VANCOUVER - New Pacific Metals (NYSE:NEWP) Corp. (TSX: NUAG) (NYSE American: NEWP) has reported favorable outcomes from its metallurgical test program for the Silver Sand project in Bolivia. The tests, essential for the forthcoming Preliminary Feasibility Study (PFS) expected in June, showed high silver recovery rates and lower-than-anticipated cyanide consumption.
The first composite sample, with a 145 g/t head grade, exhibited a 92.7% silver recovery and an average sodium cyanide consumption of 1.40 kg/t. The second composite, with a 114 g/t head grade, achieved an 89.6% recovery and 1.10 kg/t sodium cyanide use. These results align with the initial estimates from the Preliminary Economic Assessment (PEA) released in January 2023, but with reduced cyanide consumption, suggesting potential operating cost savings.
Andrew Williams, President and CEO of New Pacific, expressed that the PFS metallurgical test program confirmed Silver Sand's exceptional metallurgical characteristics, with consistent recoveries and the possibility of further recovery enhancement to 93.9% through additional processing steps.
The extensive metallurgical test program included various analyses, such as mineralogy and silver precipitation through zinc dust, and was conducted by multiple international laboratories. The program's findings, including continuous thickening tests and pressure filtration for cyanide leach tailings, generally outperformed or aligned with the PEA parameters.
The Silver Sand project, managed by qualified independent consultant Jinxing Ji, P.Eng., is part of New Pacific's portfolio, which includes three precious metal projects in Bolivia. The company is also progressing its Carangas project towards a Preliminary Economic Assessment and reported oxidized gold mineralization at the Silverstrike project in 2022.
This news is based on a press release statement and includes forward-looking statements subject to risks, uncertainties, and other factors that could affect actual results. It is important to note that the PEA results are preliminary and that the project's economic assessments may not be realized as described. The PEA is based on both indicated and inferred resources, with inferred resources being too speculative geologically for economic consideration as mineral reserves.
InvestingPro Insights
As New Pacific Metals Corp. (NEWP) advances its Silver Sand project with promising metallurgical test results, investors are closely monitoring the company's financial health and stock performance. According to the latest data from InvestingPro, NEWP holds a market cap of approximately $355.79 million, indicating a substantial presence within the mining sector. Despite the challenges of not being profitable over the last twelve months, as shown by a negative P/E ratio of -45.04, the company has demonstrated a significant return over the last week, with a 15.93% price total return. This recent uptick is part of a broader trend, with a 57.46% return over the last month and an even more impressive 71.54% over the last three months.
One of the InvestingPro Tips suggests that NEWP's stock is currently in overbought territory based on the Relative Strength Index (RSI), which could indicate a potential pullback in the near term. It's also worth noting that analysts do not expect the company to be profitable this year, which is reflected in the adjusted P/E ratio for the last twelve months as of Q2 2024 standing at -47.74. However, the company's liquid assets exceed its short-term obligations, providing some financial stability.
For investors looking to delve deeper into NEWP's financials and stock performance, there are additional InvestingPro Tips available, providing a comprehensive analysis of the company. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription to access these insights, which could prove invaluable in making informed investment decisions.
With the next earnings date set for May 8, 2024, and a fair value estimate from analysts at $5.99, compared to the InvestingPro fair value of $1.7, investors will be watching closely to see if the company's operational advancements translate into financial growth and stock appreciation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.