Building a top three silver mine - Tony Makuch leads Discovery Silver after Kirkland Lake success

The Cordero project is one of the world’s largest undeveloped silver resources, said Discovery Silver CEO Tony Makuch.

In February Makuch was interviewed by Kitco correspondent Paul Harris at the BMO Global Metals, Mining & Critical Minerals Conference.

Discovery Silver is focused on its Cordero project in Mexico.

Before coming to Discovery Silver, Makuch led Kirkland Lake Gold. He took Kirkland from annual gold production of 315,000 oz to over 1,400,000 oz. During his tenure, the market capitalization of the company increased from approximately C$1 billion to over C$13 billion. Kirkland was eventually acquired by Agnico Eagle Mines for $11 billion.

Makuch is now focused on Discovery Silver (TSE:DSV). In January 2023 the company released a pre-feasibility study showing an 18-year mine life with an average annual production of 33 Moz AgEq. The base economic case is after-tax NPV 5% of $1.2 billion and IRR of 28% (Ag - $22.00/oz, Au - $1,600/oz, Pb - $1.00/lb and Zn - $1.20/lb).

"When we get into production, it will be one of the top three silver mines globally," said Makuch. "If you separate out the silver...it's actually going to be a top 10 zinc producer, so it's a very large deposit."

The project is anomalous compared to its peers in the silver space, noted Makuch.

"You have a lot of silver mines that are producing but you question whether they make that much money," said Makuch. "Here's one silver mine that's going to actually generate positive returns
and create a lot of value for shareholders."

Coverage of the BMO Global Metals, Mining & Critical Minerals Conference was sponsored by First Majestic Silver.


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0:50 - Why'd you like the opportunity at Discovery Silver?
3:48 - Why Cordero is anomalous.