#New Pacific Metals #Bolivia #Silver Mining #Carangas Project #Oruro

New Pacific Metals' Updated Carangas Project Assessment

On July 16, 2026, New Pacific Metals Corp. (TSX: NUAG) (NYSE-A: NEWP) released updated findings from its preliminary economic assessment for the Carangas project located in the Oruro Department of Bolivia. The results stem from extensive evaluation carried out in accordance with National Instrument 43-101 standards, highlighting the project's economic potential and robust financial metrics.

Key Economic Highlights

The updated assessment shows a post-tax net present value (NPV) of $2.65 billion at a 5% discount rate and an impressive internal rate of return (IRR) of 35.9%. These figures are based on a base case that includes metal prices of $45.00 per ounce of silver, $3,400 per ounce of gold, and other essential commodities. Notably, if silver prices rise to $67.50 per ounce while keeping other prices constant, the post-tax NPV could jump to $4.16 billion with an IRR of 51.5%.

The assessment indicates a projected mine life of 19 years (excluding two years of pre-production), aiming to produce approximately 195 million ounces of payable silver, alongside significant quantities of gold, zinc, and lead.

Production and Economic Details

During the initial eight years, referred to as the pre-gold production period, the mine is expected to yield about 15.5 million ounces of silver annually. Following this, during the nine to sixteen-year period, production will include about 7.6 million ounces of silver and 142.7 thousand ounces of gold yearly, showcasing the project's diverse output and profitability.

The average all-in sustaining cost (AISC) is projected at approximately $19.16 per ounce of silver equivalent, with impressive margins anticipated from both silver and gold production.

Capital and Cost Considerations

The project's initial capital costs are estimated at $644.5 million with a relatively short payback period of 2.4 years. Over the life of the mine, total capital expenditures are expected to reach around $1.2 billion, which includes sustaining and growth capital. Furthermore, closure costs are estimated at $149.8 million, indicating that the project is mindful of its environmental responsibilities.

Mining Methodology

The Carangas project will employ a conventional open-pit mining approach, utilizing hydraulic excavators for loading and off-highway trucks for transport. The operation is designed to accommodate an annual processing capacity that will expand from 8 million tonnes to 16 million tonnes by the sixth year, supported by the addition of processing circuits as operational needs evolve.

Future Steps

In light of the positive results from the updated assessment, New Pacific Metals plans to advance the Carangas project further. This includes additional technical work such as a 30,000-meter infill drilling program, aimed at improving resource classification and potentially expanding the gold zone. Simultaneously, the company is actively pursuing the required permitting for the project, converting Exploration Licenses (ELs) to Administrative Mining Contracts (AMCs) and preparing for environmental impact assessments.

Community engagement also remains a priority for New Pacific, as they work to maintain a positive relationship with local stakeholders, which is essential for the success of their operations.

Conclusion

The updated economic assessment of the Carangas project confirms its potential as a leading silver and gold producer in Bolivia. With strong financial metrics and a clear roadmap for development, New Pacific Metals is strategically positioning itself to advance this promising project and capitalize on favorable market conditions in the mining sector. Investors and stakeholders are encouraged to stay tuned as further developments unfold.