Silverco Mining (TSXV: SICO) is chasing an uncommon but sensible shortcut: pair a cash‑generating operation with a high‑grade district that already has a mill. The plan—buy the running La Negra mine and restart the mothballed Cusi mill—could shave years off the usual junior development timeline and give the company both immediate revenue and a path to scale.
What happened, where and why it matters – Silverco controls the 11,665‑hectare Cusi Mining Complex in Chihuahua and has agreed to acquire the operating La Negra mine in Querétaro through a binding deal for Nuevo Silver. – In Q1 the company closed an upsized bought‑deal financing for $62.5 million, which included a $10 million cornerstone order from Eric Sprott. – Silverco also published an updated Mineral Resource Estimate (MRE) for Cusi: 41.2 million ounces AgEq in the Measured and Indicated categories. Taken together, the acquisition, MRE and financing give the company capital, an immediate revenue stream and stronger geological certainty for a mill recommissioning.
Strategic rationale — buy-and-build that speeds production Junior miners are under pressure to compress the long ramp from discovery to cash flow. Silverco’s twin‑track approach addresses that directly: – La Negra supplies immediate production and cash generation to fund operations and reduce dilution risk. – Cusi is a district‑scale, high‑grade epithermal system with a previously operating 1,200 tpd mill on site—an existing asset base that materially lowers restart capital and shortens commissioning timelines. This combination reduces execution risk: you’re not building everything from scratch while you wait for exploration to pay off.
Technical snapshot – Geological focus: epithermal vein systems typical of northern Mexico. The technical team brings local underground experience and mine engineering know‑how. – Drilling: a 15,000‑metre program has been completed at Cusi; assays are pending. Management expects the results to delineate high‑grade extensions—especially along the San Miguel vein—and to feed refined mine plans. – The updated MRE increases confidence in the district’s scale and underpins ongoing engineering and economic studies.
Financing and risk reduction – The $62.5M financing provides liquidity for restart capex, working capital and contingency. Having La Negra producing reduces near‑term cash‑flow pressure. – A warm, previously operating mill at Cusi is a meaningful de‑risking factor versus a greenfield build: mechanical systems, site access and surface infrastructure already exist, which tends to cut both time and cost to first ore through the mill.
Operational roadmap — two parallel tracks 1) Stabilize and optimize La Negra – Integrate teams and procurement to secure continuous production. – Use operating cash flow to support early Cusi activities and reduce external funding needs.
2) Prepare and recommission Cusi – Complete assays, finalize mine sequencing and confirm high‑grade feed for the 1,200 tpd mill. – Perform targeted repairs and commissioning work to bring the mill back into operation with minimal capex.
Key milestones and deliverables (next 12–18 months) – Publish drill assays from the 15,000 m campaign and update the MRE if warranted. – Complete mechanical and electrical audits at Cusi and deliver a prioritized repairs and commissioning plan. – Achieve first consolidated production and revenue reporting after integrating La Negra. – Deliver a pre‑feasibility level cost/timeline estimate for Cusi restart and an optimized three‑year production plan.
Practical checklist for immediate action – On site: finish mechanical/electrical audits for the Cusi mill; generate prioritized repairs list and cost estimates. – Technical: release assays from the 15,000 m drilling program with concise executive summaries per hole. – Regulatory/finance: file full details of the Nuevo Silver acquisition and allocate the $62.5M across restart capex, working capital and contingency. – Operational: integrate La Negra staffing and supply chains to lock in production continuity. – Communications: publish a clear timeline for Cusi recommissioning and monthly ramp targets; disclose QA/QC methods for assays. – Reporting: separate production and exploration spend in monthly KPIs to improve transparency.
Investment thesis — why this could be compelling Silverco is trying to solve a familiar junior‑miner problem: how to get to cash flow while preserving upside. If management executes, the company benefits from: – Near‑term revenue and operating data from La Negra to fund and de‑risk the Cusi restart. – A district‑scale resource (41.2 Moz AgEq M&I) with a nearby mill that can be recommissioned faster and cheaper than building new processing. – Upside from drill results that could convert resources to reserves and improve mine sequencing and economics.
What happened, where and why it matters – Silverco controls the 11,665‑hectare Cusi Mining Complex in Chihuahua and has agreed to acquire the operating La Negra mine in Querétaro through a binding deal for Nuevo Silver. – In Q1 the company closed an upsized bought‑deal financing for $62.5 million, which included a $10 million cornerstone order from Eric Sprott. – Silverco also published an updated Mineral Resource Estimate (MRE) for Cusi: 41.2 million ounces AgEq in the Measured and Indicated categories. Taken together, the acquisition, MRE and financing give the company capital, an immediate revenue stream and stronger geological certainty for a mill recommissioning.0
What happened, where and why it matters – Silverco controls the 11,665‑hectare Cusi Mining Complex in Chihuahua and has agreed to acquire the operating La Negra mine in Querétaro through a binding deal for Nuevo Silver. – In Q1 the company closed an upsized bought‑deal financing for $62.5 million, which included a $10 million cornerstone order from Eric Sprott. – Silverco also published an updated Mineral Resource Estimate (MRE) for Cusi: 41.2 million ounces AgEq in the Measured and Indicated categories. Taken together, the acquisition, MRE and financing give the company capital, an immediate revenue stream and stronger geological certainty for a mill recommissioning.1