Diablillos Feasibility Study: $3.00B NPV, 41.9% IRR
AbraSilver Resource Corp.'s Diablillos in Argentina (Salta/Catamarca cooperation area) has a Feasibility Study outlining an after-tax NPV of $3.00B, an after-tax IRR of 41.9%, and initial capital of $722M. The mine plan runs 25 years at about 10.3 Moz AgEq per year.
AbraSilver Resource Corp.'s Diablillos has reported Feasibility Study results for the silver-gold project in Argentina (Salta/Catamarca cooperation area). The study headlines an after-tax net present value of $3.00B at a 5% discount rate. It reflects AbraSilver Resource Corp.'s (ABRA.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $3.00B using a 5% discount rate. After-tax IRR is 41.9%. Initial capital expenditure is estimated at $722M, with life-of-mine sustaining capital of $520M. The study models a payback period of 1.7 years. All-in sustaining costs are pegged at 19.98 USD/oz AgEq. Economics are based on Base case: US$50.00/oz Ag, US$3,650/oz Au.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 25 years. Average annual production is approximately 10.3 Moz AgEq. Average head grade is 129 g/t AgEq LOM average. The open-pit strip ratio is 5.9:1.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from AbraSilver Resource Corp.'s technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 36,547 kt | 0.71 g/t Au, 104 g/t Ag, 178 g/t AgEq | 840 koz Au, 122,452 koz Ag, 209,536 koz AgEq |
| Probable | 41,364 kt | 0.70 g/t Au, 46 g/t Ag, 118 g/t AgEq | 925 koz Au, 61,085 koz Ag, 156,327 koz AgEq |
| Proven & Probable | 77,911 kt | 0.70 g/t Au, 73 g/t Ag, 146 g/t AgEq | 1,764 koz Au, 183,537 koz Ag, 365,863 koz AgEq |
Our Analysis
- IRR after-tax
- 41.9%
higher than 70% of 294 projects we track
- NPV after-tax
- $3.00B
- Initial capex
- $722M
24% of NPV
- Payback
- 1.7yrs
- Mine life
- 25yrs
- Discount rate
- 5%
- Study price assumption
- Base case: US$50.00/oz Ag, US$3,650/oz Au
- Spot silver today
- $60.30/oz
A 41.9% after-tax IRR places this project in the upper half of our tracked peer set and well above the practical financing hurdle for a single-asset junior developer. The 5% discount rate flatters the headline NPV, a reporting convention that understates risk; a more conservative rate would compress the $3.00B figure. The NPV sits at roughly 1.8x market cap, which cuts two ways: it signals the market has not fully priced the asset, but also that investors may be discounting financing, permitting, or jurisdictional risk in Argentina’s Salta/Catamarca region. Capital intensity is low at 24% of NPV, reducing funding risk, though $722M in initial capex still represents a substantial sum relative to market cap, implying potential dilution.
The base-case price assumptions of US$50/oz Ag and US$3,650/oz Au sit below the current silver spot of $60.30/oz, providing a meaningful upside cushion if prices hold. The 1.7-year payback and 25-year mine life support a strong return profile, but the single most important risk is jurisdictional: Argentina’s mining framework, while historically accommodating, carries execution and policy uncertainty that can delay development timelines and inflate costs. Investors should weigh the fast payback and capital-light structure against the jurisdiction’s track record for project delivery.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.