Apogee Silver Ltd. (TSXV:APE) announced the results from a positive Feasibility Study meant to advance the silver-lead-zinc deposit in the Company’s Pulacayo property in Bolivia. The Feasibility Study confirms the technical and financial viability of a silver-lead-zinc mine at the Pulacayo property and 2.6 million silver equivalent ounces are expected to be produced per year on average for the first six years.
As quoted in the press release:
Highlights of the Feasibility Study (FS) 1,2,3:
- Pre-tax Internal Rate of Return of 47%
- After tax Internal Rate of Return of 32%
- Total Cash Operating Costs of $8.44/oz AgEq.4,5
- 2.6 million silver equivalent ounces4 produced/yr average for the first six years
- After-tax NPV of US$ 72.5 million
- Annual pre-tax cash flow at production maturity of $39.3 million
- Annual after-tax cash flow at production maturity of $24.0 million
- Project capital cost of US$ 46 million
- Life of Mine – 12 years
Apogee Silver Ltd. CEO, Neil T. Ringdahl said:
We are delighted with this result for a resource that still shows so much exploration potential. Although the existing mineral resources at Pulacayo could support a significantly higher production profile, it is the Company’s preference at this time to build a robust underground operation with a conservative footprint and reduced capital cost. In this way, technical execution risk is reduced while allowing subsequent growth to take place at a pace that respects the needs and concerns of local communities – something we take very seriously. The initial mining scenario forms the foundation for future production growth and could provide the Company with the opportunity to fund future expansion from internally generated cash flow.