Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) has approved a US$196.3 million budget for its 70%-owned joint venture, Chaarat ZAAV CJSC, to advance development of the Tulkubash and Kyzyltash gold projects in the Kyrgyz Republic. 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. Forecast spending is set at US$57.3 million in 2026 and US$139 million in 2027.
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. Meanwhile, 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.
This budget approval underscores Silvercorp's commitment to advancing its portfolio of precious metals projects in Central Asia. The Tulkubash project, with its permitted status and heap leach design, offers a relatively low-capital pathway to near-term gold production. The Kyzyltash project, focused on sulfide mineralization, represents longer-term potential for resource growth and a possible underground operation. By allocating significant funds to both projects, Silvercorp is positioning itself to potentially increase gold output and diversify its revenue streams beyond its existing silver, lead, and zinc operations in China.
The company's strategy emphasizes free cash flow generation from long-life mines, organic growth through drilling, merger and acquisition efforts, and a commitment to responsible mining. The Kyrgyz projects align with this strategy by offering scalable development options in a region with known gold endowment. Investors will be watching for the feasibility study update and drilling results to assess the projects' economic viability and timeline to production.
For more information, see the full press release at https://nnw.fm/RTirNAbout and additional updates at https://nnw.fm/SVM.
