DSVMF - Discovery Metals: Phased Approach For Cordero Improves Investment Thesis Dramatically

• Discovery Metals is one of the top-performing silver stocks this year, up over 180% year-to-date.
• The company's flagship Cordero Project is home to a massive resource, with a 663 million-ounce silver-equivalent resource at a cut-off grade of 50 grams per tonne.
• However, while this is one of the largest silver resources worldwide, the project is not easy to finance, with projected initial capital costs of ~US$570 million.
• The good news is that the company is exploring a high-grade starter pit and a phased approach to building the mine, which should significantly reduce upfront capex.
• While I think there are better opportunities out there in the sector, this shift from optionality play to a current silver price play makes Discovery an interesting story going forward.

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