Kootenay Silver Advances La Cigarra with PEA, Eyes Resource Expansion
Event summary
- Kootenay Silver has commissioned a Preliminary Economic Assessment (PEA) for its La Cigarra silver deposit, expected in Q2 2026.
- The PEA will be conducted by Sacré-Davey Engineering and Canenco Consulting.
- Kootenay is aggressively drilling the Columba deposit, aiming to increase its silver resource from 54 million ounces to 100 million ounces.
- La Cigarra boasts a resource of 51.57 million ounces of measured plus indicated silver, and 11 million ounces inferred.
- The move follows resource updates on La Cigarra, Promontorio, and La Negra deposits in late 2023/early 2024, capitalizing on rising silver prices.
The big picture
Kootenay Silver's move to commission a PEA reflects the broader trend of silver miners capitalizing on the recent surge in silver prices, driven by industrial demand and supply deficits. The company's focus on expanding resources through aggressive drilling signals an intent to rapidly advance projects and potentially attract investment or acquisition interest. The Parral Mining District’s established mining infrastructure and proximity to existing operations provides a favorable environment for development, but also introduces competitive pressures.
What we're watching
- Price Sensitivity
- The PEA’s findings will be heavily influenced by silver prices, which have recently reached record highs; a sustained downturn could significantly alter the project's economics.
- Drilling Success
- The success of the aggressive drilling program at Columba is critical to Kootenay’s stated goal of doubling the resource; failure to achieve this target would delay further development plans.
- Regional Competition
- Kootenay's La Cigarra deposit sits near active mining operations of Penoles and Frisco, suggesting potential for future competition or acquisition interest if the PEA proves favorable.
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