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Southern Silver Announces Preliminary Economic Assessment on Cerro Las Minitas with After-Tax Net Present Value at a 5% Discounted Rate of US$349M, Internal Rate of Return of 17.9% and a 60 Month Payback
Vancouver, British Columbia--(Newsfile Corp. - August 29, 2022) - Southern Silver Exploration...
About this update from Southern Silver Exploration Corp.
[{"type":"text","content":"Southern Silver Announces Preliminary Economic Assessment on Cerro Las Minitas with After-Tax Net Present Value at a 5% Discounted Rate of US$349M, Internal Rate of Return of 17.9% and a 60 Month PaybackVancouver, British Columbia--(Newsfile Corp. - August 29, 2022) - Southern Silver Exploration Corp. (TSXV: SSV) (\"Southern Silver\") reports results from its Preliminary Economic Assessment ('PEA\") on its 100% owned Cerro Las Minitas project (\"CLM\"). PEA Highlights (all figures in $US unless otherwise noted):Robust Project Economics - Base Case: after-tax NPV5% of $349M (C$450M) and IRR of 17.9% (using Ag- $21.95/oz, Cu - $3.78/lb, Pb - $0.94/lb and Zn - $1.33/lb);Excellent Silver and Zinc Price Leverage - Base-case +15%: after-tax NPV5% of $561M (C$730M) and IRR of 24.4% (Ag- $25.24/oz, Cu - $4.35/lb, Pb - $1.08/lb and Zn - $1.53/lb);Large-Scale Underground Mining Operation with a 15-year mine life with an annual average plant feed of 14.2 Mozs AgEq (inc. 5.8 Mozs Ag) at an AISC of $13.27/oz AgEq sold;High-Revenue Project: Base Case gross revenues total US$3.7B with silver representing 42% of revenues, zinc representing 39% of revenues. The project has an Initial CapEx of $341M and an NPV-to-CapEx ratio of 1.0X;Well Located Project in a mining friendly jurisdiction with excellent infrastructure in southeast Durango state, Mexico; andFurther Exploration Upside: Drilling through to August 2022 has confirmed mineralized extensions to the Mina La Bocona and Skarn Front deposits that have not been incorporated into the current Resource Model. Other deposits remain open laterally and to depth and remain to be exploredLawrence Page. Q. C. President, said: \"Cerro las Minitas is aptly named in Mexico as the \"Hill of Mines\" and is located in the Faja de Plata or \"Silver Belt\" of northern Mexico where numerous silver and base metal mines have been developed and are currently operating. This location is significant since all the elements necessary to establish a mine are present in infrastructure, competent work force, access to transportation, miner-friendly legislation, power and access to mills and smelters and an environment amenable for year-round operations.The PEA modelling is based upon a Mineral Resource Estimate prepared in late 2021 with data derived from 171 drill holes. Since that time, twenty-four additional dril...