Blackrock Silver (TSXV: BRC) has significantly overhauled the economic profile of its Tonopah West project, delivering an updated preliminary economic assessment that marks a 34% increase in valuation over previous studies.
The project now boasts an after-tax net present value (5%) of $437 million and an internal rate of return of 28%. These figures are anchored by a base case of $31 silver and $2,700 gold, though the economics scale rapidly in the current precious metals environment. At one-year analyst consensus forecasts of $66.90 silver and $4,554 gold, the after-tax NPV jumps to $1.55 billion with a 79% IRR.
Payback is expected within 3.5 years under base-case pricing, but drops to just 1.4 years under consensus forecasts.
Key to the update is a 42% extension of the mine life, which now stretches to 11.2 years. The plan anticipates average annual production of 7.1 million ounces of silver equivalent.
Initial capital costs are estimated at $190.4 million, including a $24.5 million contingency. This relatively lean entry price for a project of this scale is supported by its location on private land in Nevada, allowing for a streamlined permitting process that bypasses many of the federal hurdles typically found in the Great Basin.
Operating costs remain a central part of the pitch. Cash costs are estimated at $13.91 over the life of mine, while all-in sustaining costs are projected at $17.44 per silver-equivalent ounce. The mine plan utilizes a combination of long-hole stoping, accounting for 88% of the tonnage, and cut-and-fill mining to maintain high-margin production across the 11-year span.
Metallurgical recoveries are pegged at 91.6% for silver and 96.3% for gold, with the facility producing saleable doré bars on-site.
“We have deliberately anchored this mine plan to a base case… ensuring that Tonopah West is built for high-margin resilience across all price cycles,” said CEO Andrew Pollard.
The company is targeting an underground development decision for the second half of 2027. With permitting initiatives already underway, Blackrock is positioning the asset as one of the most advanced silver-gold developments in North America.
Blackrock Silver last traded at $1.15 on the TSX Venture.
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