New Pacific Metals (US:NEWP) Prnewswire·2024-10-01 21:30Core Insights - New Pacific Metals Corp. has released a Preliminary Economic Assessment (PEA) for its Carangas project in Bolivia, indicating strong economic potential with a post-tax NPV of $501 million and an IRR of 26% at base case metal prices [1][4][6]. Economic Highlights - The PEA estimates a total payable silver production of approximately 106 million ounces over a 16-year mine life, with an average annual production of 6.5 million ounces [3][6]. - Initial capital costs are projected at $324 million, with a post-tax payback period of 3.2 years [3][6]. - The average all-in sustaining cost (AISC) is estimated at $7.60 per ounce of silver, net of by-products [3][6]. Production and Processing - The project anticipates an annual processing rate of 4 million tonnes, with a total mill feed of 64.4 million tonnes [2][10]. - Silver recovery is projected at 87.3%, with the average silver grade in the first six years expected to be 83 g/t [2][10]. - The mine will utilize a conventional open-pit mining approach, with a low strip ratio of 1.7:1, enhancing operational efficiency [10][13]. Community and Government Relations - The company emphasizes collaboration with local communities and government, which is crucial for advancing the project and securing necessary permits [5][24]. - The Bolivian government has established a pathway for transitioning from exploration to mining licenses, with Carangas set to be the first project under the 2014 mining code [24]. Next Steps - Following the PEA, New Pacific plans to secure necessary permits and proceed with a feasibility study, expected to take 12-18 months [22][23]. - The company has made significant progress in environmental assessments and community engagement, which are essential for project advancement [23][24].