Mineros S.A. (TSX: MSA) has received positive prefeasibility study (PFS) for the gold-silver-zinc Porvenir Project on its Hemco Property, in northeastern Nicaragua.
The results significantly increasing the mine life of the Hemco Property Mineral Reserves from five to 13 years.
In addition to the Porvenir Project, the Hemco Property includes the Panama and Pioneer Mines, and produces gold from material purchased from artisanal mining collectives with whom the company has a strong collaborative relationship.
Highlights
- An eight year increase of life of mine (LOM) for the Hemco Property, from five to 13 years.
- First-time disclosure of Porvenir Mineral Reserves as of December 31, 2022:
- 270kt of Proven Mineral Reserves averaging 2.70g/t Au, 13.6g/t Ag and 3.14% Zn, containing 23koz Au, 118koz Ag, and 19Mlb Zn.
- 5,524kt of Probable Mineral Reserves averaging 3.09g/t Au, 10.2g/t Ag and 2.96% Zn, containing 549koz Au, 1,804koz Ag, and 360Mlb Zn.
- Porvenir Project base case economics include an after-tax net present value (using a 10% discount rate) (NPV10%) of approximately $42M, an after-tax internal rate of return (IRR) of approximately 16% and a payback period of approximately 4 years from start of production in 2027, assuming $1,500/oz Au, $19.00/oz Ag, and $1.27/lb Zn.
- The Porvenir Project will add average annual production over its nine-year mine life of 56,700oz Au per year, along with 112,300oz Ag per year and 38.5Mlb Zn per year to the Hemco Property.
- After-tax net present value (using a 5% discount rate) (NPV5%) of $160mm at $1,650/oz Au, $20.90/oz Ag, and $1.40/lb Zn; increasing to $216mm at $1,800/oz Au, $22.80/oz Ag, and $1.52/lb Zn.
- IRR of 21% and after-tax payback period of 3.5 years from start of production at $1,650/oz Au, $20.90/oz Ag, and $1.40/lb Zn.
“We are pleased to have reached this milestone for the Porvenir Project, which is a key project in our pipeline of organic growth projects,” President and CEO, Andrés Restrepo, said.
“The advance of the Porvenir Project would allow us to extend the life of mine at the Hemco Property for eight additional years, allowing us to strengthen our presence in the Bonanza-Siuna-Rosita Mining Triangle district.
“This would give us the opportunity to make additional contributions to the sustainable development and the well-being of the communities that embrace us, thanks to the trust that we have built by maintaining high standards of environmental and social responsibility.
“We are continuing to invest in brownfield and greenfield exploration at our Hemco Property, with a view to further expanding the current Mineral Resources and Mineral Reserves and making new discoveries, paving the way for future growth.”
No Mineral Reserves or Mineral Resources for Porvenir have been attributed to material within 30m of the topographic surface, which is reserved by law for artisanal mining. In addition to planned production from the company’s mines, pursuant to the Bonanza Model, the company purchases and refines mineralized material collected by artisanal mining collectives at the Hemco Property. Purchases of mineralized material under this model are expected to continue consistent with historical levels and are not included in the LOM plan and cash flow model.
For further information please visit: https://mineros.com.co/en/
