Silver Co. Hits Massive 1,712 g/t AgEq at Chihuahua, Mexico Project

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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.

Silverco Mining Ltd. (SICO:TSXV) has released initial underground assay results from its wholly-owned Cusi property in Chihuahua, Mexico, according to a June 16 release.

The findings are part of the company's ambitious 2026 diamond drill program, which spans 30,000 meters and focuses on infill, expansion, and exploration at high-potential targets throughout the property. The initial phase of underground drilling has concentrated on the Promontorio area, one of the three planned mining zones at Cusi, specifically targeting infill areas slated for mining in the first operational year. These zones have shown high potential but require further drilling to be incorporated into the resource and mine plan.

"We are encouraged by the initial results from our 2026 Cusi drill program which have identified additional mineralization within the footprint of the first year of the preliminary economic assessment (PEA) mine plan," Silverco Chief Executive Officer Mark Ayranto, CEO of Silverco said. "With grades and widths consistent with our resource, these results highlight the opportunity to lower initial underground development, bring more tonnage forward, and enhance project economics from the US$312 million after-tax NPV outlined in the PEA at silver prices in line with current levels."

He continued, "With dewatering and underground rehabilitation complete in Q1 2026, this is our first underground drilling at Promontorio, and the results reinforce our confidence in the vein system as we move toward a restart in H2 2026, with mobilization of underground contractors and commencement of development planned in the coming weeks."

The initial 2026 exploration results from the Promontorio East veins, known for their exceptionally high-grade material, have been particularly promising, the company said. The measured and indicated resource grades in this area are 295 grams per tonne (g/t) AgEq (silver equivalent), with inferred resource grades at 301 g/t AgEq.

The targeted infill drilling aims to optimize mine planning and facilitate near-term resource expansion that can be swiftly integrated into the short-term mine plan. Silverco said this strategic approach is expected to improve economic outcomes by either reducing development requirements or increasing the resources available in the planned development areas.

Details of Results

These promising results were obtained from drilling within the first 50 vertical meters of the planned development area, covering a 150-meter-by-250-meter section of Promontorio that required infilling and was not previously included in the PEA.

Notable findings from the first four drill holes in this area include: UGCU-26-01 with 428 g/t AgEq over 1.1 meters; UGCU-26-02 with 1,712 g/t AgEq over 1.4 meters; UGCU-26-03 with 303 g/t AgEq over 8.3 meters; and UGCU-26-04 with 160 g/t AgEq over 3.2 meters, the company said in the release.

The 2026 Cusi exploration program, as detailed by Silverco, encompasses a comprehensive 30,000 meters of diamond drilling, which is divided between 10,000 meters of underground drilling and 20,000 meters of surface drilling. The primary objectives of this extensive program include infilling prospective areas targeted for early mining at the Promontorio and San Miguel sites, expanding known mineralization zones at San Miguel, and exploring new prospective targets at San Miguel, Eduwiges, and San Juan.

The successful execution of this program is expected to significantly enhance mine planning for the initial years of the planned restart and potentially increase mineral resources in these areas, as well as in new target areas. This is anticipated to contribute to a planned resource update in the first half of 2027, according to Silverco.

In terms of the planned restart of operations at Cusi, the company aims to recommence operations in the second half of 2026. This restart is bolstered by the findings from the PEA, which projects an average annual silver equivalent production of 2.47 million ounces (Moz) at site all-in-sustaining costs of US$26.75/oz payable AgEq from 2028 to 2032, once operations are fully ramped up. At an average base case silver price of US$44.58/oz, the after-tax Net Present Value (NPV) of Cusi is projected at US$104.1 million, with an Internal Rate of Return (IRR) of 94.8% and a payback period of 0.9 years. At a silver price of US$75/oz, the after-tax NPV increases to US$312.2 million, with an IRR of 186.9% and a payback period of 0.5 years.

With silver accounting for close to 90 percent of the revenue and low upfront capital requirements of US$19.2 million, Cusi presents a unique opportunity within the silver industry. Silverco is poised to advance its vision of becoming a 10-million-ounce-per-year silver equivalent producer within three years.

The completion of underground rehabilitation work at Cusi sets the stage for the mobilization of contractors underground by the end of Q2 2026, with initial concentrate production anticipated for late 2026.

Expert: Shares 'Considerably Attractive' at Current Levels

On June 17, Peter Krauth of The Silver Stock Investor called the results "encouraging."

"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 said.

Notable drilling results included high-grade intercepts such as 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, underscoring the robustness of the high-grade vein system.

The exploration program is set to continue with infill drilling, expansion, and exploration activities across the Promontorio, San Miguel, Eduwiges, and San Juan zones, aiming for a resource update in the first half of 2027, Krauth noted.

With the completion of underground rehabilitation, Silverco is well-positioned to restart operations in the second half of 2026, with expectations to commence initial concentrate production towards the end of this year, he said.

"SICO shares have bounced off a recent low, which makes them considerably attractive at current levels, in my view," he said. "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."

The Catalyst: Silver Continues Volatile Trend

Silver prices continued their downward trend for the third consecutive day, with the price of silver (XAG/USD) hovering around US$64.40 per troy ounce during Friday's Asian trading session, reported Akhtar Faruqui for FX Street on June 19.

This decline in silver prices is largely attributed to the market's anticipation of a more hawkish Federal Reserve policy outlook. Higher borrowing costs, which increase the opportunity cost of holding non-yielding assets like silver, diminish their attractiveness.

In his first press conference, the newly appointed Fed Chairman Kevin Warsh reiterated that "price stability" remains the paramount guiding principle for the Fed, Faruqui wrote. Despite maintaining the benchmark overnight borrowing rate steady at a range of 3.5%–3.75% during Wednesday's Federal Open Market Committee (FOMC) meeting, the tone of the decision was perceived as hawkish. Notably, nearly half of the Fed officials indicated the possibility of at least one rate hike later this year.

While the hawkish signals from the Fed have dominated market sentiment, developments in geopolitical tensions have also influenced trading dynamics. The U.S. and Iran have entered into an initial agreement, initiating 60 days of negotiations aimed at finalizing a deal to conclude their ongoing conflict, as reported by CNN. Additionally, the US military has lifted its blockade on Iranian ports near the Strait of Hormuz, allowing millions of barrels of oil to flow through this critical waterway once again, the story noted.

These positive strides in the U.S.-Iran peace deal are expected to bolster riskier assets like shared currencies in the short term. However, traders remain cautious, anticipating that it could take months for shipping and energy flows to return to levels seen before the conflict.

According to Ruby Layram, writing for MoneyMagpie on June 2, "Silver has become one of the most closely watched commodities of 2026."

"While gold continues to dominate headlines, silver has been attracting attention from investors thanks to its unique combination of safe-haven appeal and industrial demand," she said. "In fact, many analysts believe silver could benefit from some of the biggest investment themes of the decade, including artificial intelligence, electrification, renewable energy, and data center expansion. But after a volatile start to the year, where could silver go next?"

The volatility in silver prices this year has been influenced by a variety of factors, including rising bond yields, fluctuating interest rate expectations, geopolitical tensions in the Middle East, trends in industrial demand, and varying investor appetite for precious metals, she noted. Notably, silver prices surged above US$76 per ounce recently, driven by renewed geopolitical uncertainties and a dip in Treasury yields, underscoring the metal's sensitivity to global economic shifts.

Several financial institutions have released their forecasts for silver prices in 2026. J.P. Morgan predicts an average price of US$81 per ounce, attributing the estimate to ongoing supply deficits, robust retail demand, and steady industrial usage, the article reported. Reuters' analyst consensus places the average at approximately US$79.50 per ounce, aligning closely with J.P. Morgan's projection and suggesting a gradual increase throughout the year.

On the more bullish side, Goldman Sachs anticipates silver could average between US$85 and US$100 per ounce, driven by demand from the green energy sector and industrial applications. Citigroup presents an even more optimistic forecast, suggesting silver could reach US$110 per ounce in the latter half of 2026, fueled by persistent physical supply shortages and rising industrial consumption, Layram wrote.

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.