New Pacific Metals (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%) of $2.65 billion and a 35.9% internal rate of return. The updated study incorporates a higher processing throughput and the addition of the project's gold zone, outlining 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 PEA is 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.
The company said it will continue advancing 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 Carangas project, located in Oruro, Bolivia, strengthens New Pacific's portfolio through scale, robust economics, and regional exploration potential. With near a decade of operating experience in Bolivia, New Pacific has earned the confidence of its stakeholders and shareholders. The company is also advancing its Silver Sand project in Potosí, which has the potential to become one of the world's largest silver mines.
For more details, the full press release is available at https://ibn.fm/pAzOX. The latest news and updates relating to NEWP are available in the company's newsroom at http://ibn.fm/NEWP.
