New Pacific reports high silver recovery rates at Silver SandBy

vancouver – new pacific metal (NYSE: ) Corp. (TSX: NUAG) (NYSE: NEWP ) reported favorable results from a metallurgical testing program at its Silver Sand project in Bolivia. The tests, which are critical to the upcoming Preliminary Feasibility Study (PFS) in June, showed high silver recoveries and lower than expected cyanide consumption.

The first composite sample had a head grade of 145 g/t, a silver recovery of 92.7%, and an average sodium cyanide consumption of 1.40 kg/t. The distillation grade of the second composite material is 114 g/ton, the recovery rate is 89.6%, and the sodium cyanide dosage is 1.10 kg/ton. These results are consistent with preliminary estimates from the Preliminary Economic Assessment (PEA) released in January 2023, but with reduced cyanide consumption, indicating potential operating cost savings.

New Pacific President and CEO Andrew Williams said that the PFS metallurgical testing project confirmed Silver Sand’s excellent metallurgical properties and stable recovery rate, and it is possible to further increase the recovery rate to 93.9% through additional processing steps.

The extensive metallurgical testing program includes various analyses, such as mineralogy and silver precipitation via zinc dust, and is performed by several international laboratories. Results from this program, including continuous concentration testing and pressure filtration of cyanide leach tailings, are generally better than or consistent with PEA parameters.

The Silver Sand project is managed by qualified independent consultant Jinxing Ji, P.Eng., and is part of the New Pacific portfolio, which includes three precious metals projects in Bolivia. The company is also advancing a preliminary economic assessment of its Carangas project and reported oxide gold mineralization at its Silverstrike project in 2022.

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This news is based on press release statements, including forward-looking statements, which are subject to risks, uncertainties and other factors that may affect actual results. It is important to note that the PEA results are preliminary and the economic evaluation of the project may not materialize as stated. The PEA is based on Indicated Resources and Inferred Resources, which are too speculative geologically to be economically considered as Mineral Reserves.

Investment Professional Insights

As New Pacific Metals (NEWP) advances its Silver Sand project with promising metallurgical test results, investors are paying close attention to the company's financials and stock performance. According to the latest data from InvestingPro, NEWP's market capitalization is approximately US$355.79 million, indicating that it occupies an important position in the mining sector. Despite facing the challenge of not being profitable over the past 12 months, as shown by a negative P/E ratio of -45.04, the company has shown solid returns over the last week, with a total price return of 15.93%. The recent gains are part of a wider trend, with returns of 57.46% last month and an even more impressive 71.54% over the past three months.

One of the tips from InvestingPro suggests that NEWP stock is currently in overbought territory according to the Relative Strength Index (RSI), which could indicate a possible pullback in the near term. It's also worth noting that analysts don't expect the company to be profitable this year, which is reflected in its trailing twelve-month adjusted price-to-earnings ratio of -47.74 through the second quarter of 2024. However, the company's liquid assets exceed its short-term debt, providing some financial stability.

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For investors who wish to delve deeper into NEWP's financials and stock performance, there are additional InvestingPro Tips available that provide a comprehensive analysis of the company.Use coupon code PRONEWS24readers can gain access to these insights with an additional 10% discount on annual or annual Pro and Pro+ subscriptions, which can be invaluable in making informed investment decisions.

The next earnings date is set for May 8, 2024, and with analysts' fair value estimates at $5.99 and InvestingPro's fair value at $1.7, investors will be closely watching to see if the company's operational progress translates into financial growth and the stock appreciation.

This article was generated with the support of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.

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