Silver Tiger Metals: Construction of Mexico's Next Silver Mine Well Underway

Key Concepts

• Stockwork Zone: A mineral deposit characterized by a complex network of small, randomly oriented veins.
• Heap Leach: A mining process used to extract precious metals from ore using a series of chemical solutions.
• EPCM (Engineering, Procurement, and Construction Management): A project delivery method where a contractor provides comprehensive services for the design and construction of a facility.
• MRE (Mineral Resource Estimate): A calculation of the quantity and grade of mineral resources in a deposit.
• PEA (Preliminary Economic Assessment): A study that provides an initial view of the potential economic viability of a mineral project.
• PFS (Pre-Feasibility Study): A comprehensive study of the viability of a mineral project, more detailed than a PEA.
• IRR (Internal Rate of Return): A metric used to estimate the profitability of potential investments.
• Strike Length: The horizontal distance along the surface of a geological feature (like a vein).

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1. Project Status and Operational Milestones

Silver Tiger is currently focused on its Mexican mining operations, specifically the "Stockwork Zone," which received a mining permit on November 17, 2025—the first new permit issued in Mexico since 2019.

• Construction Phase: The company signed an EPCM contract with Capstone Cassidy in February 2026. Construction is currently underway, with the first gold/silver pour scheduled for December 2027.
• Funding: The company is fully funded for the Stockwork Zone project, holding $85 million USD in its treasury.
• Market Position: With a market capitalization of approximately $500 million CAD ($370 million USD), the company is exploring debt financing to advance its underground project without further shareholder dilution.

2. Strategic "Three-Punch" Framework

Devin DeVern, VP of Corporate Development, outlined three primary pillars for the company’s growth:

1. Stockwork Zone: Fully permitted and under active construction.
2. Underground Development: Fully permitted; the company is transitioning its current PEA into a Pre-Feasibility Study (PFS) and updating the MRE.
3. Exploration Potential: Active drilling programs are launching to expand the resource base, including infill drilling to add an estimated 5 million tons to the underground resource.

3. Economic Projections

The project economics are highly sensitive to commodity prices. While the 2025 PFS used conservative estimates ($32/oz silver and $3,800/oz gold), current spot prices suggest significant revaluation potential.

• IRR: The project currently demonstrates a 66% IRR based on the PFS figures, with management noting that at current spot prices, this could approach 100%.
• CAPEX: The estimated capital expenditure for the project is $86 million USD.

4. Exploration and Geological Upside

The company’s current resources (200 million silver equivalent ounces) are contained within a 2 km strike length. However, the property spans 28,000 hectares with a 32 km strike length.

• Mapping: Only 30% of the total property has been mapped to date.
• Strategy: The geological team is pivoting to explore the northern and southern extensions of the property, aiming to develop a district-scale operation with multiple open-pit and underground components.

5. Operational Environment in Mexico

DeVern emphasized a positive working relationship with local communities and the state government in Sonora.

• Team Expertise: The company has hired Francisco Albalá, a mining engineer with a track record of drilling, permitting, and building three major mines for Argonaut.
• Workforce: The project is currently mobilizing a team of approximately 200 personnel to execute the construction phase.

6. Key Catalysts

The company expects several near-term catalysts over the next 12–18 months:

• Ongoing construction progress updates.
• Results from the new drilling program to the north.
• Updates regarding debt financing for the underground project.
• Updated Mineral Resource Estimates (MRE).

Synthesis

Silver Tiger is positioned as a well-funded, late-stage developer with a clear path to production by December 2027. By leveraging a strong treasury, a permitted asset, and a massive, underexplored land package, the company aims to transition from a single-zone developer to a district-scale producer. The primary focus remains on executing the construction of the Stockwork Zone while simultaneously de-risking the underground project through further technical studies and exploration.