Starcore International Mines: From Lease to Cash Flow — The Mexico Expansion Plan
TSX: SAM
Recorded on October 16, 2025.
In this exclusive interview, Steve Yang sits down with Robert Eady, President & CEO of Starcore International Mines Ltd. (TSX: SAM), to discuss the company’s newly signed 10-year lease agreement in Mexico, the strategy behind trucking ore to Starcore’s San Martin mill, and a detailed roadmap from permit submission to first production.
Starcore’s latest move marks a pivotal expansion for the company, positioning it to rapidly grow cash flow without major capital expenditures. The leased “Tortilla Project”—a past-producing silver-lead-zinc district near the historic San Martin operation—gives Starcore immediate access to mineralized zones that can be mined and processed using its existing facilities.
The conversation walks viewers through every operational and financial lever:
What You’ll Learn in This Interview
1️⃣ Why this lease matters
Starcore has secured a 10-year lease on a high-potential silver-district property located close enough to its San Martin complex to truck ore directly. The area was mined historically but never explored with modern techniques—creating both near-term production and exploration upside.
2️⃣ Low-capex, high-return strategy
Instead of spending millions on a new mill, management will ship ore to the fully permitted San Martin plant, which already operates two separate circuits—one for oxide material and another for carbonaceous ore. This allows for quick turnaround, lower startup costs, and faster payback.
3️⃣ Timeline to cash flow
The company plans to file environmental permits by November 17, expects approval around March 2026, and is targeting initial shipments in April. The phased ramp-up starts around 50 tons per day (tpd) and scales to 200 tpd as production stabilizes.
4️⃣ Deal structure and economics
The lease requires approximately US $260 000 in payments during the first six months, carries a 2% NSR royalty, and includes an option to purchase the project for US $5 million, plus US $2 million to buy out the NSR—a total potential acquisition cost of US $7 million.
With grades discussed around 550 g/t Ag equivalent, this arrangement could yield a forecast net cash flow of roughly US $1.5 million per month once fully operational.
5️⃣ Geology and exploration upside
Eady outlines the mineralized zones being rehabilitated—an old adit providing access to the high-grade veins—and explains why historical grades combined with the district’s structure suggest significant untested potential for step-out drilling once cash flow begins.
6️⃣ Community and environmental permitting
The project sits within a supportive mining jurisdiction. Starcore’s existing 11-year environmental permit at San Martin helps streamline processing authorization, while the new site will add local employment and infrastructure improvements to the region.
7️⃣ Capital discipline and shareholder alignment
Management emphasizes that every decision is designed to generate self-funded growth. Past cash-flow cycles at San Martin enabled dividends (notably in 2012), and similar outcomes are on the table once the Tortilla project is cash-positive.
Guest / Company
Starcore International Mines Ltd. (TSX: SAM)
🌐 Website: https://www.starcore.com
📧 Investor Relations: investor@starcore.com
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