New Pacific Metals Corp. (TSX: NUAG) (NYSE American: NEWP) has reported results from an updated preliminary economic assessment (PEA) for its Carangas project in Bolivia, revealing an after-tax net present value (5% discount) of $2.65 billion and a 35.9% internal rate of return. The updated study, based on metal prices of $45 per ounce silver, $3,400 per ounce gold, $1.20 per pound zinc, and $0.90 per pound lead, incorporates a higher processing throughput and the addition of the project's gold zone.
The PEA outlines a 19-year mine life with average annual payable silver production of 10.6 million ounces. Initial capital costs are estimated at $644.5 million, with a post-tax payback period of 2.4 years. The company noted that the robust economics underscore the project's potential to become a significant precious metals producer.
New Pacific Metals plans to continue advancing the Carangas project through a planned 30,000-meter infill drilling program while progressing permitting activities. These include the conversion of exploration licenses to administrative mining contracts and initiation of the environmental impact assessment process. The company also intends to begin feasibility-level metallurgical, geotechnical, and hydrological work as it moves the project toward the next stage of development.
For more details, the full press release is available at https://ibn.fm/pAzOX.
The Carangas project is one of two advanced precious metals projects in Bolivia being developed by New Pacific. The company's Silver Sand project in Potosí has the potential to become one of the world's largest silver mines. The Carangas project strengthens the company's portfolio through its scale, robust economics, and regional exploration potential. With nearly a decade of operating experience in Bolivia, New Pacific has earned the confidence of its stakeholders and shareholders.
Latest news and updates relating to NEWP are available in the company's newsroom at http://ibn.fm/NEWP.
This announcement is important as it demonstrates the significant economic viability of the Carangas project, which could contribute to global silver supply and provide long-term value for shareholders. The updated PEA, with its higher throughput and inclusion of gold resources, positions the project favorably among emerging precious metals assets.
