Canadian precious metals producer Silvercorp Metals Inc. is accelerating its international growth strategy with a landmark acquisition in western Kyrgyzstan, targeting two of Central Asia’s largest undeveloped gold-deposits. The move positions the company as a key player in the country’s evolving mining landscape and strengthens its exposure to long-life, high-volume gold production assets.
Under a comprehensive Share Purchase and Cooperation Agreement, Silvercorp will acquire a 70 percent stake in Chaarat ZAAV CJSC, the holder of the fully permitted Tulkubash and Kyzyltash gold deposits. The deal, valued at approximately US$162 million, also includes exploration licenses covering the Karator and Ishakuld gold zones—areas with additional upside potential.
The acquisition represents one of the most significant recent foreign investments in Kyrgyzstan’s mining sector and signals renewed international confidence in the country’s resource base.
Strategic Partnership Structure with Long-Term License Security
The Tulkubash and Kyzyltash deposits are located within the prolific Tien Shan gold belt, roughly 490 kilometers southwest of Bishkek. This region is recognized as one of Central Asia’s most promising mineral corridors, contributing meaningfully to the broader world gold supply.
Under the joint venture structure, Silvercorp will serve as operator with a 70 percent ownership interest, while Kyrgyzaltyn, a state-owned enterprise of the Kyrgyz Republic, will retain a 30 percent free-carried stake. Importantly, the Kyrgyz government has waived its pre-emptive rights, underscoring official support for the transaction.
The current mining license, originally set to expire in 2032, is expected to be extended through 2062, providing a multi-decade operational horizon. This long-term security significantly enhances project bankability and aligns with Silvercorp’s strategy of building sustainable, long-life assets.
Phase One: Open-Pit Development at Tulkubash
Silvercorp’s development plan is structured in two major phases. The first phase, scheduled between 2026 and 2028, focuses on establishing an open-pit mining operation at Tulkubash.
An estimated US$150 million will be invested to construct processing facilities capable of handling approximately 4 million tonnes of ore annually. Commercial production is expected to begin between 2027 and 2028, with projected annual output of around 110,000 ounces of gold over an initial three-to-four-year mine life.
Should the nearby Karator exploration license be converted into a full mining permit in 2026, the Tulkubash production period could extend by at least two additional years. This provides immediate upside potential and improves early-stage return metrics.
Phase Two: Large-Scale Expansion at Kyzyltash
The second phase, planned from 2028 to 2031, involves development of the Kyzyltash sulfide deposit. This stage represents a substantially larger capital commitment of approximately US$400 million, reflecting the scale and complexity of the ore body.
Development will include both open-pit and underground operations, alongside construction of advanced processing infrastructure. Once fully operational from 2031 onward, Kyzyltash is projected to deliver between 190,000 and 230,000 ounces of gold annually for at least 18 years.
This long mine life significantly strengthens Silvercorp’s production profile and adds stable, multi-decade gold output to its global portfolio.
Revitalizing Soviet-Era Discoveries
The Tulkubash and Kyzyltash deposits were originally identified during Soviet-era exploration campaigns. Since 2002, former owner Chaarat Gold Holdings invested approximately US$174 million into exploration drilling, feasibility studies, road access, and site infrastructure.
Silvercorp’s entry marks a transition from exploration-driven development to full-scale production planning. The project also arrives at a pivotal moment for Kyrgyzstan, which has sought to strengthen investor confidence following the nationalization of the Kumtor gold mine in recent years.
By welcoming a publicly listed Canadian operator with international experience, Kyrgyzstan signals its intent to attract foreign direct investment and diversify partnerships within its mining sector.
Positioning Within Global Gold Markets
With global gold prices remaining robust and investor appetite for precious metals stable, Silvercorp’s Central Asian expansion aligns with broader industry trends. Mining companies are increasingly pursuing geographic diversification to reduce political concentration risk and secure long-life resource bases.
Kyrgyzstan’s Tien Shan belt offers geological scale, established permitting frameworks, and strong production potential—key factors for companies seeking sustained exposure to the global gold market.
Beyond production, the project may contribute to local economic growth through job creation, infrastructure investment, and expanded export revenues. The long-term license extension to 2062 ensures continuity and stability for both the operator and the host country.
Silvercorp’s move into Kyrgyzstan reflects a broader shift among mining firms toward carefully selected frontier markets with strong resource fundamentals. By combining phased capital deployment, state partnership, and long-term operational planning, the company aims to create durable shareholder value while strengthening its global asset base.
If development milestones proceed as planned, the Tulkubash and Kyzyltash projects could become cornerstone assets within Silvercorp’s portfolio—contributing meaningfully to global gold supply and reinforcing Kyrgyzstan’s position within the international mining landscape.
