New Pacific Resources Enhances Bolivia Silver Project Outlook

New Pacific Metals has announced a substantial upgrade to the economic forecast for its Carangas Silver-Gold Project located in Bolivia, according to reports from Seeking Alpha. The company recently unveiled an updated Preliminary Economic Assessment (PEA), which details a more robust financial outlook for the mineral resource situated in the Potosí region. The revised PEA outlines an after-tax net present value (NPV) of $1.53 billion, using a 5% discount rate, which marks a significant increase from the previous assessment. This enhanced valuation reflects a 28% improvement compared to the earlier study, signaling stronger potential returns for investors. The internal rate of return (IRR) has also seen a positive adjustment, now estimated at 39%, up from 33% previously. Key to these improved figures is a projected average annual production of 13.9 million ounces of silver equivalent during the first three years of operations. Over the entire mine life, the average annual production is anticipated to be 11.2 million ounces of silver equivalent. The project’s operational duration has also been extended, now estimated at 16 years, compared to the 14-year estimate in the initial PEA. The initial capital expenditure (CAPEX) required to bring the mine into production is estimated at $356 million. The study forecasts a relatively rapid payback period of 1.7 years, suggesting that the initial investment could be recovered efficiently once operations commence. All-in sustaining costs (AISC) are projected at $12.30 per ounce of silver equivalent, net of by-product credits, highlighting competitive operating expenses. These updated economic projections are based on metal price assumptions of $23.50 per ounce for silver and $1,900 per ounce for gold. The company’s continued exploration and development efforts at the Carangas site appear to be yielding positive results, reinforcing the project's potential as a significant silver and gold producer in the region. New Pacific Metals maintains a strong focus on advancing its Bolivian assets, with the Carangas project at the forefront of its development strategy.