Core Viewpoint - Salazar Resources Limited is involved in a joint venture with Silvercorp Metals Inc. for the development of the El Domo mine, with an updated construction budget of $284 million, reflecting a $44 million increase from previous estimates, and a projected production start date of July 1, 2027, which is a six-month delay from earlier projections [2][3]. Financial Summary - The updated construction budget for the El Domo Project is $284 million, up from the previous estimate of $240 million [3]. - The budget breakdown includes significant increases in various packages, such as Package 1 (site preparation) increasing to $57.4 million and Package 3 (processing plant) increasing to $54.8 million [3][5]. - The VAT rate has been revised from 12% to 15%, leading to additional VAT costs that can be recovered as a tax credit once concentrate exports commence [5]. Construction Progress - In 2025, the company spent $44.5 million, which is approximately 16% of the total new budget, and made significant progress in site preparation and construction activities [6]. - Over 2.6 million cubic meters of material were moved for site preparation, and 8.1 km of internal haul roads were built [6][4]. - The construction camp with a capacity of over 600 beds has been completed and commissioned [6]. Contracting and Operations - The company is expected to execute a mining contract with China Railway 19th Bureau Group Co., Ltd. for the construction and operation of the Project, valued at $35 million for the construction phase and approximately $63 million for the operations phase [7]. - The contract includes the construction and management of the Tailings Storage Facility (TSF) dam, valued at $8 million [7]. Engineering and Equipment - Jinpeng is set to complete the detailed engineering design of the processing plant by early April 2026, which will initiate the bidding process for construction [8]. - Most long-lead time major equipment for the process plant has been ordered, with a down payment of $7.2 million made towards a total contract price of $16.9 million [16]. Community and Environmental Engagement - The company has engaged with various communities and stakeholders for support and has built an effective construction team collaborating across multiple locations [16]. - The company has implemented and complied with an Environmental Management Plan during construction activities, maintaining a strong safety culture with over 960,000 hours worked without major incidents [16].