New Pacific Metals (TSX: NUAG) (NYSE American: NEWP) has released results from an updated preliminary economic assessment (PEA) for its Carangas project in Bolivia, demonstrating a significant increase in project value. The updated study reports an after-tax net present value (5% discount) of $2.65 billion and an internal rate of return of 35.9%, 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. This represents a substantial improvement over previous estimates, driven by higher processing throughput and the inclusion 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 updated assessment incorporates a larger processing capacity and expanded resource base, positioning Carangas as a potentially significant silver-gold producer. The project also contains zinc and lead credits, which enhance the overall economics.
New Pacific plans to advance the Carangas project through a planned 30,000-meter infill drilling program to further upgrade resource confidence. Concurrently, permitting activities will progress, including 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 studies as it moves toward the next stage of development.
The Carangas project, located in the Oruro department of Bolivia, is one of two precious metals assets in the company’s portfolio. 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 established strong stakeholder relationships and a track record of advancing projects in the region.
The updated PEA highlights the robust economics and scale of the Carangas project, which could have significant implications for the silver and gold mining industry. If developed, the project would add substantial silver supply to the market and provide economic benefits to Bolivia through job creation and infrastructure investment. The strong returns and relatively short payback period may attract investor interest and financing opportunities for the company.
For more details, the full press release is available at https://ibn.fm/pAzOX. The latest news and updates regarding New Pacific Metals can be found in the company’s newsroom at http://ibn.fm/NEWP.
