07:59 AM EDT, 06/26/2024 (MT Newswires) -- New Pacific Metals ( NEWP ) on Wednesday said a pre-feasibility study gave the Silver Sand project in Bolivia a base case post-tax net present value of $740 million based on a 5% discount rate.

Initial capital costs were estimated at $358 million with a post-tax payback period of 1.9 years.

The proposed mine is expected to produce an average of over 12 million ounces per year of silver over a 13-year mine life.

"Silver Sand has the potential to become a high-grade, low-cost, pure silver producer, setting it apart as a rare and valuable asset in our industry," CEO and President Andrew Williams said.

For its next step, New Pacific said it will collaborate with local communities to secure surface rights and ensure the project benefits Bolivians and other stakeholders.

The company's share price dropped 8% yesterday to $2.03.