PEA Highlights District-Scale Silver Project in Peru

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Silver X Mining Corp. (AGX:TSX.V; AGXPF:OTC) announced the results of a new Preliminary Economic Assessment (PEA) for its Nueva Recuperada Project in Central Peru, the company said in a release.

The PEA highlights a district-scale project with a combined mining and processing capacity of 3,000 tonnes per day (tpd) and annual metal production exceeding 6 million ounces (Moz) silver equivalent (Ag Eq), according to the company.

"We are extremely pleased with the results of this new PEA," Chief Executive Officer Jose Garcia said. "It demonstrates that years of dedicated work confirm Nueva Recuperada as a truly district-scale silver project that will continue to grow and operate for decades. With two operating mines, Tangana (currently in production) and Plata, we have the resources and the team to establish Silver X as a mid-tier silver producer."

Garcia continued, "The value of our company is a multiple of where we stand today, and this PEA is the next step in demonstrating concretely how we will realize this potential in the near term."

PEA: Co. Has Potential to Become Mid-Tier Producer

Silver X said the PEA was prepared in compliance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. Highlights include:

• Life of Mine (LOM) of 14 years at 3,000 tpd combined mining and processing capacity.
• Average annual production of approximately 6.2 Moz Ag Eq.
• After-tax Net Present Value (NPV) of US$440 million at a 5% discount rate.
• LOM Cash Costs of US$11.8 per ounce Ag Eq and LOM All-In Sustaining Costs (AISC) of US$15.8 per ounce Ag Eq.
• Initial Capex of US$82 million, including a 13% contingency, for the new processing facility, dry-stacked tailings, and mine development.
• Robust project economics, confirming Silver X's potential to scale into a mid-tier silver producer.
• Aggressive upcoming drill campaigns aimed at both upgrading resource categories and expanding tonnage and grades across the district.

According to the release, the study confirms Silver X's strategic plan to operate two mines within the Nueva Recuperada Silver District: the Tangana Mining Unit, the company's flagship operation since 2021, with a large and expanding resource base; and the Plata Mining Unit, located in the southern part of the district, historically known for higher-grade mineralization.

"This updated PEA supports the company's vision to increase production by up to six times within the next few years," Garcia said. "The objective is to have two milling facilities — a new 1,500 tpd mill at Tangana, along with the existing Recuperada mill, which we plan to expand to 1,500 tpd, doubling its current capacity. Recuperada will be dedicated to processing ore from the new Plata Mining Unit. We continue to upgrade our mineral resource, and we are very confident that the new drilling campaign that we are starting this week will result in a much stronger resource statement within a few months."

Red Cloud Securities Analyst Alina Islam noted  that the impact of the PEA was positive and led to the firm increasing its target price from CA$0.65 per share to CA$0.85 per share. The stock remains a Buy, the analyst said.

Garcia said Silver X now has the opportunity to rapidly increase the resource at its Plata Mining Unit, where "we can find some of the highest grades in the district."

A new Environmental and Social Impact Assessment (ESIA) for the Tangana Mining Unit is nearing completion, with the company collaborating with SENACE (the National Service for Environmental Certification, Ministry of Environment) for its final approval, anticipated by the end of 2025.

The objective for the Nueva Recuperada Silver District is to operate two milling facilities: a new plant for the Tangana Mining Unit with a capacity of 1,500 tpd as outlined in the PEA, alongside the existing Nueva Recuperada mill of 720 tpd located 15 kilometers south of Tangana and centrally positioned within the Property. The current Recuperada mill will be expanded to 1,500 tpd to process ore from the company's Plata project and other mineralized areas.

USGS: Peru Has Largest Silver Reserves Worldwide

Silver X's flagship asset, Nueva Recuperada now comprises four projects and 230 mining concessions spanning 20,472 fully permitted hectares in Central Peru's Huachocolpa mining district.

According to the U.S. Geological Survey, Peru has the largest silver reserves globally. The Silver Institute's World Silver Survey 2024 reported that Peru contributes 13% of the world's silver production. Nueva Recuperada surrounds Endeavour Silver's Minera Kolpa project, valued at up to US$175 million, Silver X noted. Endeavour acquired Kolpa for US$2.92 per Measured and Indicated (M&I) silver equivalent ounce, while Silver X is valued at US$0.81 per M&I silver equivalent ounce.

The overall resource at Nueva Recuperada is 4,260,000 metric tons with grades of 3.28 ounces per tonne silver (3.28 oz/t Ag), 1.88% lead (Pb), and 2.22% zinc (Zn) in the M&I category. The Inferred resource is estimated at 17,180,000 metric tons with grades of 5.12 oz/t Ag, 2.05% Pb, and 2.04% Zn.

The company is currently producing silver, gold, lead, and zinc at its Tangana Mining Unit. Another mining unit at Nueva Recuperada, Plata, was shown in a recent resource update to contain 950,000 tons of 12.4 ounces per ton (oz/ton) silver equivalent in the Indicated category and 5,400,000 tons of 9.8 oz/ton Ag Eq in the Inferred category.

Silver X plans to commence production at the previously operational Plata mine next year. Additionally, Silver X management is actively pursuing mergers and acquisitions (M&A) opportunities in overlooked historical mining districts where it can leverage its expertise in exploration, development, and production, as indicated in the corporate presentation.

Analyst Increases Target Price

Overall, Red Cloud Securities Analyst Alina Islam noted in an updated research note on September 5 that the impact of the PEA was positive and led to the firm increasing its target price from CA$0.65 per share to CA$0.85 per share. The stock remains a Buy, the analyst said.

"The mine plan incorporates the operation of two mill facilities at Nueva Recuperada, each with a capacity of 1,500 tpd," Islam wrote. "Silver X has faced operational challenges, maintaining the Recuperada plant at about 50% capacity due to mining and development issues. However, the inclusion of the higher-grade Plata unit in the future mine plan should help reduce costs in the long term. With the expanded capacity of 3,000 tpd factored into our model, we are raising our target."

Islam continued, "Successful execution of the ramp-up and expansion could help re-rate the stock."

The Catalyst: Environment Good for 'All Risk Assets'

The Federal Reserve's resumption of its rate-cutting cycle signals a favorable environment for risk assets, but gold and silver are expected to outperform even a strong equity market in a lower-rate setting, according to Sameer Samana, head of Global Equities and Real Assets at Wells Fargo Investment Institute, Ernest Hoffman reported for Kitco News on September 4.

In an interview with Kitco, Samana emphasized that — with one notable exception — most assets are poised for robust performance over the next year.

"I think what's really interesting is just how good the environment is for all risk assets, across the board," Samana said. "Rarely have you had a Fed start to actively consider cutting rates when inflation has been this far above their target of 2% — running at 3% and bottoming out — and they're talking about cutting rates."

He noted that the Fed's focus is shifting from inflation to the labor market, the Kitco article reported. "For high-quality risk assets, I think it means game on," he added.

Silver is poised to be another major beneficiary in the low-rate, risk-on environment, Samana said. The gray metal has been trading comfortably above US$40 an ounce and may have significantly contributed to gold reaching new all-time highs.

However, it is also very much an industrial metal, and with economic recovery anticipated only in the latter half of 2026, investors counting on silver's historical tendency to outperform gold after a slowdown should be mindful of the timing. Samana suggested that silver might weaken in the short term as economic activity slows, but he remains confident in its potential as industrial activity picks up later.

"If I look at the gold:silver ratio, they're both pretty close to the three-year average right now," he said. "I'll give you a three-month outlook and then a 12-month outlook."

Silver is currently shining as a standout commodity, experiencing a resurgence in investor interest and strong fundamentals that have driven its prices to the highest levels in 14 years, according to a Mining.com report from July 31. Some analysts believe this upward trend is just beginning, making silver an appealing investment option, as noted in the report.

On the supply side, HSBC anticipates that silver mine production will continue to grow at a gradual pace, with their supply-demand model predicting a silver shortfall of 206 million ounces (Moz) in 2025 and 126 Moz in 2026, compared to a 167 Moz deficit in 2024, according to the report. HSBC also noted that a weaker dollar this year is favorable for silver, while ongoing discussions about Federal Reserve rate cuts and central bank strategies could impact future prices.

Ownership and Share Structure

According to the company, about 9% of the company is owned by institutions and about 6% by management, The rest is retail. The top shareholders are the CEO Garcia with 6.39% and Sebastian Wahl with 4.83%.

The rest is in retail. There are no institutional investors at this time.

The silver miner has 222.5 million outstanding shares and 198.57 million free float traded shares. Its market cap is CA$89.04 million. Its 52-week range is CA$0.12–0.38 per share.