What Risks Could Challenge Investigator Silver’s Low-Cost Paris Development?

Paris Silver Project: A Finance-Ready Opportunity

Investigator Silver Limited has released a comprehensive Definitive Feasibility Study (DFS) for its Paris Silver Project, located on South Australia's Central Eyre Peninsula. The study confirms the project as a tier-one silver development, combining strong economics with a low technical risk profile. With a pre-tax net present value (NPV8) of A$1,154 million at a spot silver price of US$80 per ounce, and an internal rate of return (IRR) of 93%, Paris stands out as a compelling investment opportunity in the precious metals sector.

The project is designed around a shallow open-pit mine exploiting a flat-lying polymictic volcanic breccia orebody. Mining will be conducted via contract mining, utilising conventional backhoe and haul truck fleets. The processing route is a well-established whole-ore cyanide leach with Merrill–Crowe recovery, producing silver doré bars on site. This approach prioritises operational simplicity, schedule certainty, and reliable ramp-up, mitigating many of the risks often associated with greenfield developments.

Financial Strength and Operational Resilience

The DFS highlights a rapid payback period of just 11 months from first production under the spot price scenario, supported by a robust operating margin with net operating cash flow margins of 64%. The modest development funding requirement of A$260 million, inclusive of contingency and working capital, represents a low capital intensity relative to project value. This ratio, combined with early-stage stockpile build-up containing approximately 1.3 million ounces of recoverable silver, provides significant downside protection and lender comfort.

Mining is staged to prioritise early access to higher-grade, lower strip ratio ore, accelerating cash flow generation and reducing exposure to geological uncertainty. Notably, less than 1% of production in the critical debt repayment window is derived from Inferred Mineral Resources, with targeted pre-FID drilling planned to further strengthen grade confidence.

Geological and Metallurgical Foundations

The Paris deposit hosts an estimated 57 million ounces of silver within a 24 million tonne Mineral Resource at a 25 g/t cut-off, with a maiden Ore Reserve of 33 million ounces at 88 g/t silver. The deposit's geology supports bulk open-pit mining with stable pit geometry across a range of silver prices, enhancing project robustness.

Metallurgical testwork spanning a decade confirms an average life-of-mine silver recovery of 77.7%, with domain-specific recoveries reflecting ore variability. The processing flowsheet leverages proven technology, avoiding novel or untested methods, thus reducing commissioning and operational risks.

Supportive Jurisdiction and Growth Potential

Situated in South Australia, a stable and mining-friendly jurisdiction, the project benefits from established infrastructure and a supportive regulatory framework. Investigator Silver maintains active engagement with government agencies and Traditional Owners, incorporating cultural heritage considerations into project design.

Paris lies within a 15-kilometre mineralised corridor with multiple near-plant drill targets, offering district-scale growth potential. The processing plant and tailings storage facility have been designed with expansion capacity, enabling future satellite feed integration and capital-efficient growth.

Next Steps and Market Implications

Following the DFS, Investigator Silver is advancing detailed engineering, permitting, and financing readiness. Early contractor engagement and a high-density drilling program aim to firm up execution certainty and support competitive financing terms. The company’s objective is to transition rapidly from study to construction, positioning Paris as Australia’s leading pure silver mine.

With silver’s unique market dynamics, driven by growing industrial demand, constrained supply, and strategic geographic concentration, the Paris Silver Project offers investors leveraged exposure to silver price upside within a low-risk development framework.