz) | AuEq (g/t) | AuEq (koz) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Pit-Constrained Oxide | |||||||||||||
| Measured | 0.08 | 27,732 | 39 | 35,034 | 0.54 | 609 | NA | NA | NA | 136 | 120,923 | 0.78 | 693 |
| Indicated | 0.08 | 19,804 | 10 | 6,593 | 0.36 | 75 | NA | NA | NA | 74 | 46,979 | 0.42 | 266 |
| Meas + Ind | 0.08 | 47,536 | 27 | 41,626 | 0.46 | 709 | NA | NA | NA | 110 | 167,902 | 0.63 | 959 |
| Inferred | 0.08 | 4,475 | 10 | 1,453 | 0.38 | 18 | NA | NA | NA | 77 | 11,045 | 0.44 | 63 |
| Pit-Constrained Sulphide | |||||||||||||
| Measured | 0.12 | 6,031 | 31 | 6,042 | 0.54 | 105 | NA | NA | NA | 96 | 18,667 | 0.79 | 154 |
| Indicated | 0.12 | 1,723 | 14 | 756 | 0.46 | 25 | NA | NA | NA | 69 | 3,817 | 0.57 | 32 |
| Meas + Ind | 0.12 | 7,755 | 27 | 6,798 | 0.52 | 131 | NA | NA | NA | 90 | 22,484 | 0.74 | 185 |
| Inferred | 0.12 | 463 | 74 | 1,096 | 0.52 | 8 | NA | NA | NA | 136 | 2,034 | 1.11 | 17 |
| Pit-Constrained Total | |||||||||||||
| Measured | 0.08/0.12 | 33,763 | 38 | 41,076 | 0.54 | 588 | NA | NA | NA | 129 | 139,590 | 0.78 | 846 |
| Indicated | 0.08/0.12 | 21,528 | 11 | 7,348 | 0.36 | 252 | NA | NA | NA | 73 | 50,796 | 0.43 | 298 |
| Meas + Ind | 0.08/0.12 | 55,291 | 27 | 48,425 | 0.47 | 840 | NA | NA | NA | 107 | 190,386 | 0.64 | 1,144 |
| Inferred | 0.08/0.12 | 4,939 | 16 | 2,550 | 0.39 | 62 | NA | NA | NA | 82 | 13,078 | 0.50 | 79 |
| Out-Of-Pit | |||||||||||||
| Measured | 1.28 | 1,010 | 453 | 14,698 | 1.05 | 34 | 0.13 | 0.54 | 0.92 | 589 | 19,118 | 7.09 | 230 |
| Indicated | 1.28 | 1,374 | 398 | 17,588 | 1.05 | 47 | 0.08 | 0.24 | 0.41 | 509 | 22,482 | 6.13 | 271 |
| Meas + Ind | 1.28 | 2,384 | 421 | 32,286 | 1.05 | 81 | 0.10 | 0.37 | 0.63 | 543 | 41,600 | 6.54 | 501 |
| Inferred | 1.28 | 4,100 | 294 | 38,822 | 1.58 | 208 | 0.32 | 0.75 | 0.89 | 497 | 65,556 | 6.01 | 792 |
| Tailings | |||||||||||||
| Measured | 0.45 | 146 | 79 | 371 | 0.29 | 1 | NA | NA | NA | 103 | 487 | 1.22 | 6 |
| Indicated | 0.45 | 706 | 77 | 1,752 | 0.26 | 6 | NA | NA | NA | 99 | 2,252 | 1.17 | 27 |
| Meas + Ind | 0.45 | 852 | 77 | 2,118 | 0.27 | 7 | NA | NA | NA | 202 | 2,739 | 1.18 | 32 |
| Inferred | 0.45 | 52 | 81 | 134 | 0.27 | 1 | NA | NA | NA | 104 | 173 | 1.23 | 2 |
| Classification | Cut-off AuEq (g/t) | Tonnes (k) | Ag (g/t) | Ag (koz) | Au (g/t) | Au (koz) | Cu (%) | Pb (%) | Zn (%) | AgEq (g/t) | AgEq (koz) | AuEq (g/t) | AuEq (koz) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Stockpile | |||||||||||||
| Measured | 0.46 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Indicated | 0.46 | 101 | 181 | 586 | 0.92 | 3 | 0.02 | 0.23 | 0.10 | 256 | 826 | 3.17 | 10 |
| Meas + Ind | 0.46 | 101 | 181 | 586 | 0.92 | 3 | 0.02 | 0.23 | 0.10 | 256 | 826 | 3.17 | 10 |
| Inferred | 0.46 | 18 | 146 | 83 | 0.46 | 0.3 | 0.02 | 0.17 | 0.09 | 183 | 104 | 2.27 | 1 |
| Total | |||||||||||||
| Measured | NA | 34,920 | 50 | 56,145 | 0.55 | 623 | 0.13 | 0.54 | 0.92 | 142 | 159,193 | 0.96 | 1,082 |
| Indicated | NA | 23,708 | 36 | 27,275 | 0.40 | 308 | 0.07 | 0.24 | 0.39 | 100 | 76,350 | 0.79 | 605 |
| Meas + Ind | NA | 58,628 | 44 | 83,415 | 0.49 | 931 | 0.09 | 0.36 | 0.61 | 125 | 235,543 | 0.90 | 1,688 |
| Inferred | NA | 9,108 | 142 | 41,589 | 0.92 | 271 | 0.32 | 0.75 | 0.89 | 269 | 78,911 | 2.99 | 874 |
Notes:
1. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
2. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3. The Mineral Resources were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
4. Historically mined areas were depleted from the Mineral Resource model.
5. Prices used are US$2,400/oz Au, US$28/oz Ag, US$4.25/lb Cu, US$0.97/lb Pb and US$1.30/lb Zn.
6. The pit-constrained respective oxide and sulphide AuEq cut-off grades of 0.08 and 0.12 g/t were derived from 45% Ag and 83% Au oxide process recovery, 40% Ag and 56% Au sulphide process recovery, US$5.25/t process and G&A cost. The constraining pit optimization parameters were $2.00/t mining cost and 45° pit slopes.
7. The out-of-pit AuEq cut-off grade of 1.28 g/t was derived with 93% Ag and 89% Au process recovery, US$28/t process and G&A cost, and a $60/t mining cost. The out-of-pit Mineral Resource grade blocks were quantified above the 1.28 g/t AuEq cut-off, below the constraining pit shell and within the constraining mineralized wireframes. Out–of-Pit Mineral Resources are restricted to the El Tigre Main Veins, which exhibit historical continuity and reasonable potential for extraction by cut and fill and long hole mining methods.
8. The Stockpile AuEq cut-off grade of 0.46 g/t was derived from 85% Ag and 85% Au process recovery, US$28/t process and G&A cost, and a $2/t mining cost.
9. The Tailings AuEq cut-off grade of 0.45 g/t was derived from 83% Ag and 82% Au process recovery, US$28.72/t process and G&A cost.
10. AgEq and AuEq were calculated at an Ag/Au ratio of 178:1 (oxide) and 120:1 (sulphide) for pit-constrained Mineral Resources.
11. AgEq and AuEq were calculated at an Ag/Au ratio of 82:1 for out-of-pit Mineral Resources.
12. AgEq and AuEq were calculated at an Ag/Au ratio of 86:1 for Low-Grade Stockpile Mineral Resources.
13. AgEq and AuEq were calculated at an Ag/Au ratio of 85:1 for Tailings Mineral Resources.
14. Totals may not sum due to rounding.