New Pacific Metals Corp. (TSX: NUAG) (NYSE American: NEWP) has released results from an updated preliminary economic assessment (PEA) for its Carangas project in Bolivia, highlighting robust economics with an after-tax net present value (at a 5% discount) of $2.65 billion and an internal rate of return of 35.9%. The updated study, which incorporates a higher processing throughput and the addition of the project's gold zone, 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 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. These assumptions reflect a favorable outlook for precious and base metals, which could enhance the project's viability. The Carangas project, located in the Oruro department, is a silver-gold deposit that New Pacific is advancing through permitting and feasibility stages.
New Pacific plans to continue advancing the project with a 30,000-meter infill drilling program while progressing permitting activities. These include 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 work as it moves the Carangas project toward the next stage of development.
The updated PEA underscores the strategic importance of the Carangas project within New Pacific's portfolio. The company is a Canadian exploration and development company with two permitting-stage precious metals projects in Bolivia. Its Silver Sand project in Potosí has the potential to become one of the world's largest silver mines, while the Carangas project strengthens the company's portfolio through scale, robust economics, and regional exploration potential. With nearly a decade of operating experience in Bolivia, New Pacific has earned the confidence of its stakeholders and shareholders.
The implications of this announcement are significant for the mining industry and investors. The strong economic metrics suggest that the Carangas project could become a major silver producer, contributing to global silver supply. For Bolivia, the project represents potential economic development and job creation. For New Pacific, the positive PEA results could support financing efforts and attract strategic partners. The company's focus on advancing permitting and feasibility work indicates a clear path toward development.
For more information, the full press release is available at https://ibn.fm/pAzOX. The latest news and updates relating to NEWP can be found in the company's newsroom at http://ibn.fm/NEWP.
