Great Panther Silver Ltd. said May 31 that a preliminary economic assessment on restarting operations at its polymetallic Coricancha property in Peru defined a net present value of US$16.6 million, at a 7.5% discount rate, with an 81% internal rate of return, both after taxes.
Capital costs are estimated at US$32.4 million, comprising US$8.8 million in initial capital and US$23.6 million in sustaining capital.
The study is focused on approximately 28% of the overall resources hosted by the property, according to the company, which aims to incorporate additional resources into an expanded mine plan should the mine return to production.
The Coricancha mine, which was last in production in 2013, is expected to produce 2.8 million ounces of silver, 64,200 ounces of gold, 12.9 million pounds of lead, 28.6 million pounds of zinc and 2.3 million pounds of copper over 3.75 years.
Silver equivalent production totals 11.7 million ounces at 3.1 million ounces per year, while gold equivalent production totals 149,000 ounces at 39,700 ounces per year.
All-in sustaining costs are estimated at negative US$2.20/oz of payable silver, or US$547/oz of payable gold, over the life of the mine.
Great Panther is planning to initiate an eight-month bulk sample program to test two mine methods being contemplated, with fieldwork to start early in the third quarter and 6,000 tonnes to be collected from the Constancia vein.
