By Amit Chowdhry Today at 5:32 PM

Sinda says its existing mineral resources and conceptual exploration targets provide visibility to more than 800 million silver-equivalent ounces at its project in Mexico, even though drilling has covered only approximately 38% of known veins.

The company has identified an estimated 369 million silver-equivalent ounces of Inferred Mineral Resources and another 16 million silver-equivalent ounces of Indicated Mineral Resources. Separately, Sinda has outlined conceptual Exploration Targets totaling approximately 452 million to 484 million silver-equivalent ounces.

Combined, these figures provide potential visibility to more than 800 million silver-equivalent ounces. However, the Exploration Target portion is conceptual in nature and has not been sufficiently explored to define a mineral resource, making it distinct from Sinda’s reported Indicated and Inferred Mineral Resources.

Management believes significant additional discovery potential remains because only 38% of known veins have been drilled. Sinda is pursuing an aggressive exploration program to test additional areas while improving the definition of previously identified mineralization.

The company completed 60,810 meters of Phase 1 surface drilling during Q2 using as many as 15 rigs. Approximately 33,134 meters, representing 55% of the program, focused on infill drilling at the Dolores vein system, while approximately 27,676 meters targeted step-out exploration across five areas.

Sinda is now moving into a substantially larger Phase 2 program. The company plans to expand its active fleet to 18 rigs and drill another 122,000 meters through the end of 2027.

One of the most closely watched exploration areas is the Don Diego corridor. Initial drilling indicates a possible structural connection between the Caracol and Agaves areas, potentially supporting a larger continuous mineralized system.

Importantly, Don Diego is not included in Sinda’s current Indicated or Inferred Mineral Resource estimates and is also excluded from the previously identified incremental Exploration Targets. Further success there could therefore represent additional potential beyond the figures already outlined by the company.

Sinda is targeting an updated Mineral Resource Estimate by year-end 2026. The company is also progressing engineering and permitting activities designed to move the project further along the development path.

Another major development initiative is a planned nine-kilometer underground exploration decline. Preparatory work is advancing, with construction targeted to begin during the second half of 2026.

Sinda entered the public markets with substantial capital to fund the program. Its IPO, underwriters’ overallotment and concurrent Fresnillo placement generated approximately $331.3 million of total gross proceeds.

Fresnillo acquired a strategic 5% ownership stake in Sinda through the concurrent placement. The company sold 7.94 million shares to Fresnillo at the $12 IPO price for approximately $95.3 million of gross proceeds.

Management said Sinda’s debt-free balance sheet and newly raised capital are sufficient to fund its planned exploration and development activities for the next two to three years. Longer term, the company believes additional development capital could potentially be sourced through non-dilutive structures such as traditional bank debt, project financing, streaming or royalties.

KEY QUOTES:

“With its successful IPO, as the pure play vehicle on a brand-new district in the Guanajuato Sur area, Sinda put a spotlight on what we believe to be one of the most important silver-gold discoveries in Mexico, if not the world.”

“As hinted at by Don Diego, we believe that our systematic exploration campaign has only begun to define the full extent of this district’s potential. Unlocking a continuous, integrated mineralized system across these zones would represent an exceptional opportunity for us to expand our district’s total resource potential.”

Daniel Muñiz Quintanilla, Executive Chairman of Sinda

“Our first quarter as a public company was supported by a strong balance sheet with zero debt, and bolstered by significant new liquidity from the IPO and the strategic anchor investment from Fresnillo. This healthy capital position fully funds our aggressive exploration and development plans for the next two to three years, allowing us to methodically de-risk Sinda.”

Luis Barreto, Chief Financial Officer of Sinda