New Pacific Metals Corp. (NYSE: NEWP) released an updated preliminary economic assessment for its Carangas silver-gold project in Bolivia's Oruro Department, projecting a post-tax net present value of $2.65 billion at a 5% discount rate and an internal rate of return of 35.9%, based on a silver price of $45.00 per ounce and gold at $3,400 per ounce.

The assessment, prepared by Ausenco Engineering Canada ULC and dated July 16, 2026, outlines a 19-year mine life producing approximately 195 million ounces of payable silver, 1.1 million ounces of payable gold, and combined payable zinc and lead of 2,394 million pounds, totaling 339 million silver-equivalent ounces.

Initial capital costs are estimated at $644.5 million, with a post-tax payback period of 2.4 years. Total life-of-mine capital expenditure is projected at $1.2 billion, including $422.7 million in growth capital and $166.5 million in sustaining capital. Closure costs are estimated at $149.8 million.

The updated study incorporates an increased throughput rate and inclusion of a gold zone compared to a prior assessment dated September 2024. The processing operation is planned to expand from 8.0 million tonnes per year to 16.0 million tonnes per year in year six, with a gold circuit added in year nine.

The average all-in sustaining cost over the life of mine is estimated at $19.16 per silver-equivalent ounce, or $0.11 per silver ounce net of by-products.

The company said it plans to begin a 30,000-meter infill drilling campaign at Carangas in September 2026, with approximately 25,000 meters aimed at converting inferred resources to indicated resources. New Pacific also stated it is working to convert exploration licenses to administrative mining contracts through Bolivia's Ministry of Mining and Metallurgy, a process it expects could take up to six more months to complete.

The assessment is preliminary in nature and includes inferred mineral resources, which are considered too speculative to be classified as mineral reserves. The company noted Bolivia has recently experienced significant social unrest, which could affect permitting timelines and operating assumptions.