Silver Tiger Announces PEA With NPV of US$287M for the Open Pit Portion of El Tigre Silver-Gold Project
- After-tax net present value of US$287 million with an after-tax internal rate of return of 55.8%
- 13-year mine life recovering a total of 60 million payable silver equivalent ounces or 776,000 gold equivalent ounces
- Initial capital costs of $59 million with average operating cash costs of $803/oz AuEq
- Average annual production of approximately 4.6 million AgEq oz or 59,000 AuEq oz
- None.
HALIFAX, NS / ACCESSWIRE / November 1, 2023 / Silver Tiger Metals Inc. (TSXV:SLVR)(OTCQX:SLVTF) ("Silver Tiger" or the "Corporation") is pleased to announce a Preliminary Economic Assessment ("PEA") for its
Highlights of the PEA, with a base case silver price of
- After-Tax net present value ("NPV") (using a discount rate of
5% ) of US$287 Million with an After-Tax IRR of55.8% and Payback Period of 1.7 years (Base Case); - 13-year mine life recovering a total of 60 Million payable silver equivalent ounces ("AgEq") or 776,000 gold equivalent ounces ("AuEq"), consisting of 16 Million silver ounces and 571,000 gold ounces;
- Total project undiscounted after tax cash flow of US
$445 Million ; - Initial capital costs of
$59 Million , including$7.7 Million in contingency costs, over an expected 12-month build, expansion capital of$33 Million and sustaining capital costs of$31 Million over the life of mine ("LOM"); - Average LOM operating cash costs of
$803 /oz AuEq, and all in sustaining costs ("AISC") of$843 /oz AuEq or Average LOM operating cash costs of$10 /oz AgEq, and all in sustaining costs ("AISC") of$11 /oz AgEq; and - Average annual production of approximately 4.6 Million AgEq oz or 59,000 AuEq oz.
Glenn Jessome, President & CEO stated "We are very pleased with the work completed by our consultants and our technical team on the PEA for the open pit at El Tigre. The open pit delivers robust economics with an NPV of US
Preliminary Economic Assessment Summary
The PEA was prepared by independent consultants Micon International Limited ("Micon"), with metallurgical test work completed by SGS Canada Inc.'s Lakefield office ("SGS") and process plant design and costing by D.E.N.M. Engineering Ltd., and environmental and permitting led by CIMA Mexico. Following are tables and figures showing key assumptions, results, and sensitivities.
Table 1: El Tigre PEA Key Economic Assumptions and Results
Assumption / Result | Unit | Value | Assumption / Result | Unit | Value | |
---|---|---|---|---|---|---|
Total OP Plant Feed Mined | kt | 57,038 | Net Revenue | US$M | 1,422 | |
Operating Strip Ratio | Ratio | 2.0 | Initial Capital Costs | US$M | 59 | |
Silver Grade 1 | g/t | 14.27 | Expansion Capital Costs | US$M | 33 | |
Gold Grade 1 | g/t | 0.39 | Sustaining Capital Costs | US$M | 31 | |
AuEq Grade 1 | g/t | 0.57 | Mining Costs - Plant | $/t Feed | 5.81 | |
Silver Recovery 2 | % | 61 | Mining Costs - Material | $/t Material | 1.91 | |
Gold Recovery 2 | % | 80 | Processing Costs | $/t Feed | 4.46 | |
Silver Price | US$/oz | 23.75 | G&A Costs | $/t Feed | 0.61 | |
Gold Price | US$/oz | 1,850 | Operating Cash Cost | US$/oz AuEq | 803 | |
Payable Silver Metal | Moz | 15.9 | All in Sustaining Cost | US$/oz AuEq | 843 | |
Payable Gold Metal | koz | 571 | After-Tax NPV ( | US$M | 287 | |
Payable AuEq | koz | 776 | Pre-Tax NPV ( | US$M | 420 | |
Mine Life | Yrs | 13 | After-Tax IRR | % | 55.8 | |
Average mining rate | t/day | 36,000 | Pre-Tax IRR | % | 79.4 | |
After-Tax Payback Period | Yrs | 1.7 |
- Grades shown are LOM average process plant feed grades include only OP sources. Mining losses of
2.5% and external dilution of2.5% with low grade waste for OP material was incorporated in the mining schedule. - Column testing indicated both higher and gold and silver recovery (
83% and64% ) at a 3/8-in crush size. In the process design and financial model, these have been discounted by3% for leaching in the field versus optimum conditions in the laboratory.
Figure 2: El Tigre Cash Flow Profile by Year
Figure 2 above highlights the post-tax cash flows of US
Table 2 - El Tigre PEA Gold and Silver Price Sensitivities
Sensitivity | Base Case | ||||||
---|---|---|---|---|---|---|---|
Silver Price (US$/oz) | 17 | 19 | 21 | 23.75 | 26 | 30 | 33 |
Gold Price (US$/oz) | 1,324 | 1,480 | 1,636 | 1,850 | 2,025 | 2,337 | 2,571 |
After-Tax NPV ( | 108 | 161 | 214 | 287 | 347 | 453 | 532 |
After-Tax IRR (%) | 28.3 | 37.2 | 45.3 | 55.8 | 64.1 | 78.5 | 88.9 |
After-Tax Payback (years) | 4.1 | 2.6 | 2.0 | 1.7 | 1.5 | 1.3 | 1.1 |
Table 3 - El Tigre PEA Operating Cost and Capital Cost Sensitivities
Sensitivity | - | - | Base Case | ||
---|---|---|---|---|---|
Operating Costs - NPV (US$M) | 345 | 316 | 287 | 258 | 229 |
Operating Costs - IRR (%) | 64.4 | 60.1 | 55.8 | 51.5 | 47.2 |
Capital Costs - NPV (US$M) | 301 | 293 | 287 | 280 | 273 |
Capital Costs - IRR (%) | 68.0 | 61.3 | 55.8 | 51.2 | 47.3 |
Capital and Operating Costs
The El Tigre Project has been envisioned as an open pit mining operation starting at a processing rate of 7,500 tonnes per day for years 1-3 and then ramping up to 15,000 tonnes per day by year 5 after 1 year construction for ramp up.
The process plant is comprised of conventional three (3) stage crushing to an optimum -3/8-in crush size. The crushed material will be conveyed and loaded on the lined pad areas. A series of pumping and piping will allow irrigation of the stacked heap material and subsequent production of pregnant solution to flow to the respective impoundment pond. The pregnant solution will be pumped to the recovery facility consisting of the Merrill - Crowe process (zinc precipitation) and refinery to produce the gold and silver dore for marketing. The process barren solution will be recycled (with NaCN addition) and pumped back to the heap for further leaching.
Water supply to the process plant is provided by nearby surface wells and a new high voltage grid power will be installed by the local utility to supply process and infrastructure power requirements. Expansion capital includes the cost to increase the process plant capacity from 7,500 tonnes per day to 15,000 tonnes per day as noted.
Table 4 - LOM Capital Cost Estimate
Type | Initial | Expansion | Sustaining | Total |
---|---|---|---|---|
Plant direct costs | 31,921 | 25,800 | 57,721 | |
Mining direct costs | 5,340 | 3,250 | 30,924 | 39,514 |
Pre-stripping | 2,347 | 2,347 | ||
Infrastructure | 9,470 | 9,470 | ||
Project indirect costs | 2,200 | 2,200 | ||
Total | 51,278 | 29,050 | 30,924 | 111,252 |
Contingency ( | 7,692 | 4,358 | 12,049 | |
Total - Initial Capital | 58,969 | 33,408 | 30,924 | 123,301 |
- Expansion capital is not included in AISC calculations
Mining
Open pit mining will be contracted and carried out by drill and blast followed by conventional loading and truck haulage to the waste rock storage facilities and the process plant.
Metallurgy
A preliminary metallurgical test program was carried out by SGS Lakefield of Ontario, Canada on open pit samples. Details of the testing were outlined in the previous Sliver Tiger News Release dated August 24, 2023. The program included crushing, coarse bottle rolls, and composite column testing at both 3/8-in and 1/2 -in crush size. The leach samples comprised of drill core sample representing the Stockwork Mineralization Zone of the Mineral Resource. This preliminary test program estimated average gold and silver respective metallurgical recoveries of 83.1 % Au and 64.3 % Ag at the 3-/8-in crush. Percolation testing also indicated no requirement for agglomeration of the crushed material is required prior to loading.
Underground Mineral Resource
As previously released, the Company will also continue to work on this substantial underground Mineral Resource and advance that towards PEA. Out-of-Pit Mineral Resources at El Tigre of 21 Moz AgEq grading 279 g/t AgEq contained in 2.3 Mt and 70 Moz AgEq grading 235 g/t AgEq contained in 9.2 Mt (Table 5). For higher grade sensitivity cases refer to updated MRE release dated September 12, 2023.
Table 5 - Mineral Resource Estimate released September 2023
- Mineral Resources which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
- The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
- The Mineral Resources in this news release were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines (2014) prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council and CIM Best Practices (2019).
- Historically mined areas were depleted from the Mineral Resource model.
- Approximately
74.7% of the Indicated and22.3% of the Inferred contained AgEq ounces are pit constrained, with the remainder out-of-pit. See tables 2 and 3 for details of the split between pit constrained and out-of-pit deposits. - The pit constrained AuEq cut-off grade of 0.14 g/t was derived from US
$1,800 /oz Au price, US$24 /oz Ag price,80% process recovery for Ag and Au, US$5.30 /tonne process cost and US$1.00 /tonne G&A cost. The constraining pit optimization parameters were$1.86 /t mineralized mining cost,$1.86 /t waste mining cost and 50-degree pit slopes. - The out-of-pit AuEq cut-off grade of 1.5 g/t AuEq was derived from US
$1,800 /oz Au price, US$24 /oz Ag price,$4.00 $/lb Cu,$0.95 $/lb Pb,$1.40 $/lb Zn,85% process recovery for all metals,$50 /t mining cost, US$20 /tonne process and US$4 G&A cost. The out-of-pit Mineral Resource grade blocks were quantified above the 1.5 g/t AuEq cut-off, below the constraining pit shell within the constraining mineralized wireframes and exhibited sufficient continuity to be considered for cut and fill and long hole mining - The tailings AuEq cut-off grade of 0.30 g/t was derived from US
$1,800 /oz Au price, US$24 /oz Ag price,85% process recovery for Ag and Au, US$14 /t process cost and US$1.00 /t G&A cost. - No Mineral Resources are classified as Measured.
- AgEq and AuEq calculated at an Ag/Au ratio of 75:1.
- Totals may not agree due to rounding
Exploration Potential
Exploration potential at the El Tigre Project is substantial with prospective areas for exploration both down dip and along strike with the disclosed target establishing 7 to 9 Million tonnes at 225 to 265 g/t AgEq for 50 to 75 Moz AgEq.
Figure 3-Exploration Potential released September 2023
Surface Rights Agreement
The Company owns royalty-free,
Qualified Persons
This PEA was based on information and data supplied by Silver Tiger, and was undertaken by William J. Lewis, B.Sc., P.Geo., Kerrine Azougarh, B.Sc., P.Eng. and Christopher Jacobs, CEng, MIMMM, MBA of Micon International Limited. Of Toronto, Ontario, and David J. Salari, P. Eng. of D.E.N.M. Engineering Ltd are the Qualified Persons as defined under National Instrument 43-101. All Qualified Persons have reviewed and approved the scientific and technical information in this press release.
A Technical Report is being prepared on the Preliminary Economic Assessment in accordance with National Instrument 43-101 ("NI-43-101"), and will be available on the Company's website and SEDAR within 45 days of the date of this news release. The effective date of this Preliminary Economic Assessment is November 1, 2023.
VRIFY Slide Deck and 3D Presentation - Silver Tiger's El Tigre Project
VRIFY is a platform being used by companies to communicate with investors using 360° virtual tours of remote mining assets, 3D models and interactive presentations. VRIFY can be accessed by website and with the VRIFY iOS and Android apps.
Access the Silver Tiger Metals Inc. Company Profile on VRIFY at: https://vrify.com
The VRIFY Slide Deck and 3D Presentation for Silver Tiger Metals Inc. can be viewed at: https://vrify.com/explore/decks/492 and on the Corporation's website at: www.silvertigermetals.com.
About Silver Tiger and the El Tigre Historic Mine District
Silver Tiger Metals Inc. is a Canadian company whose management has more than 25 years' experience discovering, financing and building large epithermal silver projects in Mexico. Silver Tiger's
The El Tigre historic mine district is located in Sonora, Mexico and lies at the northern end of the Sierra Madre silver and gold belt which hosts many epithermal silver and gold deposits, including Dolores, Santa Elena and Las Chispas at the northern end. In 1896, gold was first discovered on the property in the Gold Hill area and mining started with the Brown Shaft in 1903. The focus soon changed to mining high-grade silver veins in the area with production coming from 3 parallel veins the El Tigre Vein, the Seitz Kelley Vein and the Sooy Vein. Underground mining on the middle El Tigre Vein extended 1,450 metres along strike and was mined on 14 levels to a depth of approximately 450 metres. The Seitz Kelley Vein was mined along strike for 1 kilometre to a depth of approximately 200 meters. The Sooy Vein was only mined along strike for 250 metres to a depth of approximately 150 metres. Mining abruptly stopped on all 3 of these veins when the price of silver collapsed to less than 20¢ per ounce with the onset of the Great Depression. By the time the mine closed in 1930, it is reported to have produced a total of 353,000 ounces of gold and 67.4 Million ounces of silver from 1.87 Million tons (Craig, 2012). The average grade mined during this period was over 2 kilograms silver equivalent per ton.
For further information, please contact:
Glenn Jessome
President and CEO
902 492 0298
jessome@silvertigermetals.com
CAUTIONARY STATEMENT:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, Mineral Resources and Reserves, the ability to convert Inferred Mineral Resources to Indicated Mineral Resources, the ability to complete future drilling programs and infill sampling, the ability to extend Mineral Resource blocks, the similarity of mineralization at El Tigre to Delores, Santa Elena and Chispas, exploration results, and future plans and objectives of Silver Tiger, are forward-looking statements that involve various risks and uncertainties. Forward-looking statements are frequently characterized by words such as "may", "is expected to", "anticipates", "estimates", "intends", "plans", "projection", "could", "vision", "goals", "objective" and "outlook" and other similar words. Although Silver Tiger believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Silver Tiger's expectations include risks and uncertainties related to exploration, development, operations, commodity prices and global financial volatility, risk and uncertainties of operating in a foreign jurisdiction as well as additional risks described from time to time in the filings made by Silver Tiger with securities regulators.
SOURCE: Silver Tiger Metals Inc.
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