Blackrock Silver (TSXV: BRC) has published a preliminary economic assessment for its flagship Tonopah West Project, found in Nevada. The PEA has outlined an after-tax NPV (5%) of $326 million for the project.
The PEA is based on a mine life of roughly 8 years, which will see annual production of 8.6 million silver equivalent ounces at an all in sustaining cost of $11.96 per ounce. Through the entire life of the mine, the project is expected to produce 424,000 payable gold ounces and 31.8 million payable silver ounces.
The NPV figure of $326 million is based on $1,900 per ounce gold and $23 per ounce silver, which estimates a payback period of 2.3 years and an IRR of 39.2%. At $2,280 gold and $27.60 silver, the after-tax NPV (5%) climbs to $495 million, while the IRR jumps to 54.0%.
The project meanwhile is expected to have an initial capex of just $178 million. Expansion opportunities meanwhile are said to exist, with the PEA excluding a step out deposit to the northwest with 12 million silver equivalent ounces, while further exploration remains ongoing.
“Four years on from our initial discovery at Tonopah West, completion of this PEA is an important achievement for Blackrock as it outlines the potential for it to be a key driver of domestic growth, increasing America’s annual silver production by over 12%2, while doing so at some of the lowest AISC in the world3 at $11.96 per silver equivalent ounce,” commented Andrew Pollard, CEO of Blackrock Silver.
Blackrock Silver last traded at $0.255 on the TSX Venture.
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