Discovery Silver near acquiring Newmont’s Porcupine Assets, Reshaping Timmins Mining Landscape

"Pitter-patter, let's get at 'er". A large crowd of investors and analysts smiled broadly at the concluding comments from Discovery Silver CEO Tony Makuch at an investors briefing yesterday in Toronto.

Discovery Silver is nearing completion of its acquisition of Newmont’s Porcupine assets in Timmins, marking a transformative moment in the region’s mining history. CEO Tony Makuch described the deal as a “once-in-a-generation, once-in-a-lifetime opportunity” that positions Discovery Silver to become a major player in North American gold production.

“We have the chance to create a whole new mining company,” said Makuch. “This isn’t just about expanding our silver project in Mexico—this deal enhances our ability to finance and build world-class projects across multiple jurisdictions.”

The acquisition, which closes on March 31, secures Discovery Silver’s control over the historic Porcupine mining district, an area with over a century of production history and extensive existing infrastructure.

Building on a Legacy

The Porcupine assets include the prolific Dome Mine, one of the longest-running underground operations in Canada, as well as the Hoyle Pond Mine and associated processing facilities. These assets collectively position Discovery Silver as an estimated 285,000-ounce-per-year producer.

“Unlike developing a mine from scratch, we’re stepping into an operation where billions of dollars have already been invested in infrastructure,” said Makuch. “This deal wasn’t just about acquiring resources—it was about acquiring opportunity.”

With existing milling and processing capabilities in place, Discovery Silver expects a smooth transition, with minimal additional capital expenditure required. The company has also identified significant upside potential through resource expansion and operational efficiencies.

“The Dome Mine still holds a substantial resource, even after more than a hundred years of mining,” Makuch noted. “There’s a lot more to be discovered and developed in this camp.”

Financial Strength and Expansion Strategy

Makuch emphasized that Discovery Silver structured the acquisition in a way that maintains financial flexibility. The deal includes an upfront payment of $200 million to Newmont, with additional structured payments spread over the next few years.

“We’re entering this with a strong balance sheet,” Makuch said. “Having financial strength is critical—we can have the best projects in the world, but without the money to execute, we won’t get anywhere.”

The company plans to leverage its newly acquired assets to generate free cash flow while also investing in long-term mine life extension projects.

“There’s no question we’re paying a fraction of the real value for these assets,” Makuch added. “When you consider the exploration potential, the ability to extend mine life, and the synergies we can achieve, the upside is enormous.”

Exploration and Growth Potential

The acquisition also brings a wealth of untapped exploration opportunities. In addition to the proven reserves, Makuch pointed to targets like the TVZ zone and deeper extensions at Dome that could add significant value.

“We’re inheriting a project that has been underexplored in recent years,” Makuch said. “A lot of these deposits remain open at depth, and we plan to aggressively drill to expand resources.”

Discovery Silver is also evaluating potential changes to improve mine efficiency, including the possibility of moving a railway to access deeper ore zones.

Commitment to Sustainability and Workforce Development

Beyond financial and operational considerations, Discovery Silver is placing a strong focus on environmental stewardship and community engagement. Makuch highlighted the importance of progressive rehabilitation and responsible tailings management.

“Mining companies don’t always get the credit they deserve for environmental responsibility,” he said. “We need to be proactive in showing that we’re managing our impact properly. This means reclaiming areas as we go, rather than waiting until the end of mine life.”

He also addressed concerns about workforce availability in Timmins, noting that while the mining sector has evolved, there remains a skilled labor pool with deep experience in underground mining.

“There’s a younger workforce in Timmins than many might expect,” said Makuch. “We’re committed to training and developing local talent, bringing in apprenticeship programs, and making sure we’re building a strong team for the long term.”

Looking Ahead

With the acquisition complete, Discovery Silver is now focused on integrating the Porcupine assets and optimizing operations. While the company has yet to decide whether to rebrand under a new name, Makuch made it clear that the goal is to create a lasting and profitable mining enterprise.

“This is just the beginning,” he said. “The Porcupine camp has been producing for over a century, and with the right investment and strategy, it can continue producing for many more decades. We’re here to build something significant.”

By Kevin Vincent, Senior Contributing Editor to Mining Life Online and Mining Life & Exploration News.

Tags: Northern Ontario / Operational Updates / Gold / All Articles