HALIFAX, NS / ACCESSWIRE / 1. November 2023 / Silver Tiger Metals Inc. (TSXV:SLVR)(OTCQX:SLVTF) („Silver Tiger“ or the „Company“) is pleased to announce a Preliminary Economic Assessment (PEA) for its 100% owned El Tigre silver-gold project (the „Project“ or „El Tigre“) in Sonora, Mexico. The PEA examined the economics of a conventional open-pit mine in the stockwork mineralization zone defined in the updated Mineral Resource Estimate (MRE) released on September 12, 2023 (Figure 1).
The key results of the PEA using a silver price of $23.75/oz and a gold price of $1,850/oz in the base case are as follows (all figures in US dollars unless otherwise stated):
– After-tax net present value („NPV“) (at a discount rate of 5%) of $287 million, after-tax internal rate of return (IRR) of 55.8%, and payback period of 1.7 years (base case);
– Mine life of 13 years with total production of 60 million mineable ounces of silver equivalent („AgEq“) or 776,000 ounces of gold equivalent („AuEq“), consisting of 16 million ounces of silver and 571,000 ounces of gold;
– After-tax undiscounted project cash flow of $445 million;
– Initial capital costs of $59 million, including $7.7 million for contingencies, over an expected construction period of 12 months, expansion capital of $33 million, and sustaining capital costs of $31 million over the mine life („LOM“);
– Average LOM cash costs of $803/oz AuEq and all-in sustaining costs („AISC“) of $843/oz AuEq, or average LOM cash costs of $10/oz AgEq and AISC of $11/oz AgEq; and
– Average annual production of approximately