Honey Badger Silver Announces Positive Preliminary Economic Assessment for the PC Silver Mine; Sees Significant Silver plus Critical Minerals Production

Honey Badger Silver Inc. (TUF) released an updated Preliminary Economic Assessment and Mineral Resource Estimate for its 100%-owned PC Silver Mine, formerly Prairie Creek, in the Northwest Territories. The Preliminary Economic Assessment outlines a 22-year underground mine life with a first-seven-year average payable production of about 10.7 moz AgEq annually and a life-of-mine average payable production of about 7.9 moz AgEq annually. Life-of-mine payable production is estimated at 56.1 moz silver, 2,577 Mlb zinc, 2,080 Mlb lead, and 29.5 Mlb copper.

Under a Long-Term Consensus pricing case, the project shows an after-tax NPV8% of C$1.165 billion, a 29.3% IRR, a 3.1-year payback, and C$3.172 billion in after-tax life-of-mine free cash flow. A spot pricing case at August 31, 2026, yields an after-tax NPV8% of C$1.836 billion, a 38.2% IRR, and a 2.4-year payback. Under a LTM High pricing case, the after-tax NPV8% reaches C$3.240 billion, with a 54.8% IRR and a 1.6-year payback. All-in sustaining costs net of by-product credits are negative: negative US$22/oz Ag in the consensus case, negative US$36/oz spot, and negative US$40/oz LTM high.

Total pre-commercial production capital is C$667 million, while life-of-mine capital including sustaining and closure is C$1.150 billion. The updated Mineral Resource Estimate, effective June 21, 2026, includes Measured & Indicated resources of 11.628 Mt at 424 g/t AgEq and Inferred resources of 8.469 Mt at 492 g/t AgEq, using a 100 g/t AgEq cut-off. The company is moving directly toward a Feasibility Study targeted for Q2 2027 and will evaluate a staged, lower-capital initial production start. The technical report must be filed within 45 days.

Honey Badger Silver Inc. (TUF) released its updated Preliminary Economic Assessment (PEA) and Mineral Resource Estimate (MRE) in the third quarter of 2026, aligning with management’s May 2026 guidance that these studies would be delivered during this period. For a company with a market capitalization of roughly C$154 million at the last close, the specific economic figures are materially relevant. Even the lower-priced consensus case shows an after-tax NPV8% of about C$1.165 billion.

The release explicitly states that no Mineral Reserves have been calculated and mineral resources without reserves do not have demonstrated economic viability. The event was telegraphed, and the assessment includes Inferred Mineral Resources, meaning it should not be treated as a definitive economic proof.

Compared with the 2021 historical resource estimate, tonnage increased, but headline silver, zinc, and lead grades are lower in the updated MRE: - 2021 historical M&I: 9.8 Mt at 139 g/t Ag, 9.7% Zn, 8.8% Pb. - Updated M&I: 11.63 Mt at 115 g/t Ag, 8.16% Zn, 7.19% Pb, plus copper and antimony. - Updated Inferred: 8.47 Mt at 130 g/t Ag, 11.03% Zn, 6.13% Pb.

The resource base is larger in tonnage and adds copper and antimony, but the silver and base-metal grades are lower under the updated assumptions. This is not a clean grade upgrade.

The negative All-In Sustaining Costs (AISC) are heavily dependent on zinc, lead, and copper by-product credits. If by-product prices weaken, or recoveries and payabilities underperform, silver production costs become materially higher. Additionally, the company notes that the spot-case economics “have not been fully run in the live PEA workbook and may differ materially” when disclosed.

Capital intensity remains a central issue. C$667 million in pre-commercial capital is enormous relative to the company’s current cash position of roughly C$6 million and market capitalization of C$154 million. The all-season road alone is estimated at C$205 million, with only a C$25 million National Trade Corridors Fund contribution referenced. The grant is non-dilutive but limited relative to the total road cost. Furthermore, the Tusk Automation mill condition and refurbishment study was not included in this PEA, meaning mill restart capital is still not fully verified.

The news provides the first formal post-acquisition economic framework for the flagship asset, but it is preliminary and the market still has to weigh execution, financing, and share dilution risk.

Honey Badger Silver Inc. is a Canadian silver and critical minerals company with 100%-owned projects across the Northwest Territories, Yukon, and Nunavut. Its flagship asset is the PC Silver Mine, formerly known as Prairie Creek, located in the Northwest Territories. The project is a fully permitted brownfield underground silver-zinc-lead-copper operation featuring approximately 5 km of existing underground workings, a mill, an airstrip, and other surface infrastructure.

Honey Badger Silver acquired the project in April 2026 through the purchase of Canadian Zinc Corporation from Resource Capital Fund VI L.P. for a total consideration of C$12 million. The preliminary economic assessment (PEA) contemplates underground mining at approximately 2,400 tonnes per day, followed by dense media separation upgrading and milling at about 1,500 tonnes per day post-DMS over a 22-year period. Processing is expected to produce zinc concentrate and a silver-rich lead concentrate.

The company’s other portfolio assets include Sunrise Lake, Plata, Nanisivik, Yava, Hy, Clear Lake, and Groundhog. Additionally, Honey Badger Silver holds over 10,000 ounces of physical silver, which yields 12% annually through a Monetary Metals silver loan maturing on August 8, 2027.