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AbraSilver Resource Corp. Announces Robust PEA of Diablillos Including After-Tax NPV of US$364M
Economics Demonstrate Potential for a Highly Economic Oxide Silver-Gold Development Project Toronto - TheNewswire – November 29, 2021: AbraSilver Resource Corp.
About this update from Abrasilver Resource Corp.
[{"type":"text","content":"Economics Demonstrate Potential for a Highly Economic Oxide Silver-Gold Development Project Toronto - TheNewswire – November 29, 2021: AbraSilver Resource Corp. (TSXV:ABRA) (OTC:ABBRF) (\"AbraSilver\" or the “Company”) is pleased to announce the results of a Preliminary Economic Assessment (“PEA”) for its wholly-owned Diablillos project (“the Project”) in Salta Province, Argentina. The PEA is based on the Mineral Resource estimate, recently reported in a Technical Report titled “NI 43-101 Technical Report Mineral Resource Estimate – Diablillos Project”, effective October 28, 2021. All dollar ($) figures are presented in US dollars unless otherwise stated. Base Case metal prices used in this analysis are $1,650 per gold (“Au”) ounce (“oz”) and $24.00 per silver (“Ag”) oz. PEA Study Highlights: Robust Economics: Pre-Tax NPV5% of $678.5 Million (CAD$ 882.1 Million) with an Pre-Tax IRR of 44.3% (Base Case); After-Tax NPV5% of $364.0 Million (CAD$ 473.2 Million) with an After-Tax IRR of 30.2% (Base Case). 7,000 tonnes per day (“tpd”) production rate with an initial mine life of up to 16 years. Average annual production: Average annual production in first 5 years of 8.0 Moz Ag and 44.3 koz Au, or 11.4 Moz AgEq; Average Life-of-Mine (“LOM”) production of 4.2 Moz Ag and 52.0 koz Au, or 8.5 Moz AgEq. Low cash operating costs: All-in Sustaining Cash Costs (“AISC”) during first 5 years of $10.41/oz AgEq; All-in Sustaining Cash Costs (“AISC”) during average Life-of-Mine (“LOM”) of $11.97/oz AgEq. Initial Capital Expenditure of $255.0 million, with payback period of 2.6 years. Several potential opportunities have been identified that may significantly further enhance the economic returns as detailed later in this release. John Miniotis, President and CEO, commented, “We’re very pleased with the results of this PEA which demonstrates that Diablillos is a stand-out, economically robust silver-gold project with significant upside potential. Importantly, this assessment is just a snapshot of the potential value of Diablillos. Our ongoing Phase II exploration program continues to intersect multiple high-grade results which are expected to add significant incremental value. Moreover, we have identified several opportunities to further expand and optimize the PEA cas...