New Pacific Metals updates PEA for Carangas project in Bolivia  

New Pacific Metals (TSX: NUAG) (NYSE-A: NEWP) has released an updated preliminary economic assessment (PEA) for its Carangas project in Bolivia.  

The updated Carangas PEA considers an increased throughput rate and the inclusion of the gold zone when compared to the previous PEA released in 2024.  

The company said the project has robust economics, manageable upfront capex, annual silver production of approximately ten million ounces per year, and over one million ounces of gold produced over the life of mine. 

The PEA reports post-tax net present value (NPV) of $65 billion and internal rate of return (IRR) of 35.9% at base case metal prices of: $45.00/oz silver, $3,400/oz gold, $1.20/lb) zinc and $0.90/lb lead.  

Post tax NPV and IRR of $16 billion and 51.5%, respectively, at $67.50/oz silver and the other metal prices held constant; post tax NPV and IRR of $3.23 billion and 37.0%, respectively, at $5,100/oz gold and the other metal prices held constant.  

Life of mine is expected at 19 years, excluding two years of pre-production, producing approximately 195Moz of payable silver, 1.1 Moz of payable gold, 1,453 Mlbs of payable zinc and 941 Mlbs of payable lead, or 339.0 Moz silver equivalent. 

Mining will occur during years 1 through 16. For years 17 to 19 all production will come from stockpiles, New Pacific said, adding that payable silver production of approximately 15.5 Moz per year in years 1 through 8. 

Average all-in sustaining cost (AISC) are $18.25/oz AgEq, or average AISC of $12.11/oz Ag, net of by-products, during the pre-gold production period; payable silver production of approximately 7.6 Moz per year and payable gold production of approximately 142.7 koz per year from years 9 through 16.  

The company reported initial capital costs of $644.5 million and a post-tax payback of 2.4 years. LOM capex is $1.2 billion, including $422.7 million of growth capex and $166.5 million in sustaining capex; and closure costs of $149.8 million. 

The company said it will advance the project’s permitting front aiming to complete the Exploration Licenses to Administrative Mining Contracts conversion and to start the Environmental Impact Assessment Study process over the remaining periods of the year.