Silverco Mining Ltd. (SICO:TSXV) reported additional underground assay results and initial surface assay results from its 100%-owned Cusi property in Chihuahua, Mexico. The results are part of the company's 2026 30,000-meter diamond drill program focused on infill, expansion, and exploration at targets across the property.
The latest results are from underground drilling at the Promontorio mining zone, the first of three planned mining zones at Cusi. According to the company, drilling has focused on infilling prospective areas planned for mining during the first year of operations, with additional drilling required for inclusion in the resource and mine plan.
Highlights included hole UGCU26-08, which intersected 10.3 meters grading 1,100 grams per tonne (g/t) silver, 1.61 g/t gold, 0.80% lead, and 0.52% zinc, or 1,080 g/t silver equivalent (AgEq), including 0.7 meters grading 6,452 g/t AgEq. Additional results included hole UGCU26-07, which returned 7.7 meters grading 217 g/t AgEq, hole UGCU26-08 with a separate interval of 5.5 meters grading 260 g/t AgEq, hole UGCU26-05 with 5.4 meters grading 236 g/t AgEq, and hole UGCU26-06 with 8.2 meters grading 148 g/t AgEq.
The company said the latest results were drilled within the first 50 vertical meters of planned development and fall within a 150-meter by 250-meter area of Promontorio that required infill drilling and was not previously captured in the preliminary economic assessment mine plan.
"The elevated gold grades in this hole also suggest we remain high in the epithermal system at Promontorio, highlighting the potential for significant untested vertical extent at depth," CEO Mark Ayranto said in a company news release. He added that exploration at Cusi will continue through the remainder of 2026 "to support the planned restart of production in Q4 2026, as underground mining contractors ramp up development rates through Q3 2026."
Silverco said the 2026 exploration program includes 30,000 meters of diamond drilling, consisting of 10,000 meters of underground drilling and 20,000 meters of surface drilling. The program is designed to infill prospective areas targeted for early mining at Promontorio and San Miguel, expand known mineralized areas at both zones, and explore targets at San Miguel, Eduwiges, and San Juan.
The company also noted that underground rehabilitation work at Cusi has been completed and that underground contractors began mobilizing in June 2026, with initial concentrate production planned for late 2026.
Silver Continued to Draw Support From Industrial Demand and Tight Supply
According to APMEX data from the morning of July 8, the silver spot price stood at US$59.37 per ounce. APMEX described the spot price as "the current price in the precious metals marketplace at which a raw ounce of silver can be purchased and then sold for immediate delivery." The firm also noted that "the silver spot price fluctuates constantly," making it important for market participants to monitor current events, market conditions, and other performance indicators that influence buying and selling activity.
Barchart contributor Peter Mooses wrote on July 7 that silver entered the second half of the year after prices reached historic highs before undergoing what he described as "a healthy market correction." He wrote that "many analysts" viewed the recent price movement as "a natural consolidation following a period of rapid gains."
Mooses also wrote that silver continued to occupy a unique position because it served "a dual purpose as both a store of value and a critical industrial metal." He said demand from the renewable energy sector, electronics manufacturing, electric vehicle production, and expanding artificial intelligence infrastructure continued to consume significant amounts of silver.
According to Mooses, one of the key themes supporting the silver market had been "the ongoing imbalance between supply and demand." He wrote that global mine production had struggled to keep pace with industrial consumption and noted that much of the world's silver was produced as a byproduct of mining other metals, making production increases more difficult. He added that "this persistent supply deficit has become one of the strongest long-term fundamentals for the silver market."
Mooses also wrote that inflation concerns, interest rate expectations, geopolitical uncertainty, and movements in the U.S. dollar continued to influence precious metals pricing. At the same time, he said silver had shown resilience because of "its growing industrial importance and continued demand for physical bullion." He also noted that industrial demand continued to expand through solar energy, electric vehicles, artificial intelligence infrastructure, and electronics manufacturing, while global silver demand continued to outpace newly mined supply.
Expert: Analyst Says Shares Remain Attractive Following Drill Progress
"Importantly, drilling at the Promontorio zone intersected additional mineralization within the first-year mine plan, creating opportunities to reduce development requirements and enhance project economics," Krauth wrote.
He also pointed to several high-grade drill intercepts, including 428 g/t AgEq over 1.1 meters, 1,712 g/t AgEq over 1.4 meters, and 303 g/t AgEq over 8.3 meters, which he said underscored the strength of the high-grade vein system.
Krauth noted that the exploration program is expected to continue with infill, expansion, and exploration drilling across the Promontorio, San Miguel, Eduwiges, and San Juan zones, with a resource update targeted for the first half of 2027.
He added that completion of underground rehabilitation leaves the company positioned to restart operations in the second half of 2026, with initial concentrate production expected toward the end of the year.
"SICO shares have bounced off a recent low, which makes them considerably attractive at current levels, in my view," Krauth wrote. "I continue to own the stock, and I don't think the market has properly valued it given the H2 restart of Cusi and resource update in H1, on top of active mining at La Negra as the team aims to grow the company towards 10Moz/yr in the next three years."
In a July 2 update, Krauth highlighted Silverco's progress toward restarting its Cusi mine, noting that underground mining contractors had mobilized and development activities were underway at the Promontorio and San Miguel zones.
Krauth wrote that first ore from Promontorio was expected in late Q3, while mill rehabilitation remained on schedule for initial concentrate production in Q4. He also noted that the company had engaged two experienced local underground contractors to support mining activities.
Quoting CEO Mark Ayranto, Krauth wrote, "We look forward to providing additional updates from both Cusi and La Negra over the coming weeks with significant catalysts expected through H2 relating to restart and productivity improvement activities at Cusi and La Negra, respectively, and sizable exploration programs at both projects."
Streetwise Ownership Overview*
Silverco Mining Ltd. (SICO:TSXV)
| Date | Old Symbol | Old Shares | New Symbol | New Shares |
|---|---|---|---|---|
| 10/23/25 | Q | 100 | SICO | 1 |
| 03/18/24 | ANKH.P | 2 | Q | 1 |
Krauth also referenced the company's 2026 preliminary economic assessment, which outlined average annual production of approximately 2.5 million silver equivalent ounces, low upfront capital requirements, strong returns, and a rapid payback period.
He added that he expected the company to end the year with two producing silver mines in Mexico and wrote, "I maintain my position as I expect the market to recognize this built-in value and growth before long."
2026 Program Advances Mine Restart Activities
The company said mine restart activities have advanced, with dewatering completed and underground rehabilitation underway. It also stated that key discipline hires are underway, with a number of key positions already in place, while the underground contractor selection process is in progress. A decision on contractor selection is targeted for the end of the second quarter of 2026.
Silverco's presentation also outlines two principal exploration focus areas for 2026. At San Miguel, the company said inset claims consolidated by Silverco provide potential for multiple, wider veins that could support higher mining rates with exploration success. The second focus area is the downthrown extensions, where recent drilling highlighted the potential for mineralization to continue beyond the Cusi Fault.
The company stated that it is targeting a restart of the Cusi mine in late 2026, with full capacity targeted by mid-2027.
Ownership and Share Information1
Silverco Mining Ltd. has a market cap of CA$450.45 million, with 54.8 million shares outstanding. The company's 52-week range is CA$2.00-CA$16.67.
Institutions own about 6% of shares, while holding companies own 12%. Management and insiders own about 5% of shares. The rest is retail.
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Important Disclosures:
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
