Silvercorp sets $196M budget for Kyrgyzstan gold project

Silvercorp Metals Inc. (NYSE American: SVM) has announced a $196.3 million budget for its Chaarat ZAAV joint venture in the Kyrgyz Republic, covering development of the Tulkubash gold project and initial spending on the Kyzyltash deposit.

ZAAV is a joint venture in which Silvercorp holds a 70% interest and operates the project, while Kyrgyzaltyn holds a 30% free-carried interest. ZAAV holds a 100% interest in the mining license covering approximately 7 square kilometers hosting the Tulkubash and Kyzyltash gold projects.

The budget allocates $57 million in 2026 and $139 million in 2027. Phase 1, the development of Tulkubash as a 4 million tonnes per year open-pit heap leach operation, carries a total cost of $166.3 million. The largest single cost item is open pit and waste dump work at $51.5 million, followed by crusher construction at $26.5 million and heap leach pad construction at $22.7 million. A contingency of $14.2 million is also included.

Phase 2 allocates $30 million for drilling and studies to advance the Kyzyltash sulfide deposit, split evenly between 2026 and 2027. In 2026, ZAAV plans a 50,000 to 60,000 metre drilling program. In 2027, the company plans to complete a Preliminary Economic Assessment and undertake a further 60,000 metres of drilling. Construction at Kyzyltash is targeted to begin in 2028.

Silvercorp said an updated feasibility study for Tulkubash, currently being prepared by LogiProc, is expected to be completed by July 2026. Beijing-based BGRIMM has been awarded a contract to redesign the crusher and ADR plant to Kyrgyzstan standards, with final design completion expected in March 2027.

The project design is based on bankable feasibility studies originally completed by Tetra Tech in 2018 and subsequently updated by LogiProc in 2021. According to the company's press release, five mining contractors have visited the site and provided initial quotes for open pit work.

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