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 a post-tax net present value (5%) of $2.65 billion and an internal rate of return of 35.9%. The updated study incorporates higher processing throughput and the addition of the project's gold zone, outlining 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. The company will continue advancing the 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. New Pacific also plans to begin feasibility-level metallurgical, geotechnical and hydrological work as it moves the Carangas project toward the next stage of development.
This updated PEA represents a significant milestone for New Pacific Metals, demonstrating robust economics and a clear path forward for the Carangas project. The project's scale and strong returns underscore its potential to become a major silver-gold producer in Bolivia. The addition of the gold zone and increased throughput enhance the project's value proposition, providing a diversified revenue stream and improving overall project economics.
The implications for the mining industry are notable, as the Carangas project could contribute substantially to global silver supply. With average annual payable silver production of 10.6 million ounces, the project would be one of the largest silver mines globally. The positive economics and relatively short payback period may attract further investment into the region and encourage development of other projects in Bolivia.
New Pacific Metals is a Canadian exploration and development company advancing 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. The Carangas Silver–Gold project in Oruro strengthens the company's portfolio through scale, robust economics, and regional exploration potential. With near a decade of operating experience in Bolivia, New Pacific has earned the confidence of its stakeholders and shareholders.
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