Which Aussie silver company's shares are charging higher on positive news?

This company says the high silver price is changing the game for its South Australian silver project.

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Key points

  • The high silver price has boosted the outlook for Investigator's SA silver project. 
  • This could lead to a large increase in the mineable inventory.
  • Investigator is aiming to deliver a completed economic study on the project next year.

Shares in Investigator Silver Ltd (ASX: IVR) were trading higher on Tuesday after the company revealed updates to the feasibility study for its Paris project in South Australia.

The company said it had changed key parameters of the definitive feasibility study for the mining project on the Eyre Peninsula, which would lead to a 6% increase in silver recovery.

The company also said it had revised the open pit size, incorporating new cost inputs and a higher assumed silver price, which reduced the economic cut-off grade and improved the strip ratio, "highlighting the potential to increase the mineable inventory''.

Key milestones being ticked off

Investigator Managing Director Lachlan Wallace said the project continued to mature "through a disciplined and transparent process''.

Mr Wallace went on to say:

By reporting key technical outcomes as individual workstreams advance, we are providing shareholders with clear visibility on how the study is progressively strengthening the project design and development framework. In a silver price environment that is at, or near, record levels, it is particularly encouraging to see the technical studies responding as expected. Pit optimisation work indicates the potential to capture additional mineralised material within the mine plan through a lower economic cut-off grade, while concurrent metallurgical test work has delivered higher silver recoveries through a finer grind. Together, these outcomes reinforce the leverage of the Paris Silver Project to silver price and the quality of the underlying resource.

Mr Wallace said the company was now focused on progressing the project through detailed scheduling, process design, and cost finalisation, with Investigator "firmly on track" to deliver the completed definitive feasibility in the first half of 2026.

High silver price a game-changer

The company said it had revised the size of the open pit using a cut-off grade of $70 per ounce of silver, which was still "materially below the current spot price of approximately $95 per ounce".

At this price, and using updated cost assumptions, the estimated economic cut-off grade reduces materially from 43.5 grams per tonne silver in the 2021 pre-feasibility study to a range of 22-27 grams per tonne silver, depending on host rock type. This reflects materially improved project economics at the optimisation level under current market conditions. The lower cut-off grade increases contained silver within the optimised pit shell by approximately 13 million ounces relative to the pre-feasibility study.

Investigator shares were trading 8.2% higher at 7.9 cents on Tuesday.

The company was valued at $144.5 million at the close of trade on Monday.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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