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 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. 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
A 41.9% after-tax IRR is strong, ranking in the upper half of the 20 silver projects we track and well above the ~15% financing hurdle for developers—even the 20%+ threshold for single-asset juniors. The 5% discount rate used for NPV reporting is at the low end of convention, which flatters the headline $3.00B NPV; a higher rate would compress that figure. The NPV sits at roughly 1.8x market cap, a gap that could signal the market has not fully priced the asset, but equally reflects skepticism on financing, permitting, or jurisdiction risk in Argentina’s Salta/Catamarca cooperation area.
Capital intensity is low at 24% of NPV ($722M initial capex), reducing funding risk relative to the asset’s value, though the absolute capex still requires significant financing for a developer. The 1.7-year payback and 25-year mine life provide cash-flow resilience. The study’s base-case silver price of $50.00/oz sits well below the current live spot of $59.67/oz, implying upside to returns if prices hold. The single most important risk is jurisdictional: Argentina’s mining policy and macro environment remain a key watch-item for capital deployment and permitting timelines.
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.