- New Pacific Metals owns two of the largest undeveloped open-pit silver projects globally, both located in Bolivia.
- Its flagship Silver Sand project is projected to produce 12 million ounces of silver annually at low all-in sustaining costs.
- The Carangas project could add 6.6 million ounces of silver annually, with over 1 million ounces of gold potential at depth.
- New Pacific is working through Bolivia’s permitting process to unlock the upside potential of its high-quality, large-scale projects.
- Global silver demand, particularly for industrial and renewable energy applications, adds urgency to project development.
New Pacific Metals (NYSE American: NEWP) (TSX: NUAG), a Canadian exploration and development company, is in a unique position to fill a critical and growing supply gap in the global silver market, with two large-scale projects in Bolivia. The company’s progress is focused on advancing these assets through permitting in a country that remains geologically rich.
The company’s two primary projects, Silver Sand and Carangas, are among the best undeveloped open-pit silver assets in the world. A preliminary feasibility study (“PFS”) published in June 2024 highlights the strong potential of the flagship Silver Sand project, which is expected to deliver 12 million ounces of silver annually over a 13-year mine life. The early years are even more productive, with output estimated at 15 million ounces per year, with total projected production reaching 157 million ounces. The project carries a post-tax net present value (“NPV5%”) of US$740 million and a 37% internal rate of return (“IRR”) at a conservative silver price of US$24 per ounce. The all-in sustaining cost is estimated at just US$10.69 per ounce, with a rapid payback period of under two years.
The Carangas Project’s preliminary economic assessment (“PEA”), released in September 2024, outlines a low-cost open-pit mine that targets only the upper silver-lead-zinc zone to produce 6.6 million ounces of silver annually over a 16-year mine life. The economics are also favorable: a post-tax NPV5% of US$501 million, a 26% IRR, AISC of $7.60 per ounce net of lead and zinc by-products, and a 3.2-year payback period at $24 per ounce silver. Notably, Carangas also has more than 1 million ounces of gold potential at depth, not yet incorporated into the PEA.
Together, these projects position New Pacific to potentially produce nearly 19 million ounces of silver per year, placing it in the upper ranks of primary silver producers, once both projects enter production.
Permitting efforts for the two projects are well underway, though the process requires time and patience. Still, it highlights a major opportunity: Bolivia is starved of foreign investment needed to revitalize its mining sector—offering significant upside for early movers.
New Pacific is backed by strong players in the precious metals market. The company is 28% owned by Silvercorp Metals (NYSE-A: SVM) (TSX: SVM), a Canadian mining company producing silver with a long history of profitability, and 13% owned by Pan American Silver (NYSE: PAAS) (TSX: PAAS), which bills itself as the world’s premier silver producer. Both shareholders view the Bolivian projects as serious long-term strategic opportunities that could also attract buyers or partners once development milestones are reached.
Global demand for silver is rising—not just from investors, but from industrial and renewable energy sectors, including photovoltaic solar panels and electric vehicles. According to the World Silver Survey, industrial applications now account for an astonishing 83% of annual silver demand (https://ibn.fm/pniUI).
With few large-scale silver projects under development worldwide, New Pacific’s pipeline is notable. As many silver producers pivot to gold or base metals simply because of a lack of primary silver resources, New Pacific offers pure silver leverage—a rare commodity in today’s market.
For more information, visit the company’s website at www.newpacificmetals.com/welcome.
NOTE TO INVESTORS: The latest news and updates relating to NEWP are available in the company’s newsroom at https://ibn.fm/NEWP
