Silvercorp Metals Approves $196.3 Million Budget to Advance Kyrgyz Gold Projects

Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) has approved a US$196.3 million budget for Chaarat ZAAV CJSC, its 70%-owned joint venture in the Kyrgyz Republic, to advance the Tulkubash and Kyzyltash gold projects. The budget allocates US$166.3 million for Phase 1 development of the fully permitted Tulkubash open-pit heap leach operation and US$30 million for Phase 2 activities at the Kyzyltash sulfide deposit. Spending is forecast at US$57.3 million in 2026 and US$139 million in 2027, according to the company’s announcement.

The approval represents a significant commitment to gold production in Central Asia. Phase 1 development at Tulkubash will include open-pit mining infrastructure, heap leach facilities, a crusher, an ADR plant, and supporting infrastructure. The company expects to publish an updated feasibility study for Tulkubash in July 2026. Phase 2 funding will support drilling and technical studies aimed at advancing Kyzyltash toward feasibility and construction. Silvercorp plans a 50,000- to 60,000-meter drilling program at Kyzyltash this year to upgrade resources and expand the deposit.

The Kyrgyz gold projects are part of Silvercorp’s broader strategy to create shareholder value through free cash flow generation from long-life mines, organic growth via extensive drilling, and ongoing merger and acquisition efforts. The company, a Canadian mining producer of silver, gold, lead, and zinc, has a long history of profitability and growth potential. The Tulkubash and Kyzyltash projects bolster its portfolio in a region known for significant gold reserves.

For investors, the budget approval signals a clear path toward production at Tulkubash, which is fully permitted, reducing regulatory risk. The additional drilling at Kyzyltash could expand the resource base and enhance the project’s economics. The phased approach allows Silvercorp to manage capital allocation while advancing both projects. The updated feasibility study for Tulkubash in mid-2026 will provide detailed cost and production estimates, offering further clarity on the project’s viability.

The Kyrgyz Republic, while rich in mineral resources, has faced geopolitical and operational challenges for foreign miners. Silvercorp’s joint venture structure and local partnership may mitigate some risks. The company’s commitment to responsible mining and ESG principles could also help navigate regulatory and community relations. As gold prices remain elevated, projects like Tulkubash and Kyzyltash could generate substantial returns if developed efficiently.

Silvercorp’s newsroom provides ongoing updates for investors at https://nnw.fm/SVM. The full press release detailing the budget approval is available at https://nnw.fm/RTirNA.

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