Major News Today From Silver Tiger (SLVR): Preliminary Economic Assessment - $420M NPV, 79.4% IRR, payback period of 1.7 Yrs. LAST 20c +3%
Gents, Silver Tiger (SLVR) has been a deal I have posted about within this sub. Today they announced one of the biggest milestones to date, and it did not disappoint expectations...
Silver Tiger Metals (SLVR). has filed a preliminary economic assessment (PEA) for its 100-per-cent-owned silver-gold El Tigre project, located in Sonora, Mexico. The PEA is centered on the conventional open pit mining economics of the Stockwork Mineralization Zone defined in the updated MRE released September 12, 2023 (Figure 1).
Highlights of the PEA, with a base case silver price of $23.75/oz and gold price of $1,850/oz are as follows (all figures in US dollars unless otherwise stated):After-Tax net present value ("NPV") (using a discount rate of 5%) of US$287 Million with an After-Tax IRR of 55.8% and Payback Period of 1.7 years (Base Case);13-year mine life recovering a total of 60 Million payable silver equivalent ounces ("AgEq") or 776,000 gold equivalent ounces ("AuEq"), consisting of 16 Million silver ounces and 571,000 gold ounces;Total project undiscounted after tax cash flow of US$445 Million; Initial capital costs of $59 Million, including $7.7 Million in contingency costs, over an expected 12-month build, expansion capital of $33 Million and sustaining capital costs of $31 Million over the life of mine ("LOM");Average LOM operating cash costs of $803/oz AuEq, and all in sustaining costs ("AISC") of $843/oz AuEq or Average LOM operating cash costs of $10/oz AgEq, and all in sustaining costs ("AISC") of $11/oz AgEq; andAverage annual production of approximately 4.6 Million AgEq oz or 59,000 AuEq oz.
Glenn Jessome, President & CEO stated "We are very pleased with the work completed by our consultants and our technical team on the PEA for the open pit at El Tigre. The open pit delivers robust economics with an NPV of US$287 million and substantial after tax cash flows of US$445 million." Mr. Jessome continued "This is a pivotal point for our Company as we now have a clear path forward to quickly completing a PFS and making a construction decision for the open pit. The open pit has good grade, low strip, wide benches and exceptional metallurgy. With such positive parameters and with our new VP of Operations Francisco Albelais, a career expert in the construction of large heap leach mines in Mexico, we are confident we will be able to advance the open pit portion of the project very quickly." Mr. Jessome concluded "The open pit is only one component of El Tigre as we have also recently delivered over 90-million silver equivalent ounces in the underground in the Mineral Resource Estimate and disclosed an Exploration Target establishing 7 to 9 million tonnes at 225 to 265 g/t AgEq for 50 to 75 million silver equivalent ounces. The Company will also continue to work on this substantial underground Mineral Resource and advance that towards a PEA."Figure 1: El Tigre Mineral Resource Block Model 3D Visualization, showing pit constrained Resources.
Preliminary Economic Assessment Summary
The PEA was prepared by independent consultants Micon International Limited ("Micon"), with metallurgical test work completed by SGS Canada Inc.'s Lakefield office ("SGS") and process plant design and costing by D.E.N.M. Engineering Ltd., and environmental and permitting led by CIMA Mexico. Following are tables and figures showing key assumptions, results, and sensitivities.
Posted Nov 1, 2023, 4:10 PM UTC