A modern open-pit mining facility in an arid landscape, illustrating the scale of operations similar to the Cordero project in Chihuahua, Mexico.
By Penny Langford
May 16, 2026
CHIHUAHUA, MEXICO – Discovery Silver Corp. has reached a pivotal regulatory threshold for its flagship Cordero project, securing the approval of its Environmental Impact Assessment (Manifestación de Impacto Ambiental, or MIA) from Mexico’s Secretariat of Environment and Natural Resources (SEMARNAT). The milestone clears a primary hurdle for the US$606 million silver development, signaling a transition from technical de-risking toward a formal construction decision.
The approval of the MIA is the cornerstone of Discovery Silver's 2026 strategy, positioning the Cordero project as one of the world's most significant upcoming silver producers. Located in the heart of Chihuahua, the project is characterized by its massive scale, favorable metallurgy, and robust economics outlined in its 2024 Feasibility Study. With the MIA now secured, the company is focusing on the final administrative steps, including the Change of Land Use (CUS) permit and finalizing a comprehensive financing package.
The Significance of MIA Approval
The MIA approval is not merely a box-ticking exercise in the Mexican regulatory landscape; it is the fundamental "license to build" from an environmental perspective. For the Discovery Silver Cordero project, this approval validates the extensive environmental work and community engagement efforts conducted over the last several years.
"The receipt of the MIA is a testament to our team’s commitment to world-class environmental standards," the company noted in recent investor communications. The permitting process in Mexico has undergone significant scrutiny recently, with federal authorities working through a backlog of nearly 200 mining projects. The successful advancement of Cordero underscores its status as a priority project for the region, promising substantial socio-economic benefits to the state of Chihuahua.
The next immediate regulatory step is the Change of Land Use (CUS) permit. Discovery Silver has budgeted approximately US$90 million to US$100 million for the 2026 calendar year, with a significant portion of those funds earmarked for the CUS fee payment, which typically follows MIA approval.
Project Economics: A Tier 1 Silver Asset
The Cordero project stands out in the global mining landscape for its sheer volume and production profile. According to the February 2024 Feasibility Study, the project is expected to be an "ultra-scale" open-pit operation with a 19-year mine life.
Key Feasibility Study Metrics (Phase 1):
| Metric | Details |
|---|---|
| Initial Capital (Capex) | US$606 Million |
| Average Annual Production (Yrs 1-12) | 37 Million Oz AgEq |
| Total Life of Mine (LOM) | 19 Years |
| All-In Sustaining Costs (AISC) | < US$12.50/oz AgEq (Yrs 1-8) |
| Throughput (Phase 1) | 26,000 tonnes per day (tpd) |
| Silver Reserves | 302 Million Ounces |
The Cordero project is designed as a large-scale open-pit mine, utilizing high-capacity haulage and processing infrastructure.
The project’s low-cost profile is a major draw for investors. With an AISC expected to remain below US$12.50 per ounce for the first eight years of production, Cordero sits comfortably in the bottom half of the global silver cost curve. This margin provides a significant buffer against price volatility while ensuring high profitability during bull markets for silver and industrial metals like zinc and lead.
Path to Construction and 2026 Financing
With the environmental permits maturing, the focus shifts toward Cordero project financing. Discovery Silver has outlined a multi-faceted approach to funding the US$606 million initial capital requirement. This strategy includes a mix of traditional debt, equity, offtake agreements, and potential strategic partnerships.
The 2026 budget of nearly US$100 million reflects the "pre-construction" phase. Beyond the CUS fees, capital is being deployed for:
- Detailed Engineering: Finalizing water and power infrastructure designs.
- Long-Lead Items: Securing slots for major equipment like grinding mills and crushers.
- Site Preparation: Early-stage earthworks and infrastructure upgrades.
The company anticipates reaching a Final Investment Decision (FID) in late 2026, which would trigger a two-year construction period. If timelines hold, first silver production could be expected by 2028, aligning with a period of projected supply deficits in the silver market.
Strategic Importance of Silver Mining in Mexico 2026
Mexico remains the world's leading silver producer, and the state of Chihuahua is a primary engine of that output. However, the industry has faced headwinds due to regulatory shifts and a tightening of environmental oversight. The advancement of the Cordero project is seen by many as a bellwether for the health of silver mining in Mexico 2026.
The project is expected to generate approximately 2,500 jobs during the peak of construction and contribute over US$1.4 billion in taxes and royalties to the Mexican government over its lifetime. Furthermore, Discovery Silver has integrated ESG (Environmental, Social, and Governance) principles into the project's DNA. One of the most notable features is the plan to use recycled community wastewater as the primary water source for the mine, significantly reducing the impact on local aquifers.
Advanced telemetry and fleet management technology, like that pictured here, will be integral to maintaining Cordero’s low-cost production profile.
Market Context: The Silver Squeeze
The timing of Cordero’s advancement coincides with a critical juncture for the silver market. Demand for silver is increasingly driven by the energy transition, specifically in the solar photovoltaics (PV) sector and the burgeoning electric vehicle (EV) market. Silver's unique conductivity makes it indispensable for these technologies.
As global lithium-related supply chains and other critical mineral sectors face volatility, silver provides a dual-threat investment case: a traditional precious metal hedge and a vital industrial commodity. Discovery Silver’s ability to bring 37 million ounces of silver equivalent to market annually could play a decisive role in easing supply constraints by the end of the decade.
Operational Excellence and Technology
Efficiency is the cornerstone of Discovery Silver’s plan for Cordero. By utilizing a 26,000 tpd processing plant in its first phase, the company intends to maximize throughput while maintaining high recovery rates for silver, lead, and zinc. The metallurgy at Cordero is well-understood, with conventional flotation expected to produce high-grade concentrates.
"We aren't just building a mine; we are building a modern industrial complex," a Discovery Silver operations manager stated. This includes the implementation of a centralized control room and advanced fleet management systems to optimize the movement of millions of tonnes of material.
Modern control rooms allow operators to monitor productivity and safety metrics in real-time, a standard that Discovery Silver intends to implement at Cordero.
Looking Ahead: Key Risks and Catalysts
While the MIA approval is a major win, the road to production still contains variables. Key risks include:
- Regulatory Timelines: The speed of the CUS permit processing by SEMARNAT.
- Financing Conditions: The cost of capital in a fluctuating interest rate environment.
- Metal Prices: While the economics are robust at lower prices, the speed of payback is heavily influenced by silver, zinc, and lead spot prices.
Conversely, the catalysts for 2026 are clear. The completion of the CUS process, the announcement of a debt-lead financing package, and the formal start of construction will be the primary news items for Discovery Silver shareholders.
Conclusion
Discovery Silver’s Cordero project is no longer just a "top-tier project on paper." With the MIA environmental approval in hand and a clear US$100 million roadmap for 2026, it is now an asset in active transition toward construction. For the state of Chihuahua and the global silver market, the progress at Cordero represents a significant step toward securing the minerals necessary for the 21st-century economy.
LinkedIn / X Snippet:
Discovery Silver hits a major milestone at the $606M Cordero project in Mexico. With the MIA environmental permit approved, the "silver giant" is on a clear path to production. #MiningNews #Silver #DiscoverySilver #MexicoMining #EnergyTransition #SkillingsMining
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