Mining News
New Pacific reports PEA results on its Silver Sand project in Bolivia with post-tax NPV of $726M and IRR of 39%
(Kitco News) - New Pacific Metals (TSX: NUAG) today reported the results of the preliminary economic assessment (PEA) study on its 100% owned Silver Sand project in Potosi Department, Bolivia.
According to the PEA study results, under the base case silver price of US$22.50 /oz, the Silver Sand open pit project is expected to generate a pre-tax NPV (5%) of $1.1 billion and an IRR of 52%, and a post-tax NPV (5%) of $726 million and an IRR of 39%.
The project has a 14-year mine life producing approximately 171 million ounces total payable silver metal, with initial capital costs of $308 million (including $52 million in contingency costs) and life-of-mine (LOM) sustaining capital costs of $20 million.
The project’s average LOM operating cash cost is expected to be US$8.45 /oz with total all-in sustaining cost of US$10.42 /oz silver.
Importantly, annual payable metal production is expected to exceed 15 million ounces of silver in years one through four, with LOM average annual payable metal production exceeding 12 million ounces of silver.
"This study demonstrates that the Silver Sand project can be developed into one of the world's largest silver mines with long life and robust economics. Its development will bring economic benefit to all stakeholders, including communities in Bolivia and shareholders of New Pacific," commented CEO and Founder Dr. Rui Feng. "We are very pleased with the results of this PEA. Given the robust economic parameters of the project, there is room to accommodate inflation pressure in capital or operating costs."
New Pacific is a Canadian exploration and development company with precious metal projects in Bolivia. The company's flagship project, the Silver Sand silver project, according to its 2022 Mineral Resource Estimate, 94% of the metal is contained in Measured + Indicated consisting of 201.8 M oz silver at 116 g/t Ag, with 13.0 M oz silver at 88 g/t Ag contained in the Inferred category.
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