New Pacific Metals Corp. (NYSE American: NEWP) (TSX: NUAG) is making significant strides in the global silver market with its two major projects in Bolivia, the Silver Sand and Carangas projects. These projects are among the largest undeveloped open-pit silver assets globally, with the potential to significantly impact the silver supply chain. The Silver Sand project is projected to produce 12 million ounces of silver annually, while the Carangas project could add 6.6 million ounces, alongside over 1 million ounces of gold potential at depth.
The company's preliminary feasibility study for the Silver Sand project highlights a post-tax net present value of US$740 million and an internal rate of return of 37%, with all-in sustaining costs estimated at just US$10.69 per ounce. Similarly, the Carangas project shows promising economics, with a post-tax NPV5% of US$501 million and an IRR of 26%. These figures underscore the projects' potential to become highly profitable ventures in the silver mining sector.
With global silver demand on the rise, driven by industrial and renewable energy sectors, New Pacific Metals Corp.'s projects come at a critical time. Industrial applications now account for 83% of annual silver demand, highlighting the metal's importance beyond traditional investment avenues. The company's focus on advancing these projects through Bolivia's permitting process could not only fill a growing supply gap but also revitalize the country's mining sector by attracting much-needed foreign investment.
Backed by significant players in the precious metals market, including Silvercorp Metals and Pan American Silver, New Pacific Metals Corp. is well-positioned to leverage its Bolivian assets. The company's projects offer pure silver leverage in a market where many producers are shifting focus due to a lack of primary silver resources. As New Pacific Metals Corp. progresses with its permitting efforts, the global silver market watches closely, recognizing the potential impact of these projects on future supply and demand dynamics.
