New Pacific tables PEA update for Bolivia silver project
New Pacific Metals Corp. [NUAG-TSX, NEWP-NYSE] has released an updated preliminary economic assessment (PEA) technical report for its Carangas project in Bolivia. The company said the updated PEA considers an increased throughput rate and inclusion of the gold zone, when compared to the previous PEA report, which was dated September 5, 2024.
The updated PEA envisages a 19-year mine life, excluding two years of pre-production, producing approximately 195 million ounces of payable silver, 1.1 million ounces of payable gold, 1.45 billion pounds of zinc, and 941 million pounds of lead or 339 million ounces of silver equivalent (AgEq).
The company said open pit mining will occur during years one through 16. For years 17 to 19 all production will come from stockpiles.
In years one through eight (the gold pre-production period), the PEA forsees payable silver production of approximately 15.5 million ounces annually (18.9 million AgEq per year) at an all-in-sustaining cost (AISC) of US$18.25 an ounce AgEq or average AISC of US$12.11 per ounce of silver net of by-products.
From years nine to 16 (the gold production period) payable silver production is forecast to be 7.6 million ounces per year. Gold production is estimated at 142,700 ounces annually (20.7 million ounces of AgEq per year) at an average AISC of US$17.78 per ounce AgEq, or average of US$39.49 an ounce silver, net of by-products.
For years 17 to 19 (the stockpile period) payable silver production is estimated at 10.3 million ounces total (21.6 million AgEq).
The updated PEA pegs the initial capital cost at US$644.5 million. Life of mine capex is forecast at US$1.2 billion, including US$422.7 million of growth capex and US$166.5 million in sustaining capex.
New Pacific shares edged higher on the news, rising 0.55% or $0.03 to $5.48. The shares trade in a 52-week range of $8.57 and $1.92.
New Pacific is a Canadian exploration and development company which is advancing two permitting stage precious metals projects in Bolivia. It’s Silver Sand project in Potosi has the potential to become one of the world’s largest silver mines.
The Carangas Project is located about 190 kilometres southwest of Oruro, Bolivia, within the South American Epithermal Belt, which hosts large precious metal deposits and operations in neighbouring countries. The property consists of three exploration licenses (Granville 1, Granville 11 and Colapso) spanning an area of 40.75 square kilometres. The project is road accessible.
The company said the Carangas project has robust economics, manageable upfront capex, annual silver production of approximately 10 million ounces annually, and over one million ounces of gold produced over the life of the mine. With the completion of the technical report, the company said it will continue to advance technical work, including a 30,000-metre infill drilling program. It will also advance the project’s permitting effort. It is anticipated that the deposit will be mined using a conventional open pit approach
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