Kootenay Silver's La Cigarra Project Shows Strong Economics in Positive PEA

Event summary

  • Kootenay Silver Inc. released a positive Preliminary Economic Assessment (PEA) for its La Cigarra Silver Project in Chihuahua, Mexico, showing a US$763 million after-tax NPV and 41% IRR.
  • The 14-year open-pit project has a 1.9-year payback period and is expected to produce 63.7 million ounces of payable silver.
  • Initial capital costs are estimated at $332 million with sustaining capital costs of $80 million.
  • The project benefits from existing infrastructure and is situated in a well-established mining district.

The big picture

Kootenay Silver's positive PEA for the La Cigarra project positions it as a compelling development asset in one of Mexico's premier mining districts. The project's strong economics and existing infrastructure highlight its potential to add significant value for stakeholders. The focus on resource expansion and permitting activities reflects the company's strategic approach to advancing the project through the development pipeline.

What we're watching

Resource Expansion
How Kootenay Silver's plans for resource expansion drilling and conversion of Inferred Mineral Resources will impact the project's economics.
Permitting and Feasibility
The pace at which Kootenay advances environmental baseline studies and permitting activities will determine the project's timeline.
Market Dynamics
Whether the strong silver market fundamentals will sustain the project's attractive economics over its 14-year life.

Related topics

Mining