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AbraSilver Resource Announces Robust Diablillos PFS With US$494M After-Tax NPV and 26% IRR
Toronto – March 25, 2024: AbraSilver Resource Corp. (TSX.V:ABRA; OTCQX: ABBRF) ("AbraSilver" or the “Company”) is pleased to announce results from its Prelimina
About this update from Abrasilver Resource Corp.
[{"type":"text","content":"Toronto – March 25, 2024: AbraSilver Resource Corp. (TSX.V:ABRA; OTCQX: ABBRF) (\"AbraSilver\" or the “Company”) is pleased to announce results from its Preliminary Feasibility Study (“PFS” or the “Study”) for its wholly-owned Diablillos project (the “Project”) in Salta Province, Argentina. The PFS project team was comprised of SGS Geological Services (“SGS”), with support from Knight Piesold Ltd., SGS Bateman, Bmining (Chile), and INSA (Argentina). All dollar ($) figures are presented in US dollars unless otherwise stated. Base case metal prices used in this analysis are $1,850 per gold (“Au”) ounce (“oz”) and $23.50 per silver (“Ag”) oz. PFS Study Highlights: Attractive project economics – $494 million after-tax Net Present Value discounted at 5% per annum (“NPV5%”), 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 prices1 an after-tax NPV5% of $661 million with an IRR of 30.3% and payback of 2.1 years Substantial silver and gold production – 13.3 Moz silver-equivalent (“AgEq”) average annual production over a 13-year life-of-mine (“LOM”), 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”)2 – 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&P”) Mineral Reserves – Based on the PFS, Diablillos is estimated to hold P&P 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 preliminary internal study estimates that a significant amount...