New Pacific Metals Corp. (TSX: NUAG) (NYSE American: NEWP) has announced results from an updated preliminary economic assessment (PEA) for its Carangas silver-gold project in Bolivia, revealing a post-tax net present value (discounted at 5%) of $2.65 billion and an internal rate of return of 35.9%. The study, which incorporates higher processing throughput and the addition of the project's gold zone, outlines a 19-year mine life with average annual payable silver production of 10.6 million ounces.
The updated PEA is based on metal prices of $45 per ounce of silver, $3,400 per ounce of gold, $1.20 per pound of zinc, and $0.90 per pound of lead. Initial capital costs are estimated at $644.5 million, with a post-tax payback period of 2.4 years. The company said it will continue to advance the project through a planned 30,000-meter infill drilling program while progressing permitting activities, including conversion of exploration licenses to administrative mining contracts and initiation of the environmental impact assessment process.
New Pacific also plans to begin feasibility-level metallurgical, geotechnical, and hydrological work as it moves the Carangas project toward the next stage of development. The project, located in Oruro, Bolivia, is one of two precious metals projects the company is advancing in the country, along with the Silver Sand project in Potosí.
The Carangas project's robust economics highlight its potential to become a significant silver and gold producer. With near a decade of operating experience in Bolivia, New Pacific has earned the confidence of its stakeholders and shareholders. The company is focused on delivering value through the development of these assets.
For more information, the full press release is available at https://ibn.fm/pAzOX. The latest news and updates relating to New Pacific Metals are available in the company's newsroom at http://ibn.fm/NEWP.
