IVR updates on DFS direction, targeting accelerated first silver

Our latest silver Investment Investigator Resources (ASX: IVR) just put out an update on the progress of its Definitive Feasibility Study (DFS).

IVR owns 100% of the Paris silver project which has a 57M ounce silver JORC resource estimate with an average grade of 73g/t.

This makes it one of the highest grade pure play silver projects, and it is located in South Australia.

IVR’s project was discovered during the last silver bull run back in 2011.

It spent well over 10 years in the silver bear market drilling it out, and now it is returning to the next stage of the Lassonde Curve at the perfect time with silver pushing all time highs.

We think that in this current silver up cycle, a few projects will come into production and a few big discoveries will get made.

We are Invested in IVR to hopefully see it become one of those projects that enters production during this silver bull cycle...

Check our out initiation note to see the 8 reasons why we are Invested in IVR: Our New Investment: Investigator Resources (ASX: IVR)

IVR’s Definitive Feasibility Study (DFS) update:

IVR’s announcement today was a high level overview of the type of optimisation work IVR is doing to “right size” its project for development.

By “right sizing” we mean finding a balance between size/scale and what makes the project more finance friendly…

Usually financiers want to see a fast payback on the initial development CAPEX so we assume this is what IVR is trying to address with its upcoming DFS.

IVR had completed a Pre-Feasibility Study (PFS) on the project back in 2021 with an assumed silver price of US$24.7 (then ~A$34.5/oz).

That study showed the project had an after-tax Net Present Value (NPV) of A$135M.

IVR is now looking to improve on those numbers at a time where the silver price is trading at US$49 - up over 120% on that assumed price in the last study.

Here were some of our key takeaways from today’s announcement:

IVR confirmed that:

• Throughput optimisation testing from 1-2Mtpa led to IVR picking 1.5Mtpa as the best processing capacity for financing and long term project economics.
• Adoption of a wet Tailings Storage Facility (TSF) after confirming a secure water source (Hector Paleochannel), a secure and long term source - an option that simplifies the flowsheet and provides efficiencies on a few fronts (power consumption, filtration, extensive tailing rehandling, smaller detox circuit)
• Ongoing value engineering could remove ~$18M in capital costs with a simplified and modular plant design including skid-mounted crushing and leaner infrastructure options (modular/relocatable)

IVR expects to have the DFS ready for release in early 2026…

While that work happens, IVR is also progressing permitting for the project.

What do we want to see IVR do next?

Objective 1: Definitive Feasibility Study on Paris silver project

We want to see IVR complete and release its Definitive Feasibility Study (DFS). We are hoping to see a big improvement on the A$135M after tax Net Present Value (NPV) that was delivered in IVR’s last study in 2021 (using a silver price of US$24.70).

Milestones:

🔄 Pit design

🔄 Flowsheet revision

🔄 Throughput optimisation

🔲 DFS completed

Objective 2: Drilling on regional targets

We want to see IVR drill out the 15km corridor of targets that sit around its 57M ounce JORC resource estimate. The ultimate success from these drill programs would be a discovery similar to IVR’s existing resource.

Milestones:

🔲 Geophys/Geochemistry work
🔲 Identify drill targets

🔲 Drilling starts

🔲 Drilling results

Objective 3: Permitting of the Paris silver project

We want to see IVR go through all of the permitting workstreams on its project. We especially want to see the project get a mining license and go through all of the environmental permitting process’.

Milestones:

🔲 Environmental permits

🔲 Project infrastructure permits

🔲 Mining license granted

Objective 4 (Bonus): Drilling on IVR’s other assets

We also want to see IVR drill out its other projects in South Australia.

IVR plans to drill one of those projects later this year.

These sit outside of the key reasons we are Invested, but if IVR makes a meaningful discovery on these it could become material to the company’s valuation.