Vancouver, British Columbia – January 09, 2023 – New Pacific Metals Corp. (TSX: NUAG) (NYSE-A: NEWP) (“New Pacific” or the “Company”) is pleased to report the results of the Preliminary Economic Assessment (“PEA”) study of its 100% owned Silver Sand Project (the “Project”) in Potosi Department, Bolivia. The PEA is based on the Mineral Resource estimate which was reported on November 28, 2022 and is reported in accordance with National Instrument 43?101 (“NI 43?101”).
Highlights from the PEA, with a base case silver price of US$22.50/oz are as follows (all figures in US Dollars):
Pre-Tax NPV (5%) of $1.1 billion and an IRR of 52%, and a Post-Tax NPV (5%) of $726 million and an IRR of 39%;
Using a +/- 20% sensitivity analysis for silver price, Post-Tax NPV (5%) of $1,054 million and 50% IRR at US$27/oz silver and a Post-Tax NPV (5%) of $398 million and 26% IRR at US$18/oz silver;
14-year mine life producing approximately 171 million ounces total payable silver metal;
Initial capital costs of $308 million, which includes $52 million in contingency costs;
Life-of-mine (“LOM”) sustaining capital costs total $20 million;
Average LOM operating cash cost of US$8.45/oz and total all-in sustaining cost of US$10.42/oz silver;
Annual payable metal production exceeds 15 million ounces of silver in years one through four, with LOM average annual payable metal production exceeding 12 million ounces of silver.
“This study demonstrates that the Silver Sand Project can be developed into one of the world’s largest silver mines with long life and robust economics. Its development will bring economic benefit to all stakeholders, including communities in Bolivia and shareholders of New Pacific” commented Dr. Rui Feng, CEO and Founder. “We are very pleased with the results of this PEA. Given the robust economic parameters of the Project, there is room to accommodate inflation pressure in capital or operating costs.”
AMC Mining Consultants (Canada) Ltd. (mineral resource, mining, infrastructure and financial analysis) was contracted to conduct the PEA in cooperation with Halyard Inc. (metallurgy and processing), and NewFields Canada Mining & Environment ULC (tailings, water and waste management). The PEA is based on the updated Mineral Resource estimate which was reported on November 28, 2022.
ECONOMIC RESULTS AND SENSITIVITIES
Tables 1 shows the assumptions, summarizes the projected production and the economic results of the PEA and Table 2 shows sensitivities to metal price and operating and capital cost.
Table 1. Silver Sand Open Pit Mining – Key Economic Assumptions and Results
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