The Canadian mining company announced a robust Prefeasibility Study for its silver and gold project Diablillos, located in the province of Salta. The study process was conducted by SGS Geological Services with support from Knight Piésold, SGS Bateman, Bmining (Chile), and INSA.
By Panorama Minero
Among the highlights of the PFS, AbraSilver reported an after-tax Net Present Value (NPV) of US$494 million, discounted at 5% per year, and an after-tax Internal Rate of Return (IRR) of 25.6%. This financial performance is based on base metal prices, with an investment payback period of 2.4 years. However, at current prices, the after-tax NPV rises to US$661 million, with an IRR of 30.3% and a payback period of 2.1 years.
Additionally, substantial production of silver and gold is forecasted over the mine's lifespan, with an average annual production of 13.3 million equivalent ounces of silver (AgEq), composed of 7.7 million ounces of silver (Ag) and 71,000 ounces of gold (Au). During the first five years of full production, an average annual production of 17.9 million ounces AgEq is estimated, consisting of 14.5 million ounces of silver and 44,000 ounces of gold, reflecting the project's operational robustness in its initial stages.
The Average All-in Sustaining Costs (AISC) are US$12.40 per ounce AgEq over the mine's lifespan, and it boasts a low capital cost with an initial pre-production expenditure of US$373 million and sustainable capital of US$65 million. "This cost efficiency allows AbraSilver to maximize the project's value and ensure long-term profitability," they noted.
Based on the Preliminary Feasibility Study (PFS), Diablillos has Proven and Probable Mineral Reserves containing 210 million ounces of equivalent silver. These reserves support the project's strength and guarantee a constant and sustainable production of precious metals throughout the mine's lifespan.
Following the presentation, John Miniotis, President and CEO, commented, "We are pleased to share the positive results of the PFS which demonstrate that Diablillos is economically robust, reaffirming our confidence in its development. Unlike many other silver projects, the PFS highlights that Diablillos is a true primary silver project, with a substantial amount of gold and no base metals. The PFS indicates that Diablillos may produce an average of 17.9 million equivalent silver ounces annually in the first five years, making it one of the top ten primary silver mines in the world. Additionally, we are very excited to have identified several opportunities to further improve and optimize the PFS economy, which we will evaluate as we progress towards a Feasibility Study. This PFS is an excellent starting position from which we plan to continue unlocking value for all stakeholders."
