Peru Silver Project Delivers Strong Economics and Expansion Potential

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Silver X Mining Corp. (AGX:TSX.V; AGXPF:OTC) filed a new preliminary economic assessment (PEA) and accompanying technical report for its Nueva Recuperada project in Peru. The study outlined a combined mining and processing capacity of 3,000 tonnes per day (tpd) and average annual production of approximately 6.2 million ounces of silver equivalent (AgEq).

According to the company, the PEA demonstrated an after-tax net present value (NPV) of US$439 million at a 5% discount rate, a 14-year mine life, and an after-tax payback period of three years. The assessment incorporated an initial capital expenditure of US$82 million, which included costs for a new processing facility, dry-stacked tailings, and mine development. Life-of-mine (LOM) cash costs were estimated at US$11.8 per AgEq ounce and all-in sustaining costs (AISC) at US$15.8 per AgEq ounce.

Chief executive officer Jose Garcia said the findings confirmed the company's long-held view of Nueva Recuperada as a district-scale silver project with strong operational potential. "With a 14-year mine life at 3,000 tonnes per day and average annual production of more than six million ounces of silver equivalent, the study provides a concrete framework for scaling Silver X into a mid-tier producer," Garcia stated in the news release.

The assessment was prepared in accordance with National Instrument 43-101 standards by qualified persons Edgard Vilela, Allen David Heyl, Adam Johnston, and Donald Hickson. It included measured and indicated mineral resources of 3.9 million tonnes grading 9.12 ounces per tonne AgEq and inferred resources of 15.1 million tonnes grading 7.5 ounces per tonne AgEq. The project includes the Tangana and Plata mining units, which together represent Silver X's path toward full operational capacity.

Nueva Recuperada is located within the Huachocolpa mining district in Huancavelica, a region recognized as one of Peru's most productive silver jurisdictions. The district covers 20,795 hectares and has a history of mining activity supported by existing infrastructure and long-term community agreements.

Analysts Highlight Strong Economics and Growth Outlook for Silver X

On October 1, Fundamental Research Corp. (FRC) reaffirmed its positive outlook in a report authored by head of research Sid Rajeev, who raised the firm's fair value estimate on Silver X by 25% and maintained a Buy rating. FRC's new fair value target of CA$0.95 per share implied a 73% return based on the company's share price at the time of the report. Rajeev described the updated PEA as "highly positive," emphasizing that it "confirms the viability of advancing the Plata Mining Unit to production."

FRC reported that the study supported two mines with a combined output potential of approximately six million ounces of silver equivalent per year, up from one million ounces previously. The updated PEA increased the after-tax NPV at a 10% discount rate to US$303 million from US$175 million and improved the after-tax IRR to 69% from 39%. Rajeev attributed the stronger economics to expanded operations and higher commodity prices. He wrote, "The PEA accounted for just 64% of resources, indicating further upside for NPV and IRR," and added that "we see significant growth potential."

Rajeev also noted that Silver X's balance sheet was expected to be "materially strengthened" by an ongoing CA$21.5 million financing and potential proceeds from in-the-money options and warrants. He highlighted that second-quarter results had exceeded expectations, with earnings per share surpassing forecasts by 21% and margins improving quarter over quarter.

In an October 20 report, Red Cloud Securities analysts noted that the strong rally in precious metals continued throughout the year, driven by central bank buying and geopolitical uncertainty. The firm noted that both gold and silver had significantly outperformed broader markets year to date and highlighted a shift toward de-dollarization that helped boost demand for hard assets. In the update, analysts sharply raised their commodity price forecasts to reflect ongoing strength across the sector.

Red Cloud raised its Q4 2025 gold price forecast to US$3,750 per ounce from US$3,000 per ounce and adjusted its long-term price assumption to US$3,500 per ounce from US$2,500 per ounce. The firm also increased its price outlook for silver to US$50 per ounce through the end of 2026 from a prior forecast of US$31 per ounce in Q4 2025. Analysts stated that silver's performance had outpaced gold in recent months as investors increased their exposure to the metal.

The report maintained a constructive stance on base metals. The analysts highlighted a tight global copper supply and a shift back toward market deficits beginning in 2027. They set a copper price forecast of US$4.75 per pound in Q4 2025 and US$4.50 per pound from 2026 onward. Zinc projections were adjusted higher on expectations for solid demand, while lithium forecasts were reduced for 2026 on oversupply concerns before stabilizing in later years.

The analysts noted that stronger pricing assumptions supported higher valuations across their coverage universe. According to the report, this resulted in an upward revision to Silver X Mining Corp.'s target price, which increased to CA$1.75 per share from CA$0.85 while maintaining a Buy rating. Analyst Alina Islam stated that higher metal price assumptions raised "the value of the Nueva Recuperada project by ~166 percent and the corporate NAVPS by ~100 percent."

Silver's Record Surge Highlights Tight Supply and Expanding Demand

According to a report from Stockhead on October 16, silver reached a new record above US$50 per ounce following sustained momentum that began in September. Analysts Carlos Crowley Vazquez and Elaine Faddis from Blue Ocean Equities noted that silver had climbed about 65% year-to-date, outperforming gold's 50% rise.

The report added that "silver lease rates, which represent the cost of borrowing metal, surged to around 30%" due to strong demand from India and increased inflows into silver-backed exchange-traded funds. Crowley Vazquez observed that the shortage of tradeable silver bars in London, combined with limited new mine supply, continued to support elevated prices. 

In an analysis published the same day, Excelsior Prosperity's Shad Marquitz wrote that silver producers experienced a strong year as metal prices moved from above US$30 to more than US$50 per ounce. He pointed out that "silver in the US$53's is well above its 50-day Exponential Moving Average," describing the chart trend as "bull market action." Marquitz added that producers' profit margins had expanded rapidly as "the price of silver moved higher much faster than their cost inputs," leading to higher valuations across mid-tier and smaller growth-oriented companies.

On October 18, Ahead of the Herd highlighted the broader commodities environment that has contributed to the strong silver market. Author Richard Mills explained that a "commodity super-cycle" had been forming due to underinvestment and geopolitical pressures, noting that "commodities are the last safe-haven standing in a world of low bond prices and high yields." The publication cited data showing the Bloomberg Commodity Total Return Index had climbed 12% year-to-date, driven largely by gold, silver, and copper.

Mills wrote that "silver is doing even better at a YTD increase of 75%," attributing the performance to both investment and industrial demand, including applications in solar energy and electric vehicles.

According to Ahead of the Herd, the global silver market was also influenced by a tightening U.S. dollar environment and increasing de-dollarization trends among central banks. The report cited The Silver Institute, which said the metal was projected to remain in deficit for a fifth consecutive year. This persistent supply imbalance, coupled with its dual role as a precious and industrial metal, positioned silver as a key material in both the monetary and clean-energy sectors.

Advancing a District-Scale Silver Operation

Silver X Mining's Nueva Recuperada project integrates production, development, and exploration assets within a 20,795-hectare land package in central Peru. The company's Tangana mining unit is currently in production, while the Plata unit remains restart-ready and represents the next stage of expansion.

According to the company's September 2025 corporate presentation, Silver X plans to scale operations to a combined 3,000 tpd across both mining units, supported by two processing facilities. The PEA outlined the potential for 7 to 8 million ounces of annual silver equivalent production at full capacity and projected a 14-year mine life supported by over 19 million tonnes of resource inventory.

Peru remains one of the world's largest silver-producing nations, hosting an estimated 18% of global silver reserves. The country's established mining infrastructure and policy framework make it a leading jurisdiction for silver exploration and production.

In addition to the resource growth potential, Silver X has focused on responsible mining practices, highlighting 99% water recirculation in underground operations and long-term social agreements extending through 2039. The company emphasized its goal to maintain steady throughput at 600 tpd through 2025 and increase capacity to 720 tpd by the end of the year. 

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$130.482 million. Its 52-week range is CA$0.12–CA$0.38 per share.