John Miniotis, President and CEO of AbraSilver Resource Corp (TSX.V:ABRA – OTCQX:ABBRF), joins us to outline the key takeaways and primary metrics from its Preliminary Feasibility Study (“PFS”) for its wholly-owned Diablillos project in Salta Province, Argentina, just released on March 25th, 2024.
>> PFS Study Highlights:
- Attractive project economics – $494 million after-tax Net Present Value discounted at 5% per annum at base-case metal prices, with an after-tax Internal Rate of Return (“IRR”) of 25.6% and payback of 2.4 years.
- At current spot prices an after-tax NPV5% of $661 million with an IRR of 30.3% and payback of 2.1 years Base case metal prices used in this analysis are $1,850 per gold (“Au”) ounce (“oz”) and $23.50 per silver (“Ag”) oz.
- Substantial silver and gold production – 13.3 Moz silver-equivalent (“AgEq”) average annual production over a 13-year life-of-mine, comprised of 7.7 Moz Ag and 71 koz Au, or, with average annual production of 17.9 Moz AgEq over the first five years of full mine production, comprised of 14.5 Moz Ag and 44 koz Au
- Low All-in Sustaining Cash Costs (“AISC”)– Average AISC of $12.40/oz AgEq over LOM
- Low capital cost – Initial pre-production capital expenditure of $373 million and sustaining capital of $65 million
- Open pit mine with high grades – Conventional open pit mining and processing plant focused exclusively on oxide mineralization with average grades of 91 g/t Ag and 0.81 g/t Au (155 AgEq) over the LOM
- Maiden Proven Probable (“P”) Mineral Reserves Based on the PFS, Diablillos is estimated to hold PP Minerals Reserves containing 210 Moz of AgEq metal (42.3 Mt at 91 g/t Ag 0.81 g/t Au)
- Potential for additional economic improvements – Several opportunities have been identified that may significantly enhance the economic returns as detailed later in this release:
- A Phase IV drill campaign is planned to further expand the Mineral Resource and Reserve estimates within the existing deposits and to define new adjacent mineralized zones through step-out drilling.
We also get into the optionality between silver and gold for future development options, the potential to find new satellite pits by further exploring the JAC North, Alpaca, and Fantasma targets, and discuss the benefit of the project being in the mining friendly province of Salta in Argentina.
If you have any follow up questions for John regarding at AbraSilver, then please email us at Fleck@kereport.com or Shad@kereport.com.
- In full disclosure, Shad is a shareholder of AbraSilver at the time of this recording
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