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, revealing an after-tax net present value (NPV) at a 5% discount rate of $2.65 billion and an internal rate of return (IRR) 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.
The robust economics are 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. Initial capital costs are estimated at $644.5 million, with a post-tax payback period of just 2.4 years. This assessment underscores the project's potential to become a major silver-gold producer in Bolivia.
New Pacific Metals said it will continue advancing the Carangas project through a planned 30,000-meter infill drilling program while progressing permitting activities, including conversion of exploration licenses to administrative mining contracts and initiation of the environmental impact assessment process. The company also plans to begin feasibility-level metallurgical, geotechnical, and hydrological work as it moves the project toward the next stage of development.
The significance of this announcement lies in the strong economic returns projected for Carangas, which could bolster New Pacific's position as a multi-asset developer in Bolivia. The company's portfolio already includes the Silver Sand project in Potosí, which has the potential to become one of the world's largest silver mines. The Carangas project in Oruro strengthens this portfolio through scale, robust economics, and regional exploration potential.
For investors, the updated PEA provides a clearer picture of the project's value and timeline. The after-tax NPV of $2.65 billion and 35.9% IRR suggest that Carangas could generate substantial returns if developed as planned. The short payback period of 2.4 years indicates relatively quick capital recovery, which may reduce investment risk.
The mining industry and the Bolivian economy could see significant benefits if the project moves forward. Carangas is expected to create jobs, generate tax revenue, and contribute to local infrastructure development. For New Pacific Metals, successful advancement of Carangas would diversify its asset base and strengthen its presence in the region.
To view the full press release, visit https://ibn.fm/pAzOX. The latest news and updates relating to NEWP are available in the company's newsroom at http://ibn.fm/NEWP.
