New Pacific Metals Reports Results of its Pre-Feasibility Study of the Silver Sand Project Post-Tax US$740 NPV (5%), 37% IRR, 157 Million Ounces of Silver

Core Insights - The pre-feasibility study (PFS) for the Silver Sand project indicates strong potential for high-grade, low-cost silver production, with an estimated 157 million ounces of silver to be produced over a 13-year mine life [2][7] - The project is expected to have an initial capital cost of $358 million and a post-tax payback period of 1.9 years at a silver price of $24.00 per ounce [35][8] - The company aims to secure surface rights through agreements with local communities, emphasizing the importance of community engagement for project success [2][25][26] Economic Results - The project has a post-tax net present value (NPV) of $740 million and an internal rate of return (IRR) of 37% based on a silver price of $24.00 per ounce [8][4] - Cumulative net cash flow is projected to be $1.733 billion pre-tax and $1.162 billion post-tax over the life of the mine [4] - The average all-in sustaining cost (AISC) is estimated at $10.69 per ounce of silver [8][35] Production and Processing - The annual silver production is expected to exceed 15 million ounces in the first three years, with an average annual production of over 12 million ounces throughout the mine's life [2][4] - The mine will utilize conventional open-pit mining methods, with a total of 52 million tonnes of ore anticipated to be mined [16][4] - The processing plant will be connected to the national electricity grid, providing low-cost power for operations [36] Sensitivity Analysis - The project's NPV and IRR are sensitive to fluctuations in silver prices, with a potential NPV of $936 million and an IRR of 43% if the silver price increases to $27.00 per ounce [11] - Sensitivity analysis indicates that changes in mine operating costs and capital expenditures will also impact the project's financial metrics [12][8] Community Engagement and Permitting - The company is actively engaging with local communities to address the presence of illegal artisanal miners and to secure necessary agreements for project advancement [25][26][48] - Progress towards obtaining surface rights and finalizing the Environmental Impact Assessment Study is ongoing, with community support being crucial for success [47][27] Infrastructure and Access - The site is accessible via government highways and local roads, with ongoing upgrades to improve access [6] - The project will benefit from established infrastructure, which is expected to reduce overall operational costs [36]