New Pacific Metals (TSX:NUAG, NYSE:NEWP) Corp told investors that the preliminary economic assessment (PEA) for its Silver Sand project in Bolivia was on track to be completed by year-end, as it posted an updated resource for the property, which showed a 30% increase in the measured and indicated (M&I) category.
The new NI 43-101 report is dated October 31 and assumes an open pit mine at a metal price of US$22.50 per ounce of silver, recovery rate of 91%, and a cut-off grade of 30 grams per ton (g/t).
In the higher confidence M&I category were 54.26 million tonnes (Mt) at 116 g/t silver for 201.77 million ounces (Moz). In the inferred category was 4.56 Mt at a grade of 88 g/t silver, for 12.95 Moz.
As a comparison, a 2019 estimate pegged the M&I resource at 35.39 Mt at 137 g/t silver, for 155.05Moz (using a cut-off of 45 g/t silver).
READ: New Pacific Metals achieves 98% gold recovery from cyanide leach at Carangas silver-gold project in Bolivia
New Pacific pointed out that Silver Sand was "one of the most significant new global primary silver discoveries in the last decade".
It added that mineralization remained open on strike to the north and south and at depth. No feeder zones or source intrusions have been discovered to date and the company classifies the exploration potential as "good to excellent".
"Mineralization starts at or near‐surface and is amenable to potential open‐pit mining extraction. Approximately 95% of the reported Mineral Resources are within 200 m of the topographic surface," the firm added.
In addition, initial metallurgical test work has indicated laboratory‐based recoveries of up to 97% for the various oxide – transition and sulphide mineral domains.
"In addition to the currently reported mineral resources, there are numerous known satellite mineral occurrences in the district of six kilometers long by two and a half kilometers wide.
"These mineral occurrences demonstrate similar mineralization style and grades to Silver Sand, subjected to extensive artisanal mining starting from Spanish colonial times and bore little modern exploration. The company believes these satellite occurrences have good resource potential."
Explorer New Pacific has precious metal projects in Bolivia. Silver Sand is the flagship, while its recently discovered Carangas silver-gold project is undergoing a 40,000m drill program.
At the third project, the Silverstrike silver-gold asset, a 6,000 m discovery drill program started in June 2022 and a near-surface broad gold zone was discovered from the first hole.
Contact the writer at giles@proactiveinvestors.com