Southern Silver Exploration Corp. has reported significant results from its Preliminary Economic Assessment (PEA) on its Cerro Las Minitas project, located in southeast Durango state, Mexico. The PEA highlights robust project economics with an after-tax NPV5% of $501M, an IRR of 21.2%, and a 48-month payback period.
The PEA features a large-scale underground mining operation with a 17-year mine life and an annual average plant feed of 14.3 Mozs AgEq (including 5.8 Mozs Ag) and life-of-mine feed totaling 243.2 Mozs AgEq (including 98.6 Mozs Ag). Total LOM product sales are estimated to be 194.3Mozs AgEq at an AISC of $13.23/oz AgEq sold.
The project is expected to generate gross revenues totaling $4.47B, with silver and gold representing 45% of revenues and zinc representing 35% of projected revenues. The Initial CapEx for the project is $388M, with an NPV5%-to-CapEx ratio of 1.3X and a payback period of 48 months on a post-tax basis.
The updated PEA shows an increase in LOM production, daily mine production capacity, mine life, LOM revenue, after-tax NPV5%, and post-tax IRR compared to the 2022 economic model. The President of Southern Silver, Lawrence Page, stated that the results of the PEA mark a significant milestone in the development of the Cerro Las Minitas project, with the best yet to come.
The project demonstrates opportunities for mine life extension, infill drilling, and metallurgical upside, showcasing the potential for further value generation. The PEA is based on an updated Mineral Resource estimate by KGL and is compliant with NI 43-101 standards. Further technical details and a full technical report will be filed on SEDAR within 45 days.
