#1 Silver Play with Positive Cashflow Gold Miner (Top Notch Team)

🪙 Discovery Silver Corp. (TSX: DSV)

Discovery Silver is now a diversified precious-metals story: a producing Canadian gold complex (Porcupine, Timmins camp) plus a tier-1, large-scale silver development project (Cordero, Mexico). Near-term value is being driven by Porcupine cash flow + drilling/resource upgrades, while the long-duration upside comes from permitting + construction decision + build at Cordero. (Discovery Silver Corp.)

📌 Capital Structure

🧾 Shares Outstanding (latest available): ~807.76M (as of Dec 31, 2025, OTC Markets)

🧾 Company website snapshot (older): 801M shares (as of May 13, 2025)

🧾 Fully diluted (older): ~816M (May 13, 2025)

⛏️ Cost Structure (Gold + Silver)

1) Porcupine Gold Operations (Canada) — latest AISC reported • AISC: US$1,734/oz sold (Q3 2025) (Discovery Silver Corp.)

2) Cordero Silver Project (Mexico) — feasibility study AISC • AISC: < US$12.50/oz AgEq (first 8 years) and < US$13.50/oz AgEq (LOM) (Discovery Silver Corp.)

🧩 Projects Overview & “Grade Feel”

1. Porcupine Operations (Producing Gold Complex)Status: ✅ Producer Assets include: Hoyle Pond, Borden, Pamour, Hollinger, Dome Mine + Dome Mill.Grade snapshots (from 2024 operating stats on the project page):• Mill feed avg: 3.26 g/t Au (2.90 Mt processed)• Borden: 6.54 g/t Au (666 kt processed)• Hoyle Pond: 10.8 g/t Au (222 kt processed)• Hollinger (2024 before mining concluded): 1.35 g/t Au (2.01 Mt processed)Grade feel: Real, high-grade underground contribution (Hoyle/Borden) + blend/scale from the wider camp.
2. Cordero (Ag–Au–Pb–Zn Development Project)Status: 🚧 Advanced development (FS complete; key permit pending)Reserves (Feb 2024 FS): 327 Mt @ 29 g/t Ag, 0.08 g/t Au, 0.41% Pb, 0.72% Zn (Total Proven+Probable)Resources (Feb 2024 update): Total M&I 719 Mt @ 21 g/t Ag, 0.06 g/t Au, 0.30% Pb, 0.57% Zn (AgEq grade shown on the page too)Grade feel: Bulk-tonnage, lower-grade silver, economics driven by scale + by-products (AgEq framework).

⚠️ Key Risks (DSV)

🏗️ Cordero execution + financing risk: large initial capex; construction decision timing matters

🧾 Permitting risk (Mexico): environmental approval (“MIA”) timing is a major gating item

💸 Dilution / capital structure risk: already ~808M shares; future build funding could add more

⛏️ Operating risk at Porcupine: cost inflation, grade variability, sustaining capex needs (AISC is good now, but can move)

🧪 Metallurgy / concentrate terms (Cordero): payable terms/TCs matter for AgEq margins

🗺️ Jurisdiction mix: Canada operational stability vs. Mexico permitting/social-license path

⚡ Catalysts (from “now” → next 12–18 months)

Porcupine (Canada):

• Completion of the ~140,000 m drill program (expected early 2026) and updated technical report in 2026

Cordero (Mexico):

• MIA environmental approval decision (company said it completed the technical review process and was awaiting approval as of Nov 2025)

• Continued de-risking on power, water, permitting and financing pathways

🗺️ Expected Timeline (Feb 2026 → full production)

Porcupine: already producing today (ongoing optimization + growth via drilling/resource conversion).

Cordero (best-effort schedule using stated steps + FS construction duration):

• 2026: MIA approval (timing unknown), final permitting steps, FEED/EPCM readiness, financing package

• Construction duration: FS states ~2-year construction period for initial build capex. ➡️ If a construction decision lands in 2026, a reasonable inference is first production ~2028 (then ramp-up to steady-state after commissioning). (This is timing logic from the FS “2-year build” statement; the exact date depends on permit + financing close.)

📊 Re-Valued “FCF” Scenarios

• Silver = US$150 and US$200
• Gold = US$6,000
• Keep same production + AISC inputs
• Show results in CAD per share, FX: 1 USD = 1.366 CAD Shares: 807.8M (latest available)
• Same multiples: ×10 / ×15 / ×20

🥇 Porcupine Gold (Producer)

• Production: 282,000 oz/yr
• AISC: US$1,734/oz

🥈 Cordero Silver (FS basis)

• Production: ~37 Moz AgEq / yr (Years 1–12 avg)
• AISC: US$12.50/oz AgEq

🥇 $6,000 Gold + 🥈 $150 Silver

Per-share base (1×) = 2.04 + 8.60 ≈ C$10.64

• 10× → C$106.4/sh
• 15× → C$159.5/sh
• 20× → C$212.7/sh

🥇 $6,000 Gold + 🥈 $200 Silver

Per-share base (1×) = 2.04 + 11.73 ≈ C$13.77

• 10× → C$137.7/sh
• 15× → C$206.5/sh
• 20× → C$275.3/sh

🎯 Quick Scorecard

1. Management✅ Superb, proven operator leadership, the best in the business I can find.
2. High Grade✅ Gold side: Hoyle/Borden are meaningfully high grade❌ Silver side: Cordero is big/long-life, not a high-grade silver discovery
3. Share Structure Discipline⚠️ Heavier structure (~808M shares), and Cordero funding could add more.
4. Jurisdiction✅ Canada producer base in Ontario⚠️ Mexico permitting path (MIA) is the key gating catalyst/risk

⭐ Final Rating, Commentary

★★★★★ (5 / 5 Stars). DSV is already a gold cash-flow story plus a giant silver optionality call. If your core thesis is macro precious-metals torque.

DSV gives you:

• near-term producer re-rating + drilling-driven upgrades in Canada.

• long-duration Cordero permit → build → commissioning upside in Mexico.