Discovery Silver Corp. (TSX: DSV, OTCQX: DSVSF) announced the completion of its acquisition of Glencore Canada Corporation's 100% interest in the Kidd operations located in Timmins, Ontario. The transaction includes the Kidd Metallurgical Site (Kidd Met Site), the Kidd Creek copper, zinc and silver mine, and the Kidd Creek Timber Ltd. exploration land package. All financial figures are in US dollars unless otherwise stated.
Strategic Expansion and Production Goals
This acquisition supports Discovery's vision to more than double gold production in the Timmins Camp to over half a million ounces per year. The company is advancing studies for the construction of a new conventional gold processing circuit at the Kidd Met Site. Future production from Hoyle Pond, Pamour, Borden, and the TVZ zone is expected to be processed at the Met Site, while the Dome Mill will be dedicated to processing material from the Dome Mine following an anticipated resumption of operations.
Infrastructure and Synergies
Surface access at the Kidd Met Site will support the planned future expansion of Hoyle Pond and Pamour, providing valuable locations for surface exploration. Attractive potential synergies include reduced haulage costs, greater efficiency in waste rock deposition, and the potential use of gold tailings at the Kidd tailings management area (Kidd TMA). The acquisition also provides exposure to critical minerals at Kidd Creek Mine, including copper, zinc, and silver. Expected production for the remainder of 2026 includes 10,000 to 15,000 tonnes of zinc, 5,000 to 7,000 tonnes of copper, and approximately 0.4 million ounces of silver.
Land Position and Exploration
The deal delivers a large, high-potential exploration land position north of Timmins through the acquisition of Kidd Creek Timber Ltd. Tony Makuch, Discovery's President and CEO, commented: "The acquisition of the Kidd Operations is a major development for Discovery as we work to advance our extensive growth plans. With the completion of the transaction, we have added extremely valuable processing and other infrastructure, as well as a large land position that will support the planned future expansion of Hoyle Pond and Pamour, including the development of TVZ. We also have gained highly attractive cost synergies, exposure to critical minerals, and substantial exploration upside. We have also retained an experienced, highly skilled workforce."
The Kidd Met Site is a large processing facility that will be a key component of the company's milling strategy. Through the construction of a new conventional gold circuit and other modifications, Discovery envisions processing future tonnage from current operations and the TVZ Zone at the Met Site, while maintaining capacity to process base metals from the Kidd Creek Mine. This approach would allow the Dome Mill to be dedicated to processing mineralization from the adjacent Dome Mine after mining resumes.
The acquired land position is extremely valuable, as Kidd surface rights allow for optimal placement of potential new infrastructure for Hoyle Pond and the TVZ project, and provide locations for surface exploration around Hoyle Pond. The company is currently evaluating the construction of new ventilation raises and possibly a new shaft at Hoyle Pond, which would be located on the Kidd Met Site property.
