AbraSilver Announces Updated Diablillos PFS With CAD$1,046M (USD$747M) After-Tax Base-Case NPV
PFS Study Highlights:
-
Attractive project economics: 747 million after-tax Net Present Value discounted at 5% per annum (“NPV”); 27.6% Internal Rate of Return (“IRR”) and 2.0-year payback period.
-
At current spot prices1 an after-tax NPV5% of $1,291 million with an IRR of 39.3% and payback of 1.5 years.
-
-
Substantial silver and gold production – 13.4 Moz silver-equivalent “AgEq”) average annual production over a 14-year life-of-mine (“LOM”), comprised of 7.6 Moz Ag and 72 koz Au, with average annual production of 16.4 Moz AgEq over the first five years of full mine production, comprised of 11.7 Moz Ag and 59 koz Au.
-
Low All-in Sustaining Cash Costs (“AISC”)– Average AISC of $12.67/oz AgEq over LOM, and $11.23/oz AgEq over the first five years of full mine production.
-
Initial capital expenditures - Initial pre-production capital expenditure of $544 million (including contingency)with a further $77 million in sustaining capital over the LOM.
-
Significant potential for additional economic improvements – Several additional opportunities that may further enhance the economic returns as detailed later in this release:
-
Replacement of on-site self-generation from a combined solar-diesel power plant with a connection to the national grid under a long-term power purchase agreement from a third party. Capturing this opportunity would provide a meaningful reduction to initial capital, lower operating costs and, potentially, improve the carbon footprint of the Project.
-
A revised mine plan based on a new Mineral Resource and Reserve estimate that incorporates the additional Phase IV exploration drilling results at JAC and the northeast zone of Oculto as well as higher metal price assumptions. A new mine plan may present the opportunity to reduce strip ratio, and improve operating cashflow.
-
Expansion of available water resources to the Project to remove constraints on plant throughput resulting in increased metal production.
-
Treatment of marginal material currently classified as waste through secondary processing, such as heap leaching, resulting in increased metal production.
-
Improvements to the design of the Tailings Storage Facility (“TSF”) to reduce capital and operating cost, and also decrease the environmental footprint.
-
