New Pacific Metals Corp. (TSX: NUAG) (NYSE American: NEWP) has released results from an updated preliminary economic assessment (PEA) for its Carangas silver-gold project in Bolivia, showcasing significant economic metrics. The study reports an after-tax net present value (NPV) discounted at 5% of $2.65 billion and an internal rate of return (IRR) of 35.9%, based on metal prices of $45 per ounce for silver, $3,400 per ounce for gold, $1.20 per pound for zinc, and $0.90 per pound for lead.
The updated PEA incorporates a higher processing throughput and expands the resource base by including the project's gold zone. The study 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. These robust economics highlight the Carangas project's potential to become a significant precious metals producer.
New Pacific Metals plans to continue advancing the project through a planned 30,000-meter infill drilling program while progressing permitting activities. Key steps include converting exploration licenses to administrative mining contracts and initiating the environmental impact assessment process. The company also intends to begin feasibility-level metallurgical, geotechnical, and hydrological work to move the Carangas project toward the next stage of development.
The Carangas project, located in the Oruro department of Bolivia, is one of two precious metals projects New Pacific is advancing in the country. The other is the Silver Sand project in Potosí, which has the potential to become one of the world's largest silver mines. With nearly a decade of operating experience in Bolivia, New Pacific has built strong relationships with stakeholders and shareholders.
For more details on the updated PEA, the full press release is available at https://ibn.fm/pAzOX. Investors can stay updated on the latest news and developments from New Pacific Metals at the company's newsroom: http://ibn.fm/NEWP.
