Name of the Project
Silver Sand project.

Location
Potosi Department, Bolivia.

Project Owner/s
New Pacific Metals Corp.

Project Description
A prefeasibility study (PFS) has confirmed that Silver Sand has the potential to become a high-grade, low-cost pure silver producer, setting it apart as a rare and valuable asset in the industry. The project has a 13-year mine life, excluding the two-year preproduction period, producing about 157-million ounces of silver.

The PFS envisages a mining operation with yearly silver production of 15-million ounces in years 1 to 3, with life-of-mine average silver production exceeding 12-million ounces a year.

The deposit will be mined using a conventional openpit approach. This entails drilling and blasting, with loading by hydraulic excavators and haulage by off-highway rear dump haul trucks. Ore is expected to be hauled to a crusher or to run-of-mine stockpiles

The selected PFS flowsheet comprises comminution by crushing, followed by semiautogenous and ball milling, tank leaching with cyanidation over 72 hours, counter-current decantation (CCD) and zinc precipitation (Merrill Crowe). Zinc precipitate from Merrill Crowe will be treated for copper removal, and then smelted to produce silver doré.

Thickened tailings from the CCD circuit are expected to be filtered with pressure filters before being conveyed to the nearby tailings storage facility (TSF). Upon mine closure, the TSF is expected to be capped with rock and reclaimed topsoil to provide a secure facility.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value of $740-million, at a 5% discount rate, and an internal rate of return of 37%. Payback is estimated at 1.9 years from the start of production.

Capital Expenditure
Initial capital costs are estimated at $358-million.

Planned Start/End Date
Not stated.

Latest Developments
New Pacific Metals continues to progress with community engagement efforts in the project’s area of influence.

To finalise the environmental-impact assessment study for submission to Bolivia’s Ministry of Environment and Water, the company must obtain surface rights for the project through long-term land lease agreements, finalise a resettlement and compensation plan for affected community members, and implement measures to safeguard cultural and historical heritage. Discussions are ongoing with local communities to reach these agreements.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
New Pacific Metals, tel +1 604 633 1368 or email ir@newpacificmetals.com.