Silver Tiger Metals Inc. [TSXV-SLVR; OTCQX-SLVTF] announced a Preliminary Economic Assessment (PEA) for its 100%-owned, silver-gold El Tigre Project in Sonora, Mexico. The PEA is centered on the conventional open pit mining economics of the Stockwork Mineralization Zone defined in the updated MRE released September 12, 2023.
Highlights of the PEA, with a base case silver price of $23.75/oz and gold price of $1,850/oz are as follows (all figures in US dollars unless otherwise stated):
After-Tax net present value (NPV) (using a discount rate of 5%) of US$287 Million with an After-Tax IRR of 55.8% and Payback Period of 1.7 years (Base Case).
Thirteen-year mine life recovering a total of 60 Million payable silver equivalent ounces (AgEq) or 776,000 gold equivalent ounces (AuEq), consisting of 16 Million silver ounces and 571,000 gold ounces.
Total project undiscounted after tax cash flow of US$445 Million. Initial capital costs of $59 Million, including $7.7 Million in contingency costs, over an expected 12-month build, expansion capital of $33 Million and sustaining capital costs of $31 Million over the life of mine (LOM).
Average LOM operating cash costs of $803/oz AuEq, and all-in sustaining costs (AISC) of $843/oz AuEq or Average LOM operating cash costs of $10/oz AgEq, and all in sustaining costs (AISC) of $11/oz AgEq; and average annual production of approximately 4.6 Million AgEq oz or 59,000 AuEq oz.
Glenn Jessome, President and CEO stated: “We are very pleased with the work completed by our consultants and our technical team on the PEA for the open pit at El Tigre. The open pit delivers robust economics with an NPV of US$287 million and substantial after tax cash flows of US$445 million.”
Jessome continued: “This is a pivotal point for our Company as we now have a clear path forward to quickly completing a PFS and making a construction decision for the open pit. The open pit has good grade, low strip, wide benches and exceptional metallurgy. With such positive parameters and with our new VP of Operations Francisco Albelais, a career expert in the construction of large heap leach mines in Mexico, we are confident we will be able to advance the open pit portion of the project very quickly.” Mr. Jessome concluded “The open pit is only one component of El Tigre as we have also recently delivered over 90-million silver equivalent ounces in the underground in the Mineral Resource Estimate and disclosed an Exploration Target establishing 7 to 9 million tonnes at 225 to 265 g/t AgEq for 50 to 75 million silver equivalent ounces. The Company will also continue to work on this substantial underground Mineral Resource and advance that towards a PEA.”
The PEA was prepared by independent consultants Micon International Limited with metallurgical test work completed by SGS Canada Inc.’s Lakefield office (SGS) and process plant design and costing by D.E.N.M. Engineering Ltd., and environmental and permitting led by CIMA Mexico. Following are tables and figures showing key assumptions, results, and sensitivities.
The El Tigre Project has been envisioned as an open pit mining operation starting at a processing rate of 7,500 tonnes per day for years 1-3 and then ramping up to 15,000 tonnes per day by year 5 after 1 year construction for ramp up.
Open pit mining will be contracted and carried out by drill and blast followed by conventional loading and truck haulage to the waste rock storage facilities and the process plant.
As previously released, the Company will also continue to work on this substantial underground Mineral Resource and advance that towards PEA. Out-of-Pit Mineral Resources at El Tigre of 21 Moz AgEq grading 279 g/t AgEq contained in 2.3 Mt and 70 Moz AgEq grading 235 g/t AgEq contained in 9.2 Mt (Table 5). For higher grade sensitivity cases refer to updated MRE release dated September 12, 2023.
Exploration potential at the El Tigre Project is substantial with prospective areas for exploration both down dip and along strike with the disclosed target establishing 7 to 9 Million tonnes at 225 to 265 g/t AgEq for 50 to 75 Moz AgEq.
The company owns royalty-free, 100% of the 6,238 hectares land-package encompassing the footprint of proposed mining operation with no Ejido presence. In addition, the company controls 28,414 hectares of Concessions to conduct exploration along a 25 km strike length of the Sierra Madres.
Silver Tiger’s 28,414-hectare Historic El Tigre Mining District is located in Sonora, Mexico. Principled environmental, social and governance practices are core priorities at Silver Tiger.