New Pacific Metals Reports Results of Updated Carangas Preliminary Economic Assessment: Post-tax $2.65 Billion NPV (5%) and 35.9% IRR; 339.0 Million Oz of Silver Equivalent Produced

New Pacific Metals Corp. filed an updated Preliminary Economic Assessment (PEA) for its Carangas silver-gold project in Bolivia, prepared by Ausenco. The study outlines a life-of-mine production period of 19 years, yielding 195.1 moz Ag, 1.1 moz Au, 1,453 Mlbs Zn, and 941 Mlbs Pb, equivalent to 339.0 moz silver equivalent (AgEq). At base-case metal prices of $45/oz Ag, $3,400/oz Au, $1.20/lb Zn, and $0.90/lb Pb, the project reports a post-tax NPV (5%) of US$2.65 billion, an internal rate of return (IRR) of 35.9%, and a 2.4-year payback period.

Sensitivity analysis indicates that at $67.50/oz Ag, with other prices constant, the NPV rises to $4.16 billion and the IRR reaches 51.5%. At $5,100/oz Au, the NPV reaches $3.23 billion and the IRR is 37.0%. The production profile is divided into three phases. During years 1-8, designated as the "pre-gold" period, the mine produces approximately 15.5 moz Ag per year (18.9 moz AgEq per year) at an all-in sustaining cost (AISC) of $18.25/oz AgEq. Years 9-16 mark the onset of gold production, adding approximately 142.7 koz Au per year to approximately 7.6 moz Ag per year (20.7 moz AgEq per year), with an AISC of $17.78/oz AgEq. Years 17-19 involve processing stockpiles for a total of 10.3 moz Ag. The life-of-mine average AISC is $19.16/oz AgEq, or $0.11/oz Ag net of by-products.

Capital costs include an initial capex of $644.5 million, life-of-mine growth capex of $422.7 million, sustaining capex of $166.5 million, and closure costs of $149.8 million. The growth capex includes a concentrator expansion in year 6 and a gold plant in year 9. Mining operations utilize a conventional open-pit method with a throughput of 8 million tonnes per annum (Mtpa) during years 1-5, expanding to 16 Mtpa in years 6-18. The strip ratio is 1.4:1, and grid power is priced at $0.06/kWh.

An updated mineral resource statement effective March 31, 2026, reports Indicated resources of 238.8 Mt at 69 g/t AgEq (529.6 moz AgEq) and Inferred resources of 53.8 Mt at 65 g/t AgEq (112.7 moz AgEq), both at a 30 g/t AgEq cut-off. Next steps include 30,000-metre infill drilling starting in September 2026, completion of the Environmental and Social Impact Assessment (EEIA) by the end of 2027, and the conversion of exploration licences to Administrative Mining Contracts (AMCs).

New Pacific Metals Corp. (NUAG) released an updated Carangas Preliminary Economic Assessment (PEA) that marks a significant increase in projected value compared to the prior September 2024 study. The updated model reports a post-tax net present value (NPV) of $501 million and an internal rate of return (IRR) of 26% at a silver price of $24/oz. When adjusted for the higher base-case silver price of $45/oz, the NPV increases approximately five-fold, while the IRR rises to 35.9%.

The primary drivers behind these figures include the inclusion of a large gold zone, a doubling of throughput to 16 million tonnes per annum (Mtpa), and a significantly larger mineral resource. The new base-case metal prices reflect a more current long-term outlook and remain below spot-like sensitivity cases. Relative to the company’s market capitalization of approximately $1.0 billion on the day before the release, the PEA’s after-tax NPV of $2.65 billion represents 2.6 times the market cap.

The update was flagged in the June 2026 corporate presentation as an expected revision targeted for that month. However, the scale of the improvement exceeds market expectations, as evidenced by the stock’s decline from May highs of $8.28 to $5.45 prior to the release. Strategic investors Silvercorp Metals, holding 27.99%, and Pan American Silver, holding 11.47%, already possess large stakes in the company. These investors participated in the October 2025 financing at CAD$3.55, anchoring a cost base well below the current share price.

While a PEA is not a bankable feasibility study, the Carangas project displays one of the highest silver-equivalent NPVs among junior developers globally. The study outlines a realistic expansion path and a modest strip ratio.

New Pacific Metals Corp. is a Canadian exploration and development company focused on three silver-dominant properties in Bolivia: Carangas (Ag-Au-Zn-Pb), Silver Sand (pure Ag), and Silverstrike (Ag-Au). The Carangas project, located in the Oruro department, is now the flagship asset. It hosts a large near-surface silver resource overlying a thick gold zone. The updated PEA demonstrates a world-class 19-year operation producing an average of ~18 moz AgEq per year.

Silver Sand is a near-surface, high-grade pure silver deposit with a completed Pre-Feasibility Study (June 2024) showing a post-tax NPV of $740M and IRR of 37% at $24/oz Ag, though development had been hampered by illegal mining and community issues. The company regained access in 2025 and is rebuilding community relationships.

The company benefits from a supportive Bolivian political shift observed in 2025, strategic partnerships with Silvercorp and Pan American Silver, and no debt.