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%) of $2.65 billion and a 35.9% internal rate of return. The 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, underscores the project's robust economics and strategic importance.
The updated PEA 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. These metrics position Carangas as a significant silver-gold project with potential to generate substantial returns for investors.
New Pacific said it will continue advancing the project through a planned 30,000-meter infill drilling program while progressing permitting activities. The company is working on converting exploration licenses to administrative mining contracts and initiating the environmental impact assessment process. Additionally, New Pacific 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, is a key asset for New Pacific, complementing its Silver Sand project in Potosí. According to the company, Silver Sand has the potential to become one of the world's largest silver mines. Together, these projects strengthen New Pacific's portfolio through scale, robust economics, and regional exploration potential. With nearly a decade of operating experience in Bolivia, the company has earned the confidence of its stakeholders and shareholders.
The updated PEA results are significant for the mining industry, highlighting the viability of silver-gold projects in Bolivia and the potential for economic development in the region. The strong financial metrics, including a high IRR and rapid payback period, suggest that Carangas could attract further investment and accelerate development timelines. Investors and stakeholders can find more details in the full press release at https://ibn.fm/pAzOX.
