La Cigarra PEA: $763M NPV, 41% IRR
Kootenay Silver Inc.'s La Cigarra in Mexico (Parral Silver District, Chihuahua) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $763M, an after-tax IRR of 41%, and initial capital of $332M. The mine plan runs 14 years at about 4.55 Moz Ag per year.
Kootenay Silver Inc.'s La Cigarra has reported Preliminary Economic Assessment (PEA) results for the silver project in Mexico (Parral Silver District, Chihuahua). The study headlines an after-tax net present value of $763M at a 5% discount rate. It reflects Kootenay Silver Inc.'s (KTN.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $763M using a 5% discount rate. After-tax IRR is 41%. Initial capital expenditure is estimated at $332M, with life-of-mine sustaining capital of $80M. The study models a payback period of 1.9 years. All-in sustaining costs are pegged at 18.73 USD/oz. Economics are based on Consensus: $50.00/oz Ag, $3,611/oz Au, $0.91/lb Pb, $1.25/lb Zn; Spot: $67.23/oz Ag, $4,210/oz Au, $0.91/lb Pb, $1.57/lb Zn.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 14 years. Average annual production is approximately 4.55 Moz Ag. Average head grade is 81 g/t Ag (M&I). Metallurgical recovery averages 89.3%.
Resources and ownership. Mineral resources: Measured & Indicated: 23.02 Mt @ 81 g/t Ag, 0.06 g/t Au, 0.14% Pb, 0.19% Zn for 60.02 Moz Ag; Inferred: 6.78 Mt @ 79 g/t Ag, 0.05 g/t Au, 0.15% Pb, 0.17% Zn for 17.25 Moz Ag.
These figures are extracted from Kootenay Silver Inc.'s technical disclosures and reflect the most recent PEA 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.