No silver projects? See what LatAm has to offer

Mining industry leaders have lamented a lack of primary silver projects, which has forced many silver-focused companies to shift to gold in recent years.

“Unfortunately there is nothing really to buy in the silver business, so most silver [miners] have gone to gold,” Brad Cooke, CEO of Mexico-focused Endeavour Silver told the World Gold Forum last week.

But Latin America hosts at least 10 significant development stage silver projects offering a path to growth, requiring combined capex of US$3.39bn, according to information on the BNamericas projects database.

Only active projects with capex of US$100mn or more are included, ranging from advanced exploration to construction stage assets.

Nine of the 10 projects are in Mexico, with two under construction.

While some have failed to advance in the past few years, the recent rise in silver prices could see shelved projects come back into play in the coming months.

TOP LATIN AMERICAN SILVER PROJECTS

1. Pitarrilla, Mexico

Capex: US$741mn

SSR Mining is sitting on a 500Moz-plus deposit at Pitarrilla, where a 2012 feasibility study outlined a 32-year mine producing 15Moz/y silver during the first 18 years.

Falling silver prices from 2012 saw the project put on the back burner, but SSR has continued to invest in the asset, including around US$5mn last year to extend an existing decline to provide drill access to underground mineral resources.

2. Corani, Peru

Capex: US$579mn

Bear Creek Mining has all the permits in place to begin construction at Corani, which is expected to produce 9.6Moz/y silver along with zinc and lead by-products over a 15-year mine life.

Corani – the only project of the 10 outside of Mexico – could enter construction this year with first operations starting 2024, according to data from Peru’s energy and mines ministry.

3. Cordero, Mexico

Capex: US$570mn

Discovery Silver’s Cordero is another massive deposit, with silver resources north of 600Moz in the indicated and inferred categories, at a 10g/t silver equivalent grade cut-off.

But the company is focusing efforts on a high-grade subset of the resources as it seeks to establish an economically viable development. A 55,000m drill campaign is planned for this year.

4. Juanicipio, Mexico

Capex: US$440mn

Fresnillo and 56:44 JV partner MAG Silver are aiming to commission the US$440mn Juanicipio project this year for first production in 2022.

About 16,000t of development ore per month is already being shipped to the Fresnillo mine plant for processing, until the Juanicipio plant is commissioned.

Production is expected at 11.7Moz/y silver and 43,500oz/y gold.

5. La Preciosa, Mexico

Capex: US$327mn

Coeur Mining’s La Preciosa (pictured) was another large silver project which was shelved amid falling prices early last decade.

But the company continues to weigh up options for the project, where production was forecast at 9.6Moz/y silver over an 11-year initial mine life.

“Our options vary from exploring and developing the project ourselves to optioning part or all of the project to a partner, Hans Rasmussen, senior VP of exploration, told BNamericas last month.

Further updates are expected this year.

6. Nieves, Mexico

Capex: US$232mn

Privately-owned Blackberry Ventures has not issued public updates for its Nieves project in Mexico for a number of years, but the asset has the potential to become a low-cost, open pit silver-gold mine, according to information on its website.

The project hosts 110Moz silver and 116,000oz gold, with only 6% of the property drilled.

A 2012 PEA by former owner Quaterra Resources indicated a US$232mn capex project producing 55.5Moz silver and 41,000oz gold over 10 years.

7. La Joya, Mexico

Capex: US$141mn

Silver Dollar Resources signed option agreements last year to acquire up to 100% of First Majestic Silver’s La Joya project.

Silver Dollar is planning an initial exploration campaign for the asset. A 2013 PEA showed pre-production capex of US$141mn, with average production of 3.9Moz/y silver equivalent over nine years.

8. Las Chispas, Mexico

Capex: US$138mn

SilverCrest Metals has got construction started at Las Chispas, which is expected to produce 5.18Moz/y silver and 56,000oz/y gold over an initial 8.5-year mine life.

Exploration continues to be a key focus for SilverCrest.

9. Los Ricos, Mexico

Capex: US$125mn

GoGold Resources is pushing ahead aggressively at its Los Ricos project, which comprises separate North and South deposits.

A PEA for Los Rico South released in January showed a US$125mn capex project producing 42.9Moz silver and 352,000oz gold over 11 years.

Exploration is ongoing at Los Ricos North, with a maiden resource estimated planned for this year.

10. Terronera, Mexico

Capex: US$99.1mn

With capex just a shade below US$100mn, Endeavour Silver’s Terronera silver-gold project is expected to produce around 6Moz/y silver equivalent.

A feasibility study is planned around mid-2021, which could pave the way for first production in late 2023.