UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of: November, 2024
Commission File No. 0001-40381
NEW PACIFIC METALS CORP.
(Translation of registrant's name into English)
Suite 1750 - 1066 W. Hastings Street
Vancouver BC, Canada V6E 3X1
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F
Form 20-F [ ] Form 40-F [X]
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: November 18, 2024 |
NEW PACIFIC METALS CORP. |
|
|
|
/s/ Jalen Yuan |
|
Jalen Yuan |
|
Chief Financial Officer |
EXHIBIT INDEX
Exhibit 99.1
TABLE
OF CONTENTS |
|
|
|
1 |
SUMMARY |
1 |
|
|
|
1.1 |
EXECUTIVE
SUMMARY |
1 |
1.2 |
TECHNICAL
SUMMARY |
6 |
|
|
|
2 |
INTRODUCTION |
19 |
|
|
|
2.1 |
Terms
of Reference |
19 |
2.2 |
Effective
Date |
19 |
2.3 |
Qualified
Persons |
19 |
2.4 |
Sources
of Information |
20 |
2.5 |
Key
Units of Measure |
21 |
2.6 |
List
of Abbreviations |
21 |
|
|
|
3 |
RELIANCE
ON OTHER EXPERTS |
24 |
|
|
|
4 |
PROPERTY
DESCRIPTION AND LOCATION |
25 |
|
|
|
4.1 |
Land
Tenure |
27 |
4.2 |
Terms
of the Joint Venture |
29 |
|
|
|
5 |
ACCESSIBILITY,
CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY |
30 |
|
|
|
5.1 |
Accessibility |
30 |
5.2 |
Physiography
and Climate |
30 |
5.3 |
Local
Resources and Infrastructure |
30 |
|
|
|
6 |
HISTORY |
32 |
|
|
|
6.1 |
Historical
Resource Estimates |
32 |
6.2 |
Past
Production |
32 |
|
|
|
7 |
GEOLOGICAL
SETTING AND MINERALISATION |
33 |
|
|
|
7.1 |
Regional
Geology |
33 |
7.2 |
Local
Geology of Carangas Property |
35 |
7.3 |
Mineralization |
40 |
|
|
|
8 |
DEPOSIT
TYPES |
44 |
|
|
|
9 |
EXPLORATION |
45 |
|
|
|
9.1 |
Sampling
and Mapping |
45 |
9.2 |
Geophysics |
46 |
9.3 |
Exploration
Potential |
47 |
|
|
|
10 |
DRILLING |
48 |
|
|
|
10.1 |
Drilling
Type |
50 |
10.2 |
Drilling
Locational Data |
50 |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page i of ix | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
10.3 |
Drilling
Sample Recovery |
50 |
10.4 |
Process
Verification |
50 |
|
|
|
11 |
SAMPLE
PREPARATION, ANALYSES AND SECURITY |
51 |
|
|
|
11.1 |
Sample
Collection |
51 |
11.2 |
Assay
Laboratory Sample Preparation and Analysis |
53 |
11.3 |
Bulk
Density |
53 |
11.4 |
Quality
Control Data |
54 |
11.5 |
Security
and Storage |
61 |
11.6 |
RPM
Opinion on Adequacy of Sample Preparation, Analyses, Security and QA/QC |
62 |
|
|
|
12 |
DATA
VERIFICATION |
63 |
|
|
|
12.1 |
Data
Verification Measures |
63 |
12.2 |
Database
Validation |
63 |
12.3 |
Validation
of Mineralisation |
63 |
12.4 |
Drill
Hole Location Validation |
64 |
12.5 |
Core
Logging, Sampling, and Storage Facilities |
65 |
12.6 |
RPM
Opinion on the Validity of the Data |
65 |
|
|
|
13 |
MINERAL
PROCESSING AND METALLURGICAL TESTING |
66 |
|
|
|
13.1 |
Introduction |
66 |
13.2 |
Historical
metallurgical testwork (2022-2023) |
66 |
13.3 |
Recent
metallurgical testwork (2024) |
68 |
13.4 |
Sample
selections and head assays |
68 |
13.5 |
Mineralogy
of the oxidized silver/lead/zinc mineralized samples |
71 |
13.6 |
Bulk
flotation of the USZ Oxidized sample |
73 |
13.7 |
Selective
flotation of the USZ Transitional sample |
73 |
13.8 |
Flotation
testing of the USZ Sulfide sample |
75 |
13.9 |
Flotation
testing for the USZ LOM composite sample |
78 |
13.10 |
Metallurgical
testing for the sample from the Lower Gold Zone |
92 |
13.11 |
Bulk
flotation to produce the gold concentrate |
93 |
|
|
|
14 |
MINERAL
RESOURCE ESTIMATE |
97 |
|
|
|
14.1 |
Resource
Database |
97 |
14.2 |
Depletion
Areas |
98 |
14.3 |
Geological
Interpretation |
98 |
14.4 |
Resource
Assays |
101 |
14.5 |
Treatment
of High-Grade Assays |
102 |
14.6 |
Compositing |
103 |
14.7 |
Search
Strategy and Grade Interpolation Parameters |
103 |
14.8 |
Bulk
Density |
106 |
14.9 |
Block
Models |
106 |
14.10 |
Cut
off Grade and Optimization Parameters |
108 |
14.11 |
Classification |
109 |
14.12 |
Block
Model Validation |
112 |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page ii of ix | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
14.13 |
Mineral
Resource Reporting |
117 |
|
|
|
15 |
MINERAL
RESERVE ESTIMATE |
118 |
|
|
|
16 |
MINING
METHODS |
119 |
|
|
|
16.1 |
Introduction |
119 |
16.2 |
Key
Design Criteria |
121 |
16.3 |
Pit
Optimization |
125 |
16.4 |
Pit
Designs |
126 |
16.5 |
Low
Grade and Oxide Stockpile Design |
133 |
16.6 |
Waste
Rock Storage Facility Design |
133 |
16.7 |
Ex-Pit
Haul Roads |
134 |
16.8 |
Mine
Production Schedule |
134 |
16.9 |
Mine
Operations |
145 |
16.10 |
Risks |
145 |
|
|
|
17 |
RECOVERY
METHODS |
147 |
|
|
|
17.1 |
Design
Criteria |
148 |
17.2 |
Process
Flow Sheet |
153 |
17.3 |
Process
Description |
156 |
17.4 |
Power |
157 |
17.5 |
Water |
158 |
17.6 |
Reagents
and Consumables |
158 |
17.7 |
Other
Facilities and Servies |
159 |
17.8 |
Concentrate
production |
160 |
17.9 |
QP
Comments |
161 |
|
|
|
18 |
PROJECT
INFRASTRUCTURE |
163 |
|
|
|
18.1 |
Access
roads |
163 |
18.2 |
Power
Supply |
163 |
18.3 |
Water
Supply, Potable Water Supply, and Wastewater Treatment Plant. |
165 |
18.4 |
Fuel
Supply |
165 |
18.5 |
Administrative
Complex Building |
166 |
18.6 |
Camp
Accommodation and Lunchroom |
166 |
18.7 |
Emergency
Responses |
166 |
18.8 |
Communications |
166 |
18.9 |
Warehouse |
166 |
18.10 |
Truck
Shop and Truck Wash |
167 |
18.11 |
Maintenance
Shop Building |
167 |
18.12 |
Change
Room |
167 |
18.13 |
Assay
Laboratory |
167 |
18.14 |
Main
Gate |
167 |
18.15 |
Truck
Scale |
167 |
18.16 |
Explosives |
167 |
18.17 |
Tailings |
167 |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page iii of ix | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
19 |
MARKET
STUDIES AND CONTRACTS |
177 |
|
|
|
19.1 |
Markets |
177 |
19.2 |
Royalties |
178 |
19.3 |
Contracts |
178 |
|
|
|
20 |
ENVIRONMENTAL
STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT |
179 |
|
|
|
20.1 |
Introduction |
179 |
20.2 |
Environmental
Legislation and Applicable Project Permitting |
179 |
20.3 |
Environmental
Baseline Work to Date |
181 |
20.4 |
Social
or Community Requirements |
186 |
20.5 |
Mine
Closure Requirements |
187 |
|
|
|
21 |
CAPITAL
AND OPERATING COSTS |
188 |
|
|
|
21.1 |
Capital
Costs |
188 |
21.2 |
Operating
Costs |
192 |
|
|
|
22 |
ECONOMIC
ANALYSIS |
195 |
|
|
|
22.1 |
Methodology |
195 |
22.2 |
Economic
Analysis |
198 |
22.3 |
Sensitivity
Analysis |
201 |
|
|
|
23 |
ADJACENT
PROPERTIES |
202 |
|
|
|
24 |
OTHER
RELEVANT DATA AND INFORMATION |
203 |
|
|
|
24.1 |
Alternate
Project Development Plan |
203 |
|
|
|
25 |
INTERPRETATION
AND CONCLUSIONS |
210 |
|
|
|
25.1 |
Geology
and Mineralization |
210 |
25.2 |
Data
Verification and Mineral Resources |
210 |
25.3 |
Exploration
Potential |
210 |
25.4 |
Mining |
210 |
25.5 |
Mineral
Processing and Metallurgical Testing |
211 |
25.6 |
Recovery
Methods |
211 |
25.7 |
Infrastructure |
212 |
25.8 |
Tailings
Storage Facility |
212 |
25.9 |
Environmental
Studies |
213 |
25.10 |
Market
Studies and Contracts |
213 |
25.11 |
Capital
Costs |
213 |
25.12 |
Operating
Costs |
213 |
25.13 |
Indicative
Economic Results |
213 |
25.14 |
Project
Risks and Opportunities |
214 |
|
|
|
26 |
RECOMMENDATIONS |
217 |
|
|
|
26.1 |
Geology |
217 |
26.2 |
Mining |
217 |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page iv of ix | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
26.3 |
Mineral
and Metallurgical Testing |
218 |
26.4 |
Infrastructure |
219 |
26.5 |
Environment
and Social |
219 |
26.6 |
Estimated
Budget for Recommendations |
219 |
|
|
|
27 |
REFERENCES |
221 |
|
|
|
28 |
DATE
AND SIGNATURE PAGE |
224 |
|
|
|
29 |
CERTIFICATE
OF QUALIFIED PERSON |
226 |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page v of ix | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
LIST
OF TABLES |
|
|
|
|
Table
1-1 |
Economic
Analysis Results |
5 |
Table
1-2 |
NPV
and IRR Sensitivity Analysis by Input Cost |
6 |
Table
1-3 |
Sensitivity
analysis of silver prices |
6 |
Table
1-4 |
Sensitivity
to Discount Rate |
6 |
Table
1-5 |
Carangas
Deposit - Conceptual Pit* Constrained Mineral Resource as of 25 August 2023 |
10 |
Table
1-6 |
PEA
Mine Plan Production Summary |
11 |
Table
1-7 |
Assigned
Commodity Pricing |
14 |
Table
1-8 |
Concentrate
Payables, Refining and Transportation Assumptions |
15 |
Table
1-9 |
Capital
Cost Breakdown |
16 |
Table
1-10 |
Operating
Cost Breakdown |
16 |
Table
2-1 |
Qualified
Persons |
20 |
Table
4-1 |
Mining
Rights of Carangas Property |
27 |
Table
5-1 |
Weather
of Carangas Region |
30 |
Table
7-1 |
Summary
of Carangas Mineralized Zones |
42 |
Table
9-1 |
Summary
of Exploration Programs at Carangas |
45 |
Table
10-1 |
Carangas
Drilling History |
48 |
Table
11-1 |
QA/QC
Sample Status |
54 |
Table
11-2 |
CRMs
of Carangas Project |
55 |
Table
11-3 |
Statistical
Summary for Duplicate Samples July 2021 – April 2023 |
58 |
Table
11-4 |
Statistical
Summary for Umpire Duplicates Samples |
61 |
Table
12-1 |
Drill
Core Intervals Viewed |
64 |
Table
13-1 |
Drill
Holes and Core Intervals Selected for the Comminution Testing |
67 |
Table
13-2 |
Specific
Gravity, Rod Mill Work Index, Ball Mill Work and Abrasion Index |
67 |
Table
13-3 |
Samples
Selected from the Upper Silver Zone and Lower Gold Zone |
69 |
Table
13-4 |
Head
Assays of the Five Composite Samples |
71 |
Table
13-5 |
Mineral
Compositions of the USZ Oxidized and USZ Transitional Composite Samples |
71 |
Table
13-6 |
Conditions
of Rougher Tests for the USZ Oxidized Sample |
73 |
Table
13-7 |
Results
of Rougher Flotation Tests for the USZ Oxidized Sample |
73 |
Table
13-8 |
Conditions
of Rougher Flotation Tests for the USZ Transitional Sample |
74 |
Table
13-9 |
Results
of Rougher Flotation Tests for the USZ Transitional Sample |
74 |
Table
13-10 |
Conditions
of Rougher Flotation Tests for the USZ Sulfide Sample |
76 |
Table
13-11 |
Results
of Rougher Flotation Tests for the USZ Sulfide Sample |
76 |
Table
13-12 |
Ag/Pb
Rougher Flotation Tests for the USZ LOM Composite Sample |
79 |
Table
13-13 |
Results
of Rougher Flotation Tests for the USZ LOM Composite Sample |
80 |
Table
13-14 |
Conditions
of Cleaner Flotation Tests for the USZ LOM Composite Sample |
86 |
Table
13-15 |
Results
of Cleaner Flotation Tests for the USZ LOM Composite Sample |
87 |
Table
13-16 |
Conditions
of the Locked Cycle Test for the USZ LOM Composite Sample |
91 |
Table
13-17 |
Results
of the Locked Cycle Tests 55 and 57 for the USZ LOM Composite Sample |
92 |
Table
13-18 |
Results
of Gravity Concentration for the Sample from the Lower Gold Zone |
92 |
Table
13-19 |
Expected
Gravity Recoverable Gold Recovery for a Commercial Operation |
93 |
Table
13-20 |
Conditions
of Rougher Flotation Tests for the Gold Sample |
94 |
Table
13-21 |
Results
of Rougher Flotation Tests for the Gold Sample |
94 |
Table
13-22 |
Conditions
of Flotation Tests to Produce a Copper-Enriched Concentrate |
95 |
Table
13-23 |
Results
of Selective Flotation Tests to Produce a Copper-Enriched Concentrate |
95 |
Table
13-24 |
Conditions
and Results of Cyanide Leaching for the Sample from the Lower Gold Zone |
96 |
Table
13-25 |
Conditions
and Results for the Cyanide Leach of Flotation Concentrate |
96 |
Table
14-1 |
Density
Statistics Table |
98 |
Table
14-2 |
Univariate
Statistics of Grade Composites, by Domain |
102 |
Table
14-3 |
Top
Cut Values into all Domains |
102 |
Table
14-4 |
Carangas
Grade Estimation Search Parameters |
105 |
Table
14-5 |
Density
Estimation Parameters |
106 |
Table
14-6 |
Carangas
Block Model Definition Parameters |
107 |
Table
14-7 |
Commodity
Prices Used in the Resource Calculation |
108 |
Table
14-8 |
Composite
vs. Block Model Grade Statistical Validation |
112 |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page vi of ix | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table
14-9 |
3D
Volumetric Model comparison |
112 |
Table
14-10 |
Statement
of Mineral Resources* at the Carangas Project as of 25th August 2023 |
117 |
Table
16-1 |
PEA
Mine Plan Production Summary |
119 |
Table
16-2 |
Net
Smelter Price and Recoveries for Mine Planning |
122 |
Table
16-3 |
Cutoff
Grade |
123 |
Table
16-4 |
Operating
Cost Inputs for Pseudoflow Pit Shells |
125 |
Table
16-5 |
Designed
Open Pit Contents |
127 |
Table
16-6 |
Mine
Production Schedule |
137 |
Table
17-1 |
Project
Design Criteria |
149 |
Table
17-2 |
Major
Equipment List |
158 |
Table
17-3 |
Reagents
Consumption |
159 |
Table
17-4 |
Grinding
Consumables |
159 |
Table
17-5 |
Annual
concentrate production |
161 |
Table
18-1 |
Geographical
Location of Substations |
163 |
Table
18-2 |
Pagador
– Carangas Line Summary Table |
165 |
Table
18-3 |
Conventional
TSF Option 1 – Staging Plan |
171 |
Table
18-4 |
Conventional
TSF Option 1 Staging Estimated Capital Cost |
173 |
Table
18-5` |
Conventional
TSF Option 1 Staging Estimated Operating Cost |
173 |
Table
18-6 |
Dry
Stack Option Estimated Capital Cost |
175 |
Table
18-7 |
Dry
Stack Option Estimated Operating Cost |
175 |
Table
18-8 |
Tailings
Options Cost Summary |
175 |
Table
19-1 |
Assigned
Commodity Pricing |
177 |
Table
19-2 |
Concentrate
Payables, Treatment, Refining and Transportation Assumptions |
178 |
Table
20-1 |
Physico-chemical
parameters |
184 |
Table
20-2 |
Particulate
Matter Results |
185 |
Table
20-3 |
Gases
Results |
185 |
Table
21-1 |
Capital
Cost Breakdown |
188 |
Table
21-2 |
Mine
Area Capital Cost Summary |
190 |
Table
21-3 |
Initial
Capital Cost - Processing Plant |
190 |
Table
21-4 |
Infrastructure
Initial Capital Cost |
191 |
Table
21-5 |
Tailings
Management Capital Cost Breakdown |
191 |
Table
21-6 |
Operating
Cost Breakdown |
192 |
Table
21-7 |
Processing
Operating Cost Breakdown |
193 |
Table
21-8 |
Key
Reagents and Consumables Price |
193 |
Table
21-9 |
Tailings
Management Operating Cost |
194 |
Table
21-10 |
G&A
Operating Cost Estimate |
194 |
Table
22-1 |
LOM
Average Metallurgical Assumptions |
197 |
Table
22-2 |
Concentrate
Pricing Terms |
198 |
Table
22-3 |
Metal
Prices |
198 |
Table
22-4 |
Financial
Model Economic Analysis Summary |
199 |
Table
22-5 |
Economic
Analysis Results |
201 |
Table
22-6 |
NPV
and IRR Sensitivity Analysis by Input Cost |
201 |
Table
22-7 |
Sensitivity
analysis of silver prices |
201 |
Table
22-8 |
Sensitivity
to Discount Rate |
201 |
Table
24-1 |
Alternate
Pit Design Contents |
204 |
Table
26-1 |
Estimated
Budget for Recommendations |
220 |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page vii of ix | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
LIST
OF FIGURES |
|
|
|
|
Figure
1-1 |
Mine
Production Schedule Summary |
12 |
Figure
4-1 |
Carangas
Project General Location Plan |
26 |
Figure
4-2 |
Location
of Carangas Mineral Rights |
28 |
Figure
7-1 |
Regional
Geology Map of Bolivia's Central Andes |
34 |
Figure
7-2 |
Regional
Geology of Carangas Property |
36 |
Figure
7-3 |
Carangas
Local Geology |
38 |
Figure
7-4 |
Carangas
Diatreme Structure Section View – Looking NW |
39 |
Figure
7-5 |
Mineralized
Zones by Metal Zoning- Oblique Section |
41 |
Figure
8-1 |
Schematic
Cross-Section of Bolivia Region |
44 |
Figure
9-1 |
IP
Chargeability Anomalies of Carangas Area |
47 |
Figure
10-1 |
Drillhole
Location |
49 |
Figure
11-1 |
Drill
Core Box Example – Drill Hole DCAr0171 |
52 |
Figure
11-2 |
Core
Cutting and Sample Bag |
52 |
Figure
11-3 |
Specific
Gravity Measurement |
54 |
Figure
11-4 |
Control
Chart for CDN-ME-1501 (Ag) (July 2021 – November 2022) |
56 |
Figure
11-5 |
Control
Chart for Coarse Blank Samples |
57 |
Figure
11-6 |
Control
Chart for Pulp Blank CDN-GEO-1901 |
57 |
Figure
11-7 |
Precision
Plot of Field (1/4 core) Duplicates for Silver Assays |
58 |
Figure
11-8 |
Quantile-Quantile
Plot of Field (1/4 core) Duplicates for Silver Assays |
59 |
Figure
11-9 |
Coarse
Duplicate Precision Scatterplot – Silver Assays |
59 |
Figure
11-10 |
Precision
Plot of Pulp Duplicates for Silver Assays |
60 |
Figure
11-11 |
Umpire
Pulp Duplicates Precision Scatterplot for Silver Assays |
61 |
Figure
11-12 |
Secure
Core Yard Storage |
62 |
Figure
12-1 |
Drill
Core Mineralization Intercept Examples |
64 |
Figure
12-2 |
Drillholes
Collar Field Registration |
65 |
Figure
13-1 |
Locations
of the Intervals Selected for the Metallurgical Samples |
70 |
Figure
13-2 |
Deportment
of Lead for the USZ Oxidized and USZ Transitional Composite Samples |
72 |
Figure
13-3 |
Deportment
of Zinc for the USZ Oxidized and USZ Transitional Composite Samples |
72 |
Figure
13-4 |
Silver
and Lead Recoveries of Rougher Flotation for the USZ Transitional Sample |
75 |
Figure
13-5 |
Silver
and Lead Recoveries of Rougher Flotation for the USZ Sulfide Sample |
77 |
Figure
13-6 |
Enrichment
Ratios of Silver/Lead Rougher Flotation for the USZ Sulfide Sample |
78 |
Figure
13-7 |
Silver
Recovery of Silver/Lead Rougher Flotation for the USZ LOM Composite Sample |
81 |
Figure
13-8 |
Lead
Recovery of Silver/Lead Rougher Flotation for the USZ LOM Composite Sample |
82 |
Figure
13-9 |
Silver/Zinc
Enrichment Ratio for the USZ LOM Composite Sample |
83 |
Figure
13-10 |
Silver/Sulfur
Enrichment Ratio for the USZ LOM Composite Sample |
84 |
Figure
13-11 |
Silver
Recovery of Silver/Lead Cleaner Tests for the USZ LOM Composite Sample |
88 |
Figure
13-12 |
Lead
Recovery of Silver/Lead Cleaner Testsfor the USZ LOM Composite Sample |
89 |
Figure
13-13 |
Silver
and Lead in the Concentrate for the USZ LOM Composite Sample |
89 |
Figure
13-14 |
Zinc
Content in the Concentrate for the USZ LOM Composite Sample |
90 |
Figure
13-15 |
Size-by-Size
Gravity Recoverable Gold for the Sample from the Lower Gold Zone |
93 |
Figure
14-1 |
Three-Dimensional
View of the Carangas Geological Model |
100 |
Figure
14-2 |
Ag
Log Histogram for 1.5 m Composites |
101 |
Figure
14-3 |
Length
Histogram for Raw Assay Intervals |
103 |
Figure
14-4 |
Estimation
Density Histogram Validation |
106 |
Figure
14-5 |
Classified
Mineral Resources Block Model – Section 22 |
111 |
Figure
14-6 |
Swath
Plot along X,Y,Z Direction for Ag (g/t) Validation |
114 |
Figure
14-7 |
Ag
(g/t) grade Section View Validation of Block Model – Section 22 |
115 |
Figure
14-8 |
Ag
(g/t) grade Section View Validation of Block Model – Section DCAr0094 |
116 |
Figure
16-1 |
Mine
Operations General Arrangements |
120 |
Figure
16-2 |
Mining
Loss and Dilution Application on 3800 masl bench |
124 |
Figure
16-3 |
Pseudoflow
Pit Shell Resource Contents by Case |
126 |
Figure
16-4 |
Designed
Open Pit Contents |
128 |
Figure
16-5 |
Ultimate
Pit Design, P633 |
129 |
Figure
16-6 |
Phased
Pit Designs |
130 |
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Figure
16-7 |
Pit
Designs, EW Section View, 7905400N |
131 |
Figure
16-8 |
Pit
Designs, NS Section View, 593150E |
132 |
Figure
16-9 |
Annual
Mill Feed Tonnes and Grade |
135 |
Figure
16-10 |
Annual
Material Mined and Waste Mining Ratio |
136 |
Figure
16-11 |
Pit
Phases Mined |
136 |
Figure
16-12 |
End
of Period Mine Production Schedule, Year -1 |
139 |
Figure
16-13 |
End
of Period Mine Production Schedule, Year 1 |
140 |
Figure
16-14 |
End of Period Production Schedule, Year 3 |
141 |
Figure
16-15 |
End
of Period Production Schedule, Year 5 |
142 |
Figure
16-16 |
End
of Period Production Schedule, Year 13 |
143 |
Figure
16-17 |
End
of Period Production Schedule, Year 17 |
144 |
Figure
17-1 |
Silver/Lead
Flotation Flowsheet |
154 |
Figure
17-2 |
Zinc
Flotation Flowsheet |
155 |
Figure
18-1 |
Paved
Road and Secondary Road to Carangas Project |
163 |
Figure
18-2 |
Site
geographical location |
164 |
Figure
18-3 |
Containerized
wastewater treatment plant and containerized potable water treatment |
165 |
Figure
18-4 |
Proposed
Locations of Conventional TSFs and Dry Stack Options |
169 |
Figure
18-5 |
Conventional
TSF NE – Cross-Section |
170 |
Figure
18-6 |
Conventional
TSF Option 1 – Maximum Cross-Section |
171 |
Figure
18-7 |
Dry
Stack - Typical Section |
174 |
Figure
20-1 |
Environmental
Impact Evaluation Process |
180 |
Figure
20-2 |
Surface
Water Sampling Points |
182 |
Figure
20-3 |
Photograph
of a sampling point Carangas micro basin |
183 |
Figure
20-4 |
Sampling
Points for Ambient Air, Gases and Noise |
186 |
Figure
21-1 |
CAPEX
Distribution |
189 |
Figure
22-1 |
Material
Movement |
196 |
Figure
22-2 |
Head
Grades |
196 |
Figure
22-3 |
Concentrate
Production |
197 |
Figure
24-1 |
Alternate
Open Pit Design, P625 |
205 |
Figure
24-2 |
Alternate
Pit Designs, NS Section View, 593150E |
206 |
Figure
24-3 |
Mine
General Arrangement for Alternate Project Case |
207 |
Figure
24-4 |
Alternate
Production Scenario: Silver Zone Mill Feed |
208 |
Figure
24-5 |
Alternate
Production Scenario Gold Zone Mill Feed |
208 |
Figure
24-6 |
Alternate
Production Scenario Mine Production Summary |
209 |
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RPMGlobal Canada Limited (“RPM”)
was engaged by New Pacific Metals Corp. (“New Pacific”, “NPM”, the “Company” or the “Client”)
to complete an Independent Preliminary Economic Analysis (“PEA” or the “Report”) of the Carangas Silver-Gold-Lead-Zinc
Project (the “Project”, “Property” or “Relevant Asset”), located in Oruro Department, Bolivia. This
Technical Report conforms to National Instrument 43-101 “Standards of Disclosure for Mineral Projects” of the Canadian Securities
Administrators (“NI 43-101”).
In September 2023 New Pacific commissioned
RPM to complete a Preliminary Economic Assessment (“PEA”) based on a Mineral Resource Estimate (“2023 MRE”) for the
Carangas Silver-Gold-Lead-Zinc Project (the “Project” or the “Carangas”) in accordance with the guidelines of NI 43-101
and Form 43-101 F1.
The Project is located near the town
of Carangas in the Oruro Department, Bolivia. RPM visited the property twice:
§ | Anderson
Gonçalves, Principal Geologist FAusIMM, visited the project between March 27 and 30,
2023. |
| |
§ | Marcelo
del Giudice, Principal Metallurgist FAusIMM, and Blaine Bovee, Principal Mining Engineer,
visited the project between October 31 and November 2, 2023. |
New Pacific Metals Corp is a Canadian
exploration and development company that has three precious metal projects in Bolivia.
New Pacific Metals Corp. trades on the
Toronto Stock Exchange (TSX) under the trading symbol NUAG and on the NYSE American under the symbol NEWP. The headquarters is in Vancouver,
British Columbia.
Exploration at Carangas commenced in
the late 1980s with mapping and channel chip sampling carried out in the old mining adits of San Jose and Orko Tonku at West Dome and
the adits at East Dome. More than 350 samples were collected with an average grade of 64 g/t silver. Since 2021, exploration activities
have focused on surface drilling. Drilling operations lasted until the end of April 2023.
The preliminary economic analysis
contained within this study is partly based on Inferred Mineral Resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA
based on these Mineral Resources will be realized.
The PEA is based on Indicated and Inferred
Mineral Resources mined via a conventional open-pit mining approach. The assessment assumes a processing capacity of 4.0 million tonnes
per annum (Mtpa), utilizing a series of operations, including crushing, grinding, flotation, concentrate thickening, and filtration to
produce silver/lead and zinc/silver concentrates.
The Project’s life-of-mine
(LOM) plan includes a total of 64.4 million tonnes of mill feed at average grades of 0.80% zinc, 0.44% lead, and 63 g/t silver, mined
over a 16.2-year period through conventional open-pit mining. The cumulative production in concentrates is projected to yield 106.2 million
ounces of payable silver, 281.2 thousand tonnes of payable zinc, and 173.4 thousand tonnes of payable lead.
On a stand-alone basis, the Project generates
an undiscounted pre-tax cash flow totalling $1,447 million over the mine life, with a post-tax payback period of 3.2 years from the start
of production. The after-tax net present value (NPV) at a 5% discount rate is estimated at $501 million, and the after-tax internal rate
of return (IRR) is 26%.
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The PEA demonstrates positive economic
potential for the Carangas Project, supporting further advancement and development of the Project.
Specific conclusions by area are as follows:
GEOLOGY AND MINERAL RESOURCES
Geology and Mineralization: The
Carangas deposit is a sizable polymetallic silver-gold-lead-zinc deposit situated in a Tertiary-age volcanic complex within the South
American Epithermal-Porphyry Belt. Mineralization is structured into distinct zones: an Upper Silver Zone (silver with lead and zinc),
a Middle Zinc Zone (zinc with minor silver and lead), and a Lower Gold Zone (gold with traces of silver, copper, and zinc). Gold mineralization
is open to north and northeast directions at depth. Beyond the drilled area, there are multiple IP chargeability anomalies with geophysical
signatures similar to those of the known mineralization. These anomalies constitute targets for future drilling to assess if additional
material is suitable for consideration in Mineral Resources.
Data Verification and Resource Confidence:
New Pacific's procedures in core logging, sampling, and data QAQC have met industry standards, with the QP affirming the data’s
reliability and its suitability for resource estimation. The resource estimate complies with NI 43-101 standards and shows preliminary
indicators for eventual economic extraction.
Exploration Potential: Previous
exploration indicates additional potential for resource expansion, particularly for gold at depth and in the areas (outside current Mineral
Resource pit shell) identified with IP chargeability anomalies. These anomalies have not yet been classified as Mineral Resources and
should be tested with additional exploration drilling program.
MINING
The Carangas Project PEA outlines a viable
open-pit mining plan that includes detailed production schedules, capital, and operating cost estimates. The project is designed to exploit
a 64.4 million tonne (Mt) resource with grades of 63 g/t silver, 0.44% lead, and 0.80% zinc at a waste-to-mill feed ratio of 1.7:1. The
pit and stockpile layouts, as well as operational plans, align with practices typical of other regional open-pit metal mines, with contractor
mining operations shown to be effective in similar settings.
The estimated capital and operating costs,
assessed at a scoping level of engineering, are deemed reasonable and support the financial projections and cash flow model developed
in the PEA. This analysis suggests that the project has the potential for positive economic outcomes under the proposed mine plan.
METALLURGICAL TESTWORK AND PROCESSING AND RECOVERY METHODS
Metallurgical Testing: The
Carangas Project’s metallurgical testwork program was conducted by ALS Metallurgy in Kamloops, British Columbia, Canada, under the
supervision of Dr. Jinxing Ji. This program builds upon earlier testing by Bureau Veritas Mineral/Metallurgy and ALS Metallurgy, focusing
on flotation to produce silver/lead and zinc/silver concentrates from the Upper Silver Zone (USZ)and cyanide leach for gold doré
production from the Lower Gold Zone (LGZ). The testwork included comminution testing, mineralogical analysis, gravity concentration, and
both bulk and selective flotation, covering composite samples from various zones within the deposit.
Composite samples for testing were prepared
using intervals from multiple drill holes across the deposit. In the Upper Silver Zone, the composite samples included the oxidized, transitional,
and sulfide samples, with an additional composite sample representing the life-of-mine averages. A separate composite sample was prepared
for testing from the Lower Gold Zone.
Sequential selective flotation successfully
produced marketable silver/lead and zinc/silver concentrates from the Upper Silver Zone, achieving a total silver recovery of 87.3% in
the two concentrates. Metallurgical testing
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of the Lower Gold Zone indicated
effective gold recoveries with gravity concentration, cyanide leach, and flotation.
Proposed Process Flowsheet and Recovery
Methods: The proposed processing flowsheet for the Carangas Project involves sequential selective flotation to produce separate silver/lead
and zinc/silver concentrates. The plant design includes a single-stage crushing circuit, a SABC (Semi-Autogenous Mill, Ball Mill, Crusher)
grinding circuit, and dedicated silver/lead and zinc flotation circuits, each with rougher, regrinding, and three-stage cleaner circuits.
Concentrate thickening, filtering, intermediate and final tailing thickeners are also included, with the intermediate thickening to reduce
cross-contamination of process waters between two flotation circuits. The thickened final tailings are disposed of at the Tailings Storage
Facility (TSF), with decant water recycled to the process plant.
The processing plant is designed with
a nominal capacity of 4.0 Mtpa, achieving life-of-mine production of 826,000 tonnes of silver/lead concentrate and 744,000 tonnes of zinc/silver
concentrate. The average concentrate grades are 3,975 g/t silver and 24.0% lead for the silver/lead concentrate, 356 g/t silver and 45.8%
zinc for the zinc/silver concentrate.
INFRASTRUCTURE
Infrastructure and Support Systems:
The Carangas Project requires essential infrastructure development before operations commence, focusing on securing stable water and
power supplies. Power will be sourced through an agreement with a government-owned power supplier, with a dedicated transmission line
to the site. Securing a long-term power price agreement is critical to mitigate the risk of fluctuating electricity costs, and the line
can be upgraded if needed for future expansion.
Water for initial construction will be
drawn from an on-site stream. At the same time, operational needs will be met through a pipeline system, drawing from a combination of
groundwater via water wells and surface water from the nearby rivers. Site access improvements are required, notably upgrading the last
few kilometres of road, with annual maintenance planned. Fuel will be supplied by trucks, and contractual agreements are recommended to
ensure reliable delivery and mitigate risks from potential political or economic disruptions.
All necessary non-process infrastructure
buildings will be constructed to standard specifications, and the infrastructure design is expected to support the mine’s operations
over its life. The conventional slurry tailings storage facility (TSF) was chosen over dry-stacking due to lower operational costs and
its suitability for the project area.
Tailings Storage Facility: The
conventional slurry TSF design has been completed at a PEA level, based on general geological assumptions, without detailed meteorological
or hydrological studies. It also assumes that waste rock will meet geochemical standards for embankment construction. Further studies
are recommended to confirm these assumptions in the next project phase.
ENVIRONMENTAL STUDIES
The baseline studies that were initiated
are reasonable for what is expected to be able to produce the required Environmental Impact Assessment (EIA). These studies should continue
to have an in-depth understanding of the physical and biological aspects of the project's area of influence.
GEOLOGY AND DRILLING
Additional drilling is recommended to
improve confidence in the Carangas Project’s Mineral Resources. This includes:
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§ | Infill
Drilling: Aimed at confirming mineral continuity within a 50 m by 50 m drilling grid in core
areas, supporting resource classification and future economic studies. |
| |
§ | Step-out
Drilling: Targeting extensions of gold mineralization beyond the conceptual pit in the north
and northeast directions. |
| |
§ | Exploration
Drilling: Focusing on IP chargeability anomalies beyond drilled areas may indicate similar
mineralization and potential resource expansion. |
MINING ENGINEERING
To advance to Pre-Feasibility, the following are recommended with
a $3 million budget:
§ | Geotechnical
Drilling: Focused on open-pit stability with rock strength testing and hydraulic characterization. |
| |
§ | Hydrogeological
and Hydrological Studies: To refine pit water management strategies. |
| |
§ | Geochemical
Waste Rock Characterization: Updating potentially acid-generating (PAG) models. |
| |
§ | Condemnation
Drilling: Ensuring planned infrastructure locations are free of valuable mineralization. |
| |
§ | Trade-Off
Studies: Evaluating contractor vs. owner-operated mining fleet options, cost-effectiveness
of equipment, and potential for electrified equipment. |
MINERAL PROCESSING AND METALLURGICAL TESTING
Additional metallurgical testing is recommended to enhance
flotation performance, minimize chemical reagent use, and finalize design parameters. Future testing should:
§ | Expand
Flotation Testing: Using non-oxidized core intervals to reduce issues with oxidized samples
and to improve selectivity. |
| |
§ | Optimize
Zinc Flotation pH: Addressing high slurry viscosity in the zinc circuit by testing lower
pH levels and different reagents. |
| |
§ | Conduct
Comminution Testing: Conduct comminution testing on various samples across the deposit to
refine mill design. |
| |
§ | Examine
Process Water Impact: To optimize flotation efficiency by assessing cross-contamination effects
between circuits. |
| |
§ | Thickening
and Filtration Studies: These are for flotation tailings and concentrates to enhance handling
and disposal. |
INFRASTRUCTURE
Infrastructure studies should prioritize:
§ | Water
Source Development: Drilling local wells to secure fresh water and conducting hydrology studies
for seasonal water availability from nearby rivers. |
| |
§ | Geotechnical
and Hydrological Studies for TSF: To verify that the tailings storage facility (TSF) design
meets regulatory standards and ensure containment stability. |
| |
§ | Environmental
and Geochemical Testing of Tailings: Including acid-base accounting (ABA) and net acid generation
(NAG) to assess potential acid drainage and metal leaching from waste rock. |
ENVIRONMENTAL AND SOCIAL BASELINE STUDIES
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Baseline environmental studies are
necessary to complete an Environmental Impact Assessment that meets regulatory standards. A social baseline assessment should be initiated
to engage with nearby communities, with a focus on developing a community engagement and social investment plan.
A preliminary
economic analysis for the Carangas project was completed in connection with the PEA study. The economic analysis and its underlying assumptions
are preliminary in nature and include forward-looking statements. These statements involve a number of significant assumptions, including,
but not limited to, Mineral Resource estimates, the proposed mine plan, cost estimates, metallurgical recoveries, concentrate grades,
environmental and social considerations, infrastructure requirements, product marketing, and associated costs. There is no certainty
that the economic projections within this report will be realized.
The preliminary economics analysis includes
Inferred Mineral Resources that are considered too speculative geologically. There is no certainty that the 2024 PEA based on the Mineral
Resources will be realized. Mineral Resources that are not mineral reserves have not demonstrated economic viability.
The discounted cash flow (DCF) methodology
was employed to calculate the project’s net present value, internal rate of return, and payback period. The cash flow estimates
are unlevered and calculated at the Carangas asset level. This economic analysis does not incorporate any corporate-level considerations
from New Pacific Metals or any of its subsidiaries.
The NPV was calculated using a 5% discount
rate, which is a standard real discount rate for evaluating precious metals projects. The cash flows were discounted from the second half
of year –2.
No inflation adjustments were applied to the
cash flow model.
Considering the Project on a stand-alone
basis, the undiscounted pre-tax cash flow totals $1,447 million over the mine life, and post-tax payback occurs 3.2 years from the start
of production.
The economic analysis results are shown in
Table 1-1.
Table 1-1 Economic
Analysis Results
|
Economic Analysis Results |
Post Tax NPV @ 5% ($M) |
501 |
IRR (%) |
26 |
Payback (years) |
3.2 |
A sensitivity analysis was conducted
to evaluate the influence of variations in LOM capital and operating costs. This analysis assessed the impact on post-tax NPV, applying
a 5% annual discount rate, and on IRR by adjusting mining cost, process cost, and LOM capex, respectively, by +/-10% to +/-20%. The results
of the cost sensitivity analysis are summarized in Table 1-2.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 5 of 227 | |
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oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table
1-2 NPV and IRR Sensitivity Analysis by Input Cost
|
Cost Sensitivity |
Sensitivity Items |
-20% |
-10% |
100%
(base case) |
+10% |
+20% |
Mining Cost (Post-tax NPV $M / IRR) |
534/27% |
518/26% |
501/26% |
485/25% |
468/25% |
Processing Cost (Post-tax NPV $M / IRR) |
563/28% |
532/27% |
501/26% |
470/25% |
439/24% |
Life-of-Mine Capex (Post-tax NPV $M / IRR) |
558/32% |
530/29% |
501/26% |
473/23% |
444/21% |
Another sensitivity analysis was
conducted for the silver metal price. The change in NPV and IRR is presented in Table 1-3.
Table
1-3 Sensitivity analysis of silver prices
|
Silver Price Sensitivity |
Silver Price (US$/oz) |
$18.00 |
$21.00 |
$24.00
(base case) |
$27.00 |
$30.00 |
Result (Post-tax NPV $M / IRR) |
254/17% |
378/22% |
501/26% |
625/30% |
748/34% |
An additional sensitivity analysis considering
different discount rates is shown in Table 1-4.
Table
1-4 Sensitivity to Discount Rate
Discount Rates (%) |
5% |
8% |
10% |
12% |
Post Tax NPV @ ($M) |
501 |
359 |
285 |
224 |
The sensitivity analysis results indicate
that the post-tax NPV remains positive across the evaluated sensitivity range. The NPV is highly sensitive to variations in silver price
and discount rate while showing moderate sensitivity to changes in capital and operating costs.
| 1.2.1 | Property Description and Location |
The Carangas Property is located
in the Carangas district, situated in Bolivia's western part of the Oruro Department, approximately 190 kilometres southwest of Oruro
City. The property is currently held by Minera Granville S.R.L.(Granville), a private Bolivian company, and comprises three Prospecting
and Exploration Licenses (PELs), namely Granville I, Granville II, and Colapso, covering a total area of 40.75 km²
New Pacific Metals entered into a Mining
Association Contract (MAC) with Granville to jointly explore and develop the property under applicable Bolivian laws and pursuant to the
terms and conditions of the MAC. New Pacific Metals will cover all costs related to the exploration, development, and mining of the project,
with the majority of the profits from mining production going to New Pacific Metals and a smaller portion allocated to Granville. As the
holder of the mineral title to the property, Granville will be responsible for permitting matters to ensure the property remains in good
standing under applicable Bolivian laws. The agreement has a term of 30 years and is renewable for an additional 15 years.
The Property consists of three mining
rights (PELs) granted to Minera Granville S.R.L. by the Bolivian authority AJAM (Mining Administrative Jurisdictional Authority). Each
PEL has a five-year validity term, with provisions for one extension of three years. Minera Granville manages the annual costs of maintaining
the PELs. New Pacific Metals (NPM) has a joint venture agreement or MAC with Minera Granville to conduct the geological and mining works
related to these PELs.
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RPM is not aware of any environmental
liabilities on the property. New Pacific Metals has all required permits to conduct the proposed work on the property. RPM is not aware
of any other significant factors and risks that may affect access, title, or the right or ability to perform the proposed work program
on the property.
| 1.2.3 | Existing Infrastructure |
There is currently a camp accommodation
for geologists to support exploration activities. The access road is by the existing 5 m wide compacted dirt roads to the camp.
Mining activities in the Carangas
district began in the late 16th century in the Spanish colonial era. During that time, mining activities were mainly focused
on oxide materials and native silver. Currently, widespread ruins of historical mine workings are visible in the East and West Dome, historically
known as San Antonio and Espiritu Santo hills.
Following the decline of the Spanish colonial
era, mining activities in the Carangas area diminished. In the 20th century, ownership of the Property was transferred between
various international and Bolivian local mining companies. Notably, in the early 20th century, mining operations were revived by Moritz
Hochschild and Federico Alhfeld, a German geologist regarded as the father of Bolivian geology, who was working on the Property in 1923.
There has been a very limited amount
of historical mineral exploration at Carangas. COMSUR conducted the earliest recorded exploration. This local Bolivian mining company
conducted channel sampling in the underground workings of the San Jose, Orcko Tunku, and San Antonio adits in 1985. It collected over
350 samples with an average silver grade of 64 g/t Ag. Llicancabur Mining Ltda., a local Bolivia mining company, completed a total of
1,001 meters in 9 reverse circulation holes in 1995, and COMSUR drilled 914.2 meters in 6 diamond drill holes in 2000 (Lopez-Montaño,
2019).
| 1.2.5 | Geology and Mineralization |
The Property sits in the South American
Epithermal-Porphyry Belt, featuring a geological sequence that includes Jurassic granites and the volcanic rocks of the Negrillos Formation
and the Carangas Formation of Tertiary age. The Negrillos Formation consists of eroded lavas, tuffs, and volcanic breccias from ancient
volcanic cones. Above the Negrillos Formation, the Carangas Formation includes rhyolitic to rhyo-dacitic intrusive dykes, lithic tuffs,
phreatomagmatic breccias intercalated with fluvial sediments in the upper portion and andesitic volcanoclastic rocks in the lower portion.
The Carangas area is interpreted as a
grand volcanic caldera system of the Tertiary age. The Property is located at the southwest corner of the Carangas basin. It geomorphologically
comprises two prominent hills, the West Dome and the East Dome, and a fluvial valley in between called the Central Valley. In addition,
there is a small hill known as South Dome near the south end of the Central Valley. At the Property's surface, silver-lead-zinc mineralized
vein structures predominantly strike in a West-Northwest direction with steep dips, either sub- vertically or slightly dipping to the
south or the north. In addition, there are some vein sets trending in northerly and northeast directions. To depth below the shallow silver-lead-zinc
horizon, mineralization is dominated by gold plus a minor amount of silver and copper in the lower portion of the mineralized system.
Based on data obtained from drilling,
the area of West Dome and Central Valley is interpreted as a diatreme structure with the shape of an inverted cone filled with breccias
of phreatomagmatic origin and rhyo-dacitic intrusive dykes. On the top of West Dome, unlithified sandy sediments with horizontal beddings
intercalated with phreatomagmatic breccias of altered rhyolitic and older volcanoclastic clasts are well exposed on surface, evidencing
a volcanic maar environment. The intrusion of magma, once reaching the meteoric water level near surface, led to a series of intense explosive
eruptions and fracturing, which in turn generated abundant open spaces, including cracks and pores in breccias, favourable for the circulation
of hydrothermal fluids and the deposition of sulfide minerals of metals.
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Three zones of mineralization can
be recognized as zoning of different metals. The Upper Silver Zone is near surface and dominated by silver plus moderate amounts of lead
and zinc. Below the upper zone, the Middle Zinc Zone is dominated by zinc plus minor silver and lead. The Lower Gold Zone is dominated
by gold plus a small amount of silver, copper, and zinc.
The Carangas project underwent a
systematic exploration process, beginning with the Company's reconnaissance mapping and sampling in 2019. This initial phase was followed
by detailed surface- underground mapping and sampling throughout 2020-2021. Exploration activities continued intermittently in 2022 and
concluded with the sampling and mapping of previously inaccessible historical underground workings.
In 2020, New Pacific collected 383 rock
chip samples from 55 outcrops. The samples were taken at two-meter intervals approximately perpendicular to the strike direction of mineralization,
covering a total length of 769 meters. Out of these samples, 117 returned grades ranging from 30 to 2,350 g/t Ag, with an average grade
of 160 g/t Ag. These samples were used as a guideline for further exploration programs.
The Property features historical underground
mining workings. The company conducted surveys of all safe and accessible tunnels, totalling 2.4 kilometres, which are all developed within
the Carangas Formation. To date, a total of 425 samples have been collected. Among these samples, 112 (26.35%) returned assay results
ranging from 30 to 1,060 g/t Ag, with an average grade of 122 g/t Ag.
Furthermore, the company implemented
systematic geophysical surveying programs, including a ground magnetometry survey and an Offset (3D) Bipole-Dipole Induced Polarization
(IP)-Magneto-Telluric (MT) survey, from 2021 to 2023. The known mineralization system responds well to magnetic lows and IP chargeability
highs, and multiple additional anomalies were identified.
The Company started exploration
drilling in June 2021 and completed resource definition drilling at the end of April 2023. During that period, as many as five rigs were
running at Carangas, and a total of 81,145 meters were drilled in 189 holes. Maldonado Exploraciones, a contracted drilling company from
La Paz, Bolivia, conducted all drilling roughly broken down into four stages.
§ | Phase
I drilling: started on June 21, 2021, and concluded on September 24, 2021. Thirteen holes
were completed, totalling 3,790.4 meters, to verify historical drill results and to test
the lateral and depth extent of the known mineralization exposed on the surface at West Dome
and East Dome. |
| |
§ | Phase
II: drilling commenced on October 6, 2021, and completed on December 17, 2021. In this phase,
22 holes were drilled for a total of 9,420 meters with the objective of testing mineralization
covered by young sediments in the Central Valley area. |
| |
§ | Phase
III: a resource definition drill program, started on February 3, 2022, and completed on December
14, 2022. Five drill rigs were employed for the drill program to rapidly define the mineral
resource potential at Carangas. During this period, a total of 50,311 meters were drilled
in 115 holes on a drill grid of approximately 50-meter spacing, and most holes intersected
broad mineralization. |
| |
§ | Phase
IV: drilling is a continuation of the 2022 resource definition drill program with the aim
to infill areas drilled in 2021-2022 and step out beyond these previously drilled areas.
As of the end of April 2023, a total of 39 holes were completed for a total of 17,623.5 meters
in this phase of drilling. |
| 1.2.8 | Sample Preparation, Assay, and QA/QC |
New Pacific has established a series
of working procedures and protocols regarding core logging, sampling, core quality assurance/quality control (QAQC) and data validation,
which include the regular submission of check samples to umpire Alfred H Knight laboratory in Lima, Peru.
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All drill holes were geologically
logged and sampled by New Pacific field personnel at the company’s facilities in Carangas. Geological logging included detailed
recording of lithology, alteration, mineralization, structure and RQD measurements. Drill cores are stored in a secure core storage area
at the Company’s Carangas camp for future checks and audits.
New Pacific personnel oversees the delivery
of drill core and rock chip samples from the Carangas camp to the ALS laboratories in Oruro, Bolivia, for sample preparation. Then, the
pulp samples were shipped to ALS in Lima, Peru, for geochemical analysis. ALS Oruro and ALS Lima are part of ALS Global, a commercial
laboratory specializing in analytical geochemistry services, all of which are accredited in accordance with ISO/IES 17025:2017 and are
independent of New Pacific.
All drill core, rock chip, and grab samples
are prepared using the following procedures: (1) crush to 70% less than 2 mm; (2) riffle split of 250 g; and (3) pulverize the split to
more than 85% passing a 75-micron sieve.
New Pacific has established comprehensive
QA/QC procedures covering every step of sampling, preparation, and geochemical analysis, including inserting certified reference materials
(CRMs), blanks and duplicates into regular sample sequences. The use of a reasonable number of different control samples is robust. It
returns a good variety of verifications throughout the complete process, and the umpire lab check analysis gives a good level of reproducibility
of the database.
The insertion ratio of control samples
is 24%, which is higher than the industry benchmark (15-20%).
In the QP's opinion, the data acquisition,
analysis and validation comply with the best industry practices and are trustworthy for Mineral Resource estimates and technical reporting.
| 1.2.9 | Mineral Processing and Metallurgical Testing |
Following the completion of the
first metallurgical testwork program in May 2023 with five mineralized samples, another five composite samples were collected in December
2023 from the Upper Silver Zone and Lower Gold Zone for the second metallurgical testwork program to support the current preliminary economic
assessment.
Four mineralized samples were prepared
using intervals from multiple drill holes in the Upper Silver Zone. The first sample was a nearly fully oxidized silver/lead/zinc mineralization
which contained 61 g/t silver, 0.44% lead, 0.08% zinc and 0.20% sulfur. The second sample was a partially oxidized silver/lead/zinc mineralization
which contained 61 g/t silver, 0.48% lead, 0.65% zinc and 0.89% sulfur. The third sample was a fresh silver/lead/zinc mineralization which
contained 59 g/t silver, 0.42% lead, 0.89% zinc and 1.75% sulfur. The fourth sample consisted of 12.5% fully oxidized sample, 2.5% partially
oxidized sample and 85.0% fresh sample, which was close to the life-of-mine average mineralization. Bulk flotation was applied to the
fully oxidized sample to produce a silver/lead concentrate. Sequential selective flotation was applied for the other three samples to
produce a silver/lead concentrate and a silver/zinc concentrate. For the fourth life-of-mine average sample, the locked cycle flotation
test produced a high-silver containing lead concentrate, which contained 3,658 g/t silver and 24.0% lead with corresponding recoveries
of 81.6% for silver and 73.4% for lead, and a silver/zinc concentrate which contained 325 g/t silver and 45.8% zinc with corresponding
recoveries of 6.0% for silver and 66.9% for zinc. The total silver recovery in these two concentrates was 87.6%.
In the Lower Gold Zone, one composite
sample was prepared, which contained 1.01 g/t gold, 11 g/t silver, 0.060% copper and 3.07% sulfur. This sample was amenable to gravity
concentration, whole-ore cyanide leach and bulk flotation. A large amount of free gold particles was present between 53 µm and 300
µm. Based on the gravity concentration testwork results, a commercial gravity concentration circuit installed to process a portion
of cyclone underflow is expected to recover about 45% gold at a primary grind size of 80% passing 75 µm. This gold sample was amenable
to cyanide leach with 94.0% gold recovery at a grind size of 80% passing 90 µm, 48-hour retention time and cyanide consumption of
0.55 kg/t NaCN. Bulk flotation of this gold sample achieved 98.0% gold recovery and 94.7% silver recovery on average at 10.9% concentrate
mass pull.
Three samples from the Upper Silver Zone,
Lower Silver Zone and Lower Gold Zone were subjected to comminution testing. The measured rod mill work index, ball mill work index and
abrasion index values were
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10.1 ~ 12.3 kW.h/t, 10.7 ~ 12.8 kW.h/t and 0.038 ~ 0.075 g,
respectively. These values indicate that these three samples were moderately hard and mildly abrasive.
RPM has independently estimated
the Mineral Resources of the Carangas Project based on the data provided by New Pacific Metals as of June 1, 2023. The Mineral Resource
estimate and underlying data comply with the guidelines of the CIM Definition Standards under NI 43-101. RPM considers it suitable for
public reporting. The QP, Mr. Anderson Goncalves Candido, completed the Mineral Resources Estimate.
Mineral Resources were reported using
a cut-off value of 40 g/t AgEq and a conceptual open-pit mining constraint, assuming that extraction will be conducted using an open-pit
mining method. The cut-off value was determined using a number of technical factors and a consensus five-year forecast of metal prices.
Three
zones of mineralization can be recognized as zoning of different metals. The Upper Silver Zone, the Middle Zinc Zone and the Lower
Gold Zone. The Mineral Resources are stated in these three zones. The results of the Mineral Resource estimate for the Carangas
deposit are presented in Table 1-5.
Table 1-5 Carangas Deposit
- Conceptual Pit* Constrained Mineral Resource as of 25 August 2023
Domain |
Category |
Tonnage |
AgEq |
Ag |
Au |
Pb |
Zn |
Mt |
g/t |
Mozs |
g/t |
Mozs |
g/t |
Kozs |
% |
Mlbs |
% |
Mlbs |
Upper
Silver Zone |
Indicated |
119.18 |
85 |
326.8 |
45 |
171.2 |
0.06 |
216.4 |
0.35 |
916.6 |
0.66 |
1,729.6 |
Inferred |
31.30 |
80 |
80.8 |
43 |
43.3 |
0.10 |
104.6 |
0.29 |
202.4 |
0.51 |
350.0 |
Middle
Zinc Zone |
Indicated |
43.42 |
56 |
78.1 |
11 |
15.0 |
0.06 |
77.4 |
0.36 |
343.6 |
0.77 |
739.4 |
Inferred |
9.32 |
54 |
16.2 |
9 |
2.6 |
0.05 |
15.6 |
0.36 |
74.1 |
0.79 |
162.3 |
Lower
Gold Zone |
Indicated |
52.28 |
92 |
154.9 |
11 |
19.1 |
0.77 |
1,294.4 |
0.16 |
184.7 |
0.16 |
184.7 |
Inferred |
4.37 |
91 |
12.8 |
13 |
1.8 |
0.69 |
97.5 |
0.22 |
21.4 |
0.22 |
21.4 |
Source:
compiled by RPM GLOBAL, 2023
*
Notes:
1.
CIM Definition Standards (2014) were used for reporting the Mineral Resources.
2.
The Qualified Person (as defined in NI 43-101) for the purposes of the MRE is Anderson Candido, FAusIMM, Principal Geologist
with RPM (the "QP").
3.
Mineral Resources are constrained by an optimized pit shell at a metal price of $23.00/oz Ag, $1,900.00/oz Au, $0.95/lb Pb, $1.25/lb
Zn, recovery of 90% Ag, 98% Au, 83% Pb, 58% Zn and Cut-off grade of 40 g/t AgEq and reported as per Section 14.
4. Drilling results up to June 1, 2023.
5.
The numbers may not compute exactly due to rounding.
6.
Mineral Resources are reported on a dry in-situ basis.
7.
Mineral Resources are not mineral reserves and have not demonstrated economic viability.
Below the conceptual pit constraint,
gold-dominated mineralized material of similar size and grade to the reported Mineral Resources of the Gold Domain within the conceptual
pit exists. Gold mineralization remains open to the north and northeast at depth.
RPM considers that the reported Mineral
Resources have reasonable prospects for eventual economic extraction using open-pit mining methods.
This section is not relevant to this
Technical Report.
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The deposit is amenable to open-pit
mining practices. Open pit mine designs, mine production schedules and mine capital and operating costs have been developed for the Carangas
deposit at a scoping level of engineering. The Mineral Resources described in Section 14 form the basis of the mine planning, including
Indicated and Inferred class resources.
Mine planning
is based on conventional drill/blast/load/haul open pit mining methods suited for the project location and local site requirements. The
open pit activities are designed for approximately two years of construction followed by thirteen years of mine operations and four years
of post-pit mining stockpile processing. The subset of Mineral Resources contained within the designed open pits are summarized in Table
1-6, with a $28/t NSR (Net Smelter Return) cut-off and form the basis of the mine plan and production schedule.
Table 1-6 PEA Mine Plan Production
Summary
Factor |
Value |
PEA Mill Feed |
64.4 Mt |
Mill Feed NSR |
$50.6/t |
Mill Feed Ag Grade |
63 g/t |
Mill Feed Pb Grade |
0.44 % |
Mill Feed Zn Grade |
0.80 % |
Waste Rock |
111.7 Mt |
Waste: Mill Feed Ratio |
1.7 |
Notes:
| 1. | The PEA Mine Plan and Mill
Feed estimates are a subset of the August 25, 2023, Mineral Resource estimates and are based on open pit mine engineering and technical
information developed at a Scoping level for the Carangas deposit. |
| 2. | PEA Mine Plan and Mill Feed
estimates are mined tonnes and grade; the reference point is the primary crusher. Mill Feed tonnages and grades include open pit mining
method modifying factors, such as dilution and recovery. |
| 3. | Net Smelter Prices (NSP)
and metallurgical recoveries define the cutoff grade. NSPs include market price assumptions of $23.00/oz Ag, $2,094/t Pb, $2,756/t Zn.
Various smelter and refining terms, offsite costs, and a 6% royalty derive NSPs of $20.5/oz Ag, $1,418/t Pb, and $1,630/t Zn. Metallurgical
recoveries of 90% Ag, 83% Pb, and 58% Zn are applied. |
| 4. | The chosen cut-off grade
covers total operating costs of $28/t, which exceeds estimated PEA mining, processing and G&A cost estimates. |
| 5. | Estimates have been rounded
and may result in summation differences. |
Economic pit limits are determined
using the Pseudoflow implementation of the Lerchs-Grossman algorithm. Selected pit limits are split up into three phases or pushbacks
to target higher economic margin material earlier in the mine life. Additional mineable open pit phases below the pit limits and targeting
the “Lower Gold Zone” portion of the Mineral Resource have been excluded from the base case PEA mine plan to limit the planned
project footprint. Upper benches will be accessed via internal cut ramps on topography or via ramps left behind on phased pit walls. In-pit
ramps will access material below the pit rim.
Pit designs are configured on 10 m bench
heights, with a minimum of 8 m wide berms placed every two benches or double benching. Since no geotechnical test work or analysis has
been completed on the bedrock, the applied bench face and inter-ramp angles, 67.5 degrees and 50 degrees, respectively, are scoping level
assumptions based on the rock type and overall depth of the open pit.
Resources from the open pit will report
to a ROM pad and primary crusher 0.5 km northeast of the pit rim. The mill will be fed with material from the pits at an average rate
of 4.0 Mtpa (11 ktpd). Oxide resources will be stored in a stockpile 1 km north of the pit rim and rehandled to the crusher over the life
of mine, blended with non-oxide mill feed. Non-oxide resources, mined in excess of mill feed targets, will be stored in a low-grade stockpile
directly south of the ROM pad and process plant and east of the open pit. This stockpile is planned to be completely reclaimed to the
mill at the end of the mine life.
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Waste rock will be placed in one of
three storage facilities or used in the construction of haul roads and the dam portion of the tailings facility. The west waste rock storage
facility (WRSF) sits directly north of the open pit. The east WRSF sits 2 km east of the open pit. A third WRSF sits 2 km north of the
open pit, directly north of the oxide stockpile, and will store sub-grade waste, which is the portion of the Mineral Resources mined and
not milled within this PEA mine plan.
The waste rock from the open pit
has not been tested or analyzed for potential acid generation (PAG). It is assumed that PAG quantities will be small enough to be blended
with larger quantities of non-acid generating (NAG) waste rock for surface storage within the WRSFs.
Topsoil and overburden encountered at
the top of the pits will be placed in a dedicated stockpile directly north of the open pit and kept salvageable for closure at the end
of the mine life. These quantities have not been measured and the storage facility has not been designed for the PEA mine plan.
The mine production schedule is summarized
in Figure 1-1.
Figure
1-1 Mine Production Schedule Summary
Source: Moose Mountain, 2024
Contractor mining operations are planned,
utilizing a diesel-powered mining fleet. Cost estimates for mining are based on a contractor quotation for this project, utilizing down
the hole (DTH) drills for drilling, 0.20 kg/t target powder factor ANFO-based blasting, 4 m3 bucket size diesel hydraulic excavators for
loading, and 70 t payload rigid-frame haul trucks for hauling, plus ancillary and service equipment to support the mining operations,
including haul road and stockpile maintenance.
In-pit dewatering systems will be
established for the pit. All surface water and precipitation in the open pit will be gravity drained or directed via submersible pumps
to ex-pit settling ponds directly outside the pit limits, where it will report to the broader project water management system.
Contractor cost estimates include the
investment in the mining mobile fleet and fixed facilities to maintain it.
The proposed processing flowsheet
for the Carangas Project is designed based on the characteristics of the mill feed for sequential selective flotation. A processing circuit
was developed to treat the mill feed, comprising
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a crushing-milling circuit followed
by dedicated silver/lead and zinc/silver flotation circuits. The processing plant is designed with a nominal capacity of 4.0 million tonnes
per annum, targeting an average annual production of 46,000 tonnes of zinc/silver concentrate and 51,000 tonnes of lead concentrate, both
containing payable silver.
Metallurgical testwork results, combined
with industry benchmark data, formed the preliminary mass balance, design criteria, and equipment selection for the process plant. A trade-off
study was conducted prior to finalizing the flowsheet for this Preliminary Economic Assessment, evaluating alternative circuits such as
concentrate cyanidation to produce silver doré. The conventional grinding-flotation circuit for producing two concentrates (silver/lead
and zinc/silver) was chosen as the optimal approach.
The key unit operations for the Carangas process
plant are:
§ | ROM ore stockpile and blending, |
| |
§ | SAG mill, pebble crusher and ball mill, |
| |
§ | Silver/lead selective flotation while rejecting zinc, pyrite and non-sulfidic gangue minerals, |
| |
§ | Silver/lead concentrate thickening, filtering, bagging and dispatch, |
| |
§ | Zinc/silver selective flotation while rejecting pyrite and non-sulfidic gangue minerals, |
| |
§ | Zinc/silver concentrate thickening, filtering, bagging and dispatch, |
| |
§ | Tailings thickening and pumping to the tailing storage facility (TSF). |
The process plant’s operational
philosophy consists of grinding the mill feed to a particle size (P80) of 75 μm for subsequent silver/lead flotation, which consists
of a rougher circuit, a regrinding mill and a three-stage cleaner circuit. The first-stage flotation is designed to produce a silver/lead
concentrate with over 2,000 g/t silver content. The lead content in this concentrate will be above 15% to achieve a favorable payable
rate for the contained lead. After the silver/lead concentrate is produced, the rougher tail and cleaner tail will be combined, thickened
and then undergo a second-stage flotation to produce a zinc/silver concentrate which contains more than 40% zinc content. The second-stage
flotation comprises a rougher circuit, a regrinding mill and a three- stage cleaner circuit. Efforts will be made to maximize silver recovery
into the lead concentrate to enhance silver payable rate. After zinc/silver flotation, the final tailings will be thickened and pumped
to the tailings storage facility.
| 1.2.14 | Project Infrastructure |
Existing infrastructure at the site
supports exploration activities. Additional infrastructure is required to support construction and operations as described in this document.
The Project area is accessible by
vehicle from Oruro city, with approximately 197 kilometres of paved National Highway 12 leading to Sabaya., then a 35km, maintained, flat
gravel road from Sabaya to Carangas.
Water wells are considered as a primary
water source for operations with local stream used during construction. The pipeline will have a catchment intake area, filters, and a
pump station to pump the water to the site water tanks. Water will be used for the process plant, potable water, and fire water. After
treatment at the site, water will be stored in tanks distributed to all areas. The hydrologic regime of the main water sources and associated
tributaries as well as alternate water options will be further evaluated in the next project phase.
Power is planned to be supplied by a
twinned overhead 115 kV, 210 km long transmission line, which will connect to the Carangas substation at the site from the Pagador substation,
located 210km to the north. Power will be provide via the transformers at the substation and distributed to all areas at the Project.
A main gate will be built with a
chain fence, external parking, communications, CCTV surveillance cameras, and a truck scale.
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Accommodation for all weather conditions
will be in place during construction, including temporary accommodations supplied by the construction contractor and permenant camp will
be in place during operations.
All reagents, fuel, materials, and
equipment will be transported on commercial trucks to the Project. Explosives will be stored and prepared away from living and working
areas.
The Project will have an administrative
building, lunch room, change room, truck shop, warehouses, meeting rooms, first aid room, and laboratory. All of these facilities will
comply with local regulations and will be designed according to local weather conditions.
Communications and control will be designed
for remote control operations and have internal and external phone systems and radios. Internet will be provided for operations and the
campsite.
The Project assessed three types of tailings
storage facilities (TSFs) in a trade-off analysis: conventional TSF (high-rate thickened tailings), high-density thickened tailings TSF,
and a dry stack of filtered tailings. Conventional TSF method was selected due to its suitability for the site condition and its clear
cost advantages.
The evaluation of TSF options is based
on the following assumptions: total ore to mill is 64,438 kt, throughput is 4 Mtpa (10,959 tpd), mine life is 17 years, and total tailings
amount to 63,794 kt (99% of total ore to mill).
Three locations were considered for conventional
TSFs: the northeast tributary of the Carangas Stream, which had insufficient capacity due to a steep gradient; the southeast tributary
of the Carangas Stream, which also had insufficient capacity; and the floodplain of the Carangas Stream, had a storage capacity of 69.0
Mm³, exceeding the required capacity.
A staging plan was developed for
the construction of the Conventional TSF Option 1 in five stages. The capital and operating costs for the high-rate thickener required
for this TSF are both included in the process plant costs. The tailings slurry pumping costs are covered in the tailings operating costs.
The project will generate revenue from
the sale of a silver/lead concentrate and a zinc/silver concentrate.
The project is expected to produce
approximately 826 kt (dry) of silver-lead concentrate with an average grade of 3975g/t silver and 24% lead and 744 kt (dry) of zinc-silver
concentrate with an average grade of 45.8% zinc and 356 g/t silver over its 16.2 year operating life.
The principal commodities at Carangas
are freely traded at widely known prices, ensuring virtually assured prospects for the sale of any production. RPM used the prices shown
in Table 1-7 for the chosen mining case.
Table 1-7 Assigned Commodity
Pricing
|
Units |
Price |
Zinc/Silver Concentrate |
Zn Price |
$/t |
2,756 |
Ag Price |
$oz |
24 |
Silver/Lead Concentrate |
Pb Price |
$/t |
2,094 |
Ag Price |
$/oz |
24 |
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As of this report, the initial contact
with commodity buyers indicates that the silver/lead and zinc/silver concentrate market is strong and tight, resulting in low treatment
and refining charges. The silver and lead market appears more stable and is expected to remain tight longer than the zinc market.
The market indicates that a silver/lead
concentrate grading above 3,000 g/t silver and 22% lead (dry) and a zinc/silver concentrate grading 46% zinc (dry) would be acceptable
to most smelting facilities.
The economic analysis completed for
this PEA assumed that silver, lead, and zinc/silver production in the form of concentrates could be readily sold without deleterious element
penalties. Assumed concentrate payabilities, treatment, refining and transportation charges are provided in Table 1-8; these values
are considered typical.
Table 1-8 Concentrate
Payables, Refining and Transportation Assumptions
Parameter |
Silver/Lead
Concentrate |
Zinc/Silver
Concentrate |
Silver |
Lead |
Silver |
Zinc |
Payable |
Pay 96.5% subject
to a minimum deduction of 50 g/t. |
Pay 95% subject
to a minimum deduction of 3% |
Deduct
3 ozs and pay 70% |
Pay 85% subject
to a minimum deduction of 8% |
Treatment
Charges |
N/A |
$100/t |
N/A |
$175/t |
Refining
Charges |
$0.5/oz |
N/A |
$0.50/oz |
N/A |
Transportation
Charges |
$120/t
Conc |
$35/t
Conc |
It was assumed that the zinc/silver
concentrate would be sold to a Bolivian trader while the lead concentrate would be exported, resulting in differing transportation charges
for each.
In Bolivia, mining royalties are applied
to gross revenue from mineral sales, with silver production incurring a 6% royalty rate on gross revenue, while lead and zinc production
incur a 5% royalty.
No contractual arrangements for mining,
concentrate trucking, rail freight, port usage, shipping or smelting and refining are currently in place. Furthermore, no contractual
sales arrangements have been made for the silver/lead concentrate or zinc/silver concentrate at this time.
Initial testwork of the two concentrates
indicates no penalty elements are expected on the silver-lead and zinc/silver concentrates.
| 1.2.16 | Environmental, Permitting and Social Considerations |
The Carangas project is developing
the baselines required to produce the EIA, receive the environmental license, and eventually construct the project. Environmental sampling
campaigns for dry and wet seasons were conducted in November 2023 and February 2024, respectively. The community has authorized the social
baseline, which is expected to be completed in due course. The town of Carangas is in close proximity to the project footprint, particularly
the open pit. Further social and technical studies will need to be conducted to understand the potential implications better. The pit's
proximity to the town may impact a colonial church and cemetery. During the EIA, a public consultation must be conducted with the affected
population to consider the public's observations, suggestions, and recommendations.
A local consulting firm conducted field
studies on air, gases, noise, sediments/solids, groundwater, water for consumption, and waste material in Nov 2023 and Feb 2024, covering
the Dry and Wet Seasons, respectively. The baseline work to date has not detected any unusual or unexpected results.
| 1.2.17 | Capital and Operating Costs |
RPM, Moose Mountain Technical Services,
and New Pacific teams have prepared the PEA cost estimates. All operating and capital costs have been estimated in real terms, in United
States dollars ($), and are effective as of the date of this report.
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The cost estimate for this PEA considers
all necessary investments to construct and operate the Carangas project over its LOM. The estimate was derived from a number of sources,
including:
§ | Vendor’s quotations for some of the major equipment, |
| |
§ | Benchmark data, |
| |
§ | Inputs from New Pacific and other similar projects, |
| |
§ | Moose Mountain Technical Services data, |
| |
§ | RPM data. |
The total project capital cost for
Carangas is estimated at $490 million, comprising an initial capital cost of $324 million, sustaining capital of $128 million, and closure
capital of $39 million. Table 1-9 provides a breakdown of the capital costs.
Table 1-9 Capital Cost Breakdown
CAPEX ($M) |
Initial |
Sustaining |
Closure |
Total |
Mine |
43 |
7 |
39
|
51 |
Processing Plant |
188 |
32 |
219 |
Infrastructure |
68 |
23 |
91 |
Tailings Management |
14 |
34 |
48 |
G&A |
11 |
|
11 |
Closure Cost |
|
|
39 |
Contingency |
|
32 |
32 |
Total CAPEX |
324 |
128 |
39 |
490 |
A summary of the project operating costs
is provided in Table 1-10.
Table 1-10
Operating Cost Breakdown
OPEX |
Unit Cost – LOM Average ($/t ore) |
Mine |
6.02* |
Processing Plant |
8.66 |
Tailings Management |
0.36 |
G&A |
3.56 |
Total OPEX |
18.60 |
*The mining operating cost per tonne of mill feed. |
| 1.2.18 | Risks and Opportunities |
The Carangas Project faces several key
risks and potential opportunities, summarized below:
Economic and Market-Related Risks
§ | Metal Prices: Declines in metal prices could increase the economic cutoff
grade or reduce the selected open pit limits, decreasing the resource base available for the mine plan. |
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§ | Operating Cost Assumptions: Preliminary estimates
rely on current market rates, including a $0.53/L diesel price subsidized by the Bolivian government. Changes to this subsidy or shifts
to market-driven fuel prices could significantly impact mining costs. |
| |
§ | Treatment and Refining Charges: Current projections
are based on a preliminary quotation but may vary with market conditions and concentrate specifications. |
| |
§ | Logistics for Zinc/silver concentrate: Assumes a
local Bolivian buyer, keeping transportation costs low. Costs may increase if export is required. |
| |
§ | Capital and Operating Cost Estimates: Based on initial
quotes and benchmarks; further detailing may lead to adjustments as the project progresses potentially increasing cost estimates from
those presented in this report. |
Technical and Operational Risks
§ | Mineral Resources Classification: The PEA relies on
Inferred and Indicated Mineral Resources; upgrading to Measured Resources through additional drilling is essential to increase confidence
in the resource base. |
| |
§ | Geotechnical and Hydrogeological Factors: Geotechnical
studies could result in shallower pit slope angles, raising the overall stripping ratio. Hydrogeological analysis may also reveal more
costly requirements for pit water management and slope depressurization. |
| |
§ | Geochemical Factors: Geochemical testing, especially
for open-pit waste rock, could identify a need for more stringent and costly potentially acid-generating management solutions than those
assumed in this study. |
| |
§ | Metallurgical Assumptions and Processing Efficiency:
Metallurgical recoveries and concentrate grades are based on preliminary testing and observed correlations. Additional testing is needed
to refine these projections. |
| |
§ | Mining and Milling Operations: Meeting the planned
production rate relies on maintaining grade control and achieving anticipated recoveries. Reduced selectivity, recovery rates, or increased
dilution would raise costs and challenge PEA production goals. |
| |
§ | Tailings Storage Facility Design: TSF design and
cost assumptions depend on adequate subsurface conditions for embankment foundations and geochemically suitable waste rock for embankment
construction. |
Infrastructure and Resource Supply Risks
§ | Water Supply: The water supply sources have been
defined. Further hydrological studies and positive collaboration with the community will be essential to ensure stable water availability
and uninterrupted operations. |
| |
§ | Power Supply: Although a plan exists to connect to
the national grid, further studies are needed to confirm the cost, schedule, and reliability of this option. |
| |
§ | Workforce Availability: The project's remote location,
high altitude, and climate pose challenges to attracting skilled and unskilled labor. |
Environmental, Social, and Governance
(ESG) Risks
§ | Land Tenure, Permitting, and Social License: Maintaining
land tenure, securing environmental licenses, and upholding the social license to operate are critical. The project’s success will
depend on robust governance and a positive local presence. |
| |
§ | Political and Economic Stability: Bolivia's recent
social, economic, and political instability increases risk for foreign investment. Political shifts could also impact fuel and power supplies
to the mine, posing a risk to uninterrupted operations. |
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Economic and Market-Related Opportunities
§ | Metal Prices: If metal prices increase beyond the
PEA assumptions, it could enable processing of lower- grade stockpiles, which are currently excluded in the mine plan, thereby extending
the mine life and improving project economics. |
| |
§ | Alternative Mining Plan: There is an opportunity
for an alternate production plan aimed at the Lower Gold Zone of the deposit, leveraging a larger open pit design. This approach retains
all the established mine planning and design criteria, utilizing the 0.80 PF pit shell as the target. With comprehensive open pit designs
tailored to access the Lower Gold Zone, this plan has the potential to expand resource extraction. |
Technical and Operational Opportunities
§ | Resource Expansion through Drilling: There is potential
to extend the Resource base a depth with further drilling. Furthermore, exploration in geophysical anomaly zones could lead to resource
expansion, potentially increasing the resource base. |
| |
§ | Enhanced Metallurgical Recoveries: With the uncertainty
in the projected metallurgical recoveries, further metallurgical testing may allow for optimization of the processing flowsheet, improving
metal recoveries. |
| |
§ | Metallurgical Assumptions and Processing Efficiency:
Potential to reduce slurry viscosity in the zinc circuit through selective collectors, instead of Sodium Isobutyl Xanthate (SIPX), may
improve processing at a moderately high pH level. More studies are required to confirm this. |
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RPMGlobal Canada Limited (“RPM”)
was engaged by New Pacific Metals Corp. (“New Pacific”, “NPM”, the “Company” or the “Client”)
to complete an Independent Preliminary Economic Analysis (“PEA” or the “Report”) of the Carangas Silver-Gold-Lead-Zinc
Project (the “Project”, “Property” or “Relevant Asset”), located in Oruro Department, Bolivia. This
Technical Report conforms to National Instrument 43-101 “Standards of Disclosure for Mineral Projects” of the Canadian Securities
Administrators (“NI 43-101”).
Through its wholly-owned subsidiaries,
New Pacific Metals acquired exploration and mining rights over an aggregate area of approximately 40.75 square kilometres covering the
Carangas project and its surrounding areas. The Carangas area is characterized by two prominent hills, West Dome and East Dome, which
are situated within the Carangas caldera. This region has been historically known for its mineralization, particularly silver and gold,
hosted in a variety of pyroclastic rocks and volcanic formations.
The Carangas Project, located in the Department
of Oruro, Bolivia, consists of volcanic rocks from the Negrillos Formation, Carangas Formation, and Todos Santos Formation. These formations
include a variety of lava flows, volcanic breccias, and ash flow tuffs, which have been instrumental in hosting significant mineral deposits.
The exploration activities at Carangas have revealed notable silver and gold mineralization, with drilling and geological mapping ongoing
to delineate these resources further.
This report was prepared to present the
results of a PEA undertaken regarding the property.
Resource definitions are as outlined in
the “Canadian Institute of Mining, Metallurgy and Petroleum, CIM Standards on Mineral Resource and mineral reserves – Definitions
and Guidelines” adopted by the CIM Council on May 10, 2014.
This report is considered by RPM
to meet the requirements of a Preliminary Economic Assessment as defined in Canadian NI 43-101 regulations. The economic analysis contained
in this report is based, in part, on Inferred Resources and is preliminary in nature. Inferred Resources are considered too geologically
speculative to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is
no certainty that economic forecasts on which this Preliminary Economic Assessment is based will be realized.
The effective date of this Technical Report
is September 5, 2024.
Tables 2-1 present the Qualified Persons
responsible for the preparation of this Preliminary Economic Assessment.
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Table
2-1 Qualified Persons
Qualified
Person |
Position |
Employer |
Independent
of New
Pacific |
Date of last
site visit |
Professional
Designation |
Sections of
Report |
Mr. Anderson
G. Candido |
Principal
Geologist |
RPMGlobal
USA Inc. |
Yes |
Mar 27-30,
2023 |
FAusIMM |
4-12, 14, Part
of 1-3, 25-27 |
Mr. Marc Shulte |
Vice President of
Engineering and
Operations |
Moose
Mountain
Technical
Services |
Yes |
No Visit |
P.Eng (BC) |
1.2.11,
1.2.12, 1.2.17
(mining costs), 15,
16, 21.1.1,
21.2.1, 24,
25.4, and
26.2 |
Mr. Marcelo del Giudice |
Principal
Metallurgist |
RPMGlobal
Brazil |
Yes |
Oct 30-Nov 2, 2023 |
FAusIMM |
17, 18 (with the exception of 18.8), 19,
21, and 22,
Parts of 1-3,
25, 26 |
Mr. Jinxing Ji |
Consulting
Metallurgist |
JJ
Metallurgical
Services Inc |
Yes |
May 21-23,
2022 |
P.Eng (BC) |
13, Parts of
1, 17, 25, 26 |
Mr. Gonzalo Rios |
Executive
Consultant - ESG |
RPMGlobal
Canada Ltd. |
Yes |
No Visit |
FAusIMM |
20, Parts of
1-3, 25, 26 |
Mr. Pedro Repetto |
Principal
Civil/Geotechnical Engineer |
RPMGlobal
USA Inc. |
Yes |
No Visit |
P.E. |
18.18, Part of
1, 25, 26 |
| 2.4 | Sources of Information |
Site visits were carried out by Mr.
Anderson Gonclaves Candido from March 27 to March 30, 2023, and by Mr. Marcelo del Giudice and Mr. Blaine Bovee from Oct 30 to Nov 02,
2023.
The Qualified Person (QP) for Mineral
Resources, Mr. Anderson Goncalves Candido, completed a site visit to the Project during the period from March 27 to March 30, 2023, to
review field procedures of drilling, core logging, and sampling as well as previous work. During this visit, RPM also observed and verified
site geology, site conditions, and data quality. In addition, open discussions took place with the Company personnel on technical aspects
related to the Project. The QP found the New Pacific Metals project team was cooperative and open in facilitating RPM’s work.
The primary source documents for this report
were as follows:
§ | Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects, (“NI 43-101”),
2011; |
| |
§ | CIM Definition Standards for Mineral Resources and mineral reserves, prepared
by the CIM Standing Committee on Reserve Definitions, adopted by CIM Council on May 10, 2014; |
| |
§ | Carangas Project Technical Report, Bolivia, Birak Consulting LLC, November 2022. |
| |
§ | Carangas Silver- Gold Project – Department of Oruro, Bolivia –
NI 43-101 Mineral Resource Estimate Technical Report, effective date 25 August 2023, RPMGlobal Consulting, August 2023. |
The primary source documents for the Mineral
Resource estimate were:
§ | Drill hole files (assay, collar, downhole survey, lithology, RQD, core recovery) in CSV format; |
| |
§ | Density measurements from drill holes in CSV format; |
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§ | QAQC control samples; |
| |
§ | An orthophoto file in tif format; and |
| |
§ | A topography file in dxf format. |
The documentation was reviewed, and other sources of information
are listed at the end of this report in Section 27 References.
All measurement units used in this Report are metric.
Currency is expressed in United States
dollars (“$”) unless otherwise noted.
Silver and Gold are described in terms of grams per dry metric tonnes (g/t).
Lead, Zinc,
and Copper are described in terms of percentage.
Abbreviation |
|
Unit
or Term |
|
A |
|
Ampere |
ac-ft |
|
Acre-foot |
Ag |
|
Silver |
AJAM |
|
Mining Administrative Jurisdictional Authority |
ARD |
|
Acid Rock Drainage |
Au |
|
Gold |
AuEq |
|
Gold Equivalent |
|
|
|
bcy |
|
Bank Cubic Yard |
bcm |
|
Bank Cubic Meter |
|
|
|
CAPEX |
|
Capital Expenditures |
CFM |
|
Cubic Feet per Minute |
CIM |
|
Canadian Institute of Mining, Metallurgy, and Petroleum |
CM |
|
Carrizal Mining |
cm |
|
Centimeter |
CoG |
|
Cutoff Grade |
COO |
|
Chief Operating Officer |
Cu |
|
Copper |
cu ft |
|
Cubic Foot |
cu yd |
|
Cubic Yard |
CST |
|
Cleaner Scavenger Tailings |
|
|
|
dmt |
|
Dry Metric Tonnes |
dst |
|
Dry Short Tons |
dxf |
|
Drawing Exchange Format |
|
|
|
EIA |
|
Environmental Impact Assessment |
EMP |
|
Environmental Management Plan |
EMS |
|
Environmental Management System |
EP |
|
Equator Principles |
EPC |
|
Engineering, Procurement, Construction |
EPCM |
|
Engineering, Procurement, Construction Management |
ESAP |
|
Environmental and Social Action Plan |
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FAusIMM |
Fellow of the Australian Institute of Mining and Metallurgy |
F&A |
Finance and Administration |
FoS |
Factor of Safety |
FS |
Feasibility Study |
|
|
g |
Grams |
g/l |
Grams per Liter/Gallons
per Liter |
g/t |
Grams per Tonne |
G&A |
General and Administrative |
|
|
hp |
Horsepower |
|
|
IRR |
Internal Rate
of Return |
|
|
k |
Thousand |
klbs |
Thousands of
Pounds |
km |
Kilometer |
km² |
Square Kilometer |
koz |
Thousands of
Troy Ounces |
kt |
Kilo Tonnes |
kV |
Kilovolt |
kW |
Kilowatt |
kWh |
Kilowatt Hour |
kWhr |
Kilowatt Hour |
|
|
l |
Liter |
l/s |
Liters per Second |
LAN |
Local Area Network
(computer communications system) |
lb |
Pound |
lbs |
Pounds |
LOM |
Life of Mine |
|
|
m |
Meter(s) |
m² |
Square Meter |
m³ |
Cubic Meter |
masl |
Meters Above
Sea Level |
MDA |
Mineral Development
Agreement |
MDE |
Maximum Design
Earthquake |
MDL |
Method Detection
Limit |
Mlb |
Millions of Pounds |
M+I |
Measured and
Indicated (with respect to Resources) |
Mm³ |
Million Cubic
Meters |
Mt |
Million Tonnes |
MW |
Megawatt |
MWhr |
Megawatt-Hour |
Mw |
Movement Magnitude
(of rock, by seismic activity) |
|
|
NPM |
New Pacific Metals
Corp. |
NI 43-101 |
National Instrument
43-101 |
NPV |
Net Present Value |
NSR |
Net Smelter Return |
|
|
OBE |
Operational Basis
Earthquake |
OPEX |
Operational Expenditures |
oz |
Ounce |
oz. t |
Troy Ounces |
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opt |
Troy
Ounces per Short Ton |
|
|
P80 |
80-Percent-Passing
Size |
PAG |
Potentially Acid
Generating |
PELs |
Mining Rights |
Pb |
Lead |
PC |
Principal Contractor |
PE or PEng |
Professional
Engineer |
PFS |
Prefeasibility
Study |
PG or PGeo |
Professional
Geologist |
PGA |
Peak Ground Acceleration |
PMF |
Probable Maximum
Flood |
ppm |
Parts Per Million |
|
|
QA/QC |
Quality-Assurance/Quality-Control |
QAQC |
Quality Assurance
and Quality Control |
|
|
Rec |
Recovery |
RMR |
Rock Mass Rating |
ROI |
Return on Investment
(Percentage, After Tax) |
RPM |
RPMGlobal |
|
|
S |
Sulfur |
SAG |
Semi-Autogenous
Grinding |
SEIA |
Social and Environmental
Impact Assessment |
|
|
t |
Tonne |
tpa |
Tonnes per Annum |
tpd |
Tonnes per Day |
tph |
Tonnes per Hour |
tr oz |
Troy Ounce |
|
|
US$ |
US Dollars |
WAN |
Wide Area Network
(computer communication system) |
WRF |
Waste Rock Facility |
Wi |
Work Index (Grinding
Characteristic of Rock) |
|
|
Zn |
Zinc |
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| 3 | RELIANCE ON OTHER EXPERTS |
All Sections of this Report were prepared
using information provided by the Company or other third parties and verified by RPM, where applicable, or based on observations made
by RPM.
The Qualified Persons have relied on
the contribution by the Company and specialist consultants engaged by the Company and believe there is a reasonable basis for this reliance.
The Qualified Persons do not disclaim any responsibility for this information. As of the effective date, RPM has relied on NPM for guidance
on applicable taxes, royalties, and other government levies or interests applicable to revenue or income from the Project.
As of the effective date, with reference
to the background, history, ownership and tenure of the Project, RPM has relied on the information provided by the Company, including
land ownership and tenure status. RPM’s scope has specifically excluded all aspects of legal, political, land titles and agreements,
accepting such aspects may directly influence technical, operational, or cost issues.
RPM has not researched property title
or mineral rights for the Project and expresses no opinion as to the ownership status of the Property.
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| 4 | PROPERTY DESCRIPTION AND LOCATION |
The
Carangas Property is located in the Carangas region in the western portion of the Department of Oruro, Bolivia, approximately 190 kilometres
(km) from the city of Oruro. The coordinates of the center of the Property are 7,906,871 Northing and 541,116 Easting (WGS84, UTM Zone
19S), corresponding to latitude 18°55'48.05" S and longitude 68°36'34.25" W. The average altitude is approximately
3,950 meters. The Property has a total area of 40.75 square kilometres (4,075 hectares). The location of the Property is shown in Figure
4-1.
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The Property consists of three mining
rights (PELs) granted to Minera Granville S.R.L. by AJAM with the following details (Table 4-1 and Figure 4-2).
Each of the PELs in Table 4-1
has a validity term of five years, with provisions for one extension of three years. Minera Granville manages the annual costs of maintaining
the PELs. As the Property is located within 50 kilometres of international borders where foreign companies or foreigners are not permitted
to have ownership of the land and right of mineral, Granville remains the holder of all licenses, permits and rights granted to it by
Bolivian authorities. To the extent known, there are no other royalties, back-in rights, payments, or other agreements and encumbrances
to which the Property is subject.
Table
4-1 Mining Rights of Carangas Property
Concession
Number |
National
Registry |
Name |
Concession
type |
Size
in Km2 (hectares) |
Title
holder |
Expiration
Date |
2020081 |
4-02-2020081-
0009-23 |
Granville
I |
PEL |
2.75
(275) |
Minera Granville
S.R.L. |
20/11/2027 |
2020136 |
4-02-2020136-
0088-21 |
Granville
II |
PEL |
3.50
(350) |
Minera Granville
S.R.L. |
14/03/2026 |
2030438 |
4-02-2030438-
0008-23 |
Collapso |
PEL |
34.5
(3450) |
Minera Granville
S.R.L. |
20/11/2027 |
Source: New Pacific, 2023
RPM is not aware of any environmental
liabilities on the property. New Pacific Metals has all required permits to conduct the proposed work on the property. RPM is not aware
of any other significant factors and risks that may affect access, title, or the right or ability to perform the proposed work program
on the property.
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As the holder of the PELs, Granville has the right to:
§ | Carry out mining exploration and prospecting activities
in the mining area indicated in the licenses for a specific term. |
| |
§ | Have the possibility to commercialize the eventual mineral
production obtained exclusively from the exploration activities. |
| |
§ | Have a preferential right (the "Preferential
Right"), which allows the holder to request the signing of an Administrative Mining Contract on the mining area preferentially over
any other interested parties. |
| |
§ | The rights of passage, which allow transit through
the land and/or neighbouring properties to access the holder’s license area under prior agreement with the landowner and to build
paths, roads, bridges, pipelines, aqueducts, power lines, railway lines, and install the necessary basic services, at its own expense
and cost. |
To maintain the PELs in good standing, Granville shall:
§ | Commence exploration and prospecting activities within one year from the date of the license grant. |
| |
§ | Not suspend activities for more than one year without justifiable reason. |
| |
§ | Deliver reports each semester on the progress of
activities to AJAM (Mining Administrative Jurisdictional Authority). |
| |
§ | Pay the corresponding mining patent fees yearly in advance according to applicable Bolivian laws. |
| |
§ | Obtain the required environmental license before conducting
prospecting and exploration activities in the area, and |
| |
§ | Follow the current exploration/mining Bolivian legislation and regulations. |
4.2 | Terms of the Joint Venture |
The Company entered the Mining Association
Contract to form a joint venture for the development of the permitted mining activities under applicable Bolivian laws. The joint venture
grants the Company and Granville the opportunity to conduct mining activities within the mining area pursuant to the terms and conditions
of the Mining Association Contract.
Terms of the joint venture were disclosed
by the Company in its management discussion and analysis for the three and nine months ended March 31, 2022, as follows (New Pacific SEDAR
issuer profile – MD&A, May 11, 2022):
“In April 2021, the
Company signed an agreement with a private Bolivian company to acquire a 98% interest in the Carangas Project. The project is located
approximately 180 km southwest of the city of Oruro and within 50 km from Bolivia’s border with Chile. The private Bolivian company
is 100% owned by Bolivian nationals and holds title to the two exploration licenses that cover an area of 6.25 km2. Under the agreement,
the Company is required to cover 100% of the future expenditures on exploration, mining, development, and production activities for the
project. The agreement has a term of 30 years and is renewable for another 15 years.”
On April 20,
2023, the Mining Association Contract was updated for inclusion of the PEL of Colapso, which has an area of 3,450 hectares with all other
terms of rights and obligations unchanged, bringing the total area to 40.75 square kilometres in three PELs.
To maintain the Property in good standing,
the Company and Granville must comply with the agreement in relation to the development of the authorized mining activities.
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5 | ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY |
The Project area is accessible by
vehicle from Oruro city, with approximately 197 kilometres of paved national Highway 12 leading to the town of Sabaya., then a flat gravel
road of 35 kilometres from Sabaya to Carangas (Figure 4-1).
The closest major population center is
Oruro City, with a population of approximately 260,000 people. Some small farming and grazing communities (pueblos) are scattered throughout
the region, the closest being Carangas, situated between the two prominent hills – the West Dome and the East Dome – on the
Property. The official population of the Carangas Pueblo is 1,130 people, according to the 2024 national census. Still, only a small number
of people reside in the community on a regular basis, with the majority living in Oruro. Oruro has a long history and culture of mining
since the colonial era, and a sufficient supply of skilled mining talents will be available once the Project evolves to mining production.
5.2 | Physiography and Climate |
The Project area is in Bolivia's Western
Andes Cordillera region, a rugged mountains region with elevation reaching 4,000-5,000 m. At the Project area, the elevation ranges from
4,074 m on top of the West Dome down to 3,904 m at the Carangas Stream running between the West Dome and the East Dome in the core of
the Property.
Vegetation
on the Property consists of low grasses and shrubs. The climate of the Western Cordillera is cool and dry, especially in winter months.
In the Carangas area, high temperatures range from 12.4°C in July to 19.2°C in October, and the low temperatures range from -3.5°C
in July to 3.8°C in January (Table 5-1). Rainfall in the area is sparse and ranges from 2 mm in June to 162 mm in January.
The local climate does not limit the length of the operating season.
Table 5-1 Weather of Carangas Region
|
Jan. |
Feb. |
Mar. |
Apr. |
May |
Jun. |
Jul. |
Aug. |
Sep. |
Oct. |
Nov. |
Dec. |
Avg. Temperature °C |
9.2°C |
9°C |
8.7°C |
7.8°C |
5.5°C |
4.5°C |
3.8°C |
5.3°C |
7.2°C |
9°C |
10.1°C |
10.4°C |
Min. Temperature °C |
3.8°C |
3.8°C |
2.4°C |
0.3°C |
-2.4°C |
-3°C |
-3.5°C |
-2.9°C |
-1.5°C |
0.2°C |
1.2°C |
3.3°C |
Max. Temperature °C |
15.4°C |
15.1°C |
15.4°C |
15.7°C |
14.3°C |
13.1°C |
12.4°C |
14.2°C |
16.3°C |
18.1°C |
19.2°C |
18.3°C |
Precipitation (mm) |
162 |
138 |
81 |
21 |
3 |
2 |
4 |
6 |
6 |
12 |
22 |
82 |
Humidity (%) |
59% |
65% |
59% |
40% |
22% |
16% |
17% |
17% |
19% |
21% |
22% |
37% |
Rainy days (d) |
15 |
13 |
11 |
4 |
1 |
0 |
1 |
1 |
1 |
2 |
3 |
9 |
Avg. Sun hours (hours) |
8.6 |
7.9 |
8.7 |
9.8 |
10 |
9.8 |
9.8 |
10.2 |
10.7 |
11.1 |
11.5 |
10.6 |
Source: climate-data.org, 2023
5.3 | Local Resources and Infrastructure |
Two small local streams are running
through the Property with a flow rate of approximately 20 litres per second for each in the dry season. This water supply was more than
enough for the water consumption of the Project during the exploration and drilling stage. Approximately five kilometres south of the
Property, the streams join the larger Todos Santos River near La Rivera, which has a flow rate of more than one thousand litres per second
in the dry season, which could provide an adequate alternative water supply for future mining stages if required.”
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A 220 kV, single-phase electric power line is available via an approximately
250 km long power line from Oruro, running along the main road, Highway 12. A three-phase industrial power line is available about 5
km to the south of the Property near the community of La Rivera.
The Carangas community has essential
facilities such as a medical clinic, school, church, soccer field, municipal offices, and towers for mobile telecommunication.
The Company has set up its exploration
camp facilities at Carangas, including exploration offices, accommodation and dining, a core shack for logging and sampling, and storage.
Most supplies for the Project are trucked from Oruro and La Paz.
The PELs grant the Company the right of
exploration and small-scale mining only. Surface rights belong to the local communities. The Company has obtained permission from local
communities to build drill roads, pads, and other exploration infrastructures during the exploration stage. Agreements or permissions
need to be secured from the local communities to build the mine and other facilities, such as a processing plant, tailing and waste storage,
as well as offices and accommodations in the vast open area surrounding the Property when it moves to the mining production stage.
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The Property has a long mining history,
dating back to the Spanish colonial period in the mid-1500s and continuing intermittently until the 20th century. In the 1980s,
Compañia Minera del Sur S.A. (“Comsur”) was active in the area and collected 350 samples from surface dumps and underground
channels.
From 1985 to 2000, limited exploration
and drilling were conducted, primarily focusing on the geology and potential of the West Dome area. In 1995, Llicancabur Mining Ltda.
(“Llicancabur”), a Bolivian mining company completed a total of 1,001 meters of reverse circulation drilling in nine holes.
In 2000, Comsur drilled 914.2 meters of
diamond core drilling in six holes. The results confirmed significant silver mineralization, which had been reported from earlier drilling
programs. Noteworthy intersections include 52 meters grading 103.4 g/t silver from a depth of 24 meters in hole DDH-1 and 30 meters grading
62.9 g/t silver from a depth of 8.0 meters in hole DDH-5.
In 2020, a Bolivian private company, Minera
Granville S.R.L., was granted the Prospecting and Exploration License in the Carangas area.
In April 2021, New Pacific announced an agreement
with Minera Granville to jointly explore and develop the Carangas Property. According to the agreement, New Pacific will cover 100% of
future expenditures for exploration, mining, development, and production activities and will receive 98% of operating profits once the
Project moves to mining production.
6.1 | Historical Resource Estimates |
No previous estimates were prepared
from the property prior to the 2023 Mineral Resource Technical Report, which forms the basis of the study presented in this report.
Mining in the district is believed to
have commenced in the sixteenth century and continued intermittently until the early twentieth century. The Project, particularly the
West Dome area, contains extensive surface workings, underground mine adits, shafts, and associated processing and smelting infrastructure.
Currently, there is no active mining.
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7 | GEOLOGICAL SETTING AND MINERALISATION |
The Bolivian Central Andes hosts
a variety of mineral deposits grouped into distinct metallogenic belts (Figure 7-1). This region hosts epithermal silver, gold,
lead, zinc, and copper deposits. From the Western Cordillera to the east into the Altiplano, several small copper deposits are hosted
in the red sandstones of the Tertiary age, and some gold deposits associated with subvolcanic intrusions of the Tertiary age are hosted
in Paleozoic metasediments.
The Eastern Cordillera (or Cordillera Oriental)
hosts numerous tin-silver-lead-zinc-tungsten-gold-antimony- bismuth deposits, traditionally known as the Bolivian Silver-Tin Belt which
stretches more than 900 km in length from Peru in the north, through Bolivia to Argentina in the south, trending from northwest to north-south.
The Bolivian Silver-Tin Belt is a significant metallogeny belt with many super large silver-tin deposits such as Cerro Rico, Silver Sand,
Llallagua, Huanuni, Pulacayo, etc.
Mineral deposits in the Bolivian Central
Andes are genetically related to Miocene and Pliocene subvolcanic intrusions of dacitic-rhyolitic composition. Mineralization occurs as
veins, veinlets, stockworks, and dissemination hosted in Paleozoic and Mesozoic sedimentary rocks, Cenozoic volcanic rocks, and Paleozoic
to Mesozoic plutons.
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7.2 | Local Geology of Carangas Property |
The Central Andes hosts a higher
density of volcanoes of ages from Tertiary to Quaternary than any other area in the world. The region of Carangas is interesting as a
caldera system of Tertiary age, which is formed over a basement consisting of a moderately deformed Triassic-Lower Jurassic crystalline
bedrock and evolved from the Upper Oligocene to Lower Miocene period as indicated by radiometric dating (Ponce & Avila 1965). The
proposed Carangas caldera is a circular structure with a central dome (Interior Caldera) approximately 20 km in diameter, surrounded by
rings of lava domes 25 to 30 km from the center (Exterior Caldera) (Figure 7-2). The central dome is interpreted as a resurgent
volcanic center with mineralization in the ring zone, including mineralization systems in Carangas, Negrillos, and Todos Santos.
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The Carangas deposit is located at
the southwest corner of the Carangas basin, a caldera in the Carangas Exterior-Caldera system. Geomorphologically, it consists of two
prominent hills, namely the West Dome and the East Dome, and a valley in between called the Central Valley (Figure 7-3). The two
domes are more than 100 m above the surrounding fluvial plains. Near the south end of the Central Valley, a small, outcropped hill is
known as the South Dome. Historically, the West Dome is referred to as Espiritu Santo Hill while the East Dome as San Antonio Hill.
Based on the results of detailed surface
geological mapping and logging of drill cores by the project geologists of the Company, the Carangas deposit is interpreted as an epithermal
silver-gold mineralization system centered by a rhyolitic diatreme filled with magmatic breccia in the shape of inverted conical structure
spanning from the top of the West Dome to east in the Central Valley (Figure 7-4). The diatreme cuts through the older country
rock of volcanoclastic rocks or lithic tuffs of dacitic composition in the upper part and andesitic composition in the lower part of the
Carangas Formation.
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The upper part of the diatreme is
exposed on the top of the West Dome, and three types of rock were identified: hydrothermal breccia, heterolithic breccia and sandy tuff.
To the west of the diatreme breccias, spotty outcrops of dacitic to rhyolitic dykes with flow banding textures are exposed on surface.
The rhyolite dykes roughly strike north-northwest direction, and the flow bandings generally dipping west at high angles.
The Central Valley is fully covered by
young fluvial sediments from a few meters up to 50 m thick. Logging of drill cores indicates the rock types beneath the valley are mainly
altered phreatic breccia and lithic tuff. To the south, at the South Dome, the outcropped rocks are mainly altered phreatic breccia. Rocks
in the East Dome are mainly altered lithic tuffs, likely the overlying phreatic breccias of diatreme already eroded.
The mineralization of Carangas consists
of a diverse suite of metallic sulfide minerals and gangue minerals, occurring as veins/veinlets, breccia fillings and dissemination.
The Company had a joint research program with the San Andrés Major University in La Paz (SAMU) to study the mineralization style
and alteration of the Carangas deposit. At least three hydrothermal mineralization phases and one supergene event are identified in the
project area.
The mineralization is controlled by the
temperature and pressure of the hydrothermal system, i.e., the depth from ground surface or the distance from the source of heat generated
by rhyolitic intrusions. Three zones of mineralization can be recognized as zoning of different metals. The Upper Silver Zone is near
the surface and dominated by silver plus a moderate amount of lead and zinc. Below the upper zone, the Middle Zinc Zone is dominated by
zinc plus minor silver and lead. The Lower Gold Zone is dominated by gold plus a small amount of silver, copper and zinc (Figure 7-5).
The three mineralized zones are summarized in Table 7-1.
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Table 7-1 Summary of Carangas Mineralized
Zones
Zone |
Size |
Style of mineralization |
Mineralization |
Upper
Silver
Zone |
Approximately within 200m
from surface. Dimension:
1000m (L) by 800m(W) by
200m (T) |
Disseminated silver+lead
sulfides in the matrices of
breccia in the top portion of diatreme (surface of W
Dome) and veining plus stockworks of silver+lead+zinc
sulfides hosted in diatreme breccia and older
volcanoclastic rocks. |
Silver
(lead,
zinc) |
Middle
Zinc
Zone |
700 (L) by 600m(W) by
150m (T) |
Disseminated sphalerite and
veining of zinc plus a minor
amount of silver and lead sulfides hosted in the diatreme
breccia and in the surrounding older volcaniclastic
rocks |
Zinc
(lead, silver) |
Lower
Gold
Zone |
400m (L) by 400m(W) by
600m (T) |
Veining of copper-silver-zinc
sulfides and disseminated
pyrite hosted in diatreme
breccia and rhyolitic intrusions
as well as surrounding older volcaniclastic rocks |
Gold
(copper±silver- zinc) |
Source: New Pacific, 2023
The Upper Silver Zone is formed in
a relatively low temperature and pressure environment approximately within 150 - 200 m from the surface in an area of about 1,000 m long
in an east-west direction by 800 m wide in a north-south direction, spanning across the entire area of West Dome-Central Valley-East Dome-South
Dome of Carangas deposit. It is interpreted as the distal phase of hydrothermal alteration and mineralization system arising from the
rhyolitic intrusions at the depth of the Central Valley area.
At the top area of West Dome, there is
a mineralized horizon of up to 50 m thick, composed of hydrothermal breccia of altered rhyolite clasts cemented by low-temperature silica
of chalcedony, heterolithic breccia comprised of clasts of various lithologies and a matrix of fine debris of similar lithology as the
clasts as well as unlithified loose sandy tuff layers and lenses with sedimentary beddings. These three types of rocks are intercalated
with each other. The hydrothermal breccia generally contains a higher grade of silver compared to heterolithic breccia and sandy tuff.
When the cementing chalcedony of hydrothermal breccia looks grey or dark in colour, it may contain silver up to 1,000 ppm. Due to erosion,
the current thickness of this silver-lead horizon is from a few meters up to 50 m thick.
When the temperature and pressure of
the hydrothermal system become higher at depth below the Upper Silver Zone, grades of silver and lead in mineralization drop. In contrast,
zinc grades rise with low grades of copper and gold locally in the lower portion of the zone.
Mineralization in the Middle Zinc Zone
is characterized by the dissemination of marmatite and veining of honey sphalerite, galena, chalcopyrite, pyrite, siderite and small amount
of silver sulfosalts. This zinc-dominated zone is generally from 150 m below surface with a thickness of tens of meters up to 150 m. The
Zinc Zone is interpreted to be the peripheral zone close to the core Gold Zone formed in a higher temperature/pressure environment in
the vicinity of rhyolitic intrusions.
The Lower Gold Zone lies below the
Middle Zinc Zone. Mineralization in this zone is characterized by the dissemination of pyrite and sulfides veining of pyrite and chalcopyrite
plus a small amount of galena and sphalerite hosted in strongly argillic-sericitic altered phreatic breccia and rhyolite intrusions. This
gold zone generally begins from a depth of 200 m. It extends to a depth of more than 800 m with a lateral extent up to 400 m wide, mostly
confined to the diatreme pipe body and partially extending laterally into surrounding older volcanoclastic rocks. ASMIN lab studies indicate
that gold occurs mainly in the form of free electrum, in minor amounts as native gold and very sparsely as Fe (Au) sulfides, Au-Ag sulfides
and galena (Au). The grade of gold generally gets higher with depth and is highest around the elevation of 3500 m in the middle part of
the gold zone. The gold grade declines to a further depth, but the copper grade gets relatively higher than in the upper portion. This
zoning of metals is likely induced by the higher temperature/pressure environment of hydrothermal activities at depth.
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Gold mineralization is fully controlled
by the diatreme pipe structure, which is associated with rhyolitic dyke intrusions and perfectly overlays with the IP chargeability anomaly
in the Central Valley area. This coincidence may imply that other IP chargeability anomalies beyond the drilled area could be promising
targets of additional mineral potential and warrant drill testing in the future.
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Carangas is located within the Cordillera
Occidental belt, close to its eastern limit with the Andes Altiplano. The Cordillera Occidental of Bolivia, along with the Altiplano and
Cordillera Oriental, altogether known as Central Andes, is part of the Andean Cordillera, a convergent plate margin (USGS and GEOBOL,
1975). The Cordillera Occidental is defined by a chain of late Miocene to Recent volcanic peaks stretching more than 750 km in length
and some 40 km wide (Arce, 2009) that straddles the Bolivia-Chile border. This volcanic arc and associated granitic plutonic rocks of
the Coastal Batholith in northern Chile and southern Peru (USGS and GEOBOL, 1975) were emplaced in and cut a Jurassic-Cretaceous aged
eugeoclinal-miogenclinal mélange of volcanic flows. Ash flows with associated sedimentary rocks (sandstone, siltstone, conglomerates,
tuffaceous sediments and tuffs (Arce, 2009) all developed over Paleozoic-aged basement rocks (Figure 8-1).
Figure 8-1 Schematic Cross-Section
of Bolivia Region
The project area mineralization is a silver-gold
polymetallic epithermal deposit of low-intermediate sulfidation associated with a rhyolitic maar diatreme cutting into volcanic and volcaniclastic
country rocks of Oligocene to Miocene age. The upper portion of the Carangas deposit represents a low sulfidation zone, characterized
by argillic and propylitic alterations as well as mineralization of sulfide minerals of silver, lead and zinc featured by argentiferous
galena, silver sulfosalts, minor native silver, galena, sphalerite, and various gangue minerals, including crustiform-coloform chalcedony,
banded chalcedony, smectite, zeolites, carbonates, and chlorite.
To depth, the low sulfidation zone gradually
transitions into an intermediate sulfidation zone at a depth of approximately 200 m with sericitic and phyllic alteration and mineralization
dominated by gold and a small amount of copper, represented by minerals of electrum, chalcopyrite, pyrite and native gold. Recent microscopic
studies conducted in 2022 have further identified the presence of other copper minerals, including enargite (Cu3AsS4)
and famatinite (Cu3SbS4). The zone of intermediate sulfidation
extends from a depth of approximately about 200 m to a depth of more than 700 m. The mineralization in this zone is mainly controlled
by the diatreme structure and the intrusion of rhyolite.
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The silver mining history of Carangas
dates back to the 16th century of the colonial era, evidenced by the widespread historical mining workings and dumps. Systematic exploration
programs were completed at Carangas since 2019, including surface and underground (UG) geological mapping, rock chip sampling and mine
dumps sampling, geophysical ground magnetometry surveying and induced polarization (IP) surveying. These exploration programs are summarized
in Table 9-1.
At Carangas, 1,076 samples have been collected
from an area covering 2 km2, including chip samples and mine dump samples. The sample campaign covers the entire Carangas deposit.
Anomalous silver results occur in zones on both domes, confirming the extensive silver mineralization at Carangas.
Table 9-1 Summary of Exploration Programs
at Carangas
Year |
Type of Work |
Conducted by |
Description |
Number of
Samples Collected |
2019 |
Surface and UG
mapping |
New Pacific |
Grab mine dump samples |
268 |
2020 |
Surface and UG
Mapping |
New Pacific |
Grab dump, surface chip and underground channel sampling |
729 |
2021 |
Surface and UG
Mapping |
New Pacific |
Underground channel sampling |
79 |
2021 |
Ground
magnetometry survey |
Arce Geofísicos |
309.8-line km, 67 N-S lines, 100 m line spacing |
n/a |
2022 |
3D Bipole-Dipole IP-
MT survey |
Southern Rock
Geophysics S.A. |
149.2-line
km, approx. 10 km2. |
n/a |
2022-2023 |
3D Bipole-Dipole IP-
MT survey |
Southern Rock
Geophysics S.A. |
28.6-line
km, approx. 29 km2. |
n/a |
2022 |
UG mapping |
New Pacific |
|
n/a |
Source: New Pacific, 2023
During the due diligence study of the
Property in 2019, reconnaissance geology mapping and an intensive sampling program of historical mine dumps were carried out to provide
an initial understanding of the geology and mineralization of the deposit. Subject to the size of the mine dump, grab samples of random
selection at each mine dump were collected at a spacing of every ten meters. At least one grab sample was collected if the size of the
mine dump is smaller than ten meters in diameter. The weight of each sample is between 2-4 kilograms. A total of 268 samples were collected,
of which 233 (86.94%) returned assay results between 30-1,950 g/t Ag with an average grade of 270 g/t Ag.
During the detailed surface geology mapping
in 2020, a total of 383 rock chip samples were collected from 55 outcrops by the Company. Chip samples were collected continuously at
2 m intervals of up to 5 cm deep and 10 cm wide along sample lines oriented approximately perpendicular to the strike direction of mineralized
structures for a total length of 769 m. Of the 383 chip samples collected, 117 samples returned a grade between 30 and 2,350 g/t Ag with
an average grade of 160 g/t.
Most of the historical underground mining
workings are located at the West Dome, and the Company surveyed and mapped all accessible historical mining adits for a total length of
2.4 kilometres in six underground adits. Chip samples were taken continuously every two meters along the wall of underground workings,
and each sample weighed about 2-5 kg. A total of 425 samples were collected, of which 112 samples (26.35%) returned assay results between
30 and 1,060 g/t Ag with an average grade of 122 g/t Ag.
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During the site visit, the QP examined
the mineralized outcrops and sampling sites at Carangas and concluded that the sampling is representative of the mineralization. The QP
did not identify any factors that could have resulted in sample biases.
The Company completed geophysical surveying
programs, including Ground Magnetometry surveying and Offset (3D) Bipole-Dipole Induced Polarization/Resistivity (IP) and Magneto-Telluric
(MT) surveying at Carangas in years 2021, 2022 and 2023.
The Ground Magnetometry Surveying was conducted
by Arce Geofiscos, based in Lima, Peru, from November 2021 until January 2022. A total of 309.8-line kilometres in 67 North-South lines
(100m spaced lines) were completed to cover the entire Carangas area.
Results of the magnetometry survey at Carangas
show a prominent low magnetic response approximately centered in the area of the Carangas village, including the area with surface mineralization
and alteration exposed at the West Dome-Central Valley-East Dome. Magnetic inversion modelling indicates the lower magnetic response extends
down to more than 1,000 m depth. The vast magnetic low beyond and to the north of the drilled area of the West Dome-Central Valley-East
Dome may imply the potential of additional mineralization and justify drill testing in future drilling campaigns.
The 3D Bipole-Dipole IP-MT Surveying at Carangas
was conducted in two separate stages:
The
first stage was a pilot test carried out in the period of July-September 2022 by Southern Rock Geophysics S.A. based in Santiago,
Chile, centered in the drilled area for an area of approximately ten square kilometres, aiming to understand the geophysical
signature of the known mineralization.
The results of the test surveying
are very coherent in that multiple chargeability anomalies were identified in the surveyed area, especially with the strongest one perfectly
overlaying with the known gold mineralization in the Central Valley (Figure 9-1), which may imply IP surveying is an effective
method to identify targets of alteration and sulfidation at Carangas. Other chargeability anomalies beyond the Central Valley could be
additional mineralization systems.
The same contractor conducted an expanded
second stage surveying from October 2022 to January 2023 to cover the entire Carangas caldera basin area for a total of 130,993 m line
meters in an area of 29 square kilometres, aiming to find more chargeability anomaly targets.
The expanded surveying confirmed the anomalies
in the central drilled area of Carangas and identified additional anomalies across the Carangas caldera basin. The most prominent anomaly
of chargeability exists to the north of West Dome, trending roughly NWW parallel to the striking of the surface mineralized structures,
with the intensity of the anomaly increased from a depth of 200m from surface. (elevation 3700 m), similar to the geophysical response
of the gold mineralization in the Central Valley area. This anomaly is a good target for future drilling campaigns.
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Figure 9-1 IP Chargeability Anomalies
of Carangas Area
|
Source: New Pacific, 2023 |
|
Based on the outcomes of the Mineral
Resources estimate, RPM recommends additional drilling be undertaken. There is good potential to expand the Mineral Resource base and
increase confidence in the Mineral Resource, which is required to make informed investment decisions.
RPM notes that at this stage, any
of the related exploration potential mentioned in this report has not been reported as Mineral Resources, and there is no guarantee that
Mineral Resources will be defined through further exploration.
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This section details all drilling activities
completed on the Project and all the data provided to RPM to estimate the Mineral Resource. Since 2021, 189 boreholes were drilled at
the Carangas Project, totalling 81,145 m of diamond core drilling. These drillholes were used to compile the Mineral Resource. Drill hole
spacing averages 50 m by 50 m in the most densely drilled areas and increases to 100 m by 100 m on the peripheries of the deposit and
at depth. A summary of drilling data within the Carangas Mineral Resource area is tabulated in Table 10-1, and hole locations are
shown in Figure 10-1.
Table 10-1 Carangas Drilling History
Year |
Drilling Phase |
Carangas |
Holes |
Metres |
2021 |
Phase 1 - Discovery Drilling |
13 |
3,790.4 |
2021 |
Phase 2 - Discovery Drilling |
22 |
9,420 |
2022 |
Phase 3 - Resource Definition Drilling |
115 |
50,310.92 |
2023 |
Phase 4 - Resource Definition Drilling |
39 |
17,623.5 |
Total |
189 |
81,145 |
Source: New Pacific, 2023
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Drilling was completed using a
conventional wire-line diamond drilling technique with a triple tube core barrel inside the drilling rods to produce HQ, NQ or PQ size
diamond core. Each drill run was 3 m in length. The drill core was placed in plastic/wood core trays (each holding around 4m of drill
core) after extraction from the core barrel, where each run was marked and labelled.
10.2 | Drilling Locational Data |
Company surveyors surveyed all drill
hole collar locations using the Real Time Kinematic (RTK) GPS method. RPM noted that all drill collars align well with the topography.
The Client’s drilling teams utilized a Reflex EZ- trackTM, SPT GyroMaster and SPT Core Retriever instruments to measure deviations
in azimuth and inclination angles. The measurements were taken approximately every 30 m along the drill trace.
10.3 | Drilling Sample Recovery |
Core recoveries were calculated
by measuring the length of the core recovered from each 3 m run. The average core recovery is higher than 95%. Recovery was low in the
voids (historical mining activities) and overburden (mining dumps and fluvial sediments). More than 89% of core intervals have a core
recovery equal to or greater than 95%. In the opinion of the QP, there are no known factors of drilling, sampling and core recovery that
could materially impact the accuracy and reliability of the results.
During the site visit, RPM discussed
the diamond drilling, core handling, and drilling techniques and considered them appropriate and consistent with the Mineral Resource
Estimation and Classification. Further information is provided in Section 12.
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11 | SAMPLE PREPARATION, ANALYSES AND SECURITY |
The details of the sample preparation,
analytical methodology and sample security protocols in place for core samples from the exploration programs carried out by New Pacific
Metals are included in this section.
New Pacific managed the 2021-2023 drill
programs of the Carangas Project in compliance with the CIM Mineral Exploration Best Practice Guidelines and internal working protocols.
All drill cores of the Project were geologically logged and sampled by the Company’s exploration team at its core processing facilities
in accordance with the Company’s core logging and sampling protocols. A total of 58,215 half-sawn core samples were taken and submitted
for preparation and analysis.
In RPM’s opinion, the QA/QC program,
as designed and implemented by New Pacific Metals, is adequate, and the assay results within the database are suitable for use in a Mineral
Resource estimate.
New Pacific systematically sampled
and analyzed all drill core from the 2021-2023 exploration drill programs. Core sampling totalled 58,215 half-swan core regular samples
submitted for preparation and analysis. Contracted diamond drillers used HQ-size coring equipment for 189 drill holes and various size
tubes TS-HQ- NQ for deep drill holes exceeding 500 m in length.
All drill holes were geologically logged
and sampled by company field personnel at the Carangas facility in accordance with Core Logging and Sampling protocols. Geological logging
includes the detailed recording of lithology, alteration, mineralization, structure and RQD measurements. Rock Codes were developed to
increase the amount and quality of geological data and create a robust geological model for the deposit. Logging data was directly entered
into MX Deposit software developed by Seequent. MX Deposit is an industry-standard software that integrates a drill core logging module,
drill hole database, and QAQC tool for real-time monitoring of the quality of analytical results.
The driller contractor's staff transported
Core boxes from the drilling site to the shed. The core was cleaned or washed, core blocks were checked, and meter marking was completed.
Samples were generally 1 meter in length from one whole depth meter to the next, except for where a lithological contact or alteration
change was noted. Samples were a maximum of 1.5 meters and a minimum of 1.0 meter (Figure 11-1). Geologists also mark noticeable
geological, structural and alteration contacts and intervals of poor core recovery (voids and core loss). The core was photographed wet,
using a camera mounted in a framed structure to ensure a constant angle and distance from the camera.
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Figure 11-1 Drill Core Box Example
– Drill Hole DCAr0171
|
Source: New Pacific, 2023 |
|
On completion of logging and sample selection,
all core boxes were transported to the core saw shed. The core was cut using a diamond saw, and unconsolidated material was split using
spoons or trowels. Each sample interval was placed in a plastic bag with a sample ticket. Sample intervals are cross-checked with the
sample tag book and the pre-labelled sample bag (Figure 11-2). The outer portion of the tear-off sample tag is affixed to the core
box at the start of the sample interval, and the inner tear-off tag is placed in the sample bag.
Figure 11-2 Core Cutting and
Sample Bag
|
Source: New Pacific, 2023 |
|
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Once sampling is complete, geologists
check the samples and seal the plastic sample bags with staples and tape. QA/QC samples are inserted into the sample sequence according
to the Company’s QA/QC protocols. Then, every 8 to 12 sample bags are placed into a large poly-weave sample bag for shipping to
the laboratory for preparation.
During the site visit, RPM found that
company employees understood core sample preparation procedures well. RPM also found that all equipment used for core sample preparation
was of reasonable quality and in line with industry standards.
11.2 | Assay Laboratory Sample Preparation and Analysis |
All drill core samples collected
by New Pacific between 2021-2023 were dispatched to ALS laboratory (ALS) in Oruro, Bolivia, for sample preparation and then to ALS in
Lima, Peru, for geochemical analysis. ALS Oruro and ALS Lima are part of ALS Global, an independent commercial laboratory specializing
in analytical geochemistry services. Both labs are certified in accordance with the International Organization for Standardization (ISO)
and International Electrotechnical Commission (IES) “General requirements for the competence of testing and calibration laboratories”
(ISO/IES 17025:2017).
All samples are prepared in accordance
with ALS preparation code PREP-31 and follow the main standard procedure as outlined below:
§ | Samples were dried and crushed to 70% less than 2 m. |
§ | A 250 g riffle split was taken and pulverized to
greater than 85% passing 75 micron sieve prior to aliquot selection for digestion and analysis. |
§ | The pulp samples are transferred to ALS Lima for geochemical analysis. |
§ | Samples were submitted for trace level 51 elements
analysis comprising aqua regia digest with Inductively Coupled Plasma - Mass Spectroscopy finish (ICP- MS) ALS Code ME-MS41. Over-limit
samples returning results greater than Ag> 100 ppm, Pb >10,000 ppm, Cu > 10,000 ppm and Zn> 10,000 ppm were sent for ore-grade
analysis by aqua regia digestion with Inductively Coupled Plasma - Atomic Emission Spectroscopy finish (ICP-AES or AAS) analysis ALS code
OG46. Samples returning Ag assay results greater than 1,500 g/t were analyzed by fire assay and gravimetric finish ALS code Ag-GRA21.
Samples returning values over 10,000 ppm Ag were analyzed by high precision analysis by Fire Assay and gravimetric finish ALS code Ag-CON01.
Gold by Fire Assay and Atomic Absorption Spectrometry AAS analysis ALS Code Au-AA25 was performed on drill core samples selected from
long drill holes exceeding 500 m in length. |
For the 2023 drill program, no trace
level multi-element ICP analysis of drill core samples was carried out to shorten turnaround time and save costs.
Specific gravity measurements are completed
by company personnel as part of routine core processing procedures. A total of 5,367 measurements were completed with a mean SG of 2.19
for core intervals selected across various lithologies and alteration types in both mineralized and non-mineralized drill cores at a rate
of 8-9% of the total core samples. Measurements are carried out at a dedicated density weighing station using the Archimedes principle,
whereby water displacement is used to calculate approximate volume (Figure 11-3). To avoid water absorption by porous drill cores,
core interval is waxed prior to immersion in water. Weighing scale calibration is carried out on a daily basis before measuring.
The bulk density of a sample is calculated
by multiplying the SG by the density of water 1 (g/cm3).
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Figure 11-3 Specific Gravity
Measurement
Source: New Pacific, 2023
New Pacific has established comprehensive
QA/QC procedures and protocols covering sampling, preparation, and geochemical analysis. All drilling programs completed on the Project
performed with mandatory insertions of certified reference materials (CRMs or standards), blanks, and duplicates into normal sample sequences
on a batch-by-batch basis. New Pacific monitors Ag, Au, Pb, Zn, and Cu assay values in CRMs, blanks, and duplicates.
The Client provided QA/QC data for drilling
completed by the company during the 2021 – 2023 exploration drilling campaigns. The QA/QC samples comprise 24% of all Carangas samples
submitted to the laboratory. RPM is of the opinion that adequate QA/QC protocols were in place for the entire drilling used to compile
the Mineral Resource estimate.
The QA/QC procedures utilized various
control samples, including Certified Reference Materials (CRM), Coarse and Pulp Blanks, Coarse, Field (1/4 core) and Pulp Duplicate samples,
and Umpire Pulp Duplicate samples. Detailed statistics of QAQC control samples is presented in Table 11-1.
Table 11-1 QA/QC Sample Status
Type |
Number of Samples |
% of Total Primary Samples |
Standards (CRMs) |
3,654 |
6% |
Blanks (Coarse & Pulp) |
3,038 |
5% |
Duplicates (Coarse, Pulp & Field) |
4,269 |
7% |
Umpire Pulp |
3,573 |
6% |
Total |
14,534 |
24% |
Source: compiled by RPMGLOBAL, 2023
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11.4.1 | Certified Reference Materials (CRMs) |
Six different CRMs were used. The
standards CDN-GEO-1901 (a certified blank material), CDN-ME-1501 and CDN-ME-1603 were discontinued in 2022. All CRMs were supplied by
CDN Resource Laboratories of Langley, British Columbia, Canada, with certified values of Ag, Au, Pb, Cu, and Zn. CRM statistics for Ag
and Au are presented in Table 11-2.
Table 11-2 CRMs of Carangas Project
CRM |
Ag ppm |
Au ppm |
CRMs inserted |
Certified value |
2SD |
Certified value |
2SD |
2021-2023 |
CDN-GEO-1901 |
1 |
0.3 |
0.036 |
0.008 |
408 |
CDN-ME-1501 |
34.6 |
2.3 |
1.38 |
0.11 |
288 |
CDN-ME-1603 |
86 |
3 |
0.995 |
0.066 |
985 |
CDN-ME-1707 |
27.9 |
2.9 |
2.02 |
0.214 |
893 |
CDN-ME-1902 |
349 |
17 |
5.38 |
0.42 |
780 |
CDN-ME-2003 |
106 |
9 |
1.301 |
0.135 |
300 |
Source: compiled by RPMGLOBAL, 2023
New Pacific’s internal procedures
require that one CRM was inserted for every 20 samples or at a rate of 5% into a random insertion protocol. CRM performance is monitored
on a batch-by-batch basis. A total of 3,654 CRM samples were submitted in 2021 – 2023, equivalent to a rate of 6.0%.
Control charts are used to monitor
the analytical performance of individual CRMs over time. CRM assay results are plotted in order of date of analysis. Charts present certified
CRM values, analytical mean line, and control lines for the upper and lower warning limits calculated as an analytical mean of the CRMs
plus or minus two standard deviations. The results outside the three standard deviations are considered as failures. These charts show
analytical drift, bias, trends, and outside-of-tolerance outliers occurring in the laboratory over time. The analytical mean line shows
the variability of the analyzed material.
Figure 11-4 presents CRM control
charts for silver by ICP- MS (AES or AAS) analytical methods. Sporadic outliers (yellow circles) that are slightly higher or less than
warning limits don’t affect the laboratory procedure's analytical mean, accuracy, and precision. Failed standards were re-assayed
and investigated by the laboratory. Comparison between original and re-assayed values proved the accuracy of the laboratory’s original
assay results. Overall, the CRMs have a very good performance and support the sample database for the resource estimation process.
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Figure 11-4 Control Chart for CDN-ME-1501
(Ag) (July 2021 – November 2022)
|
Source: New Pacific, 2023 |
|
Standard CDN-ME-1707 demonstrated relatively
poor performance for gold compared with other CRMs. Failed samples were investigated and documented. Occasionally, CRM material may have
a concentration of elements different from the certified values. It is possible to have precise results that are not accurate. All other
CRMs inserted in the same batches passed control limits. CRMs used at Carangas to monitor Au show acceptable analytical accuracy and provide
confidence in analytical results for the span of gold grades at the deposit. All major differences were investigated, and appropriate
action was taken to fix it and return a robust data control.
11.4.2 | Blank Control Samples |
Two types of blank material were inserted
into the sample sequence prior to delivery to the lab. Coarse Blank is used to assess the potential contamination during sample preparation,
and Pulp Blank is used to assess the potential contamination during geochemical analysis.
The Coarse Blank material used at the
Carangas Project was taken from a quarry located near Oruro city. The rock is fresh andesite with porphyritic texture containing quartz,
plagioclase, biotite, and hornblende grains. The chemical validation of Coarse Blank was developed internally and certified that the material
could be used to this purpose. The Company developed the control limits after reviewing the analytical data, removing outliers, and calculating
the analytical mean and standard deviation. The warning limit is set at two standard deviations. The failure limit is set at three standard
deviations.
Overall, 99.5% of the coarse blanks are
within the acceptable limits (Figure 11-5). Failed results exceeding three standard deviations were documented and investigated.
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Figure 11-5 Control Chart for
Coarse Blank Samples
Source: New Pacific, 2023
The Pulp Blank is inserted every 50 samples
or at a rate of 2%. 1,031 pulp blank samples were inserted from July 2021 to April 2023, representing an overall insertion rate of 2.3%.
Certified pulp blank CRM CDN-GEO-1901
was used between July 2021 and April 2022. Unlike other CRMs, CDN-GEO-1901 didn’t demonstrate high accuracy (-13.57% difference
between analytical mean and certified value) for silver analysis. However, 99% of CDN-GEO-1901 samples were within the control limits
(Figure 11-6).
Since April 2022, pulp blanks have been
produced from pulverized coarse blank material that has been employed to monitor potential contamination during the sample preparation.
Figure 11-6 Control Chart for Pulp
Blank CDN-GEO-1901
Source: New Pacific, 2023
Overall, 99.5% of pulp blank samples
for silver are within two standard deviations control limit. It is concluded that there is no systematic contamination during geochemical
analysis.
A total of 981 coarse blanks were inserted
into the sample sequences for gold fire assays in the period 2021- 2023. Only eight coarse blanks returned results beyond the failure
limit of Au=0.025 ppm. Every out-of-control event was documented and investigated. 97% of the coarse blank samples analyzed for gold returned
with assay results equal or below 0.01 g/t Au (twice the detection limit of 0.005 ppm Au). No contamination was identified during sample
preparation and analysis.
Three types of duplicates were
used to monitor the quality of the processes of the Carangas drill programs, from sampling to preparation and analysis: twin samples or
field duplicates, coarse reject duplicates, and pulp duplicates. A total of 4,269 duplicate samples were taken during the period July
2021 – April 2023. Table 11-3 provides a statistical summary of the Relative Percent Difference (RPD) for the assay pairs
between the original and the duplicate of each type of duplicate samples.
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Table 11-3 Statistical Summary for
Duplicate Samples July 2021 – April 2023
Ag ppm |
Sample Type |
Number of samples |
Corr Coeff |
< 10% RPD |
< 20% RPD |
Field Duplicate |
1,463 |
0.939 |
50% |
70% |
Coarse Duplicate |
1,425 |
0.997 |
79% |
89% |
Pulp Duplicate |
1,381 |
0.997 |
80% |
91% |
Au ppm |
Field Duplicate |
683 |
0.95 |
55% |
66% |
Coarse Duplicate |
670 |
0.982 |
62% |
72% |
Pulp Duplicate |
671 |
0.984 |
63% |
72% |
Source: compiled by RPMGLOBAL, 2023
Field duplicates are generated by
the quarter core to monitor the representativeness of the sampling process. The insertion rate is 2% according to the quality control
protocols, and 1,463 quarter-core duplicates were taken during the 2021-2023 drilling campaigns.
The performance of the field duplicate
for silver is presented by the Thompson-Howarth precision plot (Figure 11-7) and the quantile-quantile (Q-Q) plot (Figure 11-8).
In both charts, the results are reasonable and support the mineral resource database.
Figure 11-7 Precision Plot of Field
(1/4 core) Duplicates for Silver Assays
|
Source: New Pacific, 2023 |
|
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Figure 11-8 Quantile-Quantile Plot of
Field (1/4 core) Duplicates for Silver Assays
|
Source: New Pacific, 2023 |
|
To monitor the sub-sampling or splitting
precision during sample preparation, a coarse (reject) duplicate is taken immediately after the first crushing and splitting step. The
duplicate reject has a similar weight to the original sample and follows the same preparation process as the original sample. A total
of 1,425 coarse duplicates were taken from the 2021-2023 drilling programs, inserted at a ratio of 2% or one in every 50 samples.
The assay results of silver from the
pairs of the originals and the duplicates have a high correlation coefficient of R=0.997, and 89% sample pairs have an RPD less than 20%,
which means that the sampling and splitting process is of high precision quality and is well representative of the mineralization. In
Figure 11-9, the blue dashed lines mark +10% tolerance and red lines +20% tolerance from the black 1:1 line, respectively. The
scatterplot shows that nearly all duplicates are within acceptable tolerance.
Figure 11-9 Coarse Duplicate
Precision Scatterplot – Silver Assays
Source: New Pacific, 2023
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In conclusion, both the silver and
gold assays from the coarse duplicates demonstrate that the sample preparation process of the Carangas Project is well-preserved and acceptable
for the Mineral Resource estimate.
Pulp duplicates are used to monitor
the precision or repeatability of geochemical analysis. The samples are inserted into the regular sample sequences and are analyzed by
the same lab, ALS (Lima). Pulp duplicates are the second split of final pulps with a similar weight as the original sample. The required
insertion rate is 2% or one in every 50 samples. A total of 1,381 pulp duplicates were taken for the 2021 - 2023 drill programs.
The assay results of silver from the pairs
have a high correlation coefficient of R=0.986, 90% of sample pairs have an RPD of less than 20%, and 80% of sample pairs have less than
10%, which means that the process of geochemical analysis of the lab has shown high repeatability and precision. Figure 11-10 is
the Thompson- Howarth precision plot of pulp duplicates for silver samples in 2021-2023 drill campaigns.
Figure 11-10 Precision Plot of Pulp Duplicates
for Silver Assays
Source: New Pacific, 2023
The silver and gold assay results
from the pulp duplicates demonstrate high precision or repeatability of the geochemical analysis of ALS lab, and the assay results are
acceptable for database validation.
11.4.4 | Umpire Laboratory Samples |
To assess the analytical accuracy
of ALS (Lima) as the primary lab, umpire check samples were sent to Alfred H Knight (AHK) laboratory in Lima, Peru, a second accredited
lab for check analysis of the drill core samples from the Carangas Project during August 2021 – May 2023. AHK is an independent
geochemical laboratory certified according to ISO/IEC 17025:2005 and ISO 45001:2018. The required ratio of umpire samples collected from
the pulp rejects of normal sample sequences is 5-6% or five to six umpires from every 100 primary samples according to the protocols of
quality control of New Pacific. Table 11-4 summarizes the silver and gold assay results of sample pairs of the originals and the
umpires for the drill core samples from 2021 to 2023.
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Table
11-4 Statistical Summary for Umpire Duplicates Samples
Sample Type |
Element |
Number of samples |
Cor Coeff |
< 10% RPD |
< 20% RPD |
Umpire Pulp Duplicate |
Ag ppm |
2,509 |
0.986 |
81% |
91% |
Au ppm |
1,064 |
0.935 |
38% |
58% |
Source: compiled by RPMGLOBAL, 2023 |
A total of 2,509 umpire samples were
assayed for silver by ICP-OES method by AHK lab, with silver values ranging from 0.2 ppm to 1,725 ppm. The comparison between the original
and umpire assay pairs is displayed in Figure 11-11. A correlation coefficient of R=0.986 reveals a strong positive correlation
between the original and umpire assay results. 91% umpire duplicates have a RPD of less than 20%, evidencing a good reproducibility of
assay results for silver.
Figure 11-11 Umpire Pulp Duplicates Precision
Scatterplot for Silver Assays
|
Source: New Pacific, 2023 |
|
Gold performs significantly worse than silver,
probably deriving from free gold in some areas of the project.
In conclusion, the external laboratory
check analysis of silver and gold demonstrates good accuracy and precision of geochemical results produced by ALS (Lima), which supports
the database used for resource estimate procedures.
The Company’s staff takes
custody of drill cores and samples at each step of field exploration and drilling activities. No other people were allowed to enter the
working areas and the core storage without pre-approval from the Company’s project manager. The Project core is stored in plastic
core boxes and transported to the core logging shack. After being logged and sampled, the core boxes are shipped to a secure core yard
on a regular basis for permanent storage (Figure 11-12). The samples generated from this process are shipped to the ALS preparation
laboratory in Oruro.
Core samples are collected from the
drill site at least every 24 hours as part of routine drill site inspections and supervision provided by site geologists. Geological “quick
logs”, portable XRF analyses and photographs of each core box are completed during the site inspection and before core boxes are
transported to the core logging and sampling facility. Sample bags are transported to the laboratory by New Pacific’s personnel
using the company’s truck. The Sample Submission Order is reviewed and signed by ALS staff upon arrival, and then the lab takes
custody of security.
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Figure 11-12 Secure Core Yard Storage
Source: QP’s site visit, 2023
| 11.6 | RPM Opinion on Adequacy of Sample Preparation, Analyses, Security and QA/QC |
The RPM Qualified
Person is of the opinion that the overall QAQC process is well established and that the results support the Mineral Resources Estimation
process.
The procedures and
protocols employed by the Company regarding sampling, preparation, sample security, and analysis are in accordance with industry best
practices. RPM did not identify any material concerns with the geological and analytical procedures or the quality of the results at
the Carangas Project.
The use of different
control samples is robust and returns a good variety of verification through the whole process. The umpire lab check analysis gives a
good level of reproducibility of the database.
The insertion rate
of control samples is 24%, which is higher than the industry benchmark (15-20%).
During the site visit,
RPM identified that the sample preparation procedures and geology core logging are well established and contributed to a robust database.
Good operational procedures are in place for core preservation and storage.
RPM is of the opinion
that the results are acceptable and consistent with industry standards and recommends that New Pacific Metals maintain a continuous QAQC
program for future exploration drill campaigns to maintain the database quality.
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This data verification discussion herein
addresses only the data used to inform the Mineral Resources.
| 12.1 | Data Verification Measures |
RPM did not identify any data inaccuracy
or misrepresentation of the underlying assay results in the database.
The drill database for Mineral Resource
estimate was received in digital format, and RPM completed a systematic review of the data in Excel and Leapfrog software.
RPM conducted a site visit to the Carangas
Project in March 2023, viewed the outcrops, drill hole locations, artisanal old mining activities, core sheds, and held various discussions
with the project geologists of the Company. RPM examined mineralized drill hole intersections, downhole survey and assay data, survey
data, acquisition protocols, logging and sample preparation procedures, and quality assurance procedures (QA) and quality control (QC)
results.
NPM supplied the digital topographic file.
The 1m stereo satellite survey was conducted in 2021 by PhotoSat based in Vancouver, Canada. RPM verified drill collar locations during
the site visit and found the RL of the topography at these locations to be within the expected variations. RPM did not find any inaccuracies
related to topography surface and collar location.
RPM concluded that the data was adequately
acquired and validated following industry best practices.
RPM completed systematic data validation
steps after receiving the database. RPM completed the following checks:
§ | The collar table was checked for duplicate holes; |
| |
§ | Down-hole data (surveys, assays, bulk density, recovery, geology) had no
overlapping intervals or duplicate records and did not exceed the hole depth as reported in the collar table; |
| |
§ | Hole dips were within the range of 0° and -90°; and |
| |
§ | Visual inspection of drill hole collars and traces. |
The Carangas drill hole database contains
189 drill holes representing 81,145 m. A total of 57,578 samples were analyzed and comprise the current data for Mineral Resource Estimation.
RPM randomly validated approximately
5% of assay certificates against the assay records in the database. RPM did not identify any inconsistencies and believes that the assay
database is suitable for geological interpretation and the Resource Estimation process.
| 12.3 | Validation of Mineralisation |
During the site visit, RPM viewed
outcrops, drill hole locations, and mineralized drill hole intersections. RPM viewed the representative mineralized drill core intercepts
listed in Table 12-1 at the core shed located at the Carangas Project site.
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Table 12-1 Drill Core Intervals Viewed
BHID |
FROM |
TO |
DCAr0179 |
500.00 |
700.00 |
DCAr0096 |
0.00 |
950.00 |
Source: compiled by RPMGLOBAL, 2023 |
The mineralization intervals were verified
in drill core intercepts. Figure 12-1 presents some core mineralization intercepts.
Figure 12-1 Drill Core Mineralization
Intercept Examples
Source: QP’s site visit, 2023
| 12.4 | Drill Hole Location Validation |
During the site visit, drill collar
locations for DCAr0052, DCAr0156, DCAr00169, and DCAr00171 were checked by handheld GPS and drill hole orientations were checked by compass.
Variations of up to 1-3 meters were noted, and RPM considers this to be within the accuracy expected from the different measurement systems.
Each drill hole was capped and labelled and very visible in the field (Figure 12-2).
RPM is of the opinion that drill hole
locations and orientation information supplied in the database are of a suitable standard, and the data can be used for Mineral Resource
estimation.
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Figure 12-2 Drillholes Collar
Field Registration
Source: QP’s site visit, 2023
| 12.5 | Core Logging, Sampling, and Storage Facilities |
The Company developed logging and
sampling procedures based on the experience of the technical team and industry standards. Geological logging included lithology, alteration,
weathering, structure, and mineralogy. During the site visit by RPM, a number of representative intervals were checked to assess logging
quality. No issues were noted. Core loss was noted as problematic in overburden/saprolitic zones and in voids (historical artisanal mining
activities). The overburden zone is considered a waste zone and is not considered in the Mineral Resource Statement.
Core photography and core recovery measurements
were carried out by assistants under a geologist’s supervision and digitally recorded into the MX Deposit system. During the site
visit, RPM reviewed recent core photos and noted that the photo quality aligns with industry expectations.
The core is stored in two different
core yards on the project site. The core samples, pulps, and coarse rejects are properly stored at the core shack on the project site.
RPM noted that the technical team maintains
a well-organized workflow and a good core storage plan on-site. A new core yard is being prepared to store the core for future drilling
programs.
| 12.6 | RPM Opinion on the Validity of the Data |
RPM is of the opinion that the drill data
is adequate for the purposes of geological interpretation and Mineral Resource estimation within the classifications applied.
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| 13 | MINERAL PROCESSING AND METALLURGICAL TESTING |
One scoping metallurgical testwork
program involving flotation and cyanide leach was started in 2022 by Bureau Veritas Minerals/Metallurgical in Richmond, British Columbia,
Canada. Five samples were tested. This program was later continued in 2023 by ALS Metallurgy in Kamloops, British Columbia, Canada. During
2023, another three samples were subjected to comminution testing by ALS Metallurgy in Kamloops. Three reports were issued out of these
testwork programs. Important testwork results have been described in a NI43-101 technical report published in August 2023.
§ | ALS Kamloops, Comminution Testwork
on Composites from the Carangas Project, New Pacific Metals Corp, Project KM7065, September 8, 2023 |
| |
§ | ALS Kamloops, Metallurgical Testwork on Composites from the Carangas Project,
New Pacific Metals Corp, Project KM6848, May 31, 2023 |
| |
§ | Bureau Veritas Minerals/Metallurgical, Metallurgical Testing for Gold,
Silver, Lead and Zinc Recovery, New Pacific Metals – Carangas Project, Project 2201207, October 26, 2022 |
| |
§ | RPMGlobal, Carangas Silver-Gold Project – Department of Oruro, Bolivia
– NI43-101 Mineral Resource Estimate Technical Report, New Pacific Metals Corp, August 25, 2023 |
To support the current preliminary
economic assessment (PEA), three composite samples from the oxidized, transitional, and sulfide domains in the Upper Silver Zone and one
composite sample from the Lower Gold Zone were identified and collected in December 2023. The samples from the Upper Silver Zone with
a targeted silver head grade of 60 g/t were subjected to flotation testing to produce silver/lead concentrate and zinc/silver concentrate.
As of September 5, 2024, the testwork for the samples from the Upper Silver Zone is still ongoing at ALS Metallurgy in Kamloops. The sample
from the Lower Gold Zone with a targeted gold head grade of 1.0 g/t was subjected to cyanide leach, gravity concentration and flotation.
As of September 5, 2024, the cyanide leach, gravity concentration and flotation for the sample from the Lower Gold Zone have been completed.
A progress report has been issued by ALS Metallurgy.
ALS Kamloops, Metallurgical Testwork
on Composites from the Carangas Project to Support a Pre-Feasibility Study, New Pacific Metals Corp, Project KM7100, August 14, 2024.
| 13.2 | Historical metallurgical testwork (2022-2023) |
The report of “ALS Kamloops,
Comminution Testwork on Composites from the Carangas Project, New Pacific Metals Corp, Project KM7065, September 8, 2023” deals
with the comminution testing of three composite samples. The drill holes and quarter core intervals, which were selected for the comminution
testing, are presented in Table 13-1. Table 13-2 shows the results of specific gravity, rod mill work index, ball mill work
index and abrasion index.
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Table 13-1 Drill Holes and Core
Intervals Selected for the Comminution Testing
Mineralization |
Zone |
Drill
Hole Number |
From
(m) |
To
(m) |
Length
(m) |
Silver/Lead/Zinc |
Upper
Silver Zone |
DCAr0003 |
46.09 |
56.41 |
30.9 |
DCAr0141 |
60.94 |
72.50 |
DCAr0100 |
61.25 |
70.26 |
Lower
Silver Zone |
DCAr0045 |
110.05 |
119.00 |
27.5 |
DCAr0163 |
140.20 |
149.30 |
DCAr0182 |
168.55 |
178.00 |
Gold |
Lower
Gold Zone |
DCAr0104 |
415.95 |
424.99 |
26.8 |
DCAr0112 |
419.66 |
428.47 |
DCAr0067 |
517.00 |
526.00 |
Table 13-2 Specific Gravity, Rod Mill Work Index,
Ball Mill Work and Abrasion Index
Mineralization |
Silver/Lead/Zinc |
Gold |
Zone |
Upper
Silver
Zone |
Lower
Silver
Zone |
Lower
Gold
Zone |
Specific
Gravity |
t/m3 |
2.59 |
2.76 |
2.88 |
Rod
Mill Work Index |
Feed
(80% passing) |
μm |
9,201 |
8,593 |
9,509 |
Screen
Closing |
1,180 |
1,180 |
1,180 |
Product
(80 passing) |
930 |
913 |
940 |
Rod
Mill Work Index |
kW.h/t |
11.4 |
10.1 |
12.3 |
Ball
Mill Work Index |
Feed
(80% passing) |
μm |
2,042 |
1,835 |
1,848 |
Screen
Closing |
106 |
106 |
106 |
Product
(80% passing) |
71 |
67 |
69 |
Ball
Mill Work Index |
kW.h/t |
12.8 |
10.7 |
12.7 |
Abrasion
Index |
g |
0.075 |
0.038 |
0.048 |
The measured specific gravity values
vary between 2.59 and 2.88 t/m3. These specific gravity values correspond to small particle sizes after grinding. The in situ
density of the mineralized rocks in the deposit is expected to be lower due to the presence of voids.
The rod mill work index values are between
10.1 and 12.3 kW.h/t. Based on these values, these samples are categorized as having moderate hardness regarding the rod mill grinding.
The ball mill work index values
range from 10.7 kW.h/t to 12.8 kW.h/t. Based on these values, these samples are characterized as average hardness with respect to the
ball mill grinding.
The abrasion index values are between
0.038 and 0.075 g. Based on these values, these samples are classified as mildly abrasive.
The report of “Bureau Veritas Minerals/Metallurgical,
Metallurgical Testing for Gold, Silver, Lead and Zinc Recovery, New Pacific Metals – Carangas Project, Project 2201207, October
26, 2022” deals with three samples from the silver/lead/zinc zone for flotation and cyanide leach testing, and two samples from
the gold zone for cyanide leach testing.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 67 of 227 | |
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§ | The first sample was a silver/lead mineralization
(167 g/t silver, 1.18% lead, 0.02% zinc, 0.40% sulfur) in the oxidized zone. 69% of lead minerals in this sample were oxidized. |
| |
§ | The second sample was a silver/lead/zinc mineralization
(95 g/t silver, 0.85% lead, 0.48% zinc, 0.70% sulfur) in the transitional zone. 39% of lead minerals in this sample were oxidized. |
| |
§ | The third sample was a silver/lead/zinc mineralization
(143 g/t silver, 0.84% lead, 1.27% zinc, 1.86% sulfur) in the sulfide zone. The in situ oxidation in this sample was absent. |
| |
§ | The fourth sample was a gold mineralization with a lower sulfur content
(1.82 g/t gold, 0.62% sulfur) |
| |
§ | The fifth sample was a gold mineralization with a higher sulfur content
(4.02 g/t gold, 3.07% sulfur) |
After Bureau Veritas Minerals/Metallurgical
was closed permanently in late September 2022, the remainder of the flotation testwork on the three samples from the silver/lead/zinc
zone was continued at ALS Metallurgy in Kamloops. Furthermore, the cyanide leach of the silver/lead concentrate was also investigated.
The results, which ALS generated, were presented in the report “ALS Kamloops, Metallurgical Testwork on Composites from the Carangas
Project, New Pacific Metals Corp, Project KM6848, May 31, 2023”.
| 13.3 | Recent metallurgical testwork (2024) |
A comprehensive metallurgical testwork
program was started in January 2024 at ALS Metallurgy in Kamloops, British Columbia, Canada, with the purpose of supporting the preliminary
economic assessment (PEA) study. For the samples from the Upper Silver Zone, the scope of work included the detailed head assays, specific
gravity, sequential selective flotation to generate silver/lead concentrate and zinc/silver concentrate, detailed assays of silver/lead
concentrate and zinc/silver concentrate, cyanide leach of silver/lead concentrate to dissolve silver, flotation tailing environmental
testing, and flotation tailing thickening and rheology. For the sample from the Lower Gold Zone, the scope of work included the detailed
head assays, gravity concentration, whole-ore cyanide leach, bulk flotation, cyanide leach of flotation concentrate, cyanide leach tailing
thickening and rheology, flotation tailing environmental testing, and cyanide leach tailing environmental testing. As of the effective
date, this testwork program is still ongoing.
13.4 | Sample selections and head assays |
Nine individual samples from the Upper
Silver Zone and one sample from the Lower Gold Zone were selected (Table 13-3) during December 2023. The locations of the selected
intervals for the composite samples of “USZ Oxidized”, “USZ Transitional”, “USZ Sulfide” and “LGZ
LOM” are shown graphically in Figure 13-1. The coarse assay reject materials were used in each case. From these ten individual
samples, five composite samples were prepared, namely:
§ | The “USZ Oxidized” was a silver/lead/zinc
mineralization in the oxidized domain of the Upper Silver Zone with a targeted silver grade of 61 g/t. Contents of lead, zinc and sulfur
were expected to be 0.44%, 0.08% and 0.20%, respectively. |
| |
§ | The “USZ Transitional” was a silver/lead/zinc
mineralization in the transitional domain of the Upper Silver Zone with a targeted silver grade of 61 g/t. Contents of lead, zinc and
sulfur were expected to be 0.48%, 0.65% and 0.89%, respectively |
| |
§ | The “USZ Sulfide” was a silver/lead/zinc
mineralization in the sulfide domain of the Upper Silver Zone with a targeted silver grade of 59 g/t. Contents of lead, zinc and sulfur
were expected to be 0.42%, 0.89% and 1.75%, respectively. |
| |
§ | The “USZ LOM” was a life-of-mine (LOM)
average sample representing the Upper Silver Zone with a target silver grade of 60 g/t. This LOM composite sample consisted of 12.5% “USZ
Oxidized”, 2.5% “USZ Transitional” and 85.0% “USZ Sulfide”. |
| |
§ | The “LGZ LOM” was a life-of-mine average
sample representing the Lower Gold Zone with a target gold grade of 1.01 g/t. Contents of silver, copper and sulfur were expected to be
11 g/t, 0.060% and 3.07%, respectively. |
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oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table 13-3 Samples Selected from
the Upper Silver Zone and Lower Gold Zone
Mineralization |
Domain |
Sample
ID |
Head
Grade |
Number
of
Drill Holes |
Number
of
Intervals |
Total
Length (m) |
Silver,
Lead and Zinc |
Oxidized |
USZ
Oxidized |
~61
g/t Ag |
46 |
112 |
139.0 |
USZ
Oxidized A |
~120
g/t Ag |
14 |
19 |
23.3 |
USZ
Oxidized B |
~30
g/t Ag |
16 |
17 |
20.8 |
Transitional |
USZ
Transitional |
~59
g/t Ag |
45 |
108 |
132.4 |
USZ
Transitional A |
~120
g/t Ag |
13 |
16 |
19.9 |
USZ
Transitional B |
~30
g/t Ag |
14 |
16 |
19.5 |
Sulfide |
USZ
Sulfide |
~60
g/t Ag |
55 |
107 |
134.0 |
USZ
Sulfide A |
~120
g/t Ag |
10 |
14 |
17.0 |
USZ
Sulfide B |
~30
g/t Ag |
10 |
11 |
13.7 |
Gold |
/ |
LGZ
LOM |
~1.01
g/t Au |
23 |
89 |
115.1 |
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Figure 13-1 Locations of the Intervals
Selected for the Metallurgical Samples
Source: New Pacific Metals Corp, 2024.
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The contents of key elements in these
five composite samples were analyzed after compositing and homogenization. These assay values are shown in Table 13-4. The “PbOx”
represents the amount of the oxidized lead minerals, and the “ZnOx” represents the amount of the oxidized zinc minerals.
Table 13-4 Head Assays of the Five Composite
Samples
Mineralization |
Domain |
Sample
ID |
Au |
Ag |
Pb |
PbOx |
Zn |
ZnOx |
ST |
S2- |
Cu |
g/t |
g/t |
% |
% |
% |
% |
% |
% |
% |
Silver,
Lead
and Zinc |
Oxidized |
USZ
Oxidized |
<0.01 |
69 |
0.47 |
0.12 |
0.09 |
0.01 |
0.20 |
0.02 |
0.008 |
Transitional |
USZ
Transitional |
<0.01 |
63 |
0.43 |
0.05 |
0.57 |
0.02 |
0.70 |
0.62 |
0.010 |
Sulfide |
USZ
Sulfide |
0.02 |
61 |
0.40 |
0.03 |
0.74 |
0.01 |
1.85 |
1.84 |
0.022 |
12.5%
Oxidized + 2.5% Transitional + 85.0% Sulfide |
USZ
LOM |
0.01 |
58 |
0.41 |
/ |
0.60 |
/ |
1.50 |
/ |
0.021 |
Gold |
/ |
LGZ
LOM |
1.03 |
9 |
0.10 |
0.01 |
0.12 |
<0.01 |
3.33 |
3.31 |
0.057 |
13.5 | Mineralogy of the oxidized silver/lead/zinc mineralized samples |
A Particle Mineral Analysis (PMA)
by QEMSCAN was completed on the four size fractions of the USZ Oxidized and USZ Transitional composite samples to characterize the lead
and zinc minerals at a grind size of 80% passing 70 µm. Due to in situ oxidation, these two composite samples were expected to be
problematic in terms of flotation performance. A summary of the mineral composition is shown in Table 13-5. The lead and zinc deportments
derived from the QEMSCAN PMA results are displayed in Figure 13-2 and Figure 13-3.
Table 13-5 Mineral Compositions of
the USZ Oxidized and USZ Transitional Composite Samples
Mineral |
USZ
Oxidized |
USZ
Transitional |
Copper
Sulfide |
<0.1 |
<0.1 |
Galena |
<0.1 |
0.4 |
Cerussite |
0.1 |
<0.1 |
Lead
Sulfate |
1.1 |
0.5 |
Lead
Phosphate |
0.1 |
0.2 |
Lead
Oxide |
0.3 |
- |
Sphalerite |
<0.1 |
0.7 |
Zinc
Oxide |
0.1 |
0.4 |
Pyrite |
0.1 |
0.7 |
Iron
Oxide |
3.3 |
4.6 |
Quartz |
44.9 |
39.9 |
Feldspar |
36.0 |
32.4 |
Mica |
12.4 |
16.6 |
Carbonate |
0.1 |
1.9 |
Titanium
Mineral |
0.3 |
0.3 |
Apatite |
<0.1 |
0.1 |
Kaolinite |
0.3 |
0.4 |
Others |
0.8 |
0.7 |
Total |
100 |
100 |
Souce:
ALS Report, Project KM7100, August 14, 2024.
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Figure 13-2 Deportment of Lead for
the USZ Oxidized and USZ Transitional Composite Samples
Souce: ALS Report, Project KM7100, August
14, 2024
Figure 13-3 Deportment of Zinc for
the USZ Oxidized and USZ Transitional Composite Samples
Souce: ALS Report, Project KM7100, August
14, 2024
Lead was measured primarily as galena
for the USZ Transitional composite sample, with lesser percentages as lead sulfate and lead phosphate minerals. Approximately two-thirds
of the lead in the USZ Oxidized composite sample was measured as lead sulfate, lead oxide, and lead phosphate minerals. These non-sulfide
lead minerals would be challenging to recover in flotation, even with sulfidization. Cerussite, a lead carbonate mineral which will respond
to sulfidization for improved flotation recovery, was measured about one fifth of the lead content for the USZ Oxidized composite sample.
Poor lead flotation recovery would be expected with the USZ Oxidized composite sample.
Zinc was measured primarily as sphalerite
with the USZ Transitional composite sample, although one-quarter of the zinc was measured within iron oxide and as zinc oxide, which would
not be expected to be recoverable by flotation. For the USZ Oxidized composite sample, which measured only about 0.1% zinc, about 80%
of the zinc was measured as zinc oxide minerals.
Quartz, feldspars, and micas were the predominant
silicate minerals measured in the USZ Oxidized and USZ Transitional composites samples. Pyrite content at about 0.7% was higher for the
USZ Transitional composite sample compared to 0.1% in the USZ Oxidized composite sample. Kaolinite content was low between 0.3% and 0.4%.
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| 13.6 | Bulk flotation of the USZ Oxidized sample |
Because of the very low contents
of sulfide and zinc for the oxidized sample from the Upper Silver Zone, the bulk flotation procedure was applied to generate a silver/lead
concentrate. Copper sulfate (CuSO4·5H2O) was used as
an activator. Three collectors, namely AP3418A, Aero404 and SIPX, were tested. Based on prior experience, soda ash (Na2CO3)
was better than lime and thus was used for pH adjustment. Sulfidizing conditioning was also applied to enable the oxidized lead minerals
to be floatable. Three rougher tests were conducted for the USZ Oxidized composite samples. Operating conditions are shown in Table
13-6, and the results are presented in Table 13-7.
Table 13-6 Conditions of Rougher Tests
for the USZ Oxidized Sample
|
|
Na2CO3 |
CuSO4·5H2
O |
Redox
Potential vs AgCl/Ag |
NaHS |
Collector |
Flotation
Time |
Test
No. |
pH |
AP3418
A |
A404 |
SIPX |
|
|
g/t |
g/t |
mV |
g/t |
g/t |
min |
03R |
9.0
~ 10.1 |
553 |
200 |
-250 |
2,940 |
20 |
20 |
/ |
14 |
07R |
9.8 |
N/A |
50 |
-370 |
4,705 |
100 |
100 |
/ |
4 |
08R |
7.8
~ 8.0 |
294 |
50 |
-155 |
352 |
100 |
100 |
40 |
4 |
Note: 1.7 kg sample, 8-litre flotation cell, grind size
80% passing 75 µm
Table 13-7 Results of Rougher Flotation Tests
for the USZ Oxidized Sample
|
|
Solid Mass |
Composition |
Recovery |
Test No. |
Stream |
Ag |
Pb |
Zn |
S |
Ag |
Pb |
Zn |
S |
|
|
% |
g/t |
% |
% |
% |
% |
|
Concentrate |
4.0 |
858 |
3.79 |
0.28 |
0.95 |
50.0 |
31.9 |
12.9 |
14.8 |
03R |
Tailing |
96.0 |
36 |
0.34 |
0.08 |
0.23 |
50.0 |
68.1 |
87.1 |
85.2 |
|
Feed |
/ |
69 |
0.48 |
0.09 |
0.26 |
/ |
|
Concentrate |
3.8 |
476 |
2.81 |
0.20 |
0.65 |
32.8 |
23.4 |
7.2 |
9.6 |
07R |
Tailing |
96.2 |
38 |
0.36 |
0.10 |
0.24 |
67.2 |
76.6 |
92.8 |
90.4 |
|
Feed |
/ |
54 |
0.45 |
0.10 |
0.26 |
/ |
|
Concentrate |
2.0 |
2,244 |
6.20 |
0.36 |
1.11 |
76.9 |
26.3 |
6.4 |
10.3 |
08R |
Tailing |
98.0 |
14 |
0.36 |
0.11 |
0.20 |
23.1 |
73.7 |
93.6 |
89.7 |
|
Feed |
/ |
59 |
0.48 |
0.12 |
0.22 |
/ |
The highest silver recovery (76.9%) was
obtained at 2.0% concentrate mass pull from Test 08R, which had the lowest addition of sodium bisulfide (352 g/t NaHS). The corresponding
concentrate contained 2,244 g/t silver and 6.2% lead. The silver recovery is expected to increase if the concentrate mass pull increases.
Lead recovery was low, between 23.4% and 31.9%. This low lead recovery is consistent with the findings from the QEMSCAN PMA investigation.
| 13.7 | Selective flotation of the USZ Transitional sample |
Two selective rougher tests were
conducted for the transitional sample from the Upper Silver Zone. A selective collector, AP3418A, was applied. The pH was adjusted using
soda ash in one test, and hydrated lime was used in another test. Sulfidizing conditioning was included in both cases to a targeted redox
potential. The zinc circuit followed a traditional procedure where copper sulfate was added as an activator at high pH. The conditions
of these two rougher tests are shown in Table 13-8, and the results are presented in Table 13-9.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 73 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table 13-8 Conditions of Rougher
Flotation Tests for the USZ Transitional Sample
|
Grinding |
Silver/Lead
Rougher |
Test
No. |
ZnSO4.7H2O |
Na2CO3 |
Ca(OH)2 |
|
pH |
Na2CO3 |
Ca(OH)2 |
Redox
Potential
vs AgCl/Ag |
NaHS |
AP3418A |
Flotation
Time |
|
g/t |
g/t |
g/t |
|
|
g/t |
g/t |
mV |
g/t |
g/t |
min |
04R |
1,000 |
/ |
300 |
|
9.6~9.8 |
/ |
N/A |
-253
~ -220 |
2,940 |
5 |
14 |
06R |
1,000 |
150 |
/ |
|
9.4~9.6 |
N/A |
/ |
-250 |
1,911 |
15 |
14 |
|
|
Zinc
Rougher |
|
Test
No. |
|
pH |
|
Ca(OH)2 |
CuSO4·5H2O |
SIPX |
Flotation
Time |
|
g/t |
g/t |
g/t |
min |
04R |
|
11.0 |
|
1,729 |
300 |
38 |
8 |
06R |
|
11.0 |
|
1,106 |
600 |
90 |
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: 1.7 kg sample, 8-litre flotation cell, grind size
80% passing 69 µm
Table 13-9 Results of Rougher Flotation
Tests for the USZ Transitional Sample
Test
No. |
Steam |
Solid
Mass |
Composition |
Recovery |
Ag |
Pb |
Zn |
S |
Ag |
Pb |
Zn |
S |
% |
g/t |
% |
% |
% |
% |
04R |
Silver/Lead
Concentrate |
3.0 |
868 |
7.47 |
2.35 |
14.2 |
49.3 |
51.5 |
12.1 |
55.3 |
Zinc/silver
concentrate |
2.2 |
840 |
2.83 |
3.87 |
3.0 |
34.2 |
14.0 |
14.2 |
8.3 |
Tailing |
94.8 |
9 |
0.16 |
0.46 |
0.3 |
16.5 |
34.5 |
73.7 |
36.4 |
Feed |
/ |
53 |
0.44 |
0.59 |
0.8 |
/ |
/ |
/ |
/ |
06R |
Silver/Lead
Concentrate |
6.1 |
610 |
4.51 |
2.05 |
7.6 |
63.6 |
61.6 |
19.3 |
59.0 |
Zinc/silver
concentrate |
3.6 |
414 |
1.48 |
4.68 |
2.7 |
25.6 |
12.0 |
26.2 |
12.2 |
Tailing |
90.3 |
7 |
0.13 |
0.39 |
0.3 |
10.8 |
26.4 |
54.6 |
28.7 |
Feed |
/ |
53 |
0.44 |
0.59 |
0.8 |
/ |
/ |
/ |
/ |
Because the USZ Transitional composite
sample was partially oxidized, its flotation performance was relatively poor for both the silver/lead and zinc/silver concentrates. With
respect to the silver/lead flotation, Test 06R, which had a lower addition of sodium bisulfide, generated better results in comparison,
achieving 63.6% silver recovery (at a concentrate grade of 610 g/t silver) and 61.6% lead recovery (at a concentrate grade of 4.51% lead)
(Figure 13-7). When sulfur recovery is compared with silver recovery or lead recovery, one can see that rejection of pyrite was
poor in both tests. In the zinc circuit, zinc recovery was low, between 14.2% and 26.2%, although a significant amount (300 ~ 600 g/t)
of copper sulfate was added as an activator. When the silver/lead circuit and zinc circuit were combined, zinc recovery was only 26.3%
for Test 04R and 45.5% for Test 06R. This level of low zinc recovery is not consistent with the findings of the QEMSCAN PMA measurements
described above.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 74 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 13-4 Silver
and Lead Recoveries of Rougher Flotation for the USZ Transitional Sample
| 13.8 | Flotation testing of the USZ Sulfide sample |
Three selective rougher tests were
conducted for the sulfide sample from the Upper Silver Zone. A selective collector, AP3418A, and another collector, Aero 404, were investigated.
The pH was adjusted using soda ash in one test, and hydrated lime was used for the other two tests. Because this was a sulfide sample,
sulfidizing conditioning was not included. The addition of sodium cyanide was tried to depress pyrite in the silver/lead circuit. The
zinc circuit followed a traditional procedure where copper sulfate was added as an activator at high pH. The conditions of these three
rougher tests are shown in Table 13-10, and the results are presented in Table 13-11.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 75 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table 13-10 Conditions of Rougher Flotation
Tests for the USZ Sulfide Sample
|
Grinding |
Silver/Lead
Rougher |
Test
No. |
ZnSO4.7H2O |
NaCN |
Cell
Volume |
pH |
Na2CO3 |
Ca(OH)2 |
Collector |
Flotation
Time |
AP3418A |
A404 |
|
g/t |
|
g/t |
L |
g/t |
|
g/t |
g/t |
min |
02R |
1,000 |
/ |
4 |
9.0 |
/ |
624 |
9 |
/ |
8 |
05R |
120 |
40 |
8 |
9.0 |
117 |
/ |
9 |
/ |
8 |
10R |
1,000 |
/ |
8 |
9.0 |
/ |
358 |
18 |
4 |
10 |
|
|
Zinc
Rougher |
|
Test
No. |
Cell
Volume |
pH |
Ca(OH)2 |
CuSO4·5H2O |
SIPX |
Flotation
Time |
L |
g/t |
g/t |
g/t |
min |
02R |
4 |
11.0 |
1,100 |
300 |
60 |
16 |
05R |
8 |
11.0 |
1,176 |
300 |
60 |
16 |
10R |
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: 1.7 kg sample, grind size 80% passing 71 µm
Table 13-11 Results of Rougher Flotation
Tests for the USZ Sulfide Sample
Test
No. |
Steam |
Solid
Mass |
Composition |
Recovery |
Ag |
Pb |
Zn |
S |
Ag |
Pb |
Zn |
S |
% |
g/t |
% |
% |
% |
% |
02R |
Silver/Lead
Concentrate |
10.8 |
514 |
3.63 |
1.64 |
7.5 |
87.9 |
89.7 |
22.0 |
42.2 |
Zinc/Silver
Concentrate |
16.8 |
30 |
0.09 |
3.21 |
5.5 |
8.0 |
3.6 |
67.2 |
48.4 |
Tailing |
72.4 |
4 |
0.04 |
0.12 |
0.3 |
4.1 |
6.7 |
10.8 |
9.5 |
Feed |
/ |
63 |
0.44 |
0.80 |
1.9 |
/ |
05R |
Silver/Lead
Concentrate |
3.0 |
1,402 |
12.16 |
2.56 |
12.9 |
75.6 |
86.7 |
9.9 |
19.6 |
Zinc/Silver
Concentrate |
9.5 |
121 |
0.21 |
6.60 |
15.4 |
20.9 |
4.9 |
82.1 |
75.4 |
Tailing |
87.5 |
2 |
0.04 |
0.07 |
0.1 |
3.5 |
8.4 |
8.0 |
4.9 |
Feed |
/ |
55 |
0.42 |
0.77 |
2.0 |
/ |
10R |
Silver/Lead
Concentrate |
7.0 |
799 |
5.44 |
2.65 |
16.2 |
92.5 |
85.5 |
24.4 |
59.9 |
Tailing |
93.0 |
5 |
0.07 |
0.62 |
0.8 |
7.5 |
14.5 |
75.6 |
40.1 |
Feed |
/ |
61 |
0.45 |
0.76 |
1.9 |
/ |
The addition of cyanide improved
the rejection of pyrite (Figure 13-6), but silver recovery suffered (Figure 13-8), although lead rougher recovery was not
impacted by cyanide. Test 10R generated the best results for silver/lead concentrate, which contained 799 g/t silver and 5.44% lead at
7.0% concentrate mass pull, which corresponds to 92.5% silver recovery and 85.5% lead recovery. The rejection of zinc in the silver/lead
circuit was relatively strong. The rejection of pyrite in the silver/lead circuit was apparent, although it was weaker than the rejection
of zinc.
In the zinc circuit, zinc flotation
performance was reasonably good. Test 02R resulted in 67.2% net zinc recovery at 16.8% net concentrate mass pull, corresponding to 86%
stage zinc recovery. For Test 05R, net zinc recovery was 82.1% at 9.5% net concentrate mass pull, corresponding to 91% stage zinc recovery.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 76 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 13-5 Silver and Lead Recoveries of Rougher
Flotation for the USZ Sulfide Sample
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 77 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 13-6 Enrichment
Ratios of Silver/Lead Rougher Flotation for the USZ Sulfide Sample
| 13.9 | Flotation testing for the USZ LOM composite sample |
A life-of-mine (LOM) composite sample
was prepared according to the mine production schedule. The LOM composite sample consisted of 12.5% oxidized material, 2.5% transitional
material and 85.0% sulfide material with the targeted silver head grade of 60 g/t. The LOM composite sample was subjected to a series
of rougher tests, open-circuit cleaner tests, closed-circuit cleaner tests and finally, the locked cycle tests.
13.9.1 | Rougher tests for the USZ LOM composite sample |
Ten rougher tests for silver/lead
concentrate were carried out to investigate the following parameters. Details of the conditions are presented in Table 13-12. The
results of these ten rougher tests are shown in Table 13-13.
§ | Depressants in the silver/lead circuit to reject zinc and pyrite –
(1) zinc sulfate, (2) zinc sulfate plus sodium cyanide, and (3) sodium metabisulfite (SMBS) |
| |
§ | Included a sulfidizing conditioning step to the 5th stage (Test 13R) |
| |
§ | pH adjustment using soda ash vs hydrated lime |
| |
§ | Lower pH while SMBS was used |
| |
§ | An alternative collector, known as X5000, which was supplied by Ecolab (former Flottec). |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 78 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table 13-12 Ag/Pb Rougher Flotation
Tests for the USZ LOM Composite Sample
|
Grinding |
Silver/Lead
Rougher |
Test
No. |
ZnSO4·7H2O |
NaCN |
SMBS |
pH |
Redox
Potential |
NaCN |
SMBS |
Na2CO3 |
Ca(OH)2 |
Collector |
Flotation
Time |
AP3418A |
X5000 |
A404 |
|
g/t |
g/t |
g/t |
mV |
g/t |
g/t |
g/t |
g/t |
g/t |
min |
13R |
/ |
/ |
/ |
8.3/9.9 |
145/-300 |
/ |
/ |
/ |
/ |
38 |
/ |
23 |
12 |
23R |
/ |
/ |
/ |
8.3/8.4 |
/ |
/ |
/ |
/ |
/ |
/ |
33 |
18 |
8 |
28R |
1,000 |
/ |
/ |
9.0 |
/ |
/ |
/ |
/ |
447 |
18 |
/ |
4 |
8 |
29R |
1,000 |
/ |
/ |
9.0 |
/ |
/ |
/ |
764 |
/ |
18 |
/ |
4 |
8 |
30R |
1,000 |
30 |
/ |
9.0/9.1 |
/ |
/ |
/ |
/ |
411 |
18 |
/ |
4 |
8 |
31R |
/ |
/ |
500 |
5.4/5.5 |
/ |
/ |
/ |
/ |
/ |
18 |
/ |
4 |
8 |
32R |
/ |
/ |
500 |
7.4/7.6 |
/ |
/ |
/ |
/ |
/ |
18 |
/ |
4 |
8 |
33R |
/ |
/ |
/ |
7.1/7.5 |
/ |
/ |
500 |
/ |
/ |
18 |
/ |
4 |
8 |
34R |
1,000 |
30 |
/ |
9.0 |
/ |
/ |
/ |
/ |
341 |
40 |
/ |
10 |
14 |
38R |
1,000 |
/ |
/ |
9.0 |
/ |
10 |
/ |
/ |
176 |
40 |
/ |
10 |
14 |
Note: 1.7 kg sample, 8-litre flotation cell, grind size
80% passing 71 µm
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 79 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table 13-13 Results of Rougher Flotation
Tests for the USZ LOM Composite Sample
Key
Chemicals |
Test
No. |
Stream |
Solid
Mass |
Composition |
Recovery |
Ag |
Pb |
Zn |
S |
Ag |
Pb |
Zn |
S |
% |
g/t |
% |
% |
% |
% |
|
|
|
AP3418A,
no ZnSO4 |
|
Silver/Lead
Concentrate |
9.0 |
603 |
3.68 |
5.32 |
16.7 |
94.9 |
76.9 |
72.6 |
89.3 |
13R |
Tailing |
91.0 |
3 |
0.11 |
0.20 |
0.2 |
5.1 |
23.1 |
27.4 |
10.7 |
|
Feed |
/ |
57 |
0.43 |
0.66 |
1.7 |
/ |
X5000,
no ZnSO4 |
|
Silver/Lead
Concentrate |
8.4 |
630 |
4.00 |
4.96 |
17.5 |
93.4 |
78.6 |
59.4 |
87.9 |
23R |
Tailing |
91.6 |
4 |
0.10 |
0.31 |
0.2 |
6.6 |
21.4 |
40.6 |
12.1 |
|
Feed |
/ |
57 |
0.43 |
0.70 |
1.7 |
/ |
AP3418A
+ ZnSO4 |
|
Silver/Lead
Concentrate |
5.0 |
1,157 |
6.67 |
4.44 |
20.8 |
90.1 |
77.9 |
31.6 |
63.6 |
28R |
Tailing |
95.0 |
7 |
0.10 |
0.51 |
0.6 |
9.9 |
22.1 |
68.4 |
36.4 |
|
Feed |
/ |
65 |
0.43 |
0.71 |
1.6 |
/ |
|
Silver/Lead
Concentrate |
6.2 |
919 |
5.55 |
3.86 |
20.6 |
92.1 |
78.6 |
34.3 |
72.8 |
29R |
Tailing |
93.8 |
5 |
0.10 |
0.49 |
0.5 |
7.9 |
21.4 |
65.7 |
27.2 |
|
Feed |
/ |
62 |
0.44 |
0.70 |
1.8 |
/ |
Average |
Silver/Lead
Concentrate |
5.6 |
1,038 |
6.11 |
4.15 |
20.7 |
91.1 |
78.3 |
32.9 |
68.2 |
AP3418A
+ ZnSO4 + NaCN |
|
Silver/Lead
Concentrate |
3.9 |
1,286 |
7.85 |
1.99 |
8.9 |
81.2 |
74.5 |
11.5 |
21.4 |
30R |
Tailing |
96.1 |
12 |
0.11 |
0.63 |
1.3 |
18.8 |
25.5 |
88.5 |
78.6 |
|
Feed |
/ |
62 |
0.42 |
0.68 |
1.6 |
/ |
|
Silver/Lead
Concentrate |
9.5 |
536 |
3.59 |
1.14 |
5.4 |
84.2 |
77.4 |
16.7 |
29.7 |
34R |
Tailing |
90.5 |
11 |
0.11 |
0.60 |
1.3 |
15.8 |
22.6 |
83.3 |
70.3 |
|
Feed |
/ |
61 |
0.44 |
0.65 |
1.7 |
/ |
|
Silver/Lead
Concentrate |
8.7 |
603 |
3.97 |
2.32 |
5.4 |
82.8 |
76.0 |
28.0 |
27.0 |
38R |
Tailing |
91.3 |
12 |
0.12 |
0.57 |
1.4 |
17.2 |
24.0 |
72.0 |
73.0 |
|
Feed |
/ |
64 |
0.46 |
0.72 |
1.7 |
/ |
Average |
Silver/Lead
Concentrate |
7.4 |
808 |
5.14 |
1.82 |
6.5 |
82.7 |
76.0 |
18.7 |
26.0 |
AP3418A
+ SMBS |
|
Silver/Lead
Concentrate |
7.9 |
731 |
4.00 |
7.07 |
20.2 |
91.8 |
77.4 |
80.2 |
91.1 |
31R |
Tailing |
92.1 |
6 |
0.10 |
0.15 |
0.2 |
8.2 |
22.6 |
19.8 |
8.9 |
|
Feed |
/ |
63 |
0.41 |
0.70 |
1.8 |
/ |
|
Silver/Lead
Concentrate |
6.6 |
852 |
5.13 |
6.14 |
19.7 |
92.1 |
78.5 |
58.5 |
78.7 |
32R |
Tailing |
93.4 |
5 |
0.10 |
0.31 |
0.4 |
7.9 |
21.5 |
41.5 |
21.3 |
|
Feed |
/ |
61 |
0.43 |
0.70 |
1.7 |
/ |
|
Silver/Lead
Concentrate |
7.8 |
768 |
4.45 |
4.84 |
17.9 |
91.9 |
79.0 |
53.2 |
78.3 |
33R |
Tailing |
92.2 |
6 |
0.10 |
0.36 |
0.4 |
8.1 |
21.0 |
46.8 |
21.7 |
|
Feed |
/ |
65 |
0.44 |
0.71 |
1.8 |
/ |
Average |
Silver/Lead
Concentrate |
7.4 |
783 |
4.53 |
6.02 |
19.3 |
91.9 |
78.3 |
63.9 |
82.7 |
Concerning silver recovery (Figure
13-7), the alternative collector, X5000, did not show any benefit compared with the collector AP3418A (Test 13R vs Test 23R). Silver
recovery was similar between soda ash and hydrated lime for pH adjustment (Test 28R vs Test 29R). The use of sodium cyanide, either added
to the grinding or to the conditioning, was once again confirmed to be detrimental to silver recovery (Tests 30R, 34R and 38R). The
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 80 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
use of sodium metabisulfite, either
added to the grinding or the conditioning, slowed down the silver flotation kinetics (Tests 31R, 32R and 33R).
Figure 13-7 Silver Recovery
of Silver/Lead Rougher Flotation for the USZ LOM Composite Sample
With respect to lead recovery (Figure
13-8), the addition of sodium cyanide was detrimental (Tests 30R, 34R and 38R). The addition of sodium metabisulfite (SMBS) also reduced
lead recovery at a given concentrate mass pull (Tests 31R, 32R and 33R). It does not appear that the alternative collector, X5000, was
beneficial. The best case remained zinc sulfate as a depressant and AP3418A as a collector (Tests 28R and 29R).
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 81 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 13-8 Lead Recovery
of Silver/Lead Rougher Flotation for the USZ LOM Composite Sample
The silver/zinc and silver/sulfur enrichment
ratio for the silver/lead rougher flotation was assessed for USZ LOM composite sample. The benefit was apparent in terms of the enrichment
ratio between silver and zinc when sodium cyanide was added to the grinding (Tests 30R and 34R in Figure 13-12). As expected, the
addition of sodium cyanide improved the enrichment ratio between silver and sulfur (Figure 13-10). The alternative collector, X5000,
did not improve the enrichment ratio between silver and zinc or between silver and sulfur. Likewise, sodium metabisulfite (SMBS) did not
improve the enrichment ratio between silver and zinc or silver and sulfur.
The addition of zinc sulfate improved
the enrichment ratio between silver and zinc (Tests 28R and 29R compared with Test 13R in Figure 13-9) and the enrichment ratio
between silver and sulfur.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 82 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure
13-9 Silver/Zinc Enrichment Ratio for the USZ LOM Composite Sample
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 83 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 13-10 Silver/Sulfur Enrichment Ratio for the
USZ LOM Composite Sample
13.9.2 | Cleaner flotation tests for the USZ LOM composite sample |
Seven cleaner flotation tests were
completed for the life-of-mine (LOM) composite sample from the Upper Silver Zone. Among these seven cleaner tests:
§ | Three tests (Tests 37Cl, 41Cl and 42Cl) covered only the silver/lead circuit. |
| |
§ | Two cleaner tests (Tests 49Cl and 50Cl) covered both the silver/lead circuit
and zinc circuit. Only the silver/lead rougher tail was forwarded to the zinc circuit. |
| |
§ | Two cleaner tests (Tests 51Cl and 52Cl) covered both the silver/lead circuit
and zinc circuit. The rougher tail, 1st cleaner tail and 2nd cleaner tail in the silver/lead circuit were forwarded
to the zinc circuit. |
Table 13-14 shows the conditions
for these seven cleaner flotation tests. One issue encountered in the zinc circuit was the high slurry viscosity when pH was raised with
the addition of hydrated lime. It was suspected that some gangue minerals reacted with hydrated lime. To move the testwork forward, sodium
hydroxide was used instead in the zinc circuit. When the high slurry viscosity issue is resolved, the hydrated lime will be tested again
in the future in the zinc circuit because the hydrated lime is significantly cheaper than sodium hydroxide for the future commercial operations.
Table 13-15 shows the results
for both silver/lead and zinc/silver concentrates. For the silver/lead concentrate, further data analyses are provided in Figure 13-11,
Figure 13-12, Figure 13-13 and Figure 13-14. The data analysis is used to understand the relationship between concentrate
grade and silver/lead recoveries and to determine the concentrate mass pull target for the locked cycle test. Figure 13-11 shows
the relationship between silver recovery in the silver/lead circuit as a function of concentrate mass pull when the results of seven cleaner
tests are plotted together. Silver recovery from the locked cycle test is generally expected to be 2 ~ 3% higher than the open-circuit
cleaner test because the intermediate tailings are recirculated during the locked cycle test. Therefore, in order to achieve over 80%
silver recovery from the locked cycle test, the required
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 84 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
concentrate mass pull will be around
1.25%. Based on the trend line in Figure 13-12, lead recovery from the open-circuit cleaner test is expected to be around 68% at
1.25% concentrate mass pull. Lead recovery from the locked cycle test is expected to be approximately 2% higher than the open-circuit
cleaner test when the intermediate tailings are recirculated.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 85 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table 13-14 Conditions of Cleaner Flotation Tests for the USZ LOM Composite Sample
Test No |
37Cl |
41Cl |
42Cl |
49Cl |
50Cl |
51Cl |
52Cl |
Circuit |
Ag/Pb only |
Ag/Pb + Zn |
Ag/Pb+Zn
closed circuit |
Primary Grinding |
ZnSO4·7H2O |
g/t |
|
1,000 |
|
1,000 |
1,000 |
Grind Size (P80) |
µm |
|
68 |
|
68 |
68 |
Ag/Pb Rougher |
pH |
|
9.0 |
9.0 |
9.0 |
Ca(OH)2 |
g/t |
241 |
276 |
294 |
/ |
|
/ |
Na2CO3 |
g/t |
|
/ |
|
/ |
687 |
|
/ |
NaOH |
g/t |
|
/ |
|
335 |
/ |
300 |
AP3418A |
g/t |
|
18 |
|
18 |
18 |
A404 |
g/t |
|
4 |
|
4 |
4 |
Flotation Time |
min |
|
14 |
|
14 |
14 |
Ag/Pb Regrinding |
Regrind Time |
min |
5 |
No |
3 |
10 |
10 |
10 |
10 |
Regrind Size
(P80) |
µm |
19 |
/ |
22 |
15 |
15 |
12 |
14 |
ZnSO4·7H2O |
g/t |
300 |
/ |
300 |
300 |
300 |
300 |
300 |
Ag/Pb
1st Cleaner |
ZnSO4·7H2O |
g/t |
/ |
300 |
/ |
/ |
|
/ |
pH |
|
9.0 |
9.5 |
9.0 |
9.0 |
Ca(OH)2 |
g/t |
71 |
88 |
71 |
/ |
|
/ |
Na2CO3 |
g/t |
|
/ |
|
/ |
176 |
/ |
/ |
NaOH |
g/t |
|
/ |
|
64 |
/ |
180 |
185 |
AP3418A |
g/t |
|
5 |
|
5 |
5 |
Flotation Time |
min |
|
5 |
|
5 |
7 |
7 |
Ag/Pb
2nd Cleaner |
pH |
|
|
9.0 |
|
9.2 |
9.0 |
9.0 |
AP3418A |
g/t |
|
2 |
|
2 |
2 |
Flotation Time |
min |
|
4 |
|
4 |
4 |
Ag/Pb
3rd Cleaner |
pH |
|
|
9.0 |
|
9.1 |
9.0 |
/ |
AP3418A |
g/t |
|
1 |
|
1 |
Flotation Time |
min |
|
3 |
|
3 |
Zn Rougher |
pH |
|
/ |
11.0 |
10.2 |
11.0 |
11.5 |
Na2CO3 |
g/t |
/ |
3,811 |
/ |
NaOH |
g/t |
1,011 |
/ |
1,100 |
1,752 |
CuSO4·5H2O |
g/t |
100 |
100 |
SIPX |
g/t |
40 |
40 |
5 |
Flotation Time |
min |
6 |
6 |
Zn Regrinding |
Regrind Time |
min |
/ |
8 |
8 |
8 |
7 |
Regrind Size (P80) |
µm |
19 |
19 |
12 |
14 |
CuSO4·5H2O |
g/t |
50 |
50 |
Zn 1st
Cleaner |
pH |
|
/ |
11.0 |
10.8 |
11.0 |
11.5 |
Na2CO3 |
g/t |
/ |
1,763 |
/ |
NaOH |
g/t |
164 |
/ |
202 |
294 |
SIPX |
g/t |
15 |
15 |
1 |
Flotation Time |
min |
2 |
3 |
Zn 2nd
Cleaner |
pH |
|
/ |
11.0 |
10.8 |
11.0 |
11.5 |
SIPX |
g/t |
10 |
10 |
1 |
Flotation Time |
min |
2 |
2 |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 86 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table 13-15 Results
of Cleaner Flotation Tests for the USZ LOM Composite Sample
Test No. |
Product |
Solid Mass |
Composition |
Recovery |
Ag |
Pb |
Zn |
S |
Ag |
Pb |
Zn |
S |
% |
g/t |
% |
% |
% |
% |
37Cl |
Ag/Pb Conc |
3rd
Cleaner Conc |
0.64 |
7,050 |
39.3 |
9.2 |
26.8 |
71.7 |
63.2 |
8.8 |
10.5 |
2nd
Cleaner Conc |
0.97 |
4,931 |
27.5 |
9.6 |
26.3 |
76.2 |
67.0 |
14.0 |
15.7 |
1st
Cleaner Conc |
3.91 |
1,302 |
7.2 |
4.0 |
12.8 |
81.5 |
70.7 |
23.4 |
30.9 |
Rougher
Conc |
12.3 |
474 |
2.5 |
2.3 |
10.2 |
93.1 |
77.9 |
43.1 |
77.3 |
Tailing |
87.7 |
5 |
0.10 |
0.43 |
0.4 |
6.9 |
22.1 |
56.9 |
22.7 |
Feed |
/ |
63 |
0.40 |
0.66 |
1.6 |
/ |
41Cl |
Ag/Pb Conc |
3rd
Cleaner Conc |
1.88 |
2,460 |
16.6 |
5.9 |
39.1 |
80.1 |
72.3 |
15.9 |
44.8 |
2nd
Cleaner Conc |
2.24 |
2,129 |
14.2 |
5.9 |
38.2 |
82.3 |
73.4 |
18.8 |
52.0 |
1st
Cleaner Conc |
3.14 |
1,548 |
10.2 |
5.0 |
29.6 |
84.2 |
74.4 |
22.5 |
56.7 |
Rougher
Conc |
6.0 |
836 |
5.5 |
3.6 |
18.5 |
87.2 |
76.1 |
31.3 |
68.0 |
Tailing |
94.0 |
8 |
0.11 |
0.51 |
0.6 |
12.8 |
23.9 |
68.7 |
32.0 |
Feed |
/ |
58 |
0.43 |
0.70 |
1.6 |
/ |
42Cl |
Ag/Pb Conc |
3rd
Cleaner Conc |
1.15 |
4,490 |
27.8 |
9.2 |
33.6 |
77.5 |
67.9 |
13.7 |
22.3 |
2nd
Cleaner Conc |
1.48 |
3,617 |
22.3 |
8.6 |
31.4 |
80.4 |
70.0 |
16.4 |
26.8 |
1st
Cleaner Conc |
2.52 |
2,192 |
13.4 |
6.3 |
24.9 |
82.7 |
71.5 |
20.4 |
36.1 |
Rougher
Conc |
9.0 |
689 |
4.0 |
2.9 |
15.4 |
92.6 |
76.9 |
33.1 |
79.6 |
Tailing |
91.0 |
5 |
0.12 |
0.57 |
0.4 |
7.4 |
23.1 |
66.9 |
20.4 |
Feed |
/ |
67 |
0.47 |
0.78 |
1.7 |
/ |
49Cl |
Ag/Pb Conc |
3rd
Cleaner Conc |
0.62 |
7,330 |
45.8 |
10.4 |
24.9 |
75.5 |
68.6 |
10.7 |
10.1 |
2nd
Cleaner Conc |
0.79 |
5,942 |
37.0 |
10.3 |
26.1 |
78.1 |
70.6 |
13.5 |
13.6 |
1st
Cleaner Conc |
2.00 |
2,484 |
15.2 |
7.8 |
20.4 |
82.3 |
73.4 |
25.6 |
26.7 |
Rougher
Conc |
8.45 |
665 |
3.9 |
3.1 |
13.4 |
93.0 |
79.8 |
43.2 |
73.9 |
Zn Conc |
2nd
Cleaner Conc |
0.42 |
162 |
0.25 |
53.2 |
34.2 |
1.1 |
0.2 |
36.4 |
9.3 |
1st
Cleaner Conc |
0.71 |
136 |
0.24 |
36.1 |
27.5 |
1.6 |
0.4 |
42.4 |
12.8 |
Rougher
Conc |
1.99 |
78 |
0.17 |
13.3 |
16.9 |
2.6 |
0.8 |
43.6 |
22.0 |
Tailing |
89.6 |
3 |
0.09 |
0.09 |
0.1 |
4.4 |
19.4 |
13.3 |
4.1 |
Feed |
/ |
60 |
0.42 |
0.61 |
1.5 |
/ |
50Cl |
Ag/Pb Conc |
3rd
Cleaner Conc |
0.43 |
8,990 |
56.1 |
7.5 |
21.0 |
67.1 |
58.6 |
4.7 |
5.6 |
2nd
Cleaner Conc |
0.63 |
6,548 |
40.6 |
9.6 |
22.4 |
72.6 |
62.9 |
8.9 |
8.9 |
1st
Cleaner Conc |
1.51 |
2,939 |
17.9 |
6.9 |
17.2 |
77.7 |
66.1 |
15.1 |
16.3 |
Rougher
Conc |
8.03 |
650 |
3.7 |
2.7 |
13.6 |
91.7 |
72.5 |
31.8 |
69.1 |
Zn Conc |
2nd
Cleaner Conc |
0.80 |
126 |
0.25 |
43.5 |
31.4 |
1.8 |
0.5 |
51.0 |
15.9 |
1st
Cleaner Conc |
1.82 |
78 |
0.20 |
20.0 |
17.2 |
2.5 |
0.9 |
53.1 |
19.7 |
Rougher
Conc |
4.58 |
47 |
0.16 |
8.5 |
9.2 |
3.8 |
1.8 |
56.7 |
26.5 |
Tailing |
87.4 |
3 |
0.12 |
0.09 |
0.1 |
4.6 |
25.7 |
11.5 |
4.4 |
Feed |
/ |
57 |
0.41 |
0.69 |
1.6 |
/ |
51Cl |
Ag/Pb Conc |
2nd
Cleaner Conc |
0.64 |
7,100 |
41.6 |
12.0 |
24.1 |
75.6 |
66.4 |
11.9 |
10.1 |
Zn Conc |
2nd
Cleaner Conc |
1.32 |
418 |
1.5 |
34.4 |
36.5 |
9.1 |
4.8 |
69.8 |
31.2 |
1st
Cleaner Conc |
2.30 |
293 |
1.0 |
20.3 |
26.3 |
11.1 |
5.9 |
71.9 |
39.2 |
Rougher
Conc |
5.82 |
153 |
0.6 |
8.4 |
15.8 |
14.7 |
8.1 |
75.2 |
59.6 |
Tailing |
93.5 |
6 |
0.11 |
0.09 |
0.5 |
9.7 |
25.5 |
12.9 |
30.3 |
Feed |
/ |
61 |
0.40 |
0.65 |
1.5 |
/ |
52Cl |
Ag/Pb Conc |
2nd
Cleaner Conc |
0.59 |
6,810 |
44.6 |
11.9 |
25.9 |
73.9 |
65.7 |
10.4 |
10.2 |
Zn Conc |
2nd Cleaner
Conc |
0.62 |
562 |
2.9 |
58.7 |
33.2 |
6.5 |
4.6 |
54.4 |
13.8 |
1st Cleaner
Conc |
0.78 |
540 |
2.8 |
50.1 |
31.4 |
7.8 |
5.4 |
58.4 |
16.4 |
Rougher
Conc |
3.29 |
206 |
0.9 |
13.8 |
20.3 |
12.6 |
7.7 |
68.1 |
44.7 |
Tailing |
96.1 |
8 |
0.11 |
0.15 |
0.7 |
13.5 |
26.6 |
21.5 |
45.1 |
Feed |
/ |
54 |
0.40 |
0.67 |
1.5 |
/ |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 87 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 13-11 shows the relationship
between silver recovery in the silver/lead circuit as a function of concentrate mass pull when the results of seven cleaner tests are
plotted together. Silver recovery from the locked cycle test is generally expected to be 2 ~ 3% higher than the open-circuit cleaner test
because the intermediate tailings are recirculated during the locked cycle test. Therefore, to achieve over 80% silver recovery from the
locked cycle test, the required concentrate mass pull will be around 1.25%. Based on the trend line in Figure 13-12, lead recovery
from the open-circuit cleaner test is expected to be around 68% at 1.25% concentrate mass pull. Lead recovery from the locked cycle test
will probably be 2% higher than the open-circuit cleaner test.
Figure
13-11 Silver Recovery of Silver/Lead Cleaner Tests for the USZ LOM Composite Sample
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 88 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure
13-12 Lead Recovery of Silver/Lead Cleaner Testsfor the USZ LOM Composite Sample
Figure 13-13 shows the silver/lead
concentrate grades generated by cleaner tests as a function of the silver/lead concentrate mass pull. At 1.25% concentrate mass pull,
the concentrate is expected to contain about 3,500 g/t silver and 22% lead. The 2,000 g/t silver content is a critical threshold for achieving
a favourable payable rate when selling the silver/lead concentrate.
Figure
13-13 Silver and Lead in the Concentrate for the USZ LOM Composite Sample
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 89 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 13-14 shows zinc content
in the zinc/silver concentrate generated by cleaner tests as a function of zinc/silver concentrate mass pull when the silver/lead rougher
tail, 1st cleaner tail and 2nd cleaner tail were all forwarded to the zinc circuit for Tests 51Cl and 52Cl. Based on the trend line of
this graph, the appropriate zinc/silver concentrate mass pull will be around 1.0% in order to reach over 40% zinc content in the zinc/silver
concentrate.
Figure
13-14 Zinc Content in the Concentrate for the USZ LOM Composite Sample
13.9.3 | Locked cycle tests for the USZ LOM composite sample |
Four locked cycle tests were completed.
The first two locked cycle tests suffered from inadequate concentrate mass pulls in the cleaner stage for both silver/lead concentrate
and zinc/silver concentrate. The third locked cycle test (Test 55) was carried out to meet the concentrate mass pull targets described
above, and the flotation performance improved. The fourth locked cycle test (Test 57) was carried out with further change by running the
first cleaner stage in the zinc circuit in a closed loop in order to improve zinc recovery in the zinc/silver concentrate.
To alleviate the issue of high slurry
viscosity in the zinc circuit, sodium hydroxide was used to adjust the pH in the silver/lead and zinc circuits. In the future, when the
slurry viscosity issue is resolved, the hydrated lime will be used for pH adjustment. The conditions for the locked cycle Test 55 are
presented in
Table 13-16. The conditions for
Test 57 were same as Test 55, except that the first cleaner stage in the zinc circuit was run in a closed circuit.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 90 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table 13-16 Conditions of the Locked Cycle Test for the USZ LOM Composite Sample
|
Silver/Lead
Circuit |
Zinc Circuit |
Primary
Grinding |
Zinc Sulfate ZnSO4·7H2O |
g/t |
1,000 |
/ |
Grind Size (P80) |
µm |
68 |
/ |
Rougher |
pH |
|
9.0 |
11.5 |
Sodium Hydroxide NaOH |
g/t |
300 |
625 |
Collector AP3418A |
g/t |
18 |
/ |
Collector A404 |
g/t |
4 |
/ |
Copper Sulfate CuSO4·5H2O |
g/t |
/ |
100 |
Collector SIPX |
g/t |
/ |
8 |
Flotation Time |
min |
14 |
6 |
Regrinding |
Regrind Time |
min |
11 |
10 |
Regrind Size (P80) |
µm |
19 |
16 |
Zinc Sulfate ZnSO4·7H2O |
g/t |
300 |
/ |
Copper Sulfate CuSO4·5H2O |
g/t |
/ |
50 |
1st
Cleaner |
pH |
|
9.0 |
11.5 |
NaOH |
g/t |
50 |
75 |
Collector AP3418A |
g/t |
8 |
/ |
Collector SIPX |
g/t |
/ |
3 |
Flotation Time |
min |
8 |
3 |
2nd
Cleaner |
pH |
|
9.0 |
11.5 |
Collector AP3418A |
g/t |
2 |
/ |
Collector SIPX |
g/t |
/ |
1 |
Flotation Time |
min |
5 |
2 |
Note: 1.7
kg sample each cycle. Five cycles total. Open circuit for the 1st cleaner. Closed circuit for the 2nd cleaner. 8.0-litre cell for
rougher. 2.2-litre cell for cleaners
The results of the locked cycle Test 55 and Test 57 are shown in
Table 13-17. For the silver/lead concentrate, average results between Test 55 and Test 57 were:
§ | Concentrate mass pull was 1.20%. |
| |
§ | Silver recovery was 81.6%. |
| |
§ | Lead recovery was 73.4%. |
| |
§ | The concentrate contained 3,658 g/t silver and 24.0% lead. |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 91 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table 13-17 Results
of the Locked Cycle Tests 55 and 57 for the USZ LOM Composite Sample
Stream |
Test No. |
Mass |
Concentrate Grade |
Recovery |
Ag |
Pb |
Zn |
Ag |
Pb |
Zn |
% |
g/t |
% |
% |
% |
Head Grade |
Test 55 |
/ |
54 |
0.41 |
0.64 |
/ |
/ |
/ |
Test 57 |
/ |
53 |
0.38 |
0.68 |
/ |
/ |
/ |
Silver/Lead
Concentrate |
Test 55 |
1.21 |
3,644 |
24.2 |
12.5 |
81.8 |
71.9 |
23.5 |
Test 57 |
1.18 |
3,672 |
23.8 |
11.6 |
81.4 |
74.9 |
20.3 |
Average |
1.20 |
3,658 |
24.0 |
12.0 |
81.6 |
73.4 |
21.9 |
Zinc Concentrate |
Test 55 |
1.06 |
264 |
0.9 |
34.5 |
5.5 |
2.2 |
57.0 |
Test 57 |
0.99 |
325 |
0.9 |
45.8 |
6.0 |
2.3 |
66.9 |
Note: The first cleaner for the zinc
circuit was run in an open circuit for Test 55 and in a closed circuit for Test 57.
The performance of the zinc circuit
was significantly improved in Test 57 when the first cleaner stage was run in a closed loop. Based on the results of Test 57, the zinc/silver
concentrate had the following performances.
§ | Concentrate mass pull was 0.99%. |
| |
§ | Silver recovery was 6.0%. |
| |
§ | Zinc recovery was 66.9%. |
| |
§ | The concentrate contained 325
g/t silver and 45.8% zinc. |
13.10 | Metallurgical testing for the sample from the Lower Gold Zone |
The sample (1.05 g/t gold, 10 g/t silver,
0.059% copper and 3.33% sulfur) from the Lower Gold Zone was subjected to a series of metallurgical tests, including gravity concentration,
whole ore cyanide leach, bulk flotation, selective flotation to produce a copper-rich gold concentrate and cyanide leach of flotation
concentrate.
13.10.1 | Gravity concentration testwork and simulation |
A three-stage gravity concentration
test was carried out by following Knelson’s E-GRG procedure. The obtained results are presented in Table 13-18. Total gravity
recoverable gold recovery was 67.3%, corresponding to 1.47% concentrate mass pull and 48.4 g/t gold grade in the concentrate. The size-by-size
gold recoveries are shown in Figure 13-15Size-by-Size Gravity Recoverable Gold for the Sample from the . Most of the gold particles
in the gravity concentrate were between 53 µm and 300 µm, which are considered to be moderate to coarse.
Table 13-18 Results
of Gravity Concentration for the Sample from the Lower Gold Zone
Stage |
Particle Size (80% Passing) |
Mass Pull |
Gold Grade |
Gold
Recovery |
Feed |
Concentrate |
µm |
µm |
% |
g/t |
% |
1st |
911 |
1,321 |
0.60 |
34.0 |
19.3 |
2nd |
266 |
313 |
0.38 |
77.8 |
27.7 |
3rd |
76 |
122 |
0.49 |
43.3 |
20.3 |
Total Concentrate |
1.47 |
48.4 |
67.3 |
Head Grade |
/ |
1.06 |
/ |
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Figure 13-15 Size-by-Size Gravity
Recoverable Gold for the Sample from the Lower Gold Zone
A
simulation was carried out by FLSmidth (former Knelson Concentrators) for a gravity concentration circuit which treats a portion of cyclone
underflow for a process plant treating 500 t/h mill throughput. The simulated results are shown in Table 13-19. At a primary grind
size of 80% passing 100 µm, the expected gold recovery from the gravity concentration circuit is between 41.5% and 43.7% when 500
to 700 t/h cyclone underflow is fed to a gravity concentration circuit which consists of two QS48 centrifugal concentrators. When the
primary grind size is reduced to 80% passing 75 µm, the expected gold recovery from the gravity concentration circuit increases
slightly to approximately 44.1% to 46.4%.
Table 13-19 Expected Gravity Recoverable
Gold Recovery for a Commercial Operation
Particle Size of
Cyclone Overflow
(P80) |
Circulating
Load Treated |
Solid Throughput to
Gravity Concentration
Circuit |
Gold
Recovery |
Equipment |
µm |
% |
t/h |
% |
100 |
33% |
500 |
41.5 |
2 x QS48 (250 t/h per unit) |
47% |
700 |
43.7 |
2 x QS48 (350 t/h per unit) |
75 |
33% |
500 |
44.1 |
2 x QS48 (250 t/h per unit) |
47% |
700 |
46.4 |
2 x QS48 (350 t/h per unit) |
Note: 500 t/h mill throughput. 300% recirculation load
in the grinding circuit
| 13.11 | Bulk flotation to produce the gold concentrate |
To produce a gold concentrate, bulk
flotation was applied to the sample (1.05 g/t gold, 10 g/t silver, 0.059% copper, and 3.33% sulfur). Seven rougher flotation tests were
completed to investigate the impact of grind size, pulp density and collector dosage on gold flotation performance. The conditions for
these seven rougher
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flotation tests are shown in Table
13-20Table 13-20, and the obtained results are presented in Table 13-21. Gold flotation performance was consistently good even
at a very coarse grind size (80% passing 266 µm). The average values of these seven rougher flotation tests were 10.9% concentrate
mass pull, 98.0% gold recovery and 94.7% silver recovery.
Table 13-20 Conditions
of Rougher Flotation Tests for the Gold Sample
Test
No. |
Sample
Weight |
Grind Size
(P80) |
Flotation Cell
Volume |
pH |
Collector Dosage |
Flotation
Time |
SIPX |
AF208 |
kg |
µm |
L |
g/t |
min |
01R |
1.7 |
76 |
4.4 |
9.0 |
12 |
12 |
8 |
11R |
3.4 |
76 |
8.0 |
8.9 |
12 |
12 |
8 |
14R |
1.7 |
140 |
8.0 |
8.9 |
12 |
12 |
8 |
16R |
3.4 |
76 |
8.0 |
8.9 |
12 |
12 |
8 |
17R |
3.4 |
76 |
8.0 |
8.9 |
12 |
12 |
8 |
19R |
1.7 |
171 |
8.0 |
8.8 |
12 |
12 |
8 |
22R |
1.7 |
266 |
8.0 |
8.9 |
24 |
24 |
8 |
Table 13-21 Results
of Rougher Flotation Tests for the Gold Sample
Test No. |
Concentrate
Mass Pull |
Content in the Concentrate |
Recovery |
Gold |
Silver |
Sulfur |
Gold |
Silver |
Sulfur |
% |
g/t |
g/t |
% |
% |
01R |
10.8 |
7.49 |
100 |
30.4 |
97.8 |
94.5 |
97.9 |
11R |
11.1 |
5.90 |
86 |
29.2 |
97.3 |
93.0 |
97.3 |
14R |
9.8 |
10.50 |
88 |
35.6 |
98.3 |
95.0 |
97.5 |
16R |
11.1 |
7.59 |
78 |
31.3 |
97.9 |
95.1 |
97.5 |
17R |
11.6 |
9.92 |
84 |
28.2 |
99.2 |
95.7 |
96.4 |
19R |
11.2 |
8.67 |
76 |
29.4 |
98.2 |
95.1 |
97.9 |
22R |
10.9 |
8.88 |
83 |
29.8 |
97.3 |
94.4 |
96.3 |
Average |
10.9 |
8.42 |
85 |
30.6 |
98.0 |
94.7 |
97.2 |
| 13.11.1 | Selective flotation to produce the copper-enriched concentrate |
The sample from the lower gold zone
contained 0.059% (590 ppm) copper. Some copper minerals will likely dissolve during cyanide leach and thus consume sodium cyanide. The
dissolved copper will load onto activated carbon. If the dissolved copper is carried over to the electrowinning circuit, it will be plated
together with gold on cathode and thus contaminate the quality of gold dore. Two exploratory flotation tests were conducted to generate
a copper-enriched gold concentrate. The first test started with a bulk flotation approach in the rougher stage, and then the resultant
rougher concentrate was upgraded by following a selective flotation approach. The second test followed the selective flotation approach
in rougher and cleaner stages. The conditions of these two tests are shown in Table 13-22,
and the results are presented in Table 13-23.
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Table 13-22 Conditions
of Flotation Tests to Produce a Copper-Enriched Concentrate
|
Conditions for Rougher |
Conditions for 3-Stage Cleaner |
Test
No. |
|
Collector Dosage |
Flotation
Time |
Regrind
Size
(P80) |
|
NaCN |
Collector Dosage |
Flotation
Time |
pH |
SIPX |
AF208 |
AP3418A |
pH |
SIPX |
AF208 |
AP3418A |
|
|
g/t |
min |
µm |
|
g/t |
g/t |
min |
24Cl |
8.9 |
12 |
12 |
/ |
8 |
19 |
11.5 |
20 |
4+3+2 |
4+3+2 |
/ |
5+4+3 |
25Cl |
10.5 |
/ |
12 |
12 |
8 |
8 |
11.5 |
5 |
/ |
5+4+3 |
5+4+3 |
5+4+3 |
Note: 3.4 kg sample, 8.0-litre cell for rougher, 2.2-litre
cell for cleaner
Table 13-23 Results
of Selective Flotation Tests to Produce a Copper-Enriched Concentrate
Test
No. |
Product |
Solid
Mass |
Composition |
Recovery |
Cu |
Au |
Ag |
S |
Cu |
Au |
Ag |
S |
% |
% |
g/t |
g/t |
% |
% |
24Cl |
3rd
Cleaner Conc |
0.16 |
9.10 |
350 |
2,272 |
14.8 |
23.5 |
55.2 |
36.6 |
0.7 |
2nd
Cleaner Conc |
0.38 |
6.25 |
159 |
1,242 |
13.9 |
39.0 |
60.6 |
48.3 |
1.6 |
1st
Cleaner Conc |
1.66 |
2.54 |
41 |
377 |
20.2 |
70.2 |
69.9 |
64.9 |
10.3 |
Rougher Conc |
11.2 |
0.52 |
9 |
83 |
28.4 |
97.0 |
99.1 |
95.4 |
97.5 |
Feed |
/ |
0.060 |
0.99 |
9.7 |
3.3 |
/ |
25Cl |
3rd
Cleaner Conc |
0.14 |
17.2 |
370 |
1,564 |
20.4 |
38.7 |
51.5 |
22.8 |
0.8 |
2nd
Cleaner Conc |
0.27 |
11.5 |
212 |
1,126 |
16.5 |
51.3 |
58.3 |
32.4 |
1.3 |
1st
Cleaner Conc |
0.78 |
5.55 |
84 |
616 |
15.2 |
70.7 |
66.3 |
50.7 |
3.4 |
Rougher Conc |
4.52 |
1.29 |
20 |
172 |
18.9 |
95.1 |
89.2 |
81.8 |
24.8 |
Feed |
/ |
0.061 |
0.99 |
9.5 |
3.5 |
/ |
Both tests recovered a significant amount
of copper. In comparison, Test 25Cl, which followed the selective flotation approach in rougher and cleaner stages, was more successful.
For Test 25Cl, the concentrate quality and recoveries are as follows:
| § | After the rougher concentrate
was upgraded in three stages, the concentrate contained 17.2% copper, 370 g/t gold and 1,564 g/t silver, and the corresponding recoveries
were 38.7% for copper, 51.5% for gold and 22.8% for silver. This copper-enriched gold/silver concentrate is believed to be readily saleable. |
| § | When the rougher concentrate was
upgraded in two stages, the concentrate quality was slightly poorer, containing 11.5% copper, 212 g/t gold and 1,126 g/t silver, and
the corresponding recoveries were 51.3% for copper, 58.3% for gold and 32.4% for silver. Although copper content was reduced, this copper-enriched
gold/silver concentrate remains attractive. |
| § | When the rougher concentrate was
upgraded in one stage, copper content in the concentrate was further decreased to 5.55%, but the concentrate still contained 84 g/t gold
and 616 g/t silver. This concentrate quality is still attractive. |
| 13.11.2 | Whole-ore cyanide leach |
Two preliminary cyanide leach tests
were completed for the sample from the lower gold zone. The conditions and results are presented in Table 13-24. Primary grind
size ranged from 80% passing 90 to 107 µm, and cyanide concentration was between 0.75 and 1.00 g/L NaCN. The total cyanide leach
retention time was 48 hours. The first 30-hour cyanide leach was carried out in the absence of activated carbon (DCN). Then, activated
carbon was added, and cyanide leach was continued for another 18 hours (CIP). Gold recovery was
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between 92.2% and 94.0%, and silver
recovery was 42.4% and 50.8%. Sodium cyanide consumption was between 0.42 and 0.55 kg/t NaCN.
Table 13-24 Conditions
and Results of Cyanide Leaching for the Sample from the Lower Gold Zone
|
Grind
Size
(80) |
|
Cyanide
Concentration |
Head Grade |
Tail Grade |
Recovery |
Reagent
Consumption |
Test
No |
pH |
Au |
Ag |
Au |
Ag |
Au |
Ag |
Cyanide |
Lime |
µm |
|
g/L NaCN |
g/t |
g/t |
% |
kg/t
NaCN |
kg/t
CaO |
21CN |
107 |
11.0 |
0.75 |
1.29 |
8.7 |
0.10 |
5.0 |
92.2 |
42.4 |
0.42 |
0.93 |
27CN |
90 |
12.0 |
1.00 |
0.83 |
10.0 |
0.05 |
4.9 |
94.0 |
50.8 |
0.55 |
4.35 |
Note: Bottle roll, 40% solid, 30-hour DCN +18-h CIP, continuous
oxygen sparging
| 13.11.3 | Cyanide leach of the gold flotation concentrate |
The gold concentrate, produced from
the bulk flotation, was subjected to cyanide leach to recover gold and silver. Four preliminary cyanide leach tests were completed to
investigate the impact of particle size, retention time, lead nitrate and activated carbon. The conditions and results are shown in Table
13-25Table 13-25. The abbreviation “DCN” stands for direct cyanide leach in the absence of activated carbon, and the abbreviation
“CIP” stands for carbon in pulp, which means that cyanide leach is carried out in the presence of activated carbon. Gold recovery
was between 94.0% and 96.2%, and silver recovery was between 55% and 68%. Although the back-calculated head grade for gold was quite variable,
the tail grade was relatively consistent, between 0.25 g/t and 0.28 g/t gold for the reground concentrate. Without regrinding, the tail
contained 0.48 g/t gold. These results imply that modest regrinding is helpful to gold recovery, but ultrafine grinding is unnecessary.
Fine regrinding resulted in increased cyanide consumption.
Table 13-25 Conditions
and Results for the Cyanide Leach of Flotation Concentrate
|
Particle
Size
(P80) |
|
Retention
Time |
Lead
Nitrate |
Head Grade |
Recovery |
Reagent Consumption |
Test
No. |
pH |
Au |
Ag |
Au |
Ag |
Cyanide |
Lime |
|
µm |
|
h |
kg/t |
g/t |
% |
kg/t NaCN |
kg/t CaO |
12CN |
~76 |
10.5~12.0 |
72-h DCN |
/ |
9.01 |
70 |
94.7 |
55 |
3.0 |
3.1 |
20CN |
8 |
11.0~11.6 |
55-h
DCN+17-h
CIP |
0.5 |
6.57 |
63 |
96.2 |
68 |
14.2 |
1.2 |
26CN |
10 |
11.5~12.0 |
30-h DCN
+ 18-hCIP |
/ |
4.70 |
70 |
94.0 |
68 |
8.7 |
1.7 |
36CN |
15 |
11.2~11.5 |
72-h DCN |
/ |
6.62 |
68 |
96.2 |
64 |
5.1 |
1.3 |
Note: Bottle roll, 25% solid, 6.0 g/L NaCN, continuous
oxygen sparging
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| 14 | MINERAL RESOURCE ESTIMATE |
A Mineral Resource Estimate has been
independently completed by RPM in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards
for Mineral Resources and mineral reserves (CIM (2014) definitions).
A “Mineral Resource” is
defined by CIM Definition Standards as a concentration or occurrence of solid material of economic interest in or on the Earth’s
crust in such form, grade (or quality) that there are reasonable prospects for eventual economic extraction. The location, quantity,
grade (or quality), continuity and other geological characteristics of a Mineral Resource are known, estimated, or interpreted from specific
geological evidence and knowledge, including sampling. Mineral Resources are subdivided, in order to increase geological confidence,
into Inferred, Indicated, and Measured categories.
Mineral Resource Estimates are not precise
calculations, being dependent on the interpretation of limited information on the location, shape, and continuity of the occurrence and
the available sampling results.
Information contained in this Report
is based on information provided to RPM by NPM and verified where possible by RPM. All statistical analyses and Mineral Resource Estimates
were carried out by RPM.
The Company has developed 3D mineralized
models for Ag, Au, Zn and Cu zones, and RPM has developed independent models and validated the company models through volume/geometry
comparison. RPM constructed a three-dimensional digital estimate workflow for the Ag, Au, Zn and Cu grades and compiled the Mineral Resource
model based on the statistical analysis of the data provided. RPM considers the Mineral Resource Estimate meets the general guidelines
for CIM Definition Standards for reporting of Mineral Resources at the Indicated and Inferred confidence levels.
RPM is not aware of any
other factors, including environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors
that could materially affect the Mineral Resource estimate.
The primary source documents for the Mineral
Resource Estimate were:
| § | Drill hole files (collar, downhole
survey, lithology, assay, RQD, core recovery, alteration, structure and mineralization) in CSV format; |
| § | Specific Gravity (density) measurements
from drill core samples in CSV format; |
| § | 3-D models for the main mineralized
zones; |
| § | An orthophoto file in tif format;
and |
| § | A 1m detailed topography file
in shp format. |
A comprehensive dataset of drill hole collar, survey,
assay, and geological records in digital format was provided to RPM on 01 June 2023.
The Carangas drill hole database contains 189 drill
holes representing 81,145 m. A total of 58,215 samples were analyzed and comprise the current
database for Mineral Resource estimation. Assays below the detection limit were assigned to one-half of the detection limit by NPM personnel.
A
total of 27,170 RQD and 27,173 core recovery measurements from 189 drill holes existed in the database. The average core recovery within
the modelled mineralized zone is 98%, ranging from 0% to 100%. Poor
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| |
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sample recovery is concentrated in the overburden
zone or in cavities (historical artisanal mining or natural cavities).
RPM is of the opinion that the core recovery is acceptable for
geological interpretation, modelling, and Mineral Resource classification.
A total of 5,366 SG measurements from 189 diamond
drill holes exist from the Carangas deposit. Measurements were calculated using the weight in air versus the weight in water method (Archimedes),
by applying the following formula:
|
Specific
Gravity = |
Weight
in Air |
|
|
(Weight
in Air - Weight in Water) |
|
The average bulk density for each block into the 3D mineralized domain was estimated within each domain
separately, using hard boundaries and inverse distance (ID2) function and considering a minimum of 2 and maximum of 4 samples to estimate
a block value. The estimated density values were used for tonnage calculations in the Mineral Resource Statement. The density sample
statistics for each domain is presented in Table 14-1Table 14-1.
Table 14-1 Density Statistics
Table
Domain |
N Samples |
Density (t/m³) |
Stdev |
Minimum |
Maximum |
Upper Silver Zone |
1,666 |
2.08 |
0.23 |
1.33 |
3.49 |
Middle Zinc Zone |
713 |
2.30 |
0.19 |
1.37 |
3.01 |
Lower Gold Zone |
877 |
2.27 |
0.21 |
1.20 |
3.22 |
Lower Copper Zone |
21 |
2.34 |
0.21 |
1.94 |
2.77 |
Source: compiled by RPMGLOBAL, 2023
Historic artisanal mining activities
have been involved in the project area. However, this activity was limited to a few meters within the surface. The Client did not supply
RPM with the 3D artisanal mining models for depletions. Thus, artisanal mining has not been excluded from the Mineral Resource. RPM does
not envisage that this will materially influence the Mineral Resource Statement as the artisanal mining was not extensive and only in
the West and East Dome area and not into the Central Valley area where the bulk of mineralization is located. Currently, there is no artisanal
mining activities at the Carangas project.
| 14.3 | Geological Interpretation |
Geological interpretations of the lithological
units and the geological structure were used to guide and interpret the shape of the mineralized wireframes, along with assay results.
The
3-D mineralized zones were interpreted based on a silver equivalent variable (AgEq) and geological knowledge from the geology team. The
AgEq formula is as follows:
AgEq g/t = Ag g/t + Au g/t * 82.6 +
( Pb %*2094 /100 + Zn %*2755 /100 + Cu %* 8816 /100 ) / 0.74
The price assumptions for the metals
are Ag: 23 $/oz, Au: 1900 $/oz, Pb: 0.95 $/lb, Zn: 1.25 $/lb, Cu: 4 $/lb. Prices are based on bank and industry forecasts as of August
2023.
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A cut-off grade of 20 g/t AgEq was used to create
wireframes of mineralization. Although mineralization modelling was based on this cut-off grade approach, some unmineralized material
was included in the envelopes to maintain mineralization continuity. This is considered suitable for the style of mineralization.
The mineralization zones were relatively continuous.
However, they may terminate against or be displaced by structural features. In some areas, primarily in the down-dip direction, internal
unmineralized material was included to maintain continuity.
The mineralized domains were built using Leapfrog GeoTM software,
considering all major lithologies and the transitions from each domain. The main modelled domains were developed for Ag, Au, Zn (PbZn)
and Cu (Figure 14-1) as described below:
| § | Upper Silver Zone (GM_Ag): generated
using AgEq cutoff of 20 g/t. The upper boundary is the bottom of Overburn lithology, and the lower boundary is the bottom of ABC (andesitic
basalt). |
| § | Middle Zinc Zone (GM_PbZn): the grade shell was built
using an AgEq cutoff grade of 20g/t. The upper boundary is the bottom of ABC (andesitic basalt), and the other boundaries are GM_Au and
GM_Cu 3D wireframes. |
| § | Lower Gold Zone (GM_Au): generated grade shell using
Au cutoff of 0.14 g/t. The upper boundary is the bottom of ABC (andesitic basalt). |
| § | Lower Copper Zone (GM_Cu): This domain was generated
using a Cu cutoff of 0.15%. The boundary used was the GM_Au wireframe domain. This Zone is not considered material due to a shortage of
drill information at the depth of the mineralization system. |
Following the geological knowledge, a
variable orientation was used for Silver domains. The variable orientation is based on ABC (Andesitic basalt) surface contact, which
controls the ellipsoid direction to build the 3D model on the Ag domain.
The Carangas deposit is described as a suite of metallic sulfide
and gangue minerals occurring in volcanic and intrusive rocks as veins/veinlets, breccia fillings and dissemination. The mineralization
is controlled by the temperature and pressure of the hydrothermal system, i.e., the depth from ground surface or the distance from the
source of heat generated by rhyolitic intrusions.
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A complete exploratory data analysis
was performed. Univariate statistics, histograms, and box-whisker plots were constructed to investigate the dataset and determine grade
capping and compositing requirements. A log histogram for silver composites is shown in Figure 14-2, and univariate statistics
for all main grades are shown in Table 14-2.
Figure 14-2 Ag Log Histogram
for 1.5 m Composites
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 101 of 227 | |
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Table 14-2 Univariate
Statistics of Grade Composites, by Domain
Domain |
Variable |
N Sample |
Mean |
Standard deviation |
Minimum |
Maximum |
Upper
Silver Zone |
Ag_ppm |
15,743 |
47.80 |
203.16 |
0.04 |
14,182.00 |
Au_ppm |
3,046 |
0.02 |
0.12 |
0.01 |
3.29 |
Cu_pct |
15,743 |
0.01 |
0.03 |
0.00 |
1.61 |
Pb_pct |
15,743 |
0.38 |
0.51 |
0.00 |
14.22 |
Zn_pct |
15,743 |
0.68 |
0.86 |
0.00 |
16.76 |
Middle
Zinc Zone |
Ag_ppm |
6,803 |
9.92 |
93.29 |
0.01 |
7,332.35 |
Au_ppm |
4,871 |
0.05 |
0.06 |
0.01 |
0.58 |
Cu_pct |
6,803 |
0.01 |
0.03 |
0.00 |
0.60 |
Pb_pct |
6,803 |
0.29 |
0.33 |
0.00 |
7.39 |
Zn_pct |
6,803 |
0.67 |
0.58 |
0.00 |
5.13 |
Lower
Gold Zone |
Ag_ppm |
8,383 |
8.81 |
26.91 |
0.02 |
1,158.93 |
Au_ppm |
8,349 |
0.82 |
2.15 |
0.01 |
53.98 |
Cu_pct |
8,383 |
0.07 |
0.16 |
0.00 |
6.30 |
Pb_pct |
8,383 |
0.10 |
0.29 |
0.00 |
10.94 |
Zn_pct |
8,383 |
0.17 |
0.41 |
0.00 |
7.43 |
Lower
Copper Zone |
Ag_ppm |
154 |
15.33 |
28.27 |
0.13 |
247.88 |
Au_ppm |
140 |
0.07 |
0.06 |
0.01 |
0.34 |
Cu_pct |
154 |
0.30 |
0.23 |
0.00 |
1.45 |
Pb_pct |
154 |
0.17 |
0.85 |
0.00 |
9.89 |
Zn_pct |
154 |
0.37 |
0.99 |
0.00 |
9.02 |
Source: compiled by RPMGLOBAL, 2023 |
| 14.5 | Treatment of High-Grade Assays |
Applying high-grade cuts reduces
the impact of extreme grade outliers on the grade estimate and aims to prevent these statistical outliers from having a significant impact
on the Mineral Resource estimate. The high- grade cuts applied to the composites were determined from the histograms and log probability
plots for each element. A detailed domain study was completed, and the same global top-cut values were concluded. The high-grade cut values
are shown in Table 14-3.
Table 14-3 Top Cut Values into all
Domains
Variable |
Minimum |
Maximum |
Capping Value |
Ag_ppm |
0.0 |
9,626 |
7.000 |
Au_ppm |
0.0 |
53.977 |
40.0 |
Pb_pct |
0.0 |
14.220 |
No Capping |
Zn_pct |
0.0 |
16.760 |
No Capping |
Cu_pct |
0.0 |
1.612 |
No Capping |
Source: compiled by RPMGLOBAL, 2023 |
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oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
This compositing section discussion
herein addresses only the data used to estimate the Mineral Resources.
Although the most common sample length
inside the mineralized wireframes was 1.28 m (Figure 14-3), RPM selected a composite length of 1.5 meters to decrease the variability
and coefficient of variation. Decreasing the coefficient of variation during the compositing stage reduces the risk of metal loss when
applying high-grade cuts.
The composites were checked visually in Leapfrog Geo™ software for spatial correlation with the wireframed
mineralized envelopes and to assess the impact of the 1.5-meter composite length. RPM considered the chosen composite length to be representative
of local variations.
Figure 14-3 Length Histogram
for Raw Assay Intervals
| 14.7 | Search Strategy and Grade Interpolation Parameters |
| 14.7.1 | Block Model Strategy and Analysis |
A series of upfront test modelling
was completed to define an estimation methodology to meet the following criteria:
| § | Representative of the current Carangas geological and structural models. |
| § | Accounts for the variability of grade, orientation, and continuity of mineralization. |
| § | Controls the smoothing (grade spreading) of grades and the influence of outliers. |
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| § | It is robust and repeatable within the mineral domains. |
| § | Supports multiple domains. |
Multiple test scenarios were evaluated to determine
the optimum processes and parameters to use in order to achieve the stated criteria. Each scenario was based on NN, inverse-distance
squared (“ID2”), inverse-distance cubed (“ID3”), and OK interpolation methods.
All test scenarios were evaluated
based on global statistical comparisons, visual comparisons of composite assays versus block grades, and the assessment of overall smoothing.
Based on the results of the testing, it was determined that the final resource estimation methodology would constrain the mineralization
by using hard wireframe boundaries to control the spread of high-grade and low-grade mineralization. Inverse-distance squared (ID2) was
selected as the interpolation method that best represents both the current Carangas database and deposit characteristics.
| 14.7.2 | Grade Interpolation |
The Inverse-distance squared (“ID2”)
algorithm was used for the estimation of grades, using hard boundaries of each individual domain. The Nearest Neighbor (NN) estimation
method was also performed for comparison grade validation and swath plot analysis.
The estimation parameters were based on the outcomes
of the geospatial analysis and reflect the interpreted variability of the underlying grade continuity. A minimum and maximum number of
samples was set to limit over- smoothing. A minimum of 1 sample was required for estimation, and a maximum of 40 samples. The search
quadrant sector was also applied with a maximum of 10 samples per sector. The search ellipsoid ranges were based on AgEq continuity of
grades and drill grid spacing.
Search orientations for the Upper Silver Zone and Middle Zinc Zone were based on the shape of the ABC (andesitic
basalt) contact surface. The grade interpolation strategy and parameters are presented in Table 14 - 4.
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oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table 14-4 Carangas
Grade Estimation Search Parameters
General |
Value clipping |
Ellipsoid Ranges |
Ellipsoid Directions |
Domain |
Numeric Values |
Upper bound |
Maximum |
Intermediate |
Minimum |
Dip |
Dip Azimuth |
Pitch |
Variable Orientation |
Upper Silver Zone |
Ag_ppm |
7000 |
175 |
175 |
75 |
|
|
|
Yes |
Upper Silver Zone |
Au_ppm |
40 |
175 |
175 |
75 |
|
|
|
Yes |
Upper Silver Zone |
Cu_pct |
- |
175 |
175 |
75 |
|
|
|
Yes |
Upper Silver Zone |
Pb_pct |
- |
175 |
175 |
75 |
|
|
|
Yes |
Upper Silver Zone |
Zn_pct |
- |
175 |
175 |
75 |
|
|
|
Yes |
Lower Gold Zone |
Ag_ppm |
7000 |
175 |
175 |
75 |
14.216 |
90.9 |
45.0 |
No |
Lower Gold Zone |
Au_ppm |
40 |
175 |
175 |
75 |
14.216 |
90.9 |
45.0 |
No |
Lower Gold Zone |
Cu_pct |
- |
175 |
175 |
75 |
14.216 |
90.9 |
45.0 |
No |
Lower Gold Zone |
Pb_pct |
- |
175 |
175 |
75 |
14.216 |
90.9 |
45.0 |
No |
Lower Gold Zone |
Zn_pct |
- |
175 |
175 |
75 |
14.216 |
90.9 |
45.0 |
No |
Lower Copper Zone |
Ag_ppm |
7000 |
150 |
150 |
50 |
10 |
45.0 |
75.0 |
No |
Lower Copper Zone |
Au_ppm |
40 |
150 |
150 |
50 |
10 |
45.0 |
75.0 |
No |
Lower Copper Zone |
Cu_pct |
- |
150 |
150 |
50 |
10 |
45.0 |
75.0 |
No |
Lower Copper Zone |
Pb_pct |
- |
150 |
150 |
50 |
10 |
45.0 |
75.0 |
No |
Lower Copper Zone |
Zn_pct |
- |
150 |
150 |
50 |
10 |
45.0 |
75.0 |
No |
Middle Zinc Zone |
Ag_ppm |
7000 |
150 |
150 |
50 |
|
|
|
Yes |
Middle Zinc Zone |
Au_ppm |
40 |
150 |
150 |
50 |
|
|
|
Yes |
Middle Zinc Zone |
Cu_pct |
- |
150 |
150 |
50 |
|
|
|
Yes |
Middle Zinc Zone |
Pb_pct |
- |
150 |
150 |
50 |
|
|
|
Yes |
Middle Zinc Zone |
Zn_pct |
- |
150 |
150 |
50 |
|
|
|
Yes |
Source: compiled by RPMGLOBAL, 2023
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oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
As discussed in Section 14.1.2,
a total of 5,366 specific gravity (SG) measurements from 189 diamond drill holes were used in the Density estimation for resource block
model. RPM determined that the required amount and distribution of SG measurements allowed for direct estimation of SG within the block
model. The inverse distance squared (ID2) method was used and produced a good result compared to other methods. The Density interpolation
strategy and parameters are presented in Table 14-5.
Table 14-5 Density Estimation
Parameters
General |
Ellipsoid Ranges |
Ellipsoid Directions |
Domain |
Numeric
Values |
Maximum |
Intermediate |
Minimum |
Dip |
Dip
Azimuth |
Pitch |
Variable
Orientation |
Upper Silver Zone |
SG |
330 |
195 |
130 |
|
|
|
Yes |
Middle Zinc Zone |
SG |
330 |
195 |
195 |
|
|
|
Yes |
Lower Gold Zone |
SG |
330 |
195 |
130 |
0 |
0 |
110 |
No |
Lower Copper Zone |
SG |
380 |
210 |
210 |
0 |
0 |
110 |
No |
Source: compiled by RPMGLOBAL, 2023
The overall results are strongly related
to the density database, as expected, and the validation process shows a reasonable comparison as presented in histograms from samples
and block model in Figure 14-4. The samples histogram geometry is reproducible into the estimated blocks, and the mean and standard
deviation shows a good comparison.
Figure 14-4 Estimation
Density Histogram Validation
RPM constructed a three-dimensional
digital estimate for Ag, Au, Pb, Zn, and Cu and compiled the Mineral Resource model based on the statistical analysis of the data provided.
RPM considers that the Mineral Resource estimate meets the general guidelines for CIM Definition Standards for reporting Mineral Resources
at the Indicated and Inferred confidence levels.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 106 of 227 | |
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A block model was created for the
Carangas Project, covering the main mineralized and adjacent areas. There is no rotation for the block model, and the block sizes were
selected considering the geometry of mineralization, drill grid spacing, density of assay data and selected mining unit. The block model
dimensions selected were 5m by 5m by 5m (X,Y,Z) with no sub-cells. The block model origins, extents and attributes are shown in Table
14-6.
Table 14-6 Carangas
Block Model Definition Parameters
Model Parameters |
X |
Y |
Z |
Block Model Origin |
538,490 |
7,904,850 |
2810 |
Number of Blocks |
276 |
210 |
258 |
Parent Block Size (m) |
5 |
5 |
5 |
Rotation Degree |
No |
No |
No |
FIELD NAME |
DESCRIPTION |
GM (Zone Domain) |
Ag – Upper Silver Zone
Au –
Lower Gold Zone
PbZn – Middle Zinc Zone
Cu – Lower Copper Zone |
IJK |
Block IJK No |
|
|
XC |
Cell Centroid – X |
|
|
YC |
Cell Centroid – Y |
|
|
ZC |
Cell Centroid – Z |
|
|
XINC |
Cell Size – X |
|
|
YINC |
Cell Size – Y |
|
|
ZINC |
Cell Size – Z |
|
|
XMORIG |
Model Origin – X |
|
|
YMORIG |
Model Origin – Y |
|
|
ZMORIG |
Model Origin – Z |
|
|
NX |
Number of Cells – X |
|
NY |
Number of Cells – Y |
|
NZ |
Number of Cells – Z |
|
DENSITY |
Density |
|
|
Ag_ID2 |
Estimated Ag – Inverse distance |
|
Ag_NS |
Number samples in estimation of Ag grade |
Ag_AvgD |
Average distance of samples used in Ag estimation |
Au_ID2 |
Estimated Au – Inverse distance |
|
Cu_ID2 |
Estimated Cu – Inverse distance |
|
Pb_ID2 |
Estimated Pb – Inverse distance |
|
Zn_ID2 |
Estimated Zn – Inverse distance |
|
AgEq_ID2 |
Calculated Silver equivalent |
|
Class_Fim |
Resource Classification: Indicated
Inferred |
Source: compiled by RPMGLOBAL, 2023
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 107 of 227 | |
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| 14.10 | Cut off Grade and Optimization Parameters |
A Reasonable Prospects for Eventual Economic Extraction (RPEEE)
was implemented for the Carangas deposit, and the process and assumptions are detailed below and include:
| § | The Independent and Qualified Person responsible
for the Mineral Resource Estimate is Anderson Candido, Principal Geologist of RPMGlobal and Fellow AusIMM member, and the effective date
of the estimate is August 25, 2023. |
| § | CIM Definition Standards on Mineral Resources and
Reserves were used for the Carangas Project Mineral Resource Estimate. |
| § | Industry 5 year long-term consensus average prices
(consensus from long-term forecasts from banks, financial institutions, and other sources) of metals as of August 2023 were used for all
calculations as itemized in Table 14-7 Mineral Resources are not mineral reserves and do not have demonstrated economic viability. |
| § | Minor variations may occur during the addition of rounded numbers. |
| § | The pit shell (June 2023) was generated based on the
assumptions listed in Table 14-7. These assumptions were based on regional benchmarks and preliminary metallurgical data. |
| § | There are no other factors of environmental, permitting,
legal, marketing, or other relevant issues which could materially affect the Mineral Resource estimate. |
Table 14-7 Commodity Prices Used in
the Resource Calculation
Commodity |
Unit |
Value Assumption |
Metal Prices |
Silver (Ag) |
$/oz |
23.00 |
Gold (Au) |
$/oz |
1,900.00 |
Lead (Pb) |
$/lb |
0.95 |
Zinc (Zn) |
$/lb |
1.25 |
Copper (Cu) |
$/lb |
4.00 |
Source: compiled by RPMGLOBAL, 2023 |
Input Parameters for Resource Calculation
The Cutoff Grade calculation was based
on assumptions as follows: mining operating cost, onsite milling operating cost, tailings management facility operating cost, G&A
cost, royalty cost, selling cost, onsite milling metal recoveries percentages, metal payable percentages, and other variables.
The cost assumptions are presented below:
| § | Mining operating cost: 2.00 $/t |
| § | Onsite process operating cost: 10.50 $/t |
| § | Tailings management facility operating cost: 0.65 $/t |
| § | Selling cost: 0.5 $/oz AgEq |
| § | Metal processing recoveries percentages: Ag 90%, Au 98%, Pb 83% and Zn 58% |
| § | Metal payable percentages: Ag 83%, Au 99.5%, Pb 83% and Zn 45% |
For resource cutoff calculation purposes, a
mining recovery of 100.0% and 0.0% mining dilution were applied.
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RPM has developed an independent maximum
pit study to verify the accuracy and reproducibility of the current maximum pit provided by the Company. The QP is of the opinion that
the current maximum pit calculation is reasonable to constrain the Mineral Resources.
Pit Optimization Disclaimer
RPM highlights that the pit shell used
to define the depth and extent to report the open pit Mineral Resource is preliminary. The pit shell constraint may be subject to minor
change after further pit optimization study in future stages of the Project.
RPM notes that the pit shell-constrained Mineral Resources
demonstrates reasonable prospects for eventual economic extraction (RPEEE) and highlights that the pit does not constitute a scoping
study or a detailed mining study which is required to be completed to confirm the economic viability of the Project with additional drilling
and metallurgy test work. It is further noted that CAPEX is not included in the mining costs assumed. RPM has verified the utilized operating
costs based on the Company’s databases and the processing recoveries based on the preliminary test work outlined in Section 13,
along with the price noted above in determining the appropriate cut-off grade. In conclusion, RPM considers the open pit-constrained
Mineral Resources to demonstrate reasonable prospects for eventual economic extraction; however, it highlights that additional studies
and drilling are required to confirm economic viability.
Definitions for resource categories
used in this report are consistent with those defined by CIM (2014) and adopted by NI 43-101. In the CIM classification, a Mineral Resource
is defined as “a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form,
grade or quality and quantity that there are reasonable prospects for eventual economic extraction”. Mineral Resources are classified
into Measured, Indicated, and Inferred categories. A Mineral Reserve is defined as the “economically mineable part of a Measured
and/or Indicated Mineral Resource” demonstrated by studies at Pre-Feasibility or Feasibility level as appropriate. Mineral reserves
are classified into Proven and Probable categories.
At the Carangas Project, the Mineral
Resource was classified as Indicated and Inferred Mineral Resource on the basis of data quality, sample spacing, mineralization and grade
continuity.
As noted in the geology interpretation,
the mineralization varies throughout the deposit, resulting in geological and grade continuity variations. The mineralization domains
are controlled by silver, gold and zinc grade relations where the silver grade is concentrated in the upper zone and gold into the lower
portions. While there are grade variations observed within the closer spaced drillholes (70m by 70m), the deposit shows good continuity
of the main mineralized zones along strike. While there is good geological continuity along strike, local variation of grade and thickness
occurs between the current drill spacing, which arises from structures and results in discontinuity of mineralization.
Given the likelihood of further local
grade variation with further drilling, RPM considers the current data suitable to provide a good estimate of tonnage and metal content
on a global scale and considers the 70m by 70m spacing suitable for an Indicated classification. RPM considers that further drilling
is required to allow for better estimates of local grade and metal distribution and as such, no Measured Resources are reported.
The classification
criteria used by RPM for the Mineral Resource was as follows:
Indicated:
| § | Average ID2 sample distance of less than 70 m or Nearest Neighbor
(NN) sample distance of less than 35 m; |
| § | Drill grid spacing of approximately 50-100 m; and |
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| |
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| § | Confirmed visualization of mineralization continuity. |
Inferred:
| § | Blocks that do not satisfy the requirements for Indicated Resources and had
an average sample distance of less than 220 m were classified as Inferred Resources. |
A block model view of the Mineral Resource classification is shown
in Figure14-5.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 110 of 227 | |
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oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
14.12 | Block Model Validation |
The block model validation process
included visual comparisons between block estimates and composite grades in section views, local versus global estimates for ID2 and NN,
and swath plots. A three-step process was used to validate the estimation as outlined below:
§ | Mean grade comparison in each domain; |
§ | Swath plots comparing estimation methods; and |
§ | Visual inspection of the blocks against drill hole composites. |
A quantitative assessment of the estimate
was completed by comparing the average grades of the top-cut composite file against the block model grades for each domain. The results
of the main element for each domain are tabulated in Table 14-8 and indicate a good correlation.
Table 14-8 Composite vs. Block Model
Grade Statistical Validation
DOMAIN |
GRADE |
Sample Grade |
Model Grade |
Difference in Grade |
Difference (%) |
Upper Silver Zone |
Ag (g/t) |
42.39 |
41.20 |
1.19 |
3% |
Lower Gold Zone |
Au (g/t) |
0.77 |
0.75 |
0.02 |
3% |
Middle Zinc Zone |
Pb (%) |
0.29 |
0.30 |
-0.01 |
-3% |
Middle Zinc Zone |
Zn (%) |
0.67 |
0.72 |
-0.05 |
-7% |
Lower Copper Zone |
Cu (%) |
0.30 |
0.31 |
-0.01 |
-3% |
Source: compiled by RPMGLOBAL, 2023 |
A volumetric verification was undertaken
to confirm that the block model represents the mineralization wireframe volumes, and no significant discrepancy was detected. This comparison
is presented in Table 14-9Table 14-9, indicating an excellent comparison for all mineralization veins.
Table 14-9 3D Volumetric Model comparison
DOMAIN |
Wireframe
Volume (m3) |
Model
Volume (m3) |
Difference
(m3) |
Difference (%) |
Upper Silver Zone |
80,734,000 |
80,760,500 |
-26,500 |
0.0% |
Lower Gold Zone |
52,072,000 |
52,063,625 |
8,375 |
0.0% |
Middle Zinc Zone |
37,254,000 |
37,242,125 |
11,875 |
0.0% |
Lower Copper Zone |
547,590 |
546,500 |
1,090 |
0.2% |
TOTAL |
170,607,590 |
170,612,750 |
-5,160 |
0.0% |
Source: compiled by RPMGLOBAL, 2023 |
Swath plots were developed to compare
interpolated block grades with the sample composite data along distance slices in the X, Y and Z directions. The swath plot analysis,
shown in Figure 14-6, shows that the estimated grades had a reasonable correlation with the cut composite grades. While the swath
plots preserve the overall trend between the composite and block model grades, there is variation in the composites on individual slices.
This often results from the smoothing of block grades that is inherent in the Inverse Distance algorithm and the estimation parameters
used. It is particularly notable when variations in grade occur over short distances or the search ellipse used for sample selection is
significantly wider than the width of the swath plot slice.
The interpolated block model's validation
was assessed using visual assessments and validation plots of block grades versus capped assay grades and composites. The review demonstrated
a good comparison between local block estimates and nearby assays without excessive smoothing in the block model.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 112 of 227 | |
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Figure 14-7 and Figure 14-8
provide the visual comparisons for the Ag grade of the Carangas Deposit. Visual comparisons for all elements were developed, and the results
are acceptable. The block model grade fits the composite samples and maintains grade continuity. Overall, the visual comparison indicated
that the model grades were reasonably consistent with the drill hole composite grades both at a local scale-down dip and in areas of closer-spaced
drilling grade continuity major direction. A reasonable degree of smoothing was observed due to a combination of the block dimensions,
the ID2 algorithm and the wide drill spacing at some locations.
Based on the results of the validation,
RPM considers the estimate to be a reasonable representation of the composites and matches the known controls of mineralization and the
underlying data.
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14.13 |
Mineral Resource Reporting |
RPM has independently estimated the Mineral
Resources of the Project based on the data collected by NPM. The Mineral Resource Estimate and the underlying data comply with the guidelines
provided in the CIM Definition Standards under NI 43-101. Therefore, RPM believes it is suitable for public reporting. The Mineral Resources
were completed by Anderson Candido, Principal Geologist of RPMGlobal and Fellow AusIMM member.
The Statement of Mineral Resources has
been constrained by the topography and maximum optimized pit shell and reported using a 40 g/t AgEq cut-off grade. This cut-off value
was calculated using the metal prices presented in Table 14-7 and the cost assumptions above.
Results of the independent Mineral Resources
Estimate for the Project are tabulated in the Statement of Mineral Resources within the three main zones: Upper Silver Zone, Middle Zinc
Zone and Lower Gold Zone, shown in Table 14-10.
Table 14-10 Statement of Mineral Resources*
at the Carangas Project as of 25th August 2023
Domain |
Category |
Tonnage |
AgEq |
Ag |
Au |
Pb |
Zn |
Mt |
g/t |
Mozs |
g/t |
Mozs |
g/t |
Kozs |
% |
Mlbs |
% |
Mlbs |
Upper Silver Zone |
Indicated |
119.18 |
85 |
326.8 |
45 |
171.2 |
0.06 |
216.4 |
0.35 |
916.6 |
0.66 |
1,729.6 |
Inferred |
31.30 |
80 |
80.8 |
43 |
43.3 |
0.10 |
104.6 |
0.29 |
202.4 |
0.51 |
350.0 |
Middle Zinc Zone |
Indicated |
43.42 |
56 |
78.1 |
11 |
15.0 |
0.06 |
77.4 |
0.36 |
343.6 |
0.77 |
739.4 |
Inferred |
9.32 |
54 |
16.2 |
9 |
2.6 |
0.05 |
15.6 |
0.36 |
74.1 |
0.79 |
162.3 |
Lower Gold Zone |
Indicated |
52.28 |
92 |
154.9 |
11 |
19.1 |
0.77 |
1,294.4 |
0.16 |
184.7 |
0.16 |
184.7 |
Inferred |
4.37 |
91 |
12.8 |
13 |
1.8 |
0.69 |
97.5 |
0.22 |
21.4 |
0.22 |
21.4 |
Source: compiled by RPM GLOBAL, 2023
* Notes:
| 1. | CIM Definition Standards (2014) were used for reporting the Mineral Resources. |
| 2. | The Qualified Person (as defined in NI 43-101) for the purposes of the
MRE is Anderson Candido, FAusIMM, Principal Geologist with RPM (the “QP”). |
| 3. | Mineral Resources are constrained by an optimized pit shell at a metal price of $23.00/oz Ag, $1,900.00/oz
Au, $0.95/lb Pb, $1.25/lb Zn, $4.00/lb Cu, recovery of 90% Ag, 98%
Au, 83% Pb, 58% Zn and Cut-off grade of 40 g/t AgEq and reported as per Section 14. |
| 4. | Drilling results up to June 1, 2023. |
| 5. | The numbers may not compute exactly due to rounding. |
| 6. | Mineral Resources are reported on a dry in-situ basis. |
| 7. | Mineral Resources are not mineral reserves and have not demonstrated economic viability. |
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15 |
MINERAL
RESERVE ESTIMATE |
This section is not relevant to this Technical Report.
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The deposit is amenable to open pit
mining practices. Open pit mine designs, mine production schedules and mine capital and operating costs have been developed for the Carangas
deposit at a scoping level of engineering. The Mineral Resources described in Section 14 form the basis of the mine planning, including
Indicated and Inferred class resources.
Mine planning is based on conventional
drill/blast/load/haul open pit mining methods suited for the project location and local site requirements. The open pit activities are
designed for approximately two years of construction followed by thirteen years of mine operations and, finally, four years of post-pit
mining stockpile rehandle to the mill. The subset of Mineral Resources contained within the designed open pits are summarized in Table
16-1, with a $28/t NSR (Net Smelter Return) cut-off and form the basis of the mine plan and production schedule.
Table 16-1 PEA Mine Plan Production
Summary
Factor |
Value |
PEA Mill Feed |
64.4 Mt |
Mill Feed NSR |
$50.6/t |
Mill Feed Ag Grade |
63 g/t |
Mill Feed Pb Grade |
0.44 % |
Mill Feed Zn Grade |
0.80 % |
Waste Rock |
111.7 Mt |
Waste: Mill Feed Ratio |
1.7 |
Notes:
1. | The PEA Mine Plan and Mill Feed estimates are a
subset of the August 25, 2023, Mineral Resource estimates and are based on open pit mine engineering and technical information developed
at a Scoping level for the Carangas deposit. |
2. | PEA Mine Plan and Mill Feed estimates are mined
tonnes and grade. The reference point is the primary crusher. Mill Feed tonnages and grades include open pit mining method modifying factors,
such as dilution and recovery. |
3. | Net Smelter Prices (NSP) and metallurgical recoveries
are used to define the cutoff grade. NSPs include market price assumptions of $23.0/oz Ag, $2,094/t Pb, $2,756/t Zn. Various smelter and
refining terms, offsite costs, and a 6% royalty derive NSPs of $20.5/oz Ag, $1,418/t Pb, and $1,630/t Zn. Metallurgical recoveries of
90% Ag, 83% Pb, and 58% Zn are applied. |
4. | The chosen cut-off grade covers total operating
costs of $28/t, which exceeds estimated PEA mining, processing and G&A cost estimates. |
5. | Estimates have been rounded and may result in summation differences. |
Figure 16-1 shows the general arrangement
for the PEA mine plan.
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Figure 16-1 Mine Operations General
Arrangements
Source: Moose Mountain, 2024 |
|
Economic pit limits are determined using
the Pseudoflow implementation of the Lerchs-Grossman algorithm. Ultimate pit limits are split up into three phases or pushbacks to target
higher economic margin material earlier in the mine life. Upper benches will be accessed via internal cut ramps on topography or via ramps
left behind on phased pit walls. In-pit ramps will access material below the pit rim.
Pit designs are configured on 10 m bench
heights, with a minimum of 8 m wide berms placed every two benches or double benching. Since there has been no geotechnical test work
or analysis completed on the bedrock, the applied bench face and inter-ramp angles, 67.5 degrees and 50 degrees respectively, are scoping
level assumptions based on the rock type and overall depth of the open pit.
Resource from the open pit will report
to a ROM pad and primary crusher 0.5 km northeast of the pit rim. The mill will be fed with material from the pits at an average rate
of 4.0 Mtpa (11 ktpd). Oxide resources will be stored in a stockpile 1 km north of the pit rim and rehandled to the crusher over the life
of mine, blended with non-oxide mill feed. Non-oxide resources, mined in excess of mill feed targets, will be stored in a low grade stockpile
directly south of the ROM pad and process plant and east of the open pit. This stockpile is planned to be completely reclaimed to the
mill at the end of the mine life.
Waste rock will be placed in one of three
storage facilities or used in the construction of haul roads and the dam portion of the tailings facility. The west waste rock storage
facility (WRSF) sits directly north of the open pit. The east WRSF sits 2 km east of the open pit. A third WRSF sits 2 km north of the
open pit, directly north of the
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oxide stockpile, and will store sub-grade
waste, which is the portion of the Mineral Resources mined and not milled within this PEA mine plan.
The waste rock from the open pit has not
been tested or analyzed for potential acid generation (PAG). It is assumed that PAG quantities will be small enough to be blended with
larger quantities of non-acid generating (NAG) waste rock for surface storage within the WRSFs.
Topsoil and overburden encountered
at the top of the pits will be placed in a dedicated stockpile directly north of the open pit and kept salvageable for closure at the
end of the mine life. These quantities have not been measured and the storage facility has not been designed for the PEA mine plan.
Contractor mining operations are planned,
utilizing a diesel-powered mining fleet. Cost estimates for mining are based on a contractor quotation for this project, utilizing down
the hole (DTH) drills for drilling, 0.20 kg/t target powder factor ANFO based blasting, 4 m3 bucket size diesel hydraulic excavators
for loading, and 70 t payload rigid-frame haul trucks for hauling, plus ancillary and service equipment to support the mining operations,
including haul road and stockpile maintenance.
In-pit dewatering systems will be established
for the pit. All surface water and precipitation in the open pit will be gravity drained or directed via submersible pumps to ex-pit settling
ponds directly outside the pit limits, where it will report to the wider project water management system.
Contractor cost estimates include
the investment into the mining mobile fleet as well as fixed facilities to maintain the fleet.
The following mine planning design inputs
were used:
§ | Topography is based on a LiDAR survey of the region
in UTM Zone 20S coordinates. The topography surface utilized for mine planning is not the same as used for Mineral Resources. Differences
in calculated pit contents are minimal and not material for this level of engineering. |
§ | Resource block models on 5 m spacing in all three
dimensions, which contain whole block diluted metal grades, bulk densities, and resource classifications. |
§ | Indicated and Inferred class Mineral Resources are
included in-pit optimizations and mill feed estimates. Of the total planned mill feed, 86% is from Indicated class resources (55.4 Mt),
and 14% from Inferred class resources (9.0 Mt). |
§ | Scoping level assumptions have been made for the pit
configuration and overall pit slope angles based on rock types and overall pit depth from surface. Open pit design inputs, including 67.5-degree
bench face angles, 50.0-degree interamp slope angles, and 20 m bench heights, are considered reasonable for scoping level engineering
on the project. |
§ | No geographical restrictions have been applied to
the open pit footprints. Stockpiles and rock storage facilities are designed to avoid existing roads and streams. |
16.2.1 | Net Smelter Prices, Net Smelter Return, and Cutoff Grade |
Mill feed and waste cutoff grade (COG)
is based on the Net Smelter Return (NSR) in $/t, which is determined using Net Smelter Prices (NSP). The NSR, net of offsite concentrate
and smelter charges, including onsite mill recovery, is used as a cut-off item for break-even mill feed/waste selection.
The metal prices and smelter terms for
the PEA economic assessment (see Section 22) are slightly different from the values described in this section and used for mine planning.
Checks have been made by the QP to ensure that the PEA mine plan would not be materially altered by revising these inputs to the final
PEA values.
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NSP are used in place of metal market prices for mine planning
to consider all offsite costs and determine revenue potential at the mine gate. The NSP calculation uses the inputs shown in Table
16-2.
Table 16-2 Net Smelter Price and Recoveries
for Mine Planning
Item |
Value |
Silver (Ag) Price |
$23/oz |
Zinc (Zn) Price |
$2,756/t |
Lead (Pb) Price |
$2,094/t |
Ag Payable, Zn Con |
93.4% |
Ag Payable, Pb Con |
67.0% |
Ag Payable, Dore |
99.5% |
Zn Payable |
77.0% |
Pb Payable |
92.0% |
Ag Refining, in Con |
$2.00/oz |
Ag Refining, Dore |
$0.50/oz |
Zn Treatment |
$260/t Con |
Pb Treatment |
$180/t Con |
Offsite Charges |
$80/t Con |
Royalties |
6.0% |
Ag Process Recovery, Zn Con |
2% |
Ag Process Recovery, Pb Con |
8% |
Ag Process Recovery Dore |
80% |
Zn Process Recovery |
58% |
Pb Process Recovery |
83% |
Ag NSP |
$0.66/g ($20.5/oz) |
Zn NSP |
$1,630/t |
Pb NSP |
$1,418/t |
The
NSR calculation is shown in Equation 16.1.
NSR
= Ag x RecAg x NSPAg + Zn x RecZn x NSPZn + Pb x RecPb x NSPPb
Where:
§ | RecAg
= silver recovery (%) |
§ | RecZn
= zinc recovery (%) |
§ | RecPb
= lead recovery (%) |
§ | NSPAg
= net smelter price for silver ($/g) |
§ | NSPZn
= net smelter price for zinc ($/t%) |
§ | NSPPb
= net smelter price for lead ($/t%). |
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The breakeven economic COG is chosen
as the NSR grade required to pay for processing costs, general and administration costs, and low-grade stockpile reclaim costs. An increased
COG is chosen that also pays for mining costs and an additional project margin. The COG calculation uses the inputs shown in Table
16-3.
Table 16-3 Cutoff Grade
Item |
Value |
Process and Tailings Costs |
$10.50/t |
G&A and Site Costs |
$1.50/t |
Stockpile Reclaim Costs |
$1.50/t |
Breakeven Cutoff Grade |
$13.50/t |
|
|
Mining Costs ($/t milled) |
$7.00/t |
Additional Margin |
$7.50/t |
Chosen Project Economic Cutoff Grade |
$28.00/t |
Resources between the breakeven and
chosen COGs, defined as sub-grade waste, should be segregated and stockpiled in this mine plan for potential use as mill feed in future
project plans. These resources are treated as waste for this PEA mine plan.
All resources above the chosen COG are
either planned as direct mill feed from the pit or stockpiled and rehandled to the mill within the PEA mine plan.
16.2.2 | Mining Loss and Dilution |
The planning block model includes metal
grades estimated on 5 m selective mining unit (SMU) size blocks. Additional loss and dilution calculations are based on the contacts between
these 5 m SMU blocks.
There is an NSR value within each block
of the planning model, and based on the breakeven economic cutoff grade, each block is identified as economic or uneconomic.
A procedure is run that examines
each block, counts the number of contact edges between economic and uneconomic blocks, and stores this value, from 0 to 4, back into the
planning model. Economic blocks with four uneconomic block contacts, or three block contacts and a grade below $20/t NSR, are converted
to waste since the increased costs to extract them selectively outweigh their economic benefit. Alternatively, uneconomic blocks with
four block contacts, or three block contacts and grade above $10/t NSR, are flagged and grouped as mill feed dilution for mine planning
since the costs to separate them outweigh the impact to blending them in.
Figure 16-2 illustrates this concept,
showing a plan view of the block model on the 3,800 masl elevation. The blocks are filled with colours based on their NSR grade. Orange
outlines on the blocks signify if the block is treated as mill feed. All non-outlined blocks are treated as waste. Examples can be seen
where isolated blocks are blended with surrounding blocks, either planned as loss or dilution depending on the original modelled grade.
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Figure 16-2 Mining Loss and
Dilution Application on 3800 masl bench
|
Source: Moose Mountain, 2024 |
|
This methodology introduces an additional
3% dilution (at the grade of the surrounding low-grade blocks) and a 97% mine recovery, over and above the dilution introduced in resource
modelling to a 5 m SMU block size.
The PEA mine production plan (section
16.8) is run using a 10 m bench elevation. It is recommended that future iterations of the mine planning block model use a 10 m
SMU block size. Additional dilution introduced using a 10 m SMU block size is assumed to be negligible to the overall mill feed grades
estimated in this PEA mine plan, based on the continuity within the 5 m SMU block model.
16.2.3 | Production Rate Considerations |
The PEA throughput has been set at 4 Mt
per year, setting the project life to 16.2 years.
Several factors are considered when establishing
an appropriate mining and processing rate. Key factors include:
§ | Resource Size: Typically, a planned mine life is set at 12.5 to 20 years;
beyond this, time-value discounting shows an insignificant contribution to the NPV of the project at discount rates of 8 % or higher. |
| |
§ | Capital Payback: Capital investment typically is targeted at projects
with a payback period of 2 to 5 years or shorter. |
| |
§ | Operational Constraints: Power, water, or supplies and services for support
of operations can limit production. |
| |
§ | Site Delivery Constraints: Physical size and weight of equipment and shipping
limits can determine the maximum size of units that can be delivered to site. |
| |
§ | Project Financial Performance: |
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| − | Generally, economies of scale can be realized at higher production
rates, which leads to reduced unit operating costs. These are tempered to the above-mentioned physical and operational constraints and
flexibility issues. |
| − | Generally, higher tonnage throughputs require more capital
and the size of the project is reflected in the initial investment. Economies of scale can still apply where some access and construction
issues have a high fixed component regardless of the project size. |
| − | Higher production rates generally pay back fixed capital earlier
and provide a higher rate of return on capital, which improves project NPV. |
The economic pit limits are determined
using the Pseudoflow implementation of the Lerchs-Grossman algorithm. This algorithm uses the NSR grades and bulk density for each block
of the 3D block model and evaluates the costs and revenues of the blocks within potential pit shells. The routine uses input economic
and engineering parameters and expands downwards and outwards until the last increment is at break-even economics.
Additional cases are included in the analysis
to evaluate the sensitivities of open pit mined resources to waste mining ratio and high-grade/low-grade areas of the deposits. In this
study, the various cases or pit shells are generated by varying the input metal prices and comparing the resultant waste and mill feed
tonnages and metal grades for each pit shell.
By varying the economic parameters
while keeping inputs for metallurgical recoveries and pit slopes constant, various generated pit cases are evaluated to determine where
incremental pit shells produce marginal or negative economic returns. This drop-off is due to increasing waste mining ratios, decreasing
metal grades, increased mining costs associated with the larger or deeper pit shells, and the value of discounting costs before revenues.
The economic margins from the expanded cases are evaluated on a relative basis to provide payback on capital and produce a return for
the project. At some point, further expansion does not provide significant added value. A pit limit can then be chosen that has a suitable
economic return for the deposit.
An undiscounted cashflow (UCF) is generated
for each pit shell based on the shell contents and the economic parameters listed in Table 16-4. The UCF for each case is compared
to reinforce the selected point at which increased pit expansions do not increase the project value. Note that the economics are only
applied for comparative purposes to assist in the selection of an optimum pit shell for further mine planning; they do not reflect the
actual financial results of the mine plan.
The chosen pit shell is then used as the basis for more detailed
design and economic modelling.
The metal prices are varied from 10% to 150% of the market prices listed in Table 16-2.
Table 16-4 Operating Cost Inputs for Pseudoflow
Pit Shells
Item |
Value |
Pit Rim Mining Cost (mill feed and waste) |
$2.00/t mined |
Incremental Haulage Cost |
$0.01/t mined per 5 m drop below 3910 masl |
Process and Tailings Cost |
$10.50/t milled |
General and Administrative Cost |
$1.50/t milled |
16.3.1 | Ultimate Pit Limits |
Figure 16-3 shows the contents
of the generated Pseudoflow pit shells for the Carangas deposit. An inflection point can be seen in the curve of cumulative resources
and UCF by pit case. This point indicates Price Factor (PF) Case 0.80 as a point at which larger pit shells will not produce material
increases to project value.
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A smaller pit limit, indicated by
the inflection point generated at the 0.51 PF case, is selected as the ultimate pit limit for the Carangas PEA. A limit has been chosen
for the project production rate, influenced by limits to project capital spending. This production rate restricts the value of resources
beyond the 0.51 PF pit shell to be realized 20 years after project startup. Time discounting on value reduces the impact these resources
could have within this PEA. The resources between the 0.51 and 0.80 PF shells should be reevaluated in the future as they will have a
positive impact on project financials.
The pit shell generated from 0.51 PF
case is selected as the ultimate pit limits for Carangas and is used for further mine planning as a target for detailed open pit designs
with berms and ramps.
Figure
16-3 Pseudoflow Pit Shell Resource Contents by Case
|
Source: Moose Mountain, 2024 |
|
Ultimate pit limits are generally
split up into phases or pushbacks to target higher economic margin material earlier in the mine life. Minimum pushback distances of 50
m are honoured. The pit is split into three phases, with the higher-grade, lower strip ratio early pit phases mined ahead of lower grade,
higher strip ratio pushbacks to the ultimate pit limit. Targets for the initial pit phases use Case PF 0.30 and Case PF 0.40 of the optimization
runs described in Section 16.3.1.
In-pit haul roads are designed 28
m wide to facilitate two-way travel for 140 t payload rigid frame haul trucks. Haul road grades are limited to a maximum of 10%. Access
ramps are not designed for the last bench (10 m)
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of the pit bottom, on the assumption
that the bottom ramp segment will be removed using some form of retreat mining. The next bottom bench (10 m) of the pit use one-way haul
roads of 21 m width and 12% grade since bench volumes and traffic flow are reduced.
Benches above the pit rim exit can
be accessed by external roads built on the original hill side slopes reducing the need for in-pit haul ramps in the final pit wall above
the pit exit.
Contents of the designed open pits
are presented in Table 16-5. The contents for each designed pit phase are presented graphically in Figure 16-4.
Table 16-5 Designed Open Pit Contents
Pit Phase |
Pit
Name |
Mill
Feed
(Mt) |
NSR
Grade
($/t) |
Ag Grade
(g/t) |
Pb Grade
(%) |
Zn Grade
(%) |
Waste
(Mt) |
W:R
Ratio
(t/t) |
Starter Pit |
P631 |
19.3 |
62.7 |
83 |
0.49 |
0.82 |
37.0 |
1.9 |
First Pushback |
P632i |
30.0 |
46.5 |
55 |
0.46 |
0.88 |
44.0 |
1.5 |
Final Pushback |
P633i |
15.0 |
43.3 |
56 |
0.34 |
0.65 |
30.7 |
2.0 |
Total |
P633 |
64.4 |
50.6 |
63 |
0.44 |
0.80 |
111.7 |
1.7 |
1. | The PEA Mine Plan and Mill Feed estimates are a
subset of the August 25, 2023, Mineral Resource estimates and are based on open pit mine engineering and technical information developed
at a Scoping level for the Carangas deposit. |
2. | PEA Mine Plan and Mill
Feed estimates are mined tonnes and grade, the reference point is the primary crusher. Mill Feed tonnages and grades include open pit
mining method modifying factors, such as dilution and recovery. |
3. | Net Smelter Prices (NSP) and metallurgical recoveries
are used to define the cutoff grade. NSPs include market price assumptions of $23.0/oz Ag; $2,094/t Pb, $2,756/t Zn. Various smelter and
refining terms, offsite costs, and a 6% royalty derive NSPs of $20.5/oz Ag, $1,418/t Pb, and $1,630/t Zn. Metallurgical recoveries of
90% Ag, 83% Pb, and 58% Zn are applied. |
4. | The chosen cut-off grade covers total
operating costs of $28/t, which exceeds estimated PEA mining, processing and G&A cost
estimates. |
5. | Estimates have been rounded and may result in summation differences. |
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Figure
16-4 Designed Open Pit Contents
Source: Moose Mountain, 2024
The pit designs are shown in Figure
16-5 (final pit phase) and Figure 16-6. Original topography contour polylines are shown on 5 m vertical intervals. Sections
through the deposit showing the resource model grades are illustrated in Figure 16-7 and Figure 16-8.
Starter Phase:
This phase targets the higher grade,
lower strip ratio portion of the deposit outlined by the Case PF 0.30 pit shell described in Section 16.3.1. The upper benches
of this phase will be accessed via in-pit cut ramps up to 4,065 masl, developed during the project's construction period. Pit ramps are
left behind in the high wall for access to future west high wall pushbacks. These ramps run from the 4,020 masl elevation in the north
down to the pit exit at the 3,915 masl elevation in the east. In-pit ramping is also incorporated from the pit exit, running counterclockwise
down a pit bottom in the center of the pit at 3,800 masl and a separate pit bottom in the west at 3,750 masl. A saddle between these two
pit bottoms is left behind at 3,870 masl.
First Pushback Phase:
This phase targets deeper, higher waste
mining ratio mineralization below the starter pit, outlined by the Case PF 0.40 pit shell described in Section 16.3.1. The pit
highwall is pushed to the south and east and to the final pit limits in the north. The upper benches of this phase will be accessed via
in-pit cut ramps developed up to 4,070 masl in the north and 3,990 masl in the south. Benches between 4,020 masl and the pit exit at 3,915
masl will utilize in-pit ramps left behind in the starter pit walls. In-pit ramping is also incorporated from the pit exit, running clockwise
down to the pit bottom on the 3,680 masl elevation.
Final Pushback Phase:
This final pit phase targets several pit
bottoms below the initial pit phases, extending the highwall to the south to access these lower benches. The upper benches of the south
highwall will be accessed via in-pit cut ramps developed up to 4,045 masl and down to the pit exit at 3,915 masl. In-pit ramping is also
incorporated from the
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pit exit, running clockwise down to
a central pit bottom at 3,730 masl. This ramp branches off at 3,800 masl and continues clockwise to a western pit bottom at 3,680 masl.
The ramp also branches off at 3,780 masl, running counterclockwise to a northern pit bottom at 3,740 masl.
Figure 16-5 Ultimate Pit
Design, P633
Source: Moose Mountain, 2024
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Figure 16-6 Phased Pit
Designs
Source: Moose Mountain, 2024
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Figure
16-7 Pit Designs, EW Section View, 7905400N
Source: Moose Mountain, 2024
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Figure
16-8 Pit Designs, NS Section View, 593150E
Source: Moose Mountain, 2024
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16.5 | Low Grade and Oxide Stockpile Design |
When resources are mined from the
pit, they will either be delivered to the primary crusher, the ROM stockpile located next to the crusher, or the low grade stockpiles.
The primary crusher and ROM stockpiles
are located 0.5 km northeast of the pit limits.
Cutoff grade optimization on the mine production
schedule sends resources between $28/t NSR and $36/t NSR to a low grade stockpile located directly south of the ROM pad and east of the
open pit. These stockpiled resources are planned to be re-handled back to the crusher once the open pit is exhausted.
Oxide resources mined from the open pit
will be blended with non-oxide resources as part of the overall mill feed plan. When this blending cannot be done at the ROM pad / primary
crusher, the oxide resources will be stored in a stockpile 1 km north of the pit rim and rehandled to the crusher over the life of mine.
Targets for blending are 25% oxide mill feed in the first seven years of the project, followed by 9% oxide mill feed for the remaining
years of the project.
Preliminary designs for these facilities are
completed assuming:
§ | Bottom-up construction/top down reclamation; |
| |
§ | 18 degree overall slopes (3:1); |
| |
§ | Storage density of 2.0 t/m3; and |
| |
§ | The average height of 30 m from topography to crest. |
The low grade and oxide stockpiles are shown
in the mine area general arrangement drawing in Figure 16-1.
16.6 | Waste Rock Storage Facility Design |
Waste rock mined from the open pit will
be placed in one of three waste rock storage facilities (WRSF), each designed with an 18 degree overall slope (3:1) and a storage density
of 2.0 t/m3.
All resources above the breakeven cutoff
grade of $13.50/t NSR (see Table 16-3) and below the chosen project cutoff grade of $28/t NSR will be sent to the subgrade WRSF
sitting 2 km north of the open pit. This stored material, part of the overall Mineral Resource estimate, is considered waste rock for
the purposes of this PEA mine plan. The stored rock will grade $22/t NSR, which has the potential to provide a positive economic benefit
via processing. It is recommended to examine the feasibility of processing these resources in future project plans. The facility is planned
to be dumped out via bottom-up lift construction, with oxide materials segregated in the south and non-oxide materials in the north; there
is a split of roughly 25% oxide and 75% non-oxide materials planned for storage.
The west WRSF sits directly adjacent to
the open pit, with its most northern point lying within 1 km of the pit rim. The facility sits on a hillside and will be constructed from
a combination of hillside dumping and bottom-up lift construction. Waste rock from the upper benches of the open pit will be sent along
topography to the upper lifts of this facility, minimizing haulage requirements for this waste rock.
The east WRSF sits 2 km east of the open pit
and will be built via bottom-up lift construction.
The waste rock from the open pit
has not been tested or analyzed for potential acid generation (PAG). It is assumed that the majority of the waste rock is net acid neutralizing,
and there has been no consideration for the segregation of different rock types in the planned storage facilities. Further test work and
analysis is recommended to better classify waste materials according to acid-generating potential and to confirm that a blending strategy
is the preferred method for handling and storing any potentially acid-generating waste rock.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 133 of 227 | |
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Backfilling of the open pit was examined
as an opportunity, but space is too limited as the pit continually expands deeper in all directions until the final pit phase. There is
also the economic opportunity to expand the open pit into the Lower Gold Zone below the currently chosen pit limit.
Topsoil and overburden encountered
at the top of the pits will be placed in dedicated stockpiles directly north or south of the open pit and kept salvageable for closure
at the end of the mine life. Quantities of this material will be minimal, but an estimate has not been made for this PEA mine plan, and
potential storage facilities have not been designed.
The waste storage facilities are shown in the
mine area general arrangement in Figure 16-1.
Mine haul roads external to the open
pits are planned to connect the open pit to scheduled destinations for hauling resource and waste materials.
Haul road designs are limited to 34 m
wide outlines along preferred routes. 3D cut and fill designs have not been completed for this PEA mine plan. Routes have been chosen
to maximize fill design potential, with fill rock planned to be sourced from the open pit during the construction period of the project.
Estimated mining costs during the construction period will cover the construction costs of these ex-pit haul roads.
The ex-pit haul layouts in the mine area general
arrangement in Figure 16-1.
16.8 | Mine Production Schedule |
Mill feed requirements by scheduled
period, mine operating considerations, product prices, recoveries, destination capacities, equipment performance, haul cycle times and
operating costs are used to determine the optimal production schedule from the phased pit contents.
The overall production schedule is
included in Table 16-6, with mill feed tonnes and grade illustrated in Figure 16-9, and overall mine production tonnage
and waste mining ratio illustrated in Figure 16-10 and phases mined illustrated in Figure 16-11.
The production schedule is based on the following
parameters:
§ | The Mineral Resource and associated waste material quantities are split
by pit phase and bench quantities. |
| |
§ | The operations are scheduled on annual periods. |
| |
§ | An annual mill feed rate of 4,000 ktpa (11 ktpd) is targeted. |
| − | A first-year mill throughput ramp-up target of 3,600 kt is
assumed. A significant quantity of oxide resources, as well as some non-oxide resources, are planned to be stockpiled well in advance
of the mill ramp-up period. |
| | |
| − | Oxide mill feed of 25% (1,000 ktpa) during the first seven
years of mill operations, followed by 9% (350 ktpa) per year for the remaining life of mine. |
§ | Within a given pit phase, each bench is fully mined before progressing to
the next bench. |
| |
§ | Pit phases are mined in sequence, where the second pit phases do not mine
below the first pit phases. |
| |
§ | Pit phase vertical progression in the mineralized area is limited to no
more than 90 m each year, or nine benches; the average annual phase progression is 30 m. |
| |
§ | Pre-stripping done in the construction period, Years -2 and -1, is done
to open the pits sufficiently to supply non-oxide mill feed at the target throughput rate in Year 1 of the Project. |
| − | This
also provides sufficient construction waste rock for the mine haul roads and initial lifts
of the tailings facility dam. |
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| |
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§ | Resource tonnes released in
excess of the mill capacity are stockpiled, including those mined in the construction phase. |
| |
§ | Low-grade and oxide resources
above $28/t NSR are stockpiled and re-handled to the primary crushers later in the project life. |
| |
§ | Shovel and haul truck operating
hour estimates are run as part of the mine schedule. Haul cycle times are simulated from all pit benches to all destinations. Total pit
production is balanced on calculated hauler operating hour requirements. This strategy is used to avoid large spikes and dips in the
number of haulers in the LOM schedule but leads to some variations in total tonnes mined in each period. Cycle time simulations should
be refined in future engineering studies. |
Figure
16-9 Annual Mill Feed Tonnes and Grade
Source: Moose Mountain, 2024
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 135 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure
16-10 Annual Material Mined and Waste Mining Ratio
Source: Moose Mountain, 2024
Figure 16-11 Pit
Phases Mined
Source: Moose Mountain, 2024
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 136 of 227 | |
| |
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Table 16-6 Mine Production Schedule
Mine Production: |
Year |
LOM |
Y-2 |
Y-1 |
Y01 |
Y02 |
Y03 |
Y04 |
Y05 |
Y06 |
Y07 |
Y08 |
Y09 |
Y10 |
Y11 |
Y12 |
Y13 |
Y14 |
Y15 |
Y16 |
Y17 |
Mill Feed |
Mt |
64.4 |
0.0 |
0.0 |
3.6 |
4.0 |
4.0 |
4.0 |
4.0 |
4.0 |
4.0 |
4.0 |
4.0 |
4.0 |
4.0 |
4.0 |
4.0 |
4.0 |
4.0 |
4.0 |
0.8 |
NSR |
$/t |
50.6 |
0.0 |
0.0 |
64.5 |
64.7 |
62.5 |
65.1 |
67.5 |
64.9 |
50.5 |
47.2 |
45.0 |
45.7 |
50.4 |
60.3 |
36.8 |
30.3 |
30.3 |
30.3 |
27.0 |
Ag |
g/t |
63.0 |
0.0 |
0.0 |
76.2 |
77.8 |
81.4 |
88.8 |
90.9 |
83.0 |
57.1 |
57.9 |
47.3 |
56.6 |
68.7 |
83.8 |
46.7 |
33.4 |
33.4 |
33.4 |
31.8 |
Pb |
% |
0.4 |
0.0 |
0.0 |
0.6 |
0.6 |
0.5 |
0.4 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.4 |
0.3 |
0.4 |
0.3 |
0.3 |
0.3 |
0.3 |
0.4 |
Zn |
% |
0.8 |
0.0 |
0.0 |
1.0 |
1.0 |
0.8 |
0.7 |
0.7 |
0.8 |
0.9 |
0.8 |
1.1 |
0.8 |
0.6 |
0.7 |
0.6 |
0.7 |
0.7 |
0.7 |
0.6 |
Oxide Mill Feed |
Mt |
10.5 |
0.0 |
0.0 |
0.9 |
1.0 |
1.0 |
1.0 |
1.0 |
1.0 |
1.0 |
0.5 |
0.4 |
0.4 |
0.4 |
0.4 |
0.4 |
0.4 |
0.4 |
0.4 |
0.3 |
Transition Mill Feed |
Mt |
2.6 |
0.0 |
0.0 |
1.0 |
0.4 |
0.2 |
0.2 |
0.1 |
0.1 |
0.1 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.1 |
0.1 |
0.1 |
0.1 |
0.0 |
Fresh Mill Feed |
Mt |
51.3 |
0.0 |
0.0 |
1.7 |
2.6 |
2.8 |
2.8 |
2.9 |
2.9 |
2.9 |
3.5 |
3.7 |
3.7 |
3.7 |
3.7 |
3.6 |
3.5 |
3.5 |
3.5 |
0.5 |
Resource Mined from Pit |
Mt |
64.4 |
1.0 |
2.7 |
3.4 |
5.0 |
5.4 |
5.2 |
4.9 |
5.4 |
4.5 |
5.3 |
5.3 |
4.9 |
5.0 |
4.4 |
2.0 |
0.0 |
0.0 |
0.0 |
0.0 |
NSR |
$/t |
50.6 |
57.4 |
50.3 |
64.5 |
55.0 |
52.9 |
52.0 |
57.8 |
54.2 |
44.9 |
43.1 |
41.6 |
42.7 |
46.8 |
58.1 |
44.3 |
0.0 |
0.0 |
0.0 |
0.0 |
Mined Directly to Mill |
Mt |
40.4 |
0.0 |
0.0 |
2.2 |
3.0 |
3.0 |
3.0 |
3.0 |
3.0 |
3.0 |
3.7 |
3.7 |
3.7 |
3.7 |
3.7 |
2.0 |
0.0 |
0.0 |
0.0 |
0.0 |
NSR |
$/t |
57.8 |
0.0 |
0.0 |
67.6 |
66.4 |
64.1 |
66.8 |
69.2 |
66.6 |
51.8 |
48.7 |
46.4 |
47.1 |
52.5 |
64.1 |
44.3 |
0.0 |
0.0 |
0.0 |
0.0 |
Mined to LGSP |
Mt |
13.6 |
0.0 |
0.5 |
0.2 |
0.7 |
1.1 |
1.2 |
0.8 |
1.1 |
1.3 |
1.7 |
1.6 |
1.3 |
1.3 |
0.8 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
NSR |
$/t |
32.2 |
56.7 |
57.1 |
30.0 |
31.8 |
31.7 |
31.7 |
30.9 |
31.9 |
31.8 |
31.0 |
30.9 |
30.0 |
31.0 |
31.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
LGSP Retrieval to Mill |
Mt |
13.6 |
0.0 |
0.0 |
0.5 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
1.7 |
3.7 |
3.7 |
3.7 |
0.5 |
NSR |
$/t |
32.2 |
0.0 |
56.7 |
57.1 |
32.8 |
32.0 |
31.8 |
31.8 |
31.6 |
31.7 |
31.7 |
31.5 |
31.4 |
31.3 |
31.2 |
31.2 |
31.2 |
31.2 |
31.2 |
31.2 |
LGSP Balance |
Mt |
|
0.0 |
0.5 |
0.2 |
1.0 |
2.1 |
3.2 |
4.0 |
5.1 |
6.4 |
8.1 |
9.7 |
11.0 |
12.3 |
13.1 |
11.5 |
7.8 |
4.2 |
0.5 |
0.0 |
NSR |
$/t |
|
56.7 |
57.1 |
32.8 |
32.0 |
31.8 |
31.8 |
31.6 |
31.7 |
31.7 |
31.5 |
31.4 |
31.3 |
31.2 |
31.2 |
31.2 |
31.2 |
31.2 |
31.2 |
0.0 |
Mined to OxSP |
Mt |
10.4 |
1.0 |
2.2 |
1.0 |
1.3 |
1.3 |
1.0 |
1.1 |
1.3 |
0.2 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
NSR |
$/t |
46.9 |
57.4 |
48.8 |
64.3 |
41.6 |
44.7 |
31.9 |
46.5 |
44.8 |
21.0 |
33.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
OxSP Retrieval to Mill |
Mt |
10.4 |
0.0 |
0.0 |
0.9 |
1.0 |
1.0 |
1.0 |
1.0 |
1.0 |
1.0 |
0.4 |
0.4 |
0.4 |
0.4 |
0.4 |
0.4 |
0.4 |
0.4 |
0.4 |
0.3 |
NSR |
$/t |
46.9 |
0.0 |
39.3 |
60.9 |
59.7 |
57.7 |
60.1 |
62.3 |
59.9 |
46.6 |
31.7 |
30.2 |
30.6 |
28.9 |
20.7 |
20.7 |
20.7 |
20.7 |
20.7 |
20.7 |
OxSP Balance |
Mt |
|
1.0 |
3.2 |
3.3 |
3.6 |
3.9 |
3.9 |
4.0 |
4.3 |
3.5 |
3.1 |
2.8 |
2.4 |
2.1 |
1.7 |
1.4 |
1.0 |
0.7 |
0.3 |
0.0 |
NSR |
$/t |
|
57.4 |
51.4 |
52.8 |
46.9 |
43.3 |
36.0 |
32.3 |
29.8 |
24.5 |
23.8 |
23.0 |
21.9 |
20.7 |
20.7 |
20.7 |
20.7 |
20.7 |
20.7 |
0.0 |
Waste Mined |
Mt |
111.7 |
3.0 |
12.6 |
11.0 |
9.2 |
8.6 |
9.3 |
9.0 |
8.8 |
9.0 |
8.1 |
5.6 |
6.2 |
5.5 |
2.9 |
2.8 |
0.0 |
0.0 |
0.0 |
0.0 |
Fresh Waste |
Mt |
51.4 |
0.1 |
6.2 |
7.6 |
4.7 |
4.0 |
5.1 |
4.6 |
3.2 |
4.9 |
3.9 |
2.1 |
1.8 |
1.1 |
0.8 |
1.3 |
0.0 |
0.0 |
0.0 |
0.0 |
Transition Waste |
Mt |
0.6 |
0.0 |
0.0 |
0.1 |
0.1 |
0.0 |
0.0 |
0.1 |
0.1 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
Oxide Waste |
Mt |
17.9 |
2.0 |
4.2 |
1.1 |
1.5 |
1.7 |
1.8 |
1.3 |
2.5 |
1.7 |
0.3 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
SG Waste ($13.50-$28/t NSR) |
Mt |
41.8 |
1.0 |
2.3 |
2.2 |
3.0 |
2.8 |
2.3 |
3.0 |
3.0 |
2.4 |
3.8 |
3.5 |
4.4 |
4.4 |
2.1 |
1.5 |
0.0 |
0.0 |
0.0 |
0.0 |
NSR |
$/t |
21.8 |
20.7 |
20.7 |
20.3 |
20.8 |
21.3 |
21.7 |
21.1 |
21.0 |
21.4 |
21.6 |
22.0 |
21.7 |
21.1 |
26.4 |
27.9 |
0.0 |
0.0 |
0.0 |
0.0 |
Waste/Mill Feed Mined |
|
1.7 |
3.1 |
4.6 |
3.2 |
1.8 |
1.6 |
1.8 |
1.8 |
1.6 |
2.0 |
1.5 |
1.1 |
1.3 |
1.1 |
0.7 |
1.4 |
0.0 |
0.0 |
0.0 |
0.0 |
Cumulative Ratio |
|
|
3.1 |
4.2 |
3.7 |
3.0 |
2.5 |
2.4 |
2.3 |
2.2 |
2.1 |
2.1 |
2.0 |
1.9 |
1.8 |
1.7 |
1.7 |
1.7 |
1.7 |
1.7 |
1.7 |
Total Material Mined |
Mt |
176.1 |
4.0 |
15.4 |
14.4 |
14.3 |
14.0 |
14.5 |
13.9 |
14.2 |
13.5 |
13.4 |
10.8 |
11.1 |
10.5 |
7.3 |
4.8 |
0.0 |
0.0 |
0.0 |
0.0 |
Total Material Moved |
Mt |
200.1 |
4.0 |
15.4 |
15.8 |
15.3 |
15.0 |
15.5 |
14.9 |
15.2 |
14.5 |
13.7 |
11.2 |
11.4 |
10.9 |
7.7 |
6.8 |
4.0 |
4.0 |
4.0 |
0.8 |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 137 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
16.8.1 | End of Period Figures |
Figure 16-2 to Figure 16-17 shows the progression
of the open pit and stockpiles in Years -1, 1, 3, 5, 13 and the end of mine life.
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| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 16-12 End of Period
Mine Production Schedule, Year -1
Source: Moose Mountain, 2024
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| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 16-13 End of Period Mine
Production Schedule, Year 1
|
Source: Moose Mountain, 2024 |
|
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 140 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 16-14 End of Period
Production Schedule, Year 3
Source: Moose Mountain, 2024
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| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 16-15 End of Period Production Schedule, Year 5
Source: Moose Mountain, 2024
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| |
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Figure 16-16 End of Period Production Schedule, Year 13
Source: Moose Mountain, 2024
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 143 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 16-17 End of Period Production Schedule, Year 17
Source: Moose Mountain, 2024
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 144 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Contractor-operated and managed open
pit mine operations are planned to be typical of similar terrain operations in South America.
An owner’s management and technical
team is planned to provide the mining contractor with geology, engineering, and surveying support and management guidance.
In situ rock will be drilled and blasted
to create suitable fragmentation for efficient loading and hauling of both resource and waste rock. Blasthole sampling and assaying will
provide bench scale grade control direction. Loading will be completed with a hydraulic excavator, with dig lines between resources and
waste directed by the grade control program. Resource and waste rock will be hauled out of the pit and to scheduled destinations with
off-highway rigid-frame haul trucks.
In-pit dewatering systems will be established
for the pit. All surface water and precipitation in the open pit will be gravity drained or directed via submersible pumps to ex-pit settling
ponds directly outside the pit limits, where it will report to the wider project water management system.
Other mine pit services will include:
| § | pit floor and ramp maintenance |
| § | mobile fuel and lube services |
| § | secondary blasting and rock-breaking |
| § | transporting personnel and operating supplies |
| § | mobile maintenance services |
Mining operations are based on 365 operating
days per year.
The contractor bids for this work envision
utilizing a diesel-powered mining fleet. The contractor would bring their own fleet, which includes DTH drills for production drilling,
0.20 kg/t target powder factor ANFO-based blasting, 4 m3 bucket size diesel hydraulic excavators for loading, and 70 t payload
rigid-frame haul trucks for hauling, plus ancillary and service equipment to support the mining operations. The contractor will also maintain
their mining fleet in the field and within contractor-supplied fixed maintenance facilities.
The project is at a scoping engineering
level. Limited geotechnical, hydrogeological, and geochemical information and data have been collected across the project. Further fieldwork,
lab work, and modelling are required to advance the engineering to the next stage of Pre-Feasibility or Feasibility. It can be anticipated
that further field drilling and advancement of the project engineering will materially alter the existing mine plan, reducing the plan’s
risk and identifying and exploiting the potential opportunities that arise.
Risks to the PEA defined mill feed quantities,
metal grades, associated waste rock quantities and the estimated costs to exploit include changes to the following factors and assumptions:
| − | Significant (>50%) decreases in metal prices may increase
the economic cutoff grade or reduce the size of the selected open pit limits, with either outcome reducing the size of the resource base
to include into the mine plan. |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 145 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
| § | Interpretations of mineralization geometry and continuity in mineralization zones |
| − | Decreases in the resource base could significantly alter
the mine plan. |
| § | Geotechnical and hydrogeological assumptions |
| − | Geotechnical sampling, test work, and analysis may show a
required shallowing of pit slope angles, which would likely increase the overall LOM stripping ratio to access the resource. |
| − | Hydrogeological
sampling, test work, and analysis may identify the need for a more onerous (costly) pit water management and pit slope depressurization
solution. |
§ |
Geochemical assumptions for
mined resources and waste materials |
| − | Geochemical
sampling, test work, and analysis, specifically in the open pit waste rock, may identify a more onerous (costly) PAG management solution. |
§ |
Ability
of the mining and milling operation to meet the annual production rate and anticipated grade control standards and recoveries |
| − | Reduced
selectivity with the mining fleet, reduced mining or milling recoveries, or increased mining dilution would result in an increased cost
of achieving the planned PEA metal production. |
§ |
The ability of the milling operation
to meet the annual production rate and recoveries |
§ |
Operating cost assumptions and
cost creep |
| − | Mining
cost assumptions are based on a quote from a contractor with extensive in-country operating
experience. However, further detailing of contractor costs may also lead to different operational
cost estimates. Mining contractor cost estimates are based on $0.53/L diesel fuel prices,
which are current market rates subsidized by the Bolivian government. If the government alters
this subsidy and adopts a more global market-driven fuel price, it would significantly impact
the estimated mining costs for the project. |
§ |
Ability
to meet and maintain future land tenure, permitting, and environmental license conditions, and the ability to maintain the social
license to develop and operate |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 146 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
The Carangas process plant is designed
to treat 4.0 million tonnes of mill feed annually, containing 63 g/t silver, 0.44% lead and 0.80% zinc on average. Sequential selective
flotation is chosen to produce an average of 51 ktpa of silver/lead concentrate that contains 3,975 g/t silver and 24.0% lead, with corresponding
recoveries of 80.8% for silver and 70.6% for lead and 46 ktpa of zinc/silver concentrate that contains 356 g/t silver and 45.8% zinc with
corresponding recoveries of 6.5% for silver and 65.9% for zinc over the life of the mine. When silver/lead concentrate and zinc/silver
concentrate are combined, total silver recovery is 87.3%. The open-pit operation is designed to deliver the ROM mineralized material to
the process plant at a rate of 4.0 Mtpa. The mineralized material will be crushed with a jaw crusher, followed by a SAG mill-ball mill-pebble
crusher milling circuit (SABC) and sequential selective flotation to separate silver/lead and zinc while rejecting pyrite and non- sulfidic
gangue minerals.
The processing route was selected following
a comprehensive trade-off study of various alternatives applicable to the Carangas deposit. The PEA evaluated several alternatives, including:
| § | Cyanide leaching of the gold mineralized material from the lower level in
the deposit to produce gold doré, |
| § | Cyanide leaching of the silver/lead concentrate to produce silver doré
and the silver-depleted lead concentrate for sale, |
| § | Production of silver/lead concentrate, which contains over 50% lead content. |
The chosen option of producing a
low-grade lead concentrate (with over 15% lead) with high silver content (with over 2,000 g/t silver) demonstrated superior economics
while also simplifying both mining and processing operations.
The key unit operations for the Carangas process
plant are:
| § | ROM material stockpile and blending, |
| § | SAG mill, pebble crusher and ball mill, |
| § | Silver/lead selective flotation while rejecting zinc, pyrite and non-sulfidic
gangue minerals, |
| § | Silver/lead concentrate thickening, filtering, bagging and dispatch, |
| § | Intermediate tailing thickening |
| § | Zinc/silver selective flotation while rejecting pyrite and non-sulfidic
gangue minerals, |
| § | Zinc/silver concentrate thickening, filtering, bagging and dispatch, |
| § | Tailings thickening and pumping to the TSF. |
The process plant’s operational
philosophy consists of grinding the mill feed to a particle size (P80) of 75 μm for subsequent
silver/lead flotation, which consists of a rougher circuit, a regrinding mill and a three-stage cleaner circuit. The first-stage flotation
is designed to produce a silver/lead concentrate with over 2,000 g/t silver content. While the lead content in this concentrate will be
lower than a typical lead concentrate, it will still be above 15% and contribute to the concentrate’s final value. The rougher and
cleaner tailings from the first stage will be combined and thickened, and then, they will undergo a second-stage flotation to produce
a zinc/silver concentrate that contains more than 40% zinc content. The second-stage flotation comprises a rougher circuit, a regrinding
mill and a three-stage cleaner circuit. Efforts will be made to maximize silver recovery into the lead concentrate to enhance silver payable
rate. Final tailings from the zinc/silver flotation will be thickened and pumped to the TSF.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 147 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
The design criteria for this PEA were developed based on a
range of inputs from various sources, including:
| § | Carangas metallurgical testwork (discussed in Section 13). |
| § | Estimates and assumptions, |
| § | Mass and metallurgical balances, |
A high-level Process Design Criteria (PDC) summary for the
4.0 Mtpa process plant, including major unit operations, is provided in Table 17-1.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 148 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table 17-1 Project Design Criteria
|
|
Project
Name: Carangas PEA
Document
Name: Carangas PDC
|
Source
of Data: |
A
- Assumption
C
- Calculation
E
- Estimate
M
- Mass Balance
N - New Pacific
Metals Corp
R
- RPM Global
|
S - Standard Practice
T
- Testwork Data
V
- Vendor Data |
|
Area |
Criteria |
Unit |
Design
Data |
Source |
Process
Plant Throughput |
Annual |
t/a |
4,000,000 |
N |
Daily |
t/d |
12,000 |
N |
Hourly |
t/h |
500 |
N |
Site
Condition |
Elevation |
Top
of West Dome
Carangas
Rilver |
masl
masl |
4,074
3,904 |
N
N |
Weather |
Temperature
Relatively Humidity
Rainfall |
°C
%
mm/a |
-4
~ 20
15
~ 65
539 |
N
N
N |
Operating
Schedule |
|
Hours
per Shift |
h |
12 |
N |
|
Shifts
per Day |
|
2 |
N |
|
Days
per Week |
d |
7 |
N |
Crushing
Circuit |
Days
per Annum |
d |
365 |
N |
|
Operating
Time |
% |
75 |
S |
|
Operating
Hours per Annum |
h |
6,570 |
C |
|
Throughput
of Fresh Feed |
t/h |
667 |
C |
|
Hours
per Shift |
h |
12 |
N |
|
Shifts
per Day |
h |
2 |
N |
|
Days
per Week |
d |
7 |
N |
Grinding
and
Flotation
Circuits |
Days
per Annum |
d |
365 |
N |
|
Operating
Time |
% |
91.3 |
S |
|
Operating
Hours per Annum |
h |
8,000 |
C |
|
Throughput
of Fresh Feed |
t/h |
500 |
C |
ROM
Ore Characteristics |
Moisture
Content |
% |
5 |
A |
Material
Handling |
Angle
of Repose
Drawdown
Angle |
deg.
deg. |
37
60 |
A
A |
|
Specific
Gravity |
t/m3 |
2.72 |
C |
|
Bulk
Density |
t/m3 |
1.77 |
E |
LOM
Average |
Abrasion
Index |
g |
0.046 |
C |
|
Rod
Mill Work Index |
kW.h/t |
10.4 |
C |
|
Ball
Mill Work Index |
kW.h/t |
11.1 |
C |
|
Specific
Gravity |
t/m3 |
2.72 |
R |
|
Bulk
Density |
t/m3 |
1.77 |
R |
|
Abrasion
Index |
g |
0.046 |
R |
|
Rod
Mill Work Index |
kW.h/t |
11.4 |
R |
Used
for Design |
Ball
Mill Work Index |
kW.h/t |
12.8 |
R |
|
|
Silver |
g/t |
63.0 |
R |
|
Head
Grade |
Gold
Lead |
g/t
% |
0.02
0.44 |
R
R |
|
|
Zinc |
% |
0.80 |
R |
Recovery |
Lead/Zinc
Concentrates |
Silver/Lead
Concentrate |
Silver
Recovery
Lead
Recovery |
%
% |
80.8
70.6 |
C
C |
Zinc
Concentrate |
Zinc
Recovery
Silver
Recovery |
%
% |
65.9
6.50 |
A
C |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 149 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
|
|
Project Name: Carangas PEA
Document Name: Carangas PDC |
Source
of Data: |
A
- Assumption
C
- Calculation
E
- Estimate
M
- Mass Balance
N - New Pacific Metals Corp
R
- RPM Global
|
S
- Standard Practice
T
- Testwork Data
V
- Vendor Data |
|
Area |
Criteria |
Unit |
Design
Data |
Source |
Product
Grade |
|
|
|
|
Silver/Lead
Concentrate |
Silver
Content |
g/t |
3,975 |
C |
Lead
Content |
% |
24.0 |
A |
Zinc
Concentrate |
Zinc
Content |
% |
45.8 |
C |
Silver
Content |
g/t |
356 |
C |
Crushing
Plant |
Truck |
Truck
Capacity |
t |
150 |
A |
Truck
Max Frequency |
#
per h |
6 |
A |
Truck
Turn Around @ Max Freq. |
min |
10 |
C |
Feed
Hopper Live Capacity |
t |
250 |
A |
Crushing
Capacity |
Type
of Crusher |
|
Jaw
Crusher |
R |
Ore
Delivery Rate |
t/h |
667 |
C |
Atomized
Water Spray for Dust Suppression |
m3/h |
6.7 |
A |
Crusher |
Type |
|
Jaw
Crusher |
A |
Model |
|
C150 |
R |
Oversize
Throughput Fed to Crusher |
t/h |
333 |
C |
Selected
Motor Size |
kW |
200 |
V |
CSS |
mm |
125 |
V |
Feed
Size |
P100 |
mm |
700 |
E |
P80 |
mm |
450 |
A |
Product
Size |
P100 |
mm |
167 |
E |
P80 |
mm |
106 |
E |
Grinding
Circuit |
Grinding
Circuit
General |
Configuration |
|
|
SABC |
R |
Throughput |
|
t/h |
500 |
C |
Feed
Size |
P100 |
mm |
167 |
C |
P80 |
mm |
106 |
C |
Product
Particle Size (P80) |
|
µm |
75 |
A |
SAG
Mill |
Fresh
Feed |
t/h |
500 |
C |
Circuit
Type |
|
open |
A |
Mill
Diameter (inside shell) |
m |
8.53 |
E |
|
ft |
28.00 |
C |
Mill
EGL |
m |
3.05 |
E |
|
ft |
10.00 |
C |
Transfer
Size (P80) |
µm |
750 |
A |
Unit
Power Consumption |
kW.h/t |
8.35 |
C |
Mill
Power Draw |
kW |
4,175 |
C |
Selected
Motor Size |
kW |
4,600 |
C |
Mill
Speed |
%
of C.S. |
75 |
S |
Ball
Mill |
Throughput |
t/h |
500 |
C |
Circuit
Type |
|
closed |
A |
Mill
Diameter |
m |
6.00 |
E |
|
ft
m |
19.68 |
C |
Mill
EGL |
ft |
9.00 |
E |
Unit
Power Consumption |
kW.h/t |
29.53 |
C |
|
|
10.1 |
E |
Mill
Power Draw |
kW |
5,053 |
C |
Selected
Motor Size |
kW |
6,300 |
C |
Mill
Speed |
%
of C.S. |
75 |
S |
Grinding
Ball Charge |
%
v/v |
35 |
S |
Mill
Discharge Pulp Density |
%
solid |
72 |
A |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 150 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
|
|
Project
Name: Carangas PEA
Document Name: Carangas PDC |
|
Source
of Data: |
A
- Assumption
C
- Calculation
E
- Estimate
M
- Mass Balance
N - New Pacific Metals Corp
R - RPM Global
|
S - Standard Practice
T - Testwork Data
V - Vendor Data |
|
Area |
Criteria |
Unit |
Design
Data |
Source |
Silver/Lead
Flotation |
Rougher
Conditioning |
Retention
Time |
min |
20 |
A |
Tank
Working Volume |
m3 |
452 |
C |
Tank
Diameter |
m |
8.40 |
C |
Tank
Height |
m |
9.00 |
C |
Rougher
Flotation |
Feed |
SolidThroughput |
t/h |
500 |
C |
Water |
t/h |
1,172 |
C |
Pulp
Density |
%
solid |
30 |
C |
VolumetricFlowrate |
m3/h |
1,355 |
C |
RetentionTime |
|
min |
42 |
A |
NumberofCells |
|
|
8 |
A |
Gas Holdup Volume |
|
% |
15 |
S |
WorkingVolumeEach Cell |
|
m3 |
140 |
C |
pH |
|
|
9.0 |
T |
Concentrate
Mass Pull |
|
% |
10.0 |
T |
3rd
Cleaner Flotation |
Feed Solid |
2nd
Cleaner Conc |
t/h |
10.0 |
C |
Pulp Density |
|
%
solid |
10 |
A |
Slurry Volumetric Flowrate |
|
m3/h |
92 |
C |
Retention Time |
|
min |
9 |
A |
Number of Cells |
|
|
3 |
A |
Gas Holdup Volume |
|
% |
15 |
S |
Working Volume Each Cell
|
|
m3 |
5.4 |
C |
pH |
|
|
9.0 |
T |
Concentrate Mass
Pull |
Net |
%
of mill feed |
1.26 |
C |
Stage |
%
of stage feed |
63 |
C |
3rd Cleaner Concentrate Solid
Quantity |
|
t/h |
6.3 |
C |
3rd Cleaner Conentrate Solid Specific Gravity |
t/m3 |
5.8 |
E |
3rd Cleaner Concentrate Pulp Density As Being Produced |
%
solid |
39 |
A |
Launder Water |
|
m3/t
solid |
0.50 |
A |
3rd
Cleaner Concentrate Slurry |
Pulp
Density |
%
solid |
32.6 |
C |
Volumetric
Flow |
m3/h |
14.1 |
C |
Silver/Lead
Concentration
Thickening |
Solid Throughput |
|
t/h |
6.3 |
C |
Thickener Underflow Pulp
Density |
|
%
solid |
55 |
A |
Unit Settling Rate |
|
(t/h)/m2 |
0.40 |
A |
Thickener
Diameter |
|
m |
4.50 |
C |
Silver/Lead
Concentration
Filtration |
Feed
Slurry |
Solid
Throughput |
t/h |
6.3 |
C |
Pulp
Density |
%
solid |
55 |
C |
Volumetric
Flow |
m3/h |
6.2 |
C |
Feed
Tank |
Retention
Time |
h |
24 |
A |
Working
Volume |
m3 |
176 |
C |
Diameter |
m |
6.10 |
C |
Height |
m |
6.70 |
C |
|
Unit Filtration Rate |
|
(t/h)/m2 |
0.075 |
A |
Total Filtration Area |
|
m2 |
85.0 |
C |
Filter
Cake Moisture Content |
|
% |
10.0 |
A |
Zinc
Flotation |
Pre-Thickening |
Feed
Solid |
t/h |
494 |
C |
Unit
Settling Rate |
(t/h)/m2 |
0.50 |
A |
Thickener
Diameter |
m |
35.5 |
C |
Thickener
Underflow Pulp Density |
%
solid |
50.0 |
A |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 151 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
|
|
Project
Name: Carangas PEA
Document Name: Carangas PDC |
|
Source
of Data: |
A
- Assumption
C
- Calculation
E
- Estimate
M - Mass Balance
N
- New Pacific Metals Corp
R
- RPM Global
|
S
- Standard Practice
T
- Testwork Data
V
- Vendor Data |
|
Area |
Criteria |
Unit |
Design
Data |
Source |
|
Pulp
Density |
%
solid |
30 |
A |
|
Dilution
Water Flowrate |
m3/h |
658 |
C |
|
Slurry
Volumetric Flowrate |
m3/h |
1,333 |
C |
|
Number
of Conditioning Tank |
|
3 |
A |
Rougher
Conditioning |
Retention
Time Each Tank |
min |
5 |
A |
|
Working
Volume Each Tank |
m3 |
111 |
C |
|
Tank
Diameter |
m |
5.30 |
C |
|
Tank
Height |
m |
5.90 |
C |
|
Retention
Time |
min |
48 |
A |
|
Number
of Cells |
|
8 |
A |
Rougher
Flotation |
Gas
Holdup Volume |
% |
15 |
A |
|
Working
Volume Each Cell |
m3 |
157 |
C |
|
pH |
|
11.0 |
T |
|
Concentrate
Mass Pull |
%
of stage feed |
10.0 |
A |
|
Feed Solid |
2nd
Cleaner Conc |
t/h |
6.5 |
C |
|
Pulp Density |
|
%
solid |
10 |
A |
|
Slurry
Volumetric Flowrate |
|
m3/h |
60 |
C |
|
Retention
Time |
|
min |
9.0 |
A |
3rd
Cleaner Flotation |
Number
of Cells |
|
|
3 |
A |
Gas Holdup Volume |
|
% |
15 |
S |
|
Working
Volume Each Cell |
|
m3 |
3.6 |
C |
|
pH |
|
|
11.0 |
T |
|
Concentrate
Mass Pull |
Net |
%
of mill feed |
1.17 |
C |
|
|
Stage |
%
of stage feed |
90 |
C |
|
Solid
Throughput |
t/h |
5.8 |
C |
Zinc
Concentration |
Thickener
Underflow Pulp Density |
%
solid |
55 |
A |
Thickening |
Unit
Settling Rate |
(t/h)/m2 |
0.40 |
A |
|
Thickener
Diameter |
m |
4.40 |
C |
|
|
Solid Throughput |
t/h |
5.8 |
C |
|
Feed
Slurry |
Pulp Density |
%
solid |
55 |
C |
|
|
Volumetric
Flow |
m3/h |
6.4 |
C |
|
|
Retention Time |
h |
24 |
A |
Zinc
Concentration |
Feed
Tank |
Working Volume |
m3 |
180 |
C |
Filtration |
|
Diameter |
m |
6.20 |
C |
|
|
Height |
m |
6.80 |
C |
|
Unit
Filtration Rate |
(t/h)/m2 |
0.075 |
A |
|
Total
Filtration Area |
m2 |
78.0 |
C |
|
Filter
Cake Moisture Content |
% |
10.0 |
A |
Bagging
Station |
Solid
Throughput |
t/h |
5.8 |
C |
Flotation
Tailing |
|
Solid
Throughput |
t/h |
488 |
C |
|
Unit
Settling Rate |
(t/h)/m2 |
0.50 |
A |
Thickening |
Thickener
Diameter |
m |
35.3 |
C |
|
Thickener
Underflow Pulp Density |
%
solid |
50.0 |
A |
|
Thickener
Underflow Volumetric Flowrate |
m3/h |
667 |
C |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 152 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
The Carangas Process flowsheets are
shown in Figure 17-1 and Figure 17-2. The flowsheet incorporates conventional processing circuits and proven technologies
successfully implemented in similar process plants. The design adheres to the established industry practices to ensure operational reliability
and efficiency.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 153 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
A high-level description of the Carangas
process plant’s key unit operations is provided in the following sections.
17.3.1 | ROM
Ore Stockpile and Blending |
Several ROM ore stockpiles will be
organized according to the extent of oxidation and the metal and pyrite content. One blended ROM ore stockpile, which is used directly
as the mill feed, will be created by reclaiming materials from these individual ROM stockpiles at pre-determined ratios to achieve the
targeted oxidation level, metal contents and pyrite content. Then, a blending procedure will be implemented to homogenize the materials
in this blended ROM stockpile. After blending, the material from this blended ROM stockpile will be fed directly to the process plant.
This blended ROM stockpile will last for 5 ~ 7 days of operation. While this blended ROM stockpile is being reclaimed to feed directly
to the process plant, another blended ROM stockpile will be prepared.
17.3.2 | Mill Feed and Primary Crushing |
A front-end loader will reclaim the
material from the blended ROM stockpile to feed the crushing circuit. The designed delivery rate to the crusher is 667 tonnes per hour
(t/h), based on 75% utilization of the crushing circuit.
The crushing circuit includes a stationary
grizzly with a 0.70-meter aperture to prevent the oversized material from entering the crusher feed bin. Material larger than 100 mm from
the vibrating grizzly feeder will be directed to the primary jaw crusher (model C150). This PEA assumed a 50% split of the oversized material.
The crusher is designed to process the feed with a maximum feed size (P100) of 700 mm, producing
a product size (P100) of 167 mm. The vibrating grizzly undersize (-100 mm) and the crusher product are combined and conveyed to the crushed
ore stockpile, which has a live capacity of 9,000 tonnes, equivalent to 18 hours of continuous operation. The material from the crushed
ore stockpile is reclaimed by three apron feeders, with two operating and one on standby. Dust suppression is considered using atomized
water sprays.
17.3.3 | Primary Grinding Circuit |
The reclaimed crushed material,
with a P80 of 106 mm, is fed into the Semi-Autogenous Grinding (SAG) mill (8.53 m x 3.05 m, 4.6
MW, c/w VFD) at a rate of 500 t/h. Process water, lime and zinc sulfate are added to the SAG mill. Ground material from the SAG mill is
directed to a scalping screen with an aperture of 12.7 mm. The screen oversize is conveyed to a pebble crusher (Cone Crusher, model HP200)
for further size reduction. The crushed product is returned to the SAG mill. The scalping screen undersize is then fed into the cyclone
feed pump box, where it is pumped to the primary cyclone cluster. This cluster consists of 16 hydrocyclones (19 inches diameter each).
The cyclone underflow is directed to the ball mill (6.00 m x 9.00 m, 6.3 MW) for further grinding. The ball mill discharge flows to the
same pumpbox as the SAG mill. The cyclone overflow, with a P80 of 75 μm, is sent to the trash
screen with the screen undersize flowing to the conditioning tank in the silver/lead (Ag/Pb) flotation circuit. The grinding circuit design,
including motor sizing, is based on Carangas comminution test work data (detailed in Section 13). The SAG and ball mills were quoted by
CITIC Heavy Industries in China. A circulating load of 300% was assumed in the ball mill sizing calculations.
17.3.4 | Silver/Lead Flotation and Dewatering |
The hydrocyclone overflow from the
grinding circuit is directed to the trash screen, and then the screen undersize flows to the silver/lead flotation conditioning tank,
which has a working volume of 452 m³ and provides a retention time of 20 minutes. Collectors AP3418A and Aero404 are added to the
conditioning tank. Process water is added to achieve a pulp density of 30% solids when necessary before the slurry is fed into the rougher
flotation circuit. The rougher flotation bank consists of eight flotation cells, each with a capacity of 140 m³. Based on test work
data, a mass pull of 10% was assumed for the rougher flotation. The rougher tailings are routed to a thickener; only the thickener underflow
enters the zinc/silver flotation circuit. The thickener overflow is pumped to the process water tank, which is the primary grinding and
silver/lead flotation circuit process water. The silver/lead rougher concentrate is directed to the secondary hydrocyclone cluster.
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The overflow from the secondary
hydrocyclones is sent to the cleaner conditioning tank, while the underflow, containing coarser particles, is fed into the regrinding
mill (Vertimill). The regrind mill product, with a P80 of 30 μm, is then pumped to the cleaner
conditioning tank. Hydrated lime and AP3418A/Aero404 collectors are added to the conditioning tank. When necessary, process water is also
added to the conditioning tank to dilute the slurry to the targeted pulp density. The Carangas process plant design includes three cleaner
flotation stages to upgrade the rougher concentrate. To prevent the buildup of pyrite, the first cleaner is operated in an open circuit.
The first cleaner tail is combined with the rougher tail and then thickened together. The concentrate from the third cleaner stage is
the final concentrate and is pumped into the silver/lead flotation concentrate thickener. The thickener underflow is subsequently fed
into a concentrate pressure filter, producing a final concentrate with 10% moisture content, approximately 3,975 g/t silver and 24% lead.
The final concentrate filter cake is then conveyed to the concentrate bagging station for storage and shipping.
17.3.5 | Zinc/Silver Flotation and Dewatering |
The thickened tailings from the
silver/lead rougher and first cleaner tails are fed into the zinc/silver flotation conditioning tanks, of which there are three in series.
Hydrated lime will be added to the first conditioning tank, copper sulfate will be added to the second conditioning tank, and collector
SIPX will be added to the third conditioning tank. The rougher flotation bank for this circuit consists of eight cells, each with a capacity
of 157 m³. Similar to the silver/lead circuit, a regrind circuit utilizing a Vertimill is included for the zinc rougher concentrate.
The zinc/silver flotation circuit also features a three-stage cleaner circuit to upgrade the zinc rougher concentrate. The first cleaner
is operated in a closed circuit to improve zinc and silver recoveries. Because high pH is applied to the zinc/silver circuit, the buildup
of pyrite is expected to be modest. The final cleaner concentrate is thickened and filtered using a pressure filter before being conveyed
to the concentrate bagging station for storage and shipping. Over the life of the mine, the zinc/silver concentrate is expected to contain
46% zinc and 323 g/t silver on average.
17.3.6 | Dewatering of Final Flotation Tailing |
The rougher zinc/silver circuit tailings
are thickened through a high-rate thickener. The thickener overflow is pumped to a second process water tank which serves the zinc/silver
flotation circuit. The thickened final tailings, with 50% solids, are pumped to the tailings storage facility (as discussed in Section
18.17). Water is reclaimed from the tailings dams and returned to the processing plant's zinc/silver process water tank at an average
rate of 256 m³/h.
The processing plant power requirement of
the major equipment is shown in Table 17-2
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Table 17-2 Major Equipment List
Equipment |
Quantity |
Specification |
Total
Installed
Power (kW) |
Power Draw
(kW) |
Utilization
(%) |
Jaw Crusher |
1 |
C150 or equivalent |
200 |
160 |
75 |
Apron Feeder |
3 |
500 t/h |
135 |
108 |
75 |
SAG Mill |
1 |
8.53 x 3.05 m |
4,600 |
3,450 |
91.3 |
Ball Mill |
1 |
6.0 x 9.0 m |
6,300 |
5,466 |
91.3 |
Flotation Blowers |
3 |
Model 600 |
1,350 |
1,080 |
91.3 |
Ag/Pb Rougher Flotation Cells |
8 |
TankCell e130 |
1,056 |
845 |
91.3 |
Flotation slurry pumps |
2 |
MR 350 FNR-S TRB-OH |
400 |
320 |
91.3 |
Ag/Pb Regrind Mill |
1 |
Vertical Stirred Mill – CSM-500 |
500 |
450 |
91.3 |
Ag/Pb Cleaner Flotation Cells |
12 |
TankCell e20, e10, and e5 |
306 |
245 |
91.3 |
Tailing Pump |
1 |
Warman 10/8 |
300 |
285 |
91.3 |
Zn/Ag Rougher Flotation Cells |
8 |
TankCell e130 |
1,056 |
845 |
91.3 |
Flotation slurry pumps |
2 |
MR 350 FNR-S TRB-OH |
400 |
320 |
91.3 |
Zn/Ag Regrind Mill |
1 |
Vertical Stirred Mill – CSM-500 |
500 |
450 |
91.3 |
Zn/Ag Cleaner Flotation Cells |
12 |
TankCell e20, e10, and e5 |
346 |
277 |
91.3 |
Final Tailing Pump |
2 |
Warman 12/10 AH |
600 |
570 |
91.3 |
The total installed power of the Carangas
process plant is estimated at 19.74 MW. Based on the PEA design criteria, the annual energy consumption for the plant is projected to
be approximately 133,505 MWh per year.
The project’s water management
plan and balance are detailed in Section 18.3. The projected water requirements for the process plant are approximately 1,200 m³/h.
With an anticipated recycling rate of 77%, the makeup water requirement is estimated at 267 m³/h. The makeup water is expected to
be sourced from a combination of water wells and local water streams and rivers.
Special attention will be given to minimize
cross-contamination of process water between the two flotation circuits.
| 17.6 | Reagents
and Consumables |
Typical sulfide flotation reagents
are considered for the Carangas process plant. The reagents will be received and stored in appropriate areas. The PEA study estimate for
the reagent consumption is shown in Table 17-3
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Table 17-3 Reagents Consumption
Reagent |
Consumption (kg/t ore) |
Annual Consumption (t/y) |
Zinc Sulphate ZnSO4·7H2O |
1.300 |
5,200 |
Copper Sulfate CuSO4·5H2O |
0.150 |
600 |
Hydrated Lime |
1.140 |
4,541 |
Antiscalant |
0.010 |
40 |
Flocculant |
0.035 |
140 |
Collector AP3418A |
0.026 |
104 |
Collector Aero 404 |
0.004 |
16 |
Collector SIPX |
0.065 |
260 |
Frother MIBC |
0.030 |
120 |
Frother W31 |
0.010 |
5,200 |
The grinding media consumables estimate is
summarized in Table 17-4.
Table 17-4 Grinding Consumables
Consumable |
Consumption (kg/t ore) |
Annual Consumption (t/y) |
Grinding Ball 125 mm |
0.43 |
1,720 |
Grinding Ball 50 mm |
0.51 |
2,040 |
Both reagent and grinding media consumption
estimates are based on test work results. Additional consumables, including crusher plates, mill liners, and filter cloths, have also
been factored into the operating cost estimates, as discussed in Section 21.2.2.
| 17.7 | Other
Facilities and Servies |
To ensure stable and efficient operation,
the Carangas process plant will be supported by auxiliary facilities and services, including the following:
| § | Maintenance workshop (including
welding, electrical, and mechanical facilities), |
| § | Compressed air distribution system, |
| § | Ponds and containments system, |
| § | Administrative building, |
| § | Concentrate dispatch systems. |
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| 17.8 | Concentrate
production |
The production of silver/lead concentrate
and zinc/silver concentrate was estimated based on the mine production schedule and the derived individual recoveries for the oxidized,
transitional, and sulfide materials. The derived individual recoveries were calibrated against the actual flotation data obtained from
the locked cycle flotation test results for the LOM composite sample, which consisted of 12.5% oxidized material, 2.5% transitional and
85.0% sulfide materials.
The calculated annual
concentrate productions are presented in Table 17-5. From the LOM total mill feed of 64.438 million tonnes, which contains
63.0 g/t silver, 0.44% lead, and 0.80% zinc, 0.826 million tonnes of silver/lead concentrate will be produced, with the average
concentrate grades expected to be around 3,975 g/t silver and 24.0% lead with the corresponding recoveries of 80.8% for silver and
70.6% for lead. In addition, 0.744 million tonnes of zinc/silver concentrate will be produced, with the average concentrate grades
expected to be around 356 g/t silver and 45.8% zinc, with the corresponding recoveries of 6.5% for silver and 65.9% for zinc.
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Table 17-5 Annual concentrate production
The Carangas processing plant is
designed as a standard grinding-flotation facility. Metallurgical test work completed to date indicates that the ore is amenable to flotation
concentration, with no deleterious elements identified that would necessitate changes to the processing route or result in penalties to
the concentrate price. However, it is important to note that the project is currently at a scoping level of engineering, and additional
test work and studies are required to confirm the processing route and refine the design criteria.
Key risks associated with the recovery method
include:
| § | Preliminary Metallurgical Test Work: The following factors present potential
risks: |
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| − | Recovery and concentrate grade projections, |
| | |
| − | Mass pull and reagent consumption. |
| | |
| § | Water Supply: Both the quality and availability of water in the project area pose significant risks. |
| § | Water Cross-Contamination: Ensuring minimal cross-contamination between
the flotation circuits is critical to maintaining processing efficiency and preventing operational issues. |
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The Project area is accessible by
vehicle from Oruro city, with approximately 197 km of paved, 8 m wide national Highway 12 leading to the town of Sabaya, then flat gravel,
5 to 6 m wide road of 35 km from Sabaya to Carangas. The access road to the project is shown in Figure 18-1.
Figure 18-1 Paved Road and
Secondary Road to Carangas Project
The main paved road and the dirt compacted
road can support light and commercial traffic. The secondary roads will require periodic grading to remain serviceable.
18.1.1.1 | Hauling and service roads |
Internal hauling roads will be suited
for mine heavy truck usage. They will be 16 m wide, compacted dirt with a 2 m berm at both sides, and compaction will be done to withstand
heavy loads. Berms, culverts, and ditches will be installed to help with water stream crossings and runoff water management. Service roads
will be 8 m wide compacted dirt with berms and runoff water management ditches.
The Company has engaged with Bolivia's
power transmission company ENDE (Empresa Nacional de Electricidad), to obtain quotations for transmission line construction and power
supply. The powerline for the project will connect to substation Pagador via twinned overhead transmission lines of 115 kV.
18.2.1 | Geographical Locations |
| § | Pagador Substation: Approximately
19 km north of Oruro (Cercado Province, Caracollo municipality). |
| § | Carangas Substation: Approximately
190 km Southwest of Oruro (Mejillones Province). |
Table 18-1 shows the geographical
location of substations.
Table 18-1 Geographical
Location of Substations
Substation |
Coordinate |
Zone |
West (m) |
South (m) |
Elevation (masl) |
Pagador |
UTM (WGS 84) |
19K |
700756 |
8028515 |
3730 |
Carangas |
UTM (WGS 84) |
19K |
539843 |
7905862 |
3891 |
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18.2.2 | Scope
of the Carangas Mine Substation |
The proposed Carangas substation
is a designated electrical substation specifically planned for the project. It includes the following facilities:
| § | Line bay in 115 kV in configuration
double bar plus transfer disconnector. |
| § | Line reactor bay in 115 kV. |
| § | Civil works required with the
project are the construction of trench and pipeline systems, supply, and extension of gravel, lighting, and other common facilities. |
The general facilities of the Carangas
substation, such as the platform construction, perimeter fence, control room, auxiliary services, access roads and internal circulation,
drainage, general courtyard lighting system, and other general common facilities, are included in the cost estimate.
18.2.3 | Carangas
Site Geographical Location |
Figure 18-2 shows the geographical
location of the substation and the project. In the figure, the left side shows the Bolivian map, including the city of Oruro in the southwest
of Bolivia and the location of the transmission line in blue. On the right side, blue shows the route that will follow the transmission
line to the site.
Figure 18-2 Site
geographical location
Source: RPM, 2024
18.2.4 | Pagador Line – Carangas Mine – 115kV |
The construction of an electric transmission
line at a voltage level proposed to be 115 kV between Pagador and the Carangas site has a triangular Double Terna (ST) configuration with
one conductor per phase. The line begins at the Pagador Substation and ends at the Carangas Substation.
Table 18-2 shows a short technical summary
of the Carangas power line.
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Table 18-2 Pagador – Carangas
Line Summary Table
Item |
Technical Comment |
Length |
210 km |
Configuration structures |
Double ternary |
| 18.3 | Water Supply, Potable Water Supply, and Wastewater Treatment
Plant. |
Water will be sourced through drilling
in the project vicinity upstream of the pit. This will serve to ensure the pit has minimal inflows and provide water for the processing
facility. Two small local streams run through the property with a flow rate of approximately 20 l/s for each of them in the dry season.
This water supply was adequate for the project's water consumption during the exploration and drilling stage. The Project expects to source
additional water sources through drilling to identify new and utilizing existing wells. The adequacy of the water supply as planned is
to be supported by hydrology studies that are planned to be completed.
The backup source for water supply
has been identified; however, further studies are required to confirm its availability and accessibility.
At the site, fresh water will be stored
in two carbon steel tanks, each 5 m diameter x 5 m height, close to the process plant, where water will be filtered and treated for process
water or potable water use. Additionally, a potable water tank of the same size will be required.
Depending on its service, water will be
distributed from the process plant to all required areas. Firewater will be stored in the freshwater tank, which will have a dedicated
volume and two hours of storage capacity.
Wastewater treatment plants will be modularized
in containers with a 500-person wastewater treatment capacity. In case of an expansion, additional modules can be added to the area.
Figure 18-3 Containerized
wastewater treatment plant and containerized potable water treatment
Fuel supply at the site will
be done by fuel trucks from Oruro. Fuel will be stored in 4 x 450 m3 carbon steel fuel
tanks. A pump station beside the tanks will service haul, commercial, and light trucks.
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| 18.5 | Administrative
Complex Building |
An administrative complex building
with offices, meeting rooms, and a first aid room. A total of 1,800 m2 of buildings will be installed
as part of the Project. The first aid room will have a dedicated 450 m2 footprint. The complex will
also have 675 m2 of light truck parking outside the building.
| 18.6 | Camp
Accommodation and Lunchroom |
The site will have a camp accommodation
complex for 500 persons, and it will be a pre-engineered building of 4,800 m2 area with modular buildings. This complex will
include a laundry area, fitness center, and amenities areas.
The Project will have an 1,800 m2
lunchroom building with a kitchen, cold room, hot room, food preparation area, and storage area.
The emergency response building will
be a 225 m2 building containing a fire truck and an ambulance for medical evacuation.
A voice and data communications system
will be established at the mine site via a microwave radio link consisting of a microwave antenna and radio equipment mounted on towers.
A backup satellite system capable of supporting the communications bandwidth will also be installed.
A communications network will be established
among occupied mine site buildings utilizing fibre-optic technology and wireless communication for voice, internet, and intranet traffic.
The communications and IT infrastructure will include an internet gateway, telephone private branch exchange (PBX) system, Ethernet local
area network (LAN), IT servers, desktop computers, a backup power system, copper and fibre cabling, and site VHF radio system.
Voice communications will be based on
Voice Over Internet Protocol (VoIP) technology, using wide area network (WAN) links. A VHF radio system will be installed with provision
for handheld units, mobile units, and base stations. A mobile phone cellular service will be included in the system. Local and off-site
communications will be through a local wireless/Wi-Fi network whereby employees will utilize their GRI-issued cellphones from any location.
Video conferencing systems by WAN links will be provided, complete with messenger service flat screens and a projector for use in meeting
rooms. Base and client stations will be provided for wireless connection to the network system. The system will include a smart card access
system to enable secure login to the network for desktop and laptop users.
The LAN system will utilize wireless
switches to connect to users’ computers, and the WAN system will use routers with multi-protocol label switching capabilities to
support voice and high bandwidth capabilities.
The warehouse is close to the process
plant and the mine. It will be in an industrial area that will include a warehouse, truck wash, truck shop, maintenance building, and
dry.
The warehouse is a 6,750 m2
area, containing an enclosed Warehouse building of 1,350 m2, 5,400 m2 of fenced open area, and 3,600 m2
of parking for commercial trucks and light trucks.
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| 18.10 | Truck
Shop and Truck Wash |
The mine contractor will implement the
truck shop and truck wash as a part of their services.
| 18.11 | Maintenance
Shop Building |
The maintenance shop building will
be a 650 m2 enclosed building with a mechanical station, electric station, and welding station, and
it will have all the required mechanical and electrical equipment to repair hauling trucks and light trucks as well as mine equipment.
There will be a 450 m2 building
with lockers, showers, and services for the mine operators.
The site assay laboratory will be a
900 m2 enclosed building, with a storage area for samples, samples reception, samples preparation, reagent storage and laboratory
equipment for inorganic and organic analysis, offices, and a meeting room.
The main gate will be located at the
south entrance of the property. It will have a fenced main gate, CCTV cameras for security, a 50 m2 building with a bathroom,
drinking water will be supplied by bottles, a sewage system will be a sceptic tank, and potable water will be supplied by a water truck.
The truck scale will be located close
to the main gate entrance, beside the entrance road for trucks.
Explosives will be transported from
Oruro and stored at the site in a 225 m2 building, isolated from other buildings at site. It will
also be an Emulsion preparation building. This building will also be designed with a footprint of 225 m2.
As discussed in Section 7 and
shown in Figure 7-3, the main section of the Project site has two rugged rock domes, designated West and East Dome, with the Carangas
Stream running between them. There are also two smaller valleys tributary to the Carangas Stream, coming from the northeast and southeast.
It is noted that the hydrologic regime of the Carangas Stream and its tributaries has not been evaluated as part of this PEA and will
be evaluated during the next project phase.
This PEA has considered three types
of tailings storage facilities (TSFs): conventional TSF (high-rate thickened tailings), high-density thickened tailings TSF and a dry
stack of filtered tailings.
| 18.17.2 | General
Design Criteria |
The PEA-level evaluation of TSF options
has been based on the following general data and assumptions:
| § | Total ore to mill: 64,438 kt. |
| § | Throughput: 4 Mtpa = 10,959 tpd. |
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§ | Total tailings 99% of total ore to mill = 63,794 kt. |
§ | Engineering, construction management, QA/QC, overhead,
and owner’s costs are not included in the cost estimates. |
§ | Contingency is not included. |
§ | Closure costs are not included. |
Additional design criteria for each type of TSF are presented
in the respective sections.
18.17.3 | Conventional TSF Location Options |
General
The following locations were considered
for conventional TSF options:
§ | Northeast tributary of the Carangas Stream. The design
for that option showed that it was not possible to achieve the required capacity due to the valley’s steep gradient. Nonetheless,
the design for that option is presented in this section as a reference and is designated as Conventional TSF NE. |
§ | The southeast tributary of the Carangas Stream also
has a steep gradient. A preliminary evaluation also showed insufficient capacity. Therefore, this location was not further considered. |
§ | The floodplain of the Carangas Stream is immediately
downstream of the confluence of the southeast tributary. This location allowed the Project to achieve adequate capacity, exceeding the
required capacity under the design criteria. It is designated as Conventional TSF Option 1, the TSF option selected for this PEA, as discussed
below in this report section. |
18.17.4 | Conventional TSFs Design Criteria |
The design criteria utilized
for the design of the two conventional TSFs (NE and Option 1) comprise:
§ | Dry unit weight of tailings: 1.4 t/m3. |
§ | Required tailings capacity: 63,794 kt / 1.4 t/m3 = 45.6 Mm3. |
§ | Additional capacity to store the decant pond and the Probable Maximum Flood (PMF). |
§ | Containment embankment: Crest 10-m wide, downstream slope 2.5H:1V and upstream slope 2H:1V. |
§ | Impoundment site preparation: clearing, grubbing and proof rolling. |
§ | Embankment foundation preparation in the valley consists
of clearing, removing 0.5 m of soil and compaction. |
§ | The embankment foundation preparation for the abutments
consists of removing rock irregularities and filling any voids and fractures with dental concrete. It will need blasting. |
§ | Embankment constructed with waste rock. The next
project phase needs a geochemical evaluation to check it is not acid-forming. |
§ | Waste rock in the embankment is compacted by five passes of a 10-t vibratory roller. |
Figure 18-4 shows the site layout with the location
of the two evaluated conventional TSFs. It also shows the location of the dry stack discussed in the Dry Stack Option section.
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Figure 18-4 Proposed Locations
of Conventional TSFs and Dry Stack Options
Source: RPM, 2024
18.17.5 | Conventional TSF NE |
The containment embankment for the
Conventional TSF NE is located at the downstream end of the NE valley, where it discharges into the Carangas Stream floodplain. The embankment
abutments were selected as high as possible on the rock outcrops adjacent to the Carangas Stream floodplain to maximize the storage capacity
for that location. A plan view of the Conventional TSF NE is shown in Figure 18-5, which shows the embankment cross-section at
maximum height.
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Figure 18-5 Conventional TSF NE – Cross-Section
The main dimensions of the Conventional TSF NE are:
§ | Embankment crest El. 4,055.0 msnm. |
§ | Impoundment El. 4,053.5 msnm. |
§ | Embankment volume: 3.62 Mm3. |
§ | Impoundment volume: 5.35 Mm3. |
The design shown above has a tailings storage capacity of 5.35
Mm3, which is only a small fraction of the required 45.6 Mm3. Therefore, this option was no longer considered.
18.17.6 | Conventional TSF Option 1 |
Conventional TSF Option 1 Design
As mentioned above, the Conventional
TSF Option 1 is located in the flood plain of the Carangas Stream, immediately downstream of the confluence of the southeast tributary.
The embankment consists of two straight
segments and has three abutments on rock outcrops. The central outcrop is the lowest, and the highest elevation of that outcrop was selected
as the embankment crest elevation. A plan view of the Conventional TSF Option 1 is shown in Figure 18-6, showing the embankment
cross-section at maximum height.
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Figure 18-6 Conventional TSF Option 1 – Maximum Cross-Section
The main dimensions of the Conventional TSF Option 1 are:
§ | Embankment crest El. 4,001.0 msnm. |
§ | Impoundment El. 3,999.5 msnm. |
§ | Embankment volume: 8.3 Mm3. |
§ | Impoundment volume: 69.0 Mm3. |
It is noted that the storage capacity for this design is 69.0
Mm3, which largely exceeds the required capacity of 45.6 Mm3. For construction planning and to defer capital
costs, the staging plan shown in Table 18-3 has been developed to construct the TSF in five stages.
Table 18-3 Conventional TSF Option 1
– Staging Plan
Stage |
Embankment
Crest El. (masl) |
Life
Through
(Year) |
Operation
(Years) |
Capital Cost During
Years |
Cumulative
Impoundment Capacity |
Cumulative Waste Rock Required for Embankment (Mt) |
(Mm3) |
(Mt) |
1 |
3,960.25 |
2.00 |
1-2 |
-2 & -1 |
5.59 |
7.93 |
1.12 |
2 |
3,971.50 |
6.05 |
3-6 |
1 & 2 |
16.36 |
23.96 |
3.47 |
3 |
3,980.00 |
10.19 |
7-10 |
5 & 6 |
27.27 |
40.34 |
6.27 |
4 |
3,986.75 |
14.07 |
11-14 |
9 & 10 |
38.95 |
55.72 |
9.07 |
5 |
3,991.50 |
17.09 |
15-17 |
13 & 14 |
48.08 |
67.69 |
11.37 |
Final Design |
4,001.00 |
24.39 |
None |
None |
69.19 |
96.60 |
17.43 |
This staging plan has been developed considering that the embankment
raises will be constructed using the downstream method.
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For the financial model, costs have
been considered through Stage 5 only for consistency with the LOM mining schedule. The TSF design has the capacity for an additional seven
years, which has not been included in the PEA costs.
Conventional TSF Option 1 Costs Assumptions
The following criteria and assumptions were considered to estimate
the capital costs and the OPEX for the Conventional TSF Option 1:
§ | High-rate thickener CAPEX is not considered because it is included in the plant costs. |
§ | High-rate thickening OPEX is not considered because it is included in the plant costs. |
§ | The Cost of pumping the tailings slurry from the
plant to the TSF is not considered because it is included in the plant OPEX. |
§ | A detailed hydrological evaluation is required during
the next project phase, as the TSF is located in the Carangas Stream. An estimated cost for this evaluation is included in the TSF capital
costs. |
§ | The upstream slope will be lined with a 1.5-mm thick
HDPE geomembrane installed on a transition layer to serve as a cushion to the geomembrane. |
§ | The impoundment bottom will be lined with a 1.5-mm
thick HDPE geomembrane installed on a soil cushion layer to protect the geomembrane from puncturing. |
§ | The tailings delivery pipeline from the plant to the TSF will be an 8-in diameter HDPE. |
§ | The tailings slurry discharge system at the TSF consists
of a 6-in diameter HDPE pipeline along the embankment crest and spigots spaced at 100 m. |
§ | The reclaim water system consists of a floating barge and submerged pumps. |
§ | The water return pipeline from the TSF impoundment to the plant will be an 8-in diameter HDPE. |
§ | A specific design, to be developed during the next
project phase, is required for the TSF surface water diversion system. It is assumed that this design will be part of the surface water
diversion system for the entire mine and will be included in the mine capital costs. |
§ | Water collected in the seepage pond located downstream
of the TSF will be pumped to the TSF impoundment utilizing a 4-in diameter pipeline and from there to the plant in the water return pipeline. |
§ | The surface water management on the embankment downstream
slope consists of ditches, down chutes, energy dissipators and sediment ponds. These water management features must be extended during
the project life as the embankment is raised, and they are considered in the TSF OPEX. |
§ | Erosion protection for the downstream slope is assumed
to be achieved with soil stockpiled from the embankment foundation preparation, and that the slope will be revegetated progressively as
the embankment is raised. At the project’s altitude, it is assumed that not much topsoil is available for stockpiling; therefore,
the soil cover will need to be fertilized. |
Conventional TSF Option 1 Capital Costs
Based on the design, the above criteria,
and assumptions, the total capital cost for the 17-year Conventional TSF Option 1 LOM has been estimated at $48.24 million. The capital
cost and OPEX for each of the five construction stages are presented in Table 18-4 and Table 18-5, respectively.
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Table 18-4 Conventional TSF Option
1 Staging Estimated Capital Cost
Stage |
Capital Cost (K$) |
Stage 1: |
$14,481 |
Stage 2: |
$8,987 |
Stage 3: |
$9,054 |
Stage 4: |
$8,491 |
Stage 5: |
$7,230 |
Total: |
$48,244 |
Conventional TSF Option 1 Operating Costs
Table 18-5 Conventional TSF Option
1 Staging Estimated Operating Cost
Stage |
Operating Cost (K$) |
Stage 1: |
$2,704 |
Stage 2: |
$5,356 |
Stage 3: |
$5,352 |
Stage 4: |
$5,348 |
Stage 5: |
$4,107 |
Total: |
$22,867 |
18.17.7 | High-density Thickened Tailings TSF |
The Conventional TSF Option 1 occupies
an area of approximately 280 ha. Considering the site’s topography, it was estimated that a High-density Thickened Tailings TSF
would require a similar or larger area, and would require numerous discharge towers for the tailings to have adequate flow and fill the
impoundment. Therefore, this option was deemed unpractical and was not further evaluated.
Dry Stack Design Criteria and Assumptions
The following criteria and assumptions were considered to design
and estimate the capital costs and the OPEX for the Dry Stack:
§ | Dry unit weight of compacted filtered tailings: 1.8 t/m3. |
§ | Required capacity: 63,794 kt / 1.8 t/m3 = 35.44 Mm3. |
§ | The stack will have the shape of a truncated pyramid, with 3.5H:1V side slopes. |
§ | The final stack crest will have an area of 10,000 m2 to allow the operation of equipment
at life-end. |
§ | The stack will store compacted, unsaturated tailings,
which are expected to be fine and have low permeability. The need for a bottom liner will need to be evaluated in subsequent project phases
based on environmental and regulatory considerations. Therefore, the dry stack capital cost is presented with and without a bottom liner
for comparison purposes. |
Dry Stack Sizing
The stack was sized considering side slopes of 3.5H:1V
and a fixed final crest area of 10,000 m2. The stack was sized by iterations to determine the base area and height that provide
the required volume of 35.44 Mm3.
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The results indicated a base area
of 831,744 m2 and a height of 116 m. For those dimensions, the stack volume is 36.03 Mm3, which, at a dry unit weight
of 1.8 t/m3, provides storage for 64.9 Mt of tailings.
It is noted that the shape of the stack
in the plan view can be varied to adjust it to operational considerations and perimeter ditches as long as the base area (831,744 m2),
the final crest area (10,000 m2) and the side slopes (3.5H:1V) remain the same Figure 18-7 shows a plan view assuming
a square base, and Figure 18-7 shows a typical stack section.
Figure 18-7 Dry Stack -
Typical Section
Dry Stack Cost Assumptions
§ | Site preparation will consist of clearing, grubbing and proof rolling. |
§ | High-rate thickener CAPEX is not considered because it is included in the plant costs. |
§ | High-rate thickening OPEX is not considered because it is included in the plant costs. |
§ | The Cost of pumping the tailings slurry from the
plant to the tailings filtration plant is not considered because it is included in the plant OPEX. |
§ | The filtration plant is assumed to be located adjacent to the dry stack. |
§ | Two 6,000 tpd filter presses will be needed for
10,959 tpd. Formal quotations should be obtained during the next project phase, as the filters have the most significant capital cost. |
§ | Trucks will transport the filter cake from the filtration plant to the stack. |
§ | Water recovered from the filtration will be returned to the plant. |
§ | The tailings will be compacted to a dry unit weight
not less than 95% of the Standard Proctor maximum dry unit weight, with moisture content +/- 3% of the Standard Proctor optimum moisture
content. |
§ | A specific design would need to be developed during
the next project phase for the Dry Stack surface water diversion system. It is assumed that this design will be part of the surface water
diversion system for the entire mine and will be included in the mine capital costs. |
§ | The surface water management on the stack consists
of ditches, down chutes, energy dissipators and sediment ponds. These water management features will need to be extended during the project
life as the stack is raised and considered in the stack OPEX. |
§ | Water collected from the stack seepage pond will
be merged with the pipeline from the filtration plant to the process plant. |
§ | Erosion protection of the stack side slopes will
consist of waste rock. Only the placement of the waste rock is considered in the OPEX. The cost of waste rock excavation and hauling to
the stack is included in the mining costs. |
Dry Stack Capital Costs
As mentioned above, the dry stack cost has been estimated without
and with a bottom liner.
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The capital cost without and with a bottom liner has been estimated
as shown in Table 18-6.
Table 18-6 Dry Stack Option Estimated
Capital Cost
Description |
Cost |
Geotechnical investigation |
$200,000 |
Site preparation: 831,744 m2 x $0.2/m2 |
$166,349 |
Filter plant building |
$2,000,000 |
Filter presses: 2 filters x $5 m each installed |
$10,000,000 |
Pump and pipeline from filters to plant |
$1,000,000 |
Stack underdrain (finger drains) |
$500,000 |
Lined seepage pond (downstream of stack) |
$300,000 |
Pump and pipeline from seepage pond to filtration pipeline |
$400,000 |
Geotechnical monitoring instrumentation: |
$300,000 |
Total |
$14,866,349 |
Additional Options |
$6,653,952 |
Additional Liner - 831,744 m2 x $8.0/m2 |
Total Capital Cost with Bottom Liner |
$21,520,301 |
Dry Stack OPEX
The total OPEX for the 17-year LOM of the Dry Stack Option is estimated
in Table 18-7.
Table 18-7 Dry Stack Option Estimated
Operating Cost
Description |
Cost |
High-rate thickening (included in plant costs) |
|
Filtration $2.0/t x 63,794 kt |
$127,588,000 |
Hauling, spreading and compaction $3.0/t x 63,794 kt |
$191,382,000 |
Erosion protection of side slopes: 821,744 m2 x $0.5/m2 |
$410,872 |
On-stack water management: 17 yr x $100,000/yr |
$1,700,000 |
Pumping return water to plant: $0.1/t of tails x 63,794 kt |
$6,379,400 |
TOTAL OPEX |
$327,460,272 |
ANNUAL OPEX |
$19,262,369 |
The capital costs and the OPEX for the Conventional TSF Option
1 and the Dry Stack option for the 17-year LOM are summarized in Table 18-8.
Table 18-8 Tailings Options Cost Summary
Option |
Capital Cost
($M) |
OPEX
($M) |
Conventional TSF Option 1 |
$48.2 |
$22.9 |
Unlined Dry Stack |
$14.9 |
$327.5 |
Lined Dry Stack |
$21.5 |
$327.5 |
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The dry stack annual
operating cost is $19.3 m. Therefore, the Dry Stack capital cost plus the Year 1 OPEX is $34.2 m for the Unlined Dry Stack. The
Lined Dry Stack's capital cost plus the Year 1 OPEX is $40.8 m. In both cases, the capital cost plus the Year 1 OPEX for the Dry
Stack is of a similar order of magnitude (+/- 10%) as the capital cost for the Conventional TSF Option 1.
18.17.10 | Selected TSF Option |
Considering the much more significant
OPEX for the dry stack and that the conventional TSF Option 1 utilizes a well-known technology for the project region, it has been selected
for this PEA of the Carangas Project.
TSF with conventional slurry tailings
located in the southeast part of the Project is included in the Project capital and operating cost estimates in Section 21 and the economics
analysis in Section 22.
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19 | MARKET STUDIES AND CONTRACTS |
A limited concentrate marketing study
was conducted on the potential sale of the silver-lead and zinc/silver concentrates for the Carangas Project. The treatment and refining
terms used in the analysis are based on company discussions with refiners and industry standards. These terms are considered reasonable
when compared to other published studies.
The project will generate revenue from the
sale of a silver/lead concentrate and a zinc/silver concentrate.
Annual production at Carangas is
projected to be approximately 50,900 tpa of silver-lead concentrate (Project LOM total: 826kt) with an average grade of 3,975 g/t silver
and 24% lead and 45,900 tpa of zinc/silver concentrate (Project LOM total: 744 kt) with an average grade of 45.8% zinc and 356 g/t silver.
The principal commodities at Carangas
are freely traded at widely known prices, ensuring virtually assured prospects for the sale of any production. RPM used the prices shown
in Table 19-1 for the chosen mining case.
Table 19-1 Assigned Commodity Pricing
|
Units |
Price |
Zinc/Silver Concentrate |
Zn Price |
$/t |
2,756 |
Ag Price |
$oz |
24 |
Silver/Lead Concentrate |
Pb Price |
$/t |
2,094 |
Ag Price |
$/oz |
24 |
As of this report, the initial contact
with commodity buyers indicates that the silver-lead and zinc/silver concentrate market is strong and tight, resulting in low treatment
and refining charges. The silver and lead market appears more stable and is expected to remain tight longer than the zinc market.
The market indicates that a silver/lead
concentrate grading 3,975 g/t silver and 24% lead (dry) and a zinc/silver concentrate grading 356g/t silver and 45.8% zinc (dry) would
be acceptable to most smelting facilities.
The economic analysis completed for this
PEA assumed that silver, lead, and zinc production in the form of concentrates could be readily sold without deleterious element penalties.
Assumed silver/lead concentrate, zinc/silver concentrate payabilities, treatment, refining and transportation charges are provided in
Table 19-2. It is assumed that the silver/lead concentrate will be sold on the international market, while the zinc/silver concentrate
will be sold to domestic smelters in Bolivia.
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Table 19-2 Concentrate Payables, Treatment, Refining
and Transportation Assumptions
Parameter |
Silver/Lead Concentrate |
Zinc/Silver Concentrate |
Silver |
Lead |
Silver |
Zinc |
Payable |
Pay 96.5% subject
to a minimum
deduction of 50 g/t. |
Pay 95% subject to a
minimum deduction
of 3% |
Deduct 3 ozs and
pay 70% |
Pay 85% subject to a
minimum deduction
of 8% |
Treatment Charges |
N/A |
$100/t |
N/A |
$175/t |
Refining Charges |
$0.5/oz |
N/A |
$0.50/oz |
N/A |
Transportation Charges |
$120/t Conc |
$35/t Conc |
In Bolivia, mining royalties are applied
to gross revenue from mineral sales, with silver production incurring a 6% royalty rate on gross revenue, while lead and zinc production
incur a 5% royalty. According to Bolivia Law No.535, a 40% discount on the royalty rate applies if mineral products are sold domestically
within Bolivia, though this was not applied to the cashflow presented in Section 22.
RPM relied on New Pacific Metals' knowledge
of the Bolivian legal framework for the calculation of royalties.
No contractual arrangements for mining,
concentrate trucking, rail freight, port usage, shipping or smelting and refining are currently in place. Furthermore, no contractual
sales arrangements have been made for the silver/lead concentrate or zinc/silver concentrate at this time.
Initial testwork of the two concentrates
indicates no penalty elements are expected on the silver/lead and zinc/silver concentrates.
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| 20 | ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT |
The Carangas project is at an early
exploration stage. It has initiated baseline work executed by Tierralta Ingenieria and Ciencias Ambientales (Tierralta). Tierralta conducted
field studies on air, gases, noise, sediments/solids, groundwater, water for consumption, waste material, and biological evaluations in
Nov 2023 and Feb 2024, which covered the dry and wet seasons, respectively. As the project progresses, it will need to develop an Environmental
Impact Study in accordance with current Bolivian legislation. As it stands, the project has the required environmental permits for exploration.
| 20.2 | Environmental Legislation and Applicable Project Permitting |
Bolivian Law 1,333 from April 27,
1992, regulates the EIA process, which aims to identify and predict the impacts that a project, works, or activity may cause on the environment
and the population to establish the necessary measures to avoid or mitigate the negative impacts, and promote positive ones.
The EIA process includes the Environmental
File, the categorization to define what type of EIA should be completed and then submitted, the environmental license or Environmental
Impact Declaration (DIA) as is known in Bolivia, and the supervision and compliance of the implementation, operation, and closure of the
project. Figure 20-1 summarizes the process.
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Figure 20-1 Environmental Impact
Evaluation Process
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The Carangas Project would be classified
as a Category 1. Thus, a Comprehensive Analytical Environmental Impact Assessment Study is expected to be required. This means that the
project should initiate baseline work for the different physical, biological, and social components within the area of influence. The
project has initiated the physical and biological baselines in Nov 2023 and Feb 2024 to cover the dry and wet seasons. The social baseline
has been coordinated with the local community and will be initiated in January 2025.
The identification of impacts must
include an inventory and quantitative and qualitative assessment of the project’s effects on the environmental and socioeconomic
aspects of the area of influence of the project. It must distinguish positive effects from negative ones, direct ones from indirect ones,
temporary ones from permanent ones, short-term ones from long-term ones, reversible ones from irreversible ones, and cumulative and synergistic
ones.
During the EIA, a public consultation
is expected to be carried out with the affected population to take into account the public's observations, suggestions, and recommendations.
This will be particularly important for this project given how close the pit is to the town and considering that the pit's area would
impact a colonial church and probably a cemetery within the church's footprint based on early archaeological assessments. Given this issue,
further assessment of the church/cemetery and other archaeological studies are of significant importance.
The EIA is planned to formulate mitigation
measures for the prevention, reduction, remedy, or compensation for each of the negative impacts evaluated as necessary, as well as consider
alternatives and justify the solutions adopted.
| 20.3 | Environmental Baseline Work to Date |
The project has initiated environmental baseline work,
and received preliminary data. The following sections summarize the work completed to date.
The objective of the baseline work
was to categorize the water quality in the project area. To complete this objective, the results were compared with the Bolivian Regulation
on water pollution, which has four categories (A, B, C, D), with A being water for human consumption with no previous treatment. This
regulation is used to classify bodies of water according to their potential water use. The study area used was the Carangas micro basin
and the Todos los Santos basin near La Rivera. See the map shown in Figure 20-2. Ten sampling points were chosen for the Carangas
micro basin and two for the Todos los Santos basin. Figure 20-3 shows one of the sampling points.
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Figure 20-2 Surface Water Sampling
Points
|
Source: Tierraalta Environmental and Biological Report February 2024 |
|
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Figure 20-3 Photograph of a sampling
point Carangas micro basin
Source: Tierralta Environmental and Biological Report
February 2024
The project has conducted two campaigns
to cover the dry and wet seasons; water quality varies throughout the year and seasonally. Table 20-1 illustrates the results of
the analysis. Tierralta is in the process of conducting an environmental baseline study, which includes water quality.
Some baseline water quality data exceed
the permissible limits set by Bolivian water quality regulations. These values represent natural, pre-existing conditions and do not create
a liability for the project. However, documenting and registering these natural conditions thoroughly is essential.
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Table 20-1 Physico-chemical parameters
|
|
Nov-23 |
Feb-24 |
Nov-23 |
Feb-24 |
Nov-23 |
Feb-24 |
Nov-23 |
Feb-24 |
Feb-24 |
Nov-23 |
Feb-24 |
Nov-23 |
Feb-24 |
Nov-23 |
Feb-24 |
Nov-23 |
Feb-24 |
Feb-24 |
Feb-24 |
Nov-23 |
Feb-24 |
Nov-23 |
Feb-24 |
Nov-23 |
Feb-24 |
RMCH |
Parámetros |
Unidades |
SW-
PTS-04 |
SW-
PTS-04 |
SW-
TS-05 |
SW-
TS-05 |
SW-
QSNOM-07 |
SW-
QSNOM-07 |
SW-
CTA-09 |
SW-
CTA-09 |
SW-
QMK-12 |
SW-
VM-06 |
SW-
VM-06 |
SW-
VM-01 |
SW-
VM-01 |
SW-
CA-03 |
SW-
CA-03 |
SW-
PCA-02 |
SW-
PCA-02 |
SW-
CPU-08 |
SW-
QSNOM-06 |
SW-
KKO-10 |
SW-
KKO-10 |
SW-
PCA-02D |
SW-
PTS-04D |
SW-
PCA-02B |
SW-
PTS-04B |
A |
D |
UNIDAD |
pH |
|
9,1 |
8,3 |
8,8 |
8,2 |
8,6 |
8,0 |
8,8 |
7,8 |
8,0 |
8,6 |
8,0 |
8,4 |
8,0 |
8,1 |
8,0 |
9,1 |
8,1 |
7,9 |
7,33 |
8,3 |
8,13 |
9,1 |
8,3 |
7,06 |
7,8 |
6
a 8,5 |
6
a 9 |
|
Temperatura |
°C |
16,6 |
17,5 |
21,7 |
13,5 |
18,9 |
10,0 |
18,6 |
9,0 |
13,0 |
18,8 |
22,7 |
19,3 |
27,0 |
11,1 |
15,5 |
24,4 |
25,6 |
11,6 |
20,4 |
13,9 |
16,3 |
24,2 |
17,7 |
23,8 |
15,8 |
3
+/- |
3
+/- |
°C |
Conductividad |
µS/cm |
811 |
817 |
985 |
1427 |
585 |
520 |
619 |
199 |
349 |
415 |
376 |
429 |
389 |
1601 |
569 |
551 |
461 |
307 |
214 |
411 |
423 |
550 |
819 |
<5 |
<5 |
|
|
|
Sólidos
Sedimentables |
ml/l |
<0,1 |
1,5 |
<0,1 |
1,5 |
<0,1 |
<0,1 |
0,3 |
0,3 |
0,1 |
<0,1 |
0,9 |
<0,1 |
0,3 |
<0,1 |
0,3 |
<0,1 |
0,3 |
0,5 |
<0,1 |
<0,1 |
<0,1 |
<0,1 |
1,2 |
<0,1 |
<0,1 |
<10 |
<100 |
mg/l |
Sólidos
Disueltos |
mg/l |
601 |
614 |
724 |
6,8 |
382 |
8,3 |
272 |
7,3 |
224 |
286 |
322 |
297 |
270 |
960 |
466 |
372 |
395 |
297 |
187 |
272 |
338 |
370 |
612 |
4 |
<5 |
1000 |
1500 |
mg/l |
Sólidos
Suspendidos |
mg/l |
1 |
639 |
5 |
64 |
34 |
2 |
27 |
81 |
15 |
<1 |
352 |
<1 |
99 |
1 |
69 |
21 |
42 |
739 |
30 |
4 |
442 |
20 |
660 |
<1 |
<1 |
|
|
|
Sólidos
Flotantes |
mg/l |
Ausencia |
Presencia |
Ausencia |
Presencia |
Ausencia |
Ausencia |
Ausencia |
Ausencia |
Ausencia |
Ausencia |
Presencia |
Ausencia |
Presencia |
Ausencia |
Presencia |
Ausencia |
Ausencia |
Ausencia |
Ausencia |
Ausencia |
Ausencia |
Ausencia |
Presencia |
Ausencia |
Ausencia |
Ausente |
r
et.malla 1mm2 |
|
Color
(436 nm) |
|
21,0 |
105,0 |
20,0 |
100 |
12,0 |
53 |
6 |
102 |
128,0 |
13,0 |
455,0 |
8,0 |
366,0 |
15,0 |
196,0 |
29,0 |
167,0 |
288,0 |
151,0 |
18,0 |
326,0 |
28,0 |
109,0 |
<0,05 |
<0,05 |
<10 |
<200 |
mg/l |
Turbidez |
NTU |
1,12 |
119,00 |
1,93 |
135 |
10,14 |
8,24 |
3,03 |
21,5 |
24,60 |
0,46 |
100,00 |
0,35 |
69,40 |
1,16 |
53,30 |
2,58 |
50,00 |
96,00 |
37,80 |
1,63 |
95,00 |
2,59 |
112,00 |
<0,05 |
0,46 |
<10 |
<200-10000 |
UNT |
Oxígeno
Disuelto |
mg/l |
6,4 |
7,8 |
6,2 |
680 |
8,5 |
414 |
6,7 |
172 |
6,3 |
6,7 |
7,1 |
6,1 |
6,6 |
7,4 |
5,0 |
6,4 |
6,9 |
6,1 |
6,4 |
6,4 |
6,8 |
6,4 |
8,0 |
5,1 |
6,0 |
<80% |
<50% |
mg/l |
Caudal |
m
3 /s |
162,1 |
0,2 |
585,0 |
902,3 |
0,005 |
1,3 |
0,102 |
22,0 |
4,1 |
1,160 |
44,0 |
0,408 |
37,9 |
NM |
50,8 |
NM |
6,6 |
9,3 |
9,2 |
2,3 |
62,2 |
N/A |
N/A |
N/A |
N/A |
|
|
|
Potencial
Rédox |
mV |
219 |
209 |
239 |
219 |
162 |
206 |
150 |
199 |
197 |
214 |
201 |
219 |
196 |
225 |
198 |
147 |
195 |
196 |
199 |
172 |
168 |
149 |
210 |
179 |
178 |
|
|
|
Cromo
VI |
mg/l |
<0,005 |
|
<0,005 |
|
<0,005 |
|
<0,005 |
|
|
<0,005 |
|
<0,005 |
|
<0,005 |
|
<0,005 |
|
|
|
<0,005 |
|
<0,005 |
|
<0,005 |
|
0.05
c Cr tot |
0.05
c Cr +6 |
mg/l |
Dureza |
mg/l |
214,0 |
290,7 |
248,0 |
313,8 |
158,0 |
220,3 |
110,0 |
75,4 |
85,0 |
78,0 |
116,1 |
86,0 |
131,6 |
252,0 |
152,4 |
112,0 |
143,0 |
86,9 |
68,1 |
86,0 |
136,9 |
108,0 |
207,1 |
4,0 |
1,6 |
|
|
|
Alcalinidad |
mg/l |
75,0 |
31,5 |
100,0 |
36,5 |
185,0 |
66,5 |
100,0 |
12,5 |
29,0 |
90,0 |
25,5 |
85,0 |
21,5 |
100,0 |
38,0 |
135,0 |
37,5 |
21,0 |
157,0 |
95,0 |
181,5 |
120,0 |
31,0 |
<0,5 |
1,0 |
|
|
|
Amoniaco |
mg/l |
0,09 |
2,90 |
0,09 |
2,15 |
0,07 |
0,89 |
0,06 |
0,94 |
0,58 |
0,01 |
1,04 |
0,01 |
0,62 |
0,09 |
0,60 |
0,009 |
0,50 |
0,71 |
1,09 |
0,06 |
1,13 |
0,09 |
3,14 |
0,01 |
<0,01 |
0,05c.
NH3 |
4c.
NH3 |
mg/l |
Cianuro
Total |
mg/l |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
<0,05 |
|
<0,05 |
<0,05 |
<0,05 |
0,02 |
0,2 |
mg/l |
Cloruro |
mg/l |
51,8 |
89,0 |
68,6 |
104,5 |
27,8 |
33,9 |
20,4 |
12,5 |
17,60 |
36,3 |
41,50 |
40,9 |
54,2 |
238,2 |
75,30 |
38,3 |
45,90 |
36,80 |
22,80 |
39,7 |
53,90 |
38,0 |
88,1 |
1,4 |
0,2 |
250 |
500 |
mg/l |
Bicarbonatos |
mg/l |
61,0 |
95,0 |
61,0 |
134,0 |
214,00 |
133,0 |
85,00 |
38,0 |
51,0 |
85,0 |
61,0 |
67,0 |
21,0 |
323,0 |
158,0 |
104,0 |
139,0 |
58,0 |
50,0 |
116,0 |
63,0 |
61,0 |
88,0 |
<0,1 |
<0,1 |
|
|
|
Fluoruro |
mg/l |
0,62 |
<0,01 |
0,74 |
<0,01 |
0,60 |
<0,01 |
0,37 |
<0,01 |
<0,01 |
0,46 |
<0,01 |
0,49 |
<0,01 |
0,69 |
<0,01 |
0,73 |
<0,01 |
<0,01 |
<0,01 |
0,380 |
<0,01 |
0,73 |
<0,01 |
0,010 |
<0,01 |
0,6
- 1,7c. F |
0,6
- 1,7c. F |
mg/l |
Fósforo
Total |
mg/l |
0,25 |
|
0,22 |
|
0,22 |
|
0,21 |
|
|
0,22 |
|
0,25 |
|
0,25 |
|
0,34 |
|
|
|
0,27 |
|
0,36 |
|
0,05 |
|
|
|
|
Fosfato |
mg/l |
0,53 |
|
0,59 |
|
0,54 |
|
0,40 |
|
|
0,66 |
|
0,64 |
|
0,68 |
|
0,73 |
|
|
|
0,52 |
|
0,71 |
|
<0,04 |
|
0,40 |
1,00 |
mg/l |
Nitratos |
mg/l |
2,50 |
6,06 |
2,50 |
4,10 |
3,24 |
3,49 |
2,87 |
6,43 |
6,92 |
2,63 |
16,25 |
2,13 |
12,20 |
2,01 |
9,38 |
2,75 |
8,76 |
13,80 |
8,64 |
2,99 |
15,76 |
2,63 |
5,82 |
0,05 |
<0,01 |
20 |
50 |
mg/l |
Nitritos |
mg/l |
<0,02 |
0,02 |
<0,02 |
0,07 |
<0,02 |
<0,02 |
<0,02 |
0,03 |
0,04 |
<0,02 |
0,11 |
<0,02 |
0,09 |
<0,02 |
0,07 |
<0,02 |
0,07 |
0,09 |
0,04 |
<0,02 |
0,09 |
<0,02 |
0,03 |
<0,02 |
<0,02 |
<1 |
1 |
mg/l |
Sulfatos |
mg/l |
235,0 |
95,0 |
241,0 |
106,5 |
50,4 |
79 |
62,2 |
30,8 |
31,8 |
40,8 |
59,8 |
46,3 |
53,4 |
94,3 |
57,1 |
62,4 |
53,3 |
47,5 |
33,2 |
46,8 |
62,2 |
62,8 |
106,4 |
<0,2 |
<0,5 |
300,0 |
400,0 |
mg/l |
Sulfuro |
mg/l |
0,003 |
<0,001 |
0,004 |
<0,001 |
0,003 |
<0,001 |
0,001 |
<0,001 |
<0,001 |
0,001 |
0,014 |
<0,001 |
0,010 |
0,001 |
<0,001 |
0,003 |
<0,001 |
0,002 |
<0,001 |
0,001 |
0,008 |
0,004 |
<0,001 |
<0,001 |
<0,001 |
0,100 |
1,000 |
mg/l |
DBO_{5} |
mg/l |
7 |
7 |
11 |
5 |
8 |
6 |
12 |
<5 |
6 |
13 |
8 |
7 |
7 |
<5 |
8 |
5 |
5 |
<5 |
<5 |
8 |
9 |
<5 |
6 |
<5 |
<5 |
<2 |
<30 |
mg/l |
DQO |
mg/l |
10 |
28 |
14 |
28 |
12 |
38 |
18 |
14 |
24 |
18 |
36 |
10 |
40 |
7 |
22 |
9 |
25 |
29 |
8 |
12 |
47 |
8 |
31 |
<2 |
<2 |
<5 |
<60 |
mg/l |
Coliformes
Termotolera |
UFC/100 |
55 |
0 |
2 |
0 |
10 |
0 |
0 |
0 |
0 |
0 |
2 |
24 |
0 |
138 |
0 |
180 |
0 |
0 |
0 |
0 |
0 |
176 |
1 |
0 |
0 |
|
|
|
Coliformes
Totales |
UFC/100 |
100 |
10 |
10 |
0 |
60 |
0 |
10 |
0 |
0 |
0 |
15 |
51 |
3 |
303 |
0 |
240 |
3 |
0 |
5 |
31 |
4 |
236 |
12 |
0 |
0 |
|
|
|
Aceites
y grasas |
mg/l |
0,7 |
3,2 |
0,7 |
4,7 |
1,1 |
0,3 |
0,7 |
10,4 |
3,4 |
1,1 |
15,2 |
0,8 |
33,4 |
0,8 |
5,3 |
0,8 |
<0,3 |
3,2 |
2,4 |
1,1 |
5,3 |
0,8 |
3,4 |
0,9 |
<0,3 |
Ausente |
1 |
mg/l |
Detergentes |
mg/l |
0,002 |
|
0,004 |
|
0,002 |
|
0,002 |
|
|
0,001 |
|
0,003 |
|
0,001 |
|
0,004 |
|
|
|
0,001 |
|
0,004 |
<0,001 |
|
|
0,5 |
0,5 |
mg/l |
Fenoles |
mg/l |
0,029 |
|
0,022 |
|
0,044 |
|
0,028 |
|
|
0,048 |
|
0,042 |
|
0,032 |
|
0,038 |
|
|
|
0,055 |
|
0,001 |
<0,001 |
|
|
1
c |
10
c |
ug/l |
Carbonatos |
mg/l |
18,00 |
|
30,00 |
|
6,00 |
|
18,00 |
|
|
12,00 |
|
18,00 |
|
24,00 |
|
30,00 |
|
|
|
<0,1 |
|
42,0 |
<0,1 |
|
|
|
|
|
Source: Tierralta Environmental and Biological Report September
2024
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 184 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
| 20.3.2 | Ambient Air Quality |
Seven sampling locations were used
(See map in Figure 20-4) to measure TSP, PM10, CO, SO2,
NOx, and CO2, a comparison of the results obtained with the values defined in the Bolivian Regulation
on Atmospheric Pollution to determine the air quality in the study area. As presented in Table 20-2 and Table 20-3, the
concentrations were all below the permissible limits set by the Bolivian regulations. This sampling was done during the rainy season,
and therefore, particularly for dust, one would expect a lower concentration. The company is expected to conduct sampling during the dry
season as part of the sampling program
Table 20-2 Particulate Matter Results
PARTICULATE |
|
CARANGAS |
BOLIVIAN NORM |
Parameters |
Unit |
AI-01 |
AI-02 |
AI-03 |
AI-04 |
AI-05 |
AI-06 |
AI-07 |
PERMISSIBLE
LIMIT |
UNIT |
Total Suspended Particulate |
mg/m3 |
81.2 |
14.3 |
16.5 |
33.4 |
33.1 |
21.2 |
26.8 |
260 |
mg/m3 |
PM10 |
mg/m3 |
60.4 |
2.4 |
2.4 |
26.2 |
11.0 |
11,8 |
14.6 |
150 |
mg/m3 |
Table 20-3 Gases Results
GASES |
|
CARANGAS |
BOLIVIAN NORM |
Parámeters |
Unidades |
G-01 |
G-02 |
G-03 |
G-04 |
G-05 |
G-06 |
G-07 |
PERMISSIBLE LIMIT |
UNIT |
CO |
mg/m3 |
<0.001 |
<0.001 |
<0.001 |
<0.001 |
<0.001 |
<0.001 |
<0.001 |
40 |
mg/m3 |
SO2 |
µg/m3 |
<0.001 |
<0.001 |
<0.001 |
<0.001 |
<0.001 |
<0.001 |
<0.001 |
365 |
µg/m3 |
NOx |
µg/m3 |
<0.001 |
<0.001 |
<0.001 |
<0.001 |
<0.001 |
<0.001 |
<0.001 |
400 |
µg/m3 |
CO2 |
mg/m3 |
0.018 |
0.018 |
0.015 |
.0118 |
0.009 |
0.009 |
0.012 |
|
|
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 185 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure
20-4 Sampling Points for Ambient Air, Gases and Noise
|
Source: Tierraalta Environmental and Biological Report February 2024 |
|
For noise, as would be expected,
the level is below the maximum limit established on the Bolivian regulation of 68 dB. The highest level measured was 57.6 dB at point
RUI-02. Monitoring will continue as the Project progresses.
In Bolivian legislation, no specific
regulation establishes maximum permissible limits for soil/sediment; therefore, Tierralta considered Ecuadorian regulations as a reference
for the preparation of the Environmental Baseline Study. Eight samples were taken, and only one presented a pH below 6; this sample was
from non-cultivated soil. The soil was at least 62% sand and went all the way up to almost 94% sand. The higher sand content implies less
organic matter; thus, the soil is not optimal for agricultural purposes or would have a low yield.
| 20.4 | Social or Community Requirements |
The Carangas project is at an early
exploration stage and has obtained the necessary approval from the community to conduct the exploration activities. As of this date, the
project has only demographic information. The social baseline has not been completed yet. The social baseline and stakeholder map is planned
to start by January 2025; given the footprint of the pit and other project infrastructure, there may be a need for resident relocation,
and therefore, a high-quality social baseline will be required to assemble any resettlement plan that may need to be developed.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 186 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
| 20.5 | Mine
Closure Requirements |
At this stage of the project, a detailed
closure plan has not been developed. The Project is expected to prepare a mine closure plan in accordance with the relevant regulations
as work on the Project is advanced. An estimate of the closure cost for the financial model is included for the purposes of economic evaluation
and is presented in Table 21-1.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 187 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
| 21 | CAPITAL AND OPERATING COSTS |
RPMGlobal, Moose Mountain Technical
Services, and New Pacific Metals teams have prepared the PEA cost estimates discussed in this section. All operating and capital costs
have been estimated in real terms, in United States dollars ($), and are effective as of the date of this report.
The capital cost estimate for this
PEA considers all necessary investments to construct and operate the Carangas project over its LOM. The estimate was derived from a number
of sources, including:
| § | Vendor’s quotations for some of the major equipment, |
| § | Inputs from New Pacific Metals and other similar projects, |
| § | Moose Mountain Technical Services data, |
The total project capital cost for Carangas is
estimated at $490 million, comprising an initial capital cost of $324 million, sustaining capital of $128 million, and closure
capital of $39 million. Table 21-1-provides a breakdown of the capital costs. Indirect costs and contingency are included in
the line items below where applicable.
Table 21-1 Capital Cost Breakdown
CAPEX ($M) |
Initial |
Sustaining |
Closure |
Total |
Mine Development |
43 |
7 |
|
51 |
Processing Plant |
188 |
32 |
|
219 |
Site Infrastructure |
68 |
23 |
|
91 |
Tailings Storage Facility |
14 |
34 |
|
48 |
Owner’s Cost (Initial Only) |
11 |
|
|
11 |
Closure Cost |
|
|
39 |
39 |
Other Allowance (Sustaining Only) |
|
32 |
|
32 |
Total CAPEX |
324 |
128 |
39 |
490 |
The annual distribution of the capital expenditure
is detailed in Figure 21-1.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 188 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 21-1
CAPEX Distribution
| 21.1.1 | Mine Development Capital Cost |
Mine capital costs have been derived
from contractor-supplied unit cost estimates for open pit mining operations applied to the Carangas mine plan and PEA production schedule.
Additionally, historical cost data collected by Moose Mountain Technical Services (MMTS) from other South American open-pit mining operations
were utilized in the estimate.
Pre-production mine operating costs (i.e.,
all mine operating costs incurred before mill start-up, covering 19.4 Mt of scheduled waste rock mining) are capitalized and included
in the capital cost estimate. Pre- production pit operating costs include drill and blast, load and haul, support, and departmental overhead
costs.
The mining contractor will provide the
mobile fleet and maintenance facilities required for mining operations, with these costs embedded within the operating cost unit rates.
Furthermore, all site development costs for mine operations, including activities such as clearing and grubbing, haul road construction,
stockpile preparation, pit dewatering, and crushed rock production, are also capitalized.
The following mine operations infrastructure
items are also capitalized:
| § | Site GPS (global positioning system) |
| § | Mine survey gear and supplies |
| § | Radio communications systems |
| § | Geology, grade control, mine planning and management software licenses |
| § | Geotechnical instrumentation |
| § | Piping for pit dewatering |
Table 21-2 summarizes the
Mine Area Capital Cost estimates for the Carangas PEA Project. It is the QP’s opinion that these estimates are reasonable for the
location and planned mine development and can be used for a PEA.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 189 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table 21-2 Mine Area Capital Cost Summary
Item |
$ M |
Capitalized Pre-Production Contractor Mining Costs |
39.1 |
Capitalized Pre-Production Owner Mining Costs |
1.7 |
Site Development Capital Costs |
1.8 |
Mine Operations Infrastructure Capital Costs |
0.7 |
Total Initial Mining Capital |
43.3 |
|
|
Site Development Sustaining Capital Costs |
7.0 |
Mine Operations Infrastructure Sustaining Capital Costs |
0.4 |
Total Sustaining Mining Capital |
7.4 |
| 21.1.2 | Processing Plant Capital Cost |
The capital cost estimate for the
processing plant is based on the design criteria outlined in Section 17. The cost breakdown is displayed in Table 21-3,
including all engineering, infrastructure, and equipment associated with the processing plant construction, from the ROM pad to the tailings
thickener. The initial capital cost for the Carangas processing plant is estimated at $187.6 million.
Table 21-3 Initial Capital Cost - Processing
Plant
Item |
$ M |
Civil and Earthwork |
24.2 |
Mechanical |
41.7 |
Structural |
10.6 |
Platework |
6.1 |
Piping |
6.7 |
Electrical and Instrumentation (E&I) |
14.9 |
Misc. |
7.6 |
Total Direct Cost |
111.9 |
Indirect Cost |
32.4 |
Contingency |
43.3 |
Total Processing Plant |
187.6 |
The direct cost estimate for the processing
plant capital expenditure was derived from benchmark data and existing quotations from New Pacific Metals. Indirect costs were calculated
by applying a 30% factor over the direct costs. A contingency factor of 30% was applied to direct and indirect costs.
The sustaining capital costs for the
processing plant were estimated as a percentage of the initial capital cost. A 1% per year factor was applied for the PEA, resulting in
an average sustaining capital expenditure of $1.9 million per year.
| 21.1.3 | Site Infrastructure Capital Cost |
The infrastructure capital cost includes
all supporting services required for mining, processing, and tailings management activities. The initial capital cost associated with
infrastructure is estimated at $67.6 million. A detailed breakdown of the infrastructure initial capital expenditure is provided in Table
21-4.
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Table 21-4 Infrastructure Initial Capital Cost
Item |
$M |
Camp Accommodation |
4.94 |
Administrative Buildings |
1.48 |
Laboratories |
1.22 |
Warehouse |
1.57 |
Water |
9.50 |
Power |
37.00 |
Water treatment plants |
6.11 |
Access Roads |
2.15 |
Communications |
2.00 |
Misc. |
1.60 |
Total Infrastructure |
67.60 |
Over half of the infrastructure initial
capital cost is attributed to the power supply, as detailed in Section 18.2. The second largest cost component is related to water
catchment and distribution.
The budgetary quote obtained for the power
line included contingency. Other infrastructure costs are allowances, and no additional contingency was added.
For infrastructure sustaining capital,
a factor of 2% of the initial cost per year of operation was assumed, equivalent to approximately $1.35 million per year.
| 21.1.4 | Tailings Storage Facility Capital Cost |
The TSF capital cost is estimated at $48.2
million over the life of the mine, which accounts for the five planned stages of tailings dam raises. A detailed breakdown by stage is
provided in Table 21-5.
Table 21-5 Tailings Management Capital Cost
Breakdown
Stage |
$M |
#1 (2 years) |
14.48 |
#2 (4 years) |
8.99 |
#3 (4 years) |
9.05 |
#4 (4 years) |
8.49 |
#5 (3 years) |
7.23 |
Total Tailings CAPEX |
48.2 |
The tailings capital cost estimate encompasses
all necessary investments to construct and operate the tailings storage facility. This includes expenditures related to studies, geotechnical
preparation, earthworks, embankment rockfill, seepage pond construction, and other essential components.
A 15% contingency was included for initial
and sustaining TSF-related costs.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 191 of 227 | |
| |
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| 21.1.5 | Owner’s
Capital Cost |
Owner’s costs presented in this report
cover land use compensation for the use of the communities’ land for the LOM of the operation and allowance for other community
projects, as well as the necessary studies for the project development. The capital cost for this item is estimated at $11 million.
The Carangas operating cost estimates are
presented in U.S. Dollars ($) and expressed in real terms. These costs are current as of the date of this report. A summary of the project
operating costs is provided in Table 21-6.
Table 21-6 Operating Cost Breakdown
OPEX |
Unit Cost – LOM Average ($/t ore) |
Mine |
6.02* |
Processing Plant |
8.66 |
Tailings Management |
0.36 |
G&A |
3.56 |
Total OPEX |
18.6 |
*The mining operating cost per tonne of mill feed.
| 21.2.1 | Mine Operating Cost Estimates |
The mine operating cost estimates
for the Carangas project are based on a mining contractor's quotation received in Q2 of 2024 and applied to the Carangas PEA mine production
schedule.
The contractor provided the following
unit rates for mining operations at Carangas, which have been directly applied to the scheduled material movement:
| § | Drilling and Blasting = $0.66/t |
| § | Loading and Hauling = $1.35/t |
| § | Incremental Haul Distance per km, over 2 km = $0.13/t |
| § | Incremental Vertical Haul Distance per 10 m = $0.013/t |
| § | Rehandle Loading and Hauling = $1.29/t |
The contractor's unit rates incorporate
a diesel price input of $0.53/L, reflecting the current subsidy for mine operations in Bolivia.
Haulage profiles for all material sources
to all destinations have been developed for each year of the mine production schedule. The annual average haul distances and vertical
elevation changes have been measured and applied to the relevant incremental unit costs.
In addition, the operating cost estimate
includes staff salaries and departmental overheads for an owner- employed team, covering roles such as project manager, contracts manager,
technical services manager, geologists, surveyors, mine engineers, and a geotechnical engineer.
The estimated average unit mine operating costs
are as follows:
| § | During the Pre-Production Period: $2.11/t |
| − | These costs are capitalized and included in the capital cost
estimate for mining 19.4 Mt of rock. |
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| § | From Years 1-13: $2.36/t |
| − | This corresponds to a total cost of $371M to move 162 Mt of
rock. |
| § | From Years 14-17 (Stockpile Rehandle Period): $1.38/t |
| − | This corresponds to a total cost of $18M to rehandle 13 Mt of stockpiled low-grade and oxide ore to the
mill. |
The total operating cost per tonne of
mill feed is estimated at $6.02/t milled.
It is the QP’s opinion that
the estimates are reasonable for the location and planned mine operation activities and can be utilized for a PEA.
| 21.2.2 | Processing Operating Cost Estimates |
Processing operating costs are estimated
to average $8.66/t of ore over the life of mine. A detailed breakdown of these costs is provided in Table 21-7.
Table 21-7 Processing Operating Cost
Breakdown
Processing Operating Cost |
Unit Cost – LOM Average ($/t) |
Personnel |
0.92 |
Reagent & Consumables |
5.03 |
Power |
1.77 |
Maintenance |
0.60 |
Water |
0.23 |
Other |
0.11 |
Total Processing Plant |
8.66 |
The processing plant cost estimate
is based on preliminary calculations, including estimates for consumptions and quotations for reagents, power, and consumables. The personnel
cost estimate was derived using the average Bolivian salaries as of the date of this report.
The prices for reagents and consumables used
in the estimate are detailed in Table 21-8.
Table 21-8 Key Reagents and Consumables Price
Reagent / Consumable |
Price ($/t) |
Zinc Sulphate |
1,300 |
Copper Sulphate |
3,050 |
Lime |
348 |
Antiscalant |
4,300 |
Flocculant |
6,100 |
Collector AP3418A |
9,100 |
Collector Aero 404 |
4,100 |
Collector SIPX |
2,200 |
Frother MIBC |
3,600 |
Frother W31 |
3,600 |
Grinding Ball 125 mm |
1,028 |
Grinding Ball 50 mm |
1,108 |
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The power cost estimate is based on an
average consumption of 133,505 MWh per year, with an associated cost of $53/MWh. This cost is derived from a quotation provided by the
utility company.
Water costs were calculated based on an
annual makeup water consumption of 2,139,282 m³ per year, at an average cost of $0.40 /m³.
Additional costs, including maintenance,
assaying, and services, have been estimated using benchmark data.
The workforce cost estimate distinguishes
between salaried and hourly workers. RPM relied on New Pacific Metals for information regarding Bolivian legislation applicable to the
Carangas project workforce.
| 21.2.3 | Tailings Management Operating Cost Estimates |
The operating costs for tailings management
were calculated based on the consumables, services, and other costs associated with the operation of the tailings facility. Table 21-9
provides a breakdown of the tailings management operating costs for each stage.
Table 21-9 Tailings Management Operating Cost
Stage |
$ M |
#1 (2 years) |
2.70 |
#2 (4 years) |
5.35 |
#3 (4 years) |
5.35 |
#4 (4 years) |
5.35 |
#5 (3 years) |
4.11 |
Total Tailings OPEX |
22.90 |
The tailings management operating cost averages
$0.36 /t ore over the project life of the mine.
| 21.2.4 | G&A Operating Cost Estimates |
The G&A cost estimate was developed
based on the specific characteristics of the project and benchmark data from similar projects. A summary of the G&A operating cost
estimate is provided in Table 21-10.
Table 21-10 G&A
Operating Cost Estimate
G&A |
$ M / year |
Camp Site Costs |
9.13 |
Flights and land transportation |
0.50 |
Land compensation |
1.00 |
General Operation Management and Personnel |
1.50 |
Mine Operation Insurance |
1.00 |
Others |
0.60 |
Total G&A |
13.48 |
G&A Unit Cost ($/t ore) |
3.56 |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 194 of 227 | |
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oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
A preliminary economics analysis for
the Project was completed in connection with the PEA study. The results of the PEA are preliminary in nature and are intended to provide
an initial assessment of the Project’s economic potential and development options. The PEA mine schedule and economic assessment
includes numerous assumptions and is based on both Indicated and Inferred Mineral Resources.
Inferred resources are considered too
speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral
Reserves, and there is no certainty that the preliminary economic assessments described herein will be achieved or that the PEA
results will be realized. The estimate of Mineral Resources may be materially affected by geology, environmental, permitting, legal,
title, socio-political, marketing or other relevant issues. Mineral resources are not Mineral Reserves and do not have demonstrated
economic viability. Additional exploration will be required to potentially upgrade the classification of the Inferred Mineral
Resources to be considered in future advanced studies. Mineral Resources are constrained by an optimized pit shell at a metal price
of $23.00/oz Ag, $1,900.00/oz Au, $0.95/lb Pb, $1.25/lb Zn, recovery of 90% Ag, 98% Au, 83% Pb, 58% Zn and Cut-off grade of 40 g/t
AgEq. Assumptions made to derive a cut-off grade included mining costs, processing costs, and recoveries were obtained from
comparable industry situations.
The Discounted Cash Flow methodology
was employed to calculate the project’s Net Present Value, Internal Rate of Return, and Payback period. The cash flow estimates
are unlevered and calculated at the Carangas asset level. This economic analysis does not incorporate any corporate-level considerations
from New Pacific Metals or any of its subsidiaries.
The NPV was calculated using a 5% discount
rate, which is a standard real discount rate for evaluating precious metals projects. The cash flows were discounted from the second half
of year –2.
No inflation adjustments were applied to the
cash flow model.
The assumptions used for the economic model
are described next.
The production schedule in the discounted
cash flow model is based on the mine plan discussed on Table 16-6. The mine plan material movement and head grades are shown in
Figure 22-1 and Figure 22-2, respectively.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 195 of 227 | |
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Figure 22-1 Material
Movement
Figure 22-2 Head
Grades
The metallurgical
assumptions used for the preliminary economic analysis are based on the metallurgical testwork results discussed in Section 13.
Metal recoveries for the 100% Oxidized material, 100% Transitional material and 100% Sulfide material were derived based on their respective
recoveries from the rougher flotation and then calibrated against the locked cycle flotation results of the life-of-mine composite sample,
which consisted of 12.5% Oxidized material, 2.5% Transitional and 85.0% Sulfide material. It was assumed that metal recoveries, lead
content in the silver/lead concentrate and zinc content in the zinc/silver concentrate were independent of the head grades.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 196 of 227 | |
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Table 22-1 displays the LOM
average metallurgical assumptions used for the preliminary economic analysis. The assumptions are consistent over the life-of-mine and
are the same as those in the Process Design Criteria.
Table 22-1 LOM Average Metallurgical
Assumptions
|
Recovery |
Concentrate Grade |
|
Zn (%) |
Pb (%) |
Ag (%) |
Zn (%) |
Pb (%) |
Ag1
(g/t) |
Lead/Silver Concentrate |
65.9 |
70.6 |
80.8 |
45.8 |
24.0 |
3,975 |
Zinc/Silver Concentrate |
6.5 |
356 |
(1) Ag grades based on LOM average head grades
The project will produce approximately
744 kt of Zinc/Silver Concentrate and 826 kt of Silver/Lead Concentrate over the 16.2 years life of mine. Annual concentrate production
is shown in Figure 22-3.
Figure 22-3 Concentrate
Production
On a metal basis, the project will
produce approximately 7,035 koz of silver per year, or 114.0 Moz, over the life of mine. The majority of the silver reports to the silver/lead
concentrate, as shown in Table 22-1.
Zinc and lead metal productions are 21
kt zinc/year on average (341 kt in total over the life of mine) and 12 kt lead/year on average (198 kt in total over the life of mine).
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CIF commercial terms were considered. The following
payables were applied:
| § | Zinc/Silver Concentrate: |
− Zinc
payable: 85% of the zinc content, subject to a minimum deduction of 8%.
− Silver
payable: Deduct three ozs and pay 70% of the Ag content
| § | Lead/Silver Concentrate: |
−
Lead payable: 95% of the lead content, subject to a minimum deduction of 3%.
−
Silver payable: 96.5% of the silver content, subject to a minimum deduction of 1.61 oz
Table 22-2 displays the treatment
charges and refining charges considered for the financial model. The concentrate pricing terms are based on preliminary quotations from
Bolivian traders provided to the New Pacific team and, subsequently, RPM. It is assumed that the silver/lead concentrate will be sold
on the international market, while the zinc/silver concentrate will be sold to domestic smelters in Bolivia.
Table 22-2 Concentrate Pricing Terms
|
Pricing Terms |
|
Treatment Charge |
Ag Refining Charge |
Logistic |
Silver/Lead Concentrate |
$100 /t Conc. |
$0.5 /oz |
$120 |
Zinc/Silver Concentrate |
$175 /t Conc. |
$0.5 /oz |
$35 |
The metal prices used are shown in Table
22-3.
Table 22-3 Metal Prices
Zinc ($/t) |
2,756 |
Lead ($/t) |
2,094 |
Silver ($/oz) |
24 |
Considering the assumptions discussed above,
the zinc/silver and silver/lead concentrate prices would average $971 and $3,118 /t concentrate, respectively. Most of the Silver/lead
concentrate value is due to the high silver content.
| 22.1.3 | Operating and Capital Costs |
Operating and capital costs used in the
financial model are discussed in Section 21.
| 22.1.4 | Taxation and Royalties |
A regular Bolivian corporate income
tax rate of 25% is applied. As a mining property, the Project is subject to an additional tax of 12.5%. A tax schedule was prepared for
corporate income tax based on information provided by New Pacific. No tax credits have been applied.
The economic analysis summary is displayed
in Table 22-4.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 198 of 227 | |
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Table 22-4 Financial Model
Economic Analysis Summary
(page 1 production profile, page 2 net
smelter return, income statement and discounted cashflow)
Op.
Year |
|
|
|
|
-2 |
-1 |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
15 |
16 |
17 |
18 |
19 |
20 |
Days
in Period |
365 |
366 |
365 |
365 |
365 |
366 |
365 |
365 |
365 |
366 |
365 |
365 |
365 |
366 |
365 |
365 |
365 |
366 |
365 |
365 |
365 |
366 |
Production
Profile |
|
LOM |
Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mine
life |
|
16.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Material
Movement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mill
Feed (Zn/Pb/Ag) |
kt |
64,438 |
3,975 |
X |
0 |
0 |
3,600 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
836 |
0 |
0 |
0 |
Mine
to Mill |
kt |
40,438 |
2,495 |
X |
0 |
0 |
2,200 |
3,000 |
3,000 |
3,000 |
3,000 |
3,000 |
3,000 |
3,650 |
3,650 |
3,650 |
3,650 |
3,650 |
1,986 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Mine
to Stockpile |
kt |
65,411 |
4,035 |
X |
1,946 |
4,997 |
3,438 |
4,967 |
5,210 |
4,517 |
4,957 |
5,405 |
3,879 |
5,511 |
5,125 |
5,681 |
5,705 |
2,744 |
1,329 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Stockpile
Reclaim |
kt |
24,000 |
1,481 |
X |
0 |
0 |
1,400 |
1,000 |
1,000 |
1,000 |
1,000 |
1,000 |
1,000 |
350 |
350 |
350 |
350 |
350 |
2,014 |
4,000 |
4,000 |
4,000 |
836 |
0 |
0 |
0 |
Waste |
kt |
69,886 |
4,312 |
X |
2,056 |
10,363 |
8,736 |
6,283 |
5,790 |
6,983 |
5,993 |
5,795 |
6,621 |
4,221 |
2,074 |
1,764 |
1,140 |
750 |
1,318 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Total
Material Movement |
kt |
175,735 |
10,842 |
X |
4,002 |
15,360 |
14,374 |
14,250 |
14,000 |
14,500 |
13,950 |
14,200 |
13,500 |
13,382 |
10,849 |
11,095 |
10,494 |
7,145 |
4,633 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Zn/Pb/Ag
Mill |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput
(Zn/Pb/Ag) |
kt |
64,438 |
3,975 |
X |
0 |
0 |
3,600 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
836 |
0 |
0 |
0 |
Zn
Grade |
% |
0.80 |
0.80 |
X |
0 |
0 |
0.99 |
1.02 |
0.83 |
0.73 |
0.75 |
0.83 |
0.90 |
0.78 |
1.12 |
0.81 |
0.64 |
0.68 |
0.62 |
0.74 |
0.74 |
0.74 |
0.58 |
0 |
0 |
0 |
Pb
Grade |
% |
0.44 |
0.44 |
X |
0 |
0 |
0.63 |
0.59 |
0.46 |
0.42 |
0.47 |
0.53 |
0.53 |
0.47 |
0.51 |
0.38 |
0.33 |
0.39 |
0.31 |
0.33 |
0.33 |
0.33 |
0.36 |
0 |
0 |
0 |
Ag
Grade (U and M Zones) |
g/t |
63 |
63 |
X |
0 |
0 |
76 |
78 |
81 |
89 |
91 |
83 |
57 |
58 |
47 |
57 |
69 |
84 |
47 |
33 |
33 |
33 |
32 |
0 |
0 |
0 |
Ag
Grade (U and M) |
oz/t |
2.0 |
2.0 |
X |
0 |
0 |
2.5 |
2.5 |
2.6 |
2.9 |
2.9 |
2.7 |
1.8 |
1.9 |
1.5 |
1.8 |
2.2 |
2.7 |
1.5 |
1.1 |
1.1 |
1.1 |
1.0 |
0 |
0 |
0 |
Contained
metal |
|
|
|
X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zn |
kt |
517 |
32 |
X |
0 |
0 |
36 |
41 |
33 |
29 |
30 |
33 |
36 |
31 |
45 |
32 |
26 |
27 |
25 |
29 |
29 |
29 |
5 |
0 |
0 |
0 |
Pb |
kt |
281 |
17 |
X |
0 |
0 |
23 |
24 |
19 |
17 |
19 |
21 |
21 |
19 |
21 |
15 |
13 |
15 |
12 |
13 |
13 |
13 |
3 |
0 |
0 |
0 |
Ag |
kg |
40,621 |
2,506 |
X |
0 |
0 |
2,744 |
3,114 |
3,257 |
3,550 |
3,638 |
3,320 |
2,283 |
2,317 |
1,894 |
2,262 |
2,748 |
3,353 |
1,868 |
1,336 |
1,336 |
1,336 |
266 |
0 |
0 |
0 |
Ag |
koz |
1,305.979 |
81 |
X |
0 |
0 |
88 |
100 |
105 |
114 |
117 |
107 |
73 |
75 |
61 |
73 |
88 |
108 |
60 |
43 |
43 |
43 |
9 |
0 |
0 |
0 |
Recoveries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zn |
% |
65.9 |
65.9 |
X |
0 |
0 |
55.4 |
64.7 |
66.6 |
64.6 |
66.1 |
66.6 |
66.6 |
67.7 |
67.8 |
67.8 |
67.8 |
67.8 |
67.1 |
66.4 |
66.4 |
66.4 |
66.4 |
0 |
0 |
0 |
Pb |
% |
70.6 |
70.6 |
X |
0 |
0 |
63.2 |
67.0 |
64.4 |
63.2 |
66.8 |
69.3 |
69.2 |
76.0 |
77.5 |
76.1 |
75.2 |
76.2 |
74.2 |
74.1 |
74.1 |
74.1 |
54.8 |
0 |
0 |
0 |
Ag->Zn |
% |
6.5 |
6.5 |
X |
0 |
0 |
12.8 |
8.1 |
6.2 |
6.3 |
5.9 |
6.2 |
5.7 |
5.6 |
5.5 |
5.5 |
5.5 |
5.5 |
5.7 |
6.2 |
6.2 |
6.2 |
6.2 |
0 |
0 |
0 |
Ag->Pb |
% |
80.8 |
80.8 |
X |
0 |
0 |
73.4 |
78.3 |
80.2 |
80.1 |
80.5 |
80.2 |
80.6 |
82.5 |
83.0 |
83.0 |
83.1 |
83.3 |
82.8 |
81.9 |
81.9 |
81.9 |
78.8 |
0 |
0 |
0 |
Concentrate
Grade |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zn |
% |
45.8 |
45.8 |
X |
0 |
0 |
45.8 |
45.8 |
45.8 |
45.8 |
45.8 |
45.8 |
45.8 |
45.8 |
45.8 |
45.8 |
45.8 |
45.8 |
45.8 |
45.8 |
45.8 |
45.8 |
45.8 |
0 |
0 |
0 |
Pb |
% |
24 |
24 |
X |
0 |
0 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
0 |
0 |
0 |
Ag->Zn |
g/t |
356 |
356 |
X |
0 |
0 |
811 |
438 |
419 |
547 |
495 |
425 |
250 |
283 |
157 |
260 |
399 |
456 |
295 |
195 |
195 |
195 |
236 |
0 |
0 |
0 |
Ag->Pb |
g/t |
3,975 |
3,975 |
X |
0 |
0 |
3,361 |
3,696 |
5,246 |
6,449 |
5,630 |
4,332 |
3,025 |
3,232 |
2,374 |
3,882 |
5,574 |
5,717 |
4,072 |
2,667 |
2,667 |
2,667 |
3,041 |
0 |
0 |
0 |
Ag->Zn |
oz/t |
11 |
11 |
X |
0 |
0 |
26 |
14 |
13 |
18 |
16 |
14 |
8 |
9 |
5 |
8 |
13 |
15 |
10 |
6 |
6 |
6 |
8 |
0 |
0 |
0 |
Ag->Pb |
oz/t |
128 |
128 |
X |
0 |
0 |
108 |
119 |
169 |
207 |
181 |
139 |
97 |
104 |
76 |
125 |
179 |
184 |
131 |
86 |
86 |
86 |
98 |
0 |
0 |
0 |
Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zn
Concentrate |
kt |
744 |
46 |
X |
0 |
0 |
43.4 |
57 |
48 |
41 |
43 |
48 |
52 |
46 |
66 |
48 |
38 |
41 |
36 |
43 |
43 |
43 |
7 |
0 |
0 |
0 |
Pb
Concentrate |
kt |
826 |
51 |
X |
0 |
0 |
60 |
66 |
50 |
44 |
52 |
61 |
61 |
59 |
66 |
48 |
41 |
49 |
38 |
41 |
41 |
41 |
7 |
0 |
0 |
0 |
Metal
Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zn |
kt |
341 |
21 |
X |
0 |
0 |
20 |
26 |
22 |
19 |
20 |
22 |
24 |
21 |
30 |
22 |
17 |
19 |
17 |
20 |
20 |
20 |
3 |
0 |
0 |
0 |
Pb |
kt |
198 |
12 |
X |
0 |
0 |
14 |
16 |
12 |
11 |
12 |
15 |
15 |
14 |
16 |
12 |
10 |
12 |
9 |
10 |
10 |
10 |
2 |
0 |
0 |
0 |
Ag
-> Zn |
koz |
8,514 |
525 |
X |
0 |
0 |
1,130 |
808 |
647 |
722 |
689 |
661 |
421 |
419 |
335 |
401 |
487 |
594 |
345 |
267 |
267 |
267 |
53 |
0 |
0 |
0 |
Ag
-> Pb |
koz |
105,514 |
6,510 |
X |
0 |
0 |
6,477 |
7,838 |
8,401 |
9,141 |
9,418 |
8,563 |
5,919 |
6,143 |
5,053 |
6,036 |
7,342 |
8,986 |
4,970 |
3,518 |
3,518 |
3,518 |
672 |
0 |
0 |
0 |
Total
Ag |
koz |
114,028 |
7,035 |
X |
0 |
0 |
7,607 |
8,646 |
9,048 |
9,862 |
10,107 |
9,224 |
6,341 |
6,561 |
5,388 |
6,437 |
7,829 |
9,580 |
5,315 |
3,786 |
3,786 |
3,786 |
726 |
0 |
0 |
0 |
Payable
Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zn |
kt |
281 |
17 |
|
0 |
0 |
16 |
22 |
18 |
16 |
16 |
18 |
20 |
17 |
25 |
18 |
14 |
15 |
14 |
16 |
16 |
16 |
3 |
0 |
0 |
0 |
Pb |
kt |
173 |
11 |
|
0 |
0 |
13 |
14 |
10 |
9 |
11 |
13 |
13 |
12 |
14 |
10 |
9 |
10 |
8 |
9 |
9 |
9 |
1 |
0 |
0 |
0 |
Total
Ag |
koz |
106,218 |
6,553 |
|
0 |
0 |
6,951 |
8,009 |
8,459 |
9,240 |
9,480 |
8,624 |
5,897 |
6,124 |
4,972 |
6,005 |
7,346 |
9,002 |
4,961 |
3,493 |
3,493 |
3,493 |
671 |
0 |
0 |
0 |
AgEq |
koz |
153,640 |
9,479 |
|
0 |
0 |
9,931 |
11,711 |
11,458 |
11,829 |
12,312 |
11,852 |
9,286 |
9,203 |
9,062 |
8,970 |
9,743 |
11,658 |
7,231 |
6,097 |
6,097 |
6,097 |
1,102 |
0 |
0 |
0 |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 199 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Op.
Year |
|
|
|
|
-2 |
-1 |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
15 |
16 |
17 |
18 |
19 |
20 |
Days
in Period |
|
|
|
|
365 |
366 |
365 |
365 |
365 |
366 |
365 |
365 |
365 |
366 |
365 |
365 |
365 |
366 |
365 |
365 |
365 |
366 |
365 |
365 |
365 |
366 |
Net
Smelter Return |
|
LOM |
Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zinc/Silver
Concentrate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zn
Price |
$/t |
2755.78 |
|
X |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
2,756 |
Ag
Price |
$/oz |
24 |
|
X |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
Zn
Payable |
% |
38 |
|
X |
0 |
0 |
38 |
38 |
38 |
38 |
38 |
38 |
38 |
38 |
38 |
38 |
38 |
38 |
38 |
38 |
38 |
38 |
38 |
-8 |
-8 |
-8 |
TC |
$/t conc. |
175 |
|
X |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
175 |
Logistic |
$/t
conc. |
35 |
|
X |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
35 |
Ag
Payable |
oz |
5.9 |
|
X |
0 |
0 |
16 |
8 |
7 |
10 |
9 |
7 |
4 |
4 |
1 |
4 |
7 |
8 |
5 |
2 |
2 |
2 |
3 |
0 |
0 |
0 |
RC
(Ag) |
$/oz |
0.5 |
|
X |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
Zn
Concentrate Value |
$/t |
971 |
|
X |
0 |
0 |
1,211 |
1,014 |
1,004 |
1,072 |
1,044 |
1,007 |
915 |
932 |
866 |
920 |
994 |
1,023 |
939 |
885 |
885 |
885 |
907 |
0 |
0 |
0 |
Zn
Value in Zn Con |
$/t |
832 |
|
X |
0 |
0 |
832 |
832 |
832 |
832 |
832 |
832 |
832 |
832 |
832 |
832 |
832 |
832 |
832 |
832 |
832 |
832 |
832 |
0 |
0 |
0 |
Ag
Value in Zn Con |
$/t |
139 |
|
X |
0 |
0 |
379 |
182 |
172 |
240 |
213 |
175 |
83 |
100 |
34 |
88 |
162 |
192 |
107 |
54 |
54 |
54 |
75 |
0 |
0 |
0 |
Silver/Lead
Concentrate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pb
Price |
$/t |
2094.39 |
|
X |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
2,094 |
Ag
Price |
$/oz |
24 |
|
X |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
24 |
Pb
Payable |
% |
21 |
|
X |
0 |
0 |
21 |
21 |
21 |
21 |
21 |
21 |
21 |
21 |
21 |
21 |
21 |
21 |
21 |
21 |
21 |
21 |
21 |
-3 |
-3 |
-3 |
TC |
$/t
conc. |
100 |
|
X |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
Logistic |
$/t
conc. |
120 |
|
X |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
120 |
Ag
Payable |
oz |
123 |
|
X |
0 |
0 |
104 |
115 |
163 |
200 |
175 |
134 |
94 |
100 |
74 |
120 |
173 |
177 |
126 |
83 |
83 |
83 |
94 |
0 |
0 |
0 |
RC
(Ag) |
$/oz |
0.5 |
|
X |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
Pb
Concentrate Value |
$/t |
3118 |
|
X |
0 |
0 |
2,670 |
2,914 |
4,045 |
4,921 |
4,325 |
3,378 |
2,425 |
2,576 |
1,951 |
3,050 |
4,284 |
4,388 |
3,189 |
2,165 |
2,165 |
2,165 |
2,437 |
0 |
0 |
0 |
Pb
Value in Pb Con |
$/t |
220 |
|
X |
0 |
0 |
220 |
220 |
220 |
220 |
220 |
220 |
220 |
220 |
220 |
220 |
220 |
220 |
220 |
220 |
220 |
220 |
220 |
0 |
0 |
0 |
Ag
Value in Pb Con |
$/t |
2898 |
|
X |
0 |
0 |
2,451 |
2,694 |
3,825 |
4,702 |
4,105 |
3,159 |
2,205 |
2,357 |
1,731 |
2,831 |
4,064 |
4,168 |
2,969 |
1,945 |
1,945 |
1,945 |
2,217 |
0 |
0 |
0 |
|
Income
Statement |
|
LOM |
Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Revenue Zn Conc. |
k$ |
722,093 |
44,549 |
X |
0 |
0 |
52,516 |
58,231 |
48,262 |
43,977 |
45,193 |
48,748 |
47,907 |
42,863 |
57,383 |
44,067 |
37,667 |
41,491 |
34,041 |
37,796 |
37,796 |
37,796 |
6,359 |
0 |
0 |
0 |
Zn
Value in Zn Conc. |
k$ |
618,750 |
38,173 |
X |
0 |
0 |
36,063 |
47,773 |
39,990 |
34,130 |
35,992 |
40,264 |
43,559 |
38,247 |
55,136 |
39,838 |
31,529 |
33,718 |
30,163 |
35,506 |
35,506 |
35,506 |
5,831 |
0 |
0 |
0 |
Ag
Value in Zn Conc. |
k$ |
103,342 |
6,376 |
X |
0 |
0 |
16,453 |
10,459 |
8,272 |
9,847 |
9,201 |
8,484 |
4,347 |
4,616 |
2,247 |
4,229 |
6,138 |
7,773 |
3,878 |
2,290 |
2,290 |
2,290 |
528 |
0 |
0 |
0 |
Gross
Revenue Pb Conc. |
k$ |
2,574,295 |
158,819 |
X |
0 |
0 |
160,061 |
192,255 |
201,456 |
216,980 |
225,014 |
207,695 |
147,612 |
152,296 |
129,137 |
147,520 |
175,506 |
214,523 |
121,061 |
88,806 |
88,806 |
88,806 |
16,763 |
0 |
0 |
0 |
Pb
Value in Pb Conc. |
k$ |
181,493 |
11,197 |
X |
0 |
0 |
13,176 |
14,502 |
10,948 |
9,692 |
11,437 |
13,514 |
13,380 |
12,994 |
14,553 |
10,630 |
9,006 |
10,746 |
8,346 |
9,019 |
9,019 |
9,019 |
1,512 |
|
|
|
Ag
Value in Pb Conc. |
k$ |
2,392,802 |
147,622 |
X |
0 |
0 |
146,885 |
177,753 |
190,507 |
207,288 |
213,577 |
194,181 |
134,232 |
139,301 |
114,584 |
136,890 |
166,500 |
203,776 |
112,715 |
79,787 |
79,787 |
79,787 |
15,251 |
|
|
|
(-)
Royalties |
k$ |
189,781 |
11,708 |
X |
0 |
0 |
12,262 |
14,406 |
14,474 |
15,219 |
15,738 |
14,849 |
11,162 |
11,197 |
10,494 |
10,991 |
12,385 |
14,916 |
8,921 |
7,151 |
7,151 |
7,151 |
1,314 |
0 |
0 |
0 |
(=)
Net Revenue |
k$ |
3,106,607 |
191,659 |
X |
0 |
0 |
200,314 |
236,080 |
235,244 |
245,738 |
254,469 |
241,594 |
184,357 |
183,961 |
176,026 |
180,596 |
200,788 |
241,097 |
146,181 |
119,451 |
119,451 |
119,451 |
21,808 |
0 |
0 |
0 |
Mining
cost |
k$ |
388,150 |
23,947 |
X |
0 |
0 |
31,900 |
31,200 |
31,500 |
32,000 |
31,600 |
32,100 |
32,100 |
32,000 |
27,500 |
27,800 |
26,900 |
19,300 |
14,490 |
5,490 |
5,490 |
5,440 |
1,340 |
0 |
0 |
0 |
Processing
cost |
k$ |
558,030 |
34,427 |
X |
0 |
0 |
31,177 |
34,641 |
34,641 |
34,641 |
34,641 |
34,641 |
34,641 |
34,641 |
34,641 |
34,641 |
34,641 |
34,641 |
34,644 |
34,640 |
34,640 |
34,640 |
7,239 |
0 |
0 |
0 |
Tailing
cost |
k$ |
22,867 |
1,411 |
X |
0 |
0 |
1,352 |
1,352 |
1,339 |
1,339 |
1,339 |
1,339 |
1,338 |
1,338 |
1,338 |
1,338 |
1,337 |
1,337 |
1,337 |
1,337 |
1,369 |
1,369 |
1,369 |
0 |
0 |
0 |
(=)
Gross Profit |
k$ |
2,137,560 |
131,875 |
X |
0 |
0 |
135,885 |
168,887 |
167,764 |
177,758 |
186,889 |
173,514 |
116,278 |
115,983 |
112,547 |
116,818 |
137,911 |
185,819 |
95,710 |
77,984 |
77,952 |
78,002 |
11,859 |
0 |
0 |
0 |
(-)
SG&A |
k$ |
229,160 |
14,138 |
X |
0 |
0 |
13,480 |
13,480 |
13,480 |
13,480 |
13,480 |
13,480 |
13,480 |
13,480 |
13,480 |
13,480 |
13,480 |
13,480 |
13,480 |
13,480 |
13,480 |
13,480 |
13,480 |
0 |
0 |
0 |
(=)
EBITDA |
k$ |
1,908,400 |
117,737 |
X |
0 |
0 |
122,405 |
155,407 |
154,284 |
164,278 |
173,409 |
160,034 |
102,798 |
102,503 |
99,067 |
103,338 |
124,431 |
172,339 |
82,230 |
64,504 |
64,472 |
64,522 |
-1,621 |
0 |
0 |
0 |
(-)
Depreciation |
k$ |
490,238 |
30,245 |
X |
0 |
0 |
48,980 |
50,232 |
50,669 |
36,949 |
38,841 |
37,093 |
36,401 |
37,040 |
16,490 |
17,631 |
9,269 |
9,911 |
13,133 |
13,354 |
11,202 |
11,816 |
22,129 |
9,700 |
9,700 |
9,700 |
(=)
EBIT |
k$ |
1,418,162 |
87,492 |
X |
0 |
0 |
73,425 |
105,175 |
103,616 |
127,330 |
134,569 |
122,941 |
66,398 |
65,463 |
82,577 |
85,706 |
115,161 |
162,429 |
69,097 |
51,150 |
53,269 |
52,706 |
-23,749 |
-9,700 |
-9,700 |
-9,700 |
%
Revenue Doré |
% |
551,629 |
34,032 |
X |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
(-)
Taxes |
k$ |
27,534 |
39,441 |
38,856 |
47,749 |
50,463 |
46,103 |
24,899 |
24,549 |
30,966 |
32,140 |
43,185 |
60,911 |
25,911 |
19,181 |
19,976 |
19,765 |
0 |
0 |
0 |
0 |
(=)
Net Income |
k$ |
866,533 |
53,460 |
X |
0 |
0 |
45,891 |
65,735 |
64,760 |
79,581 |
84,105 |
76,838 |
41,499 |
40,914 |
51,610 |
53,566 |
71,976 |
101,518 |
43,186 |
31,969 |
33,293 |
32,941 |
-23,749 |
-9,700 |
-9,700 |
-9,700 |
Pre-Tax
Net CF |
|
1,447,262 |
|
|
-109,161 |
-214,391 |
111,699 |
144,770 |
148,262 |
158,236 |
163,350 |
150,075 |
97,366 |
97,070 |
89,369 |
93,640 |
118,978 |
166,887 |
73,403 |
55,676 |
59,259 |
59,309 |
-16,533 |
|
|
|
|
Discounted
Cash Flow |
|
LOM |
Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
k$ |
866,533 |
53,460 |
X |
0 |
0 |
45,891 |
65,735 |
64,760 |
79,581 |
84,105 |
76,838 |
41,499 |
40,914 |
51,610 |
53,566 |
71,976 |
101,518 |
43,186 |
31,969 |
33,293 |
32,941 |
-23,749 |
-9,700 |
-9,700 |
-9,700 |
(+)
Depreciation |
k$ |
490,238 |
30,245 |
X |
0 |
0 |
48,980 |
50,232 |
50,669 |
36,949 |
38,841 |
37,093 |
36,401 |
37,040 |
16,490 |
17,631 |
9,269 |
9,911 |
13,133 |
13,354 |
11,202 |
11,816 |
22,129 |
9,700 |
9,700 |
9,700 |
(-)
CAPEX Investment |
k$ |
490,238 |
30,245 |
X |
109,161 |
214,391 |
10,706 |
10,636 |
6,023 |
6,043 |
10,060 |
9,960 |
5,433 |
5,433 |
9,698 |
9,698 |
5,453 |
5,453 |
8,828 |
8,828 |
5,213 |
5,213 |
14,913 |
9,700 |
9,700 |
9,700 |
(+/-)
Change in Working Capital |
k$ |
0 |
0 |
X |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
(=)
UFCF |
k$ |
866,533 |
53,460 |
X |
-109,161 |
-214,391 |
84,165 |
105,330 |
109,406 |
110,487 |
112,887 |
103,972 |
72,466 |
72,521 |
58,403 |
61,500 |
75,792 |
105,976 |
47,491 |
36,495 |
39,283 |
39,544 |
-16,533 |
-9,700 |
-9,700 |
-9,700 |
Discount
Period |
# |
- |
- |
X |
0.5 |
1.5 |
2.5 |
3.5 |
4.5 |
5.5 |
6.5 |
7.5 |
8.5 |
9.5 |
10.5 |
11.5 |
12.5 |
13.5 |
14.5 |
15.5 |
16.5 |
17.5 |
18.5 |
19.5 |
20.5 |
21.5 |
Discount
Factor |
# |
- |
- |
X |
0.98 |
0.93 |
0.89 |
0.84 |
0.80 |
0.76 |
0.73 |
0.69 |
0.66 |
0.63 |
0.60 |
0.57 |
0.54 |
0.52 |
0.49 |
0.47 |
0.45 |
0.43 |
0.41 |
0.39 |
0.37 |
0.35 |
Discounted
UFCF |
k$ |
501,270 |
- |
|
-106,530 |
-199,261 |
74,500 |
88,795 |
87,839 |
84,483 |
82,208 |
72,110 |
47,866 |
45,621 |
34,990 |
35,091 |
41,187 |
54,847 |
23,408 |
17,131 |
17,562 |
16,837 |
-6,704 |
-3,746 |
-3,568 |
-3,398 |
IRR |
|
26% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acc.
UFCF |
k$ |
866,533 |
|
|
-109,161 |
-323,551 |
-239,386 |
-134,057 |
-24,651 |
85,836 |
198,723 |
302,694 |
375,161 |
447,682 |
506,085 |
567,585 |
643,377 |
749,353 |
796,844 |
833,339 |
872,622 |
912,166 |
895,633 |
885,933 |
876,233 |
866,533 |
Payback |
# |
3.2 |
|
|
1.0 |
1.0 |
1.0 |
1.0 |
1.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 200 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Considering the Project on a stand-alone
basis, the undiscounted pre-tax cash flow totals $1,447 million over the mine life, and post-tax payback occurs 3.2 years from the start
of production.
The economic analysis results are shown in
Table 22-5.
Table 22-5 Economic Analysis Results
|
Economic Analysis Results |
Post Tax NPV @ 5% ($M) |
501 |
IRR (%) |
26 |
Payback (years) |
3.2 |
RPM considered the 5% discount rate
based on New Pacific Metals input, although it observes that this could be aggressive considering the Bolivia risk rate and exposure to
other non-precious metals price volatility. A sensitivity analysis was completed, including the discount rate effect.
A sensitivity analysis was conducted
to evaluate the influence of variations in LOM capital and operating costs. This analysis assessed the impact on post-tax NPV, applying
a 5% annual discount rate, and on IRR by adjusting mining cost, process cost, and LOM capex, respectively, by +/-10% to +/-20%. The results
of the cost sensitivity analysis are summarized in Table 22-6.
Table 22-6
NPV and IRR Sensitivity Analysis by Input Cost
|
Cost Sensitivity |
Sensitivity Items |
-20% |
-10% |
100%
(base case) |
+10% |
+20% |
Mining Cost (Post-tax NPV $M / IRP) |
534/27% |
518/26% |
501/26% |
485/25% |
468/25% |
Processing Cost (Post-tax NPV $M / IRP) |
563/28% |
532/27% |
501/26% |
470/25% |
439/24% |
Life-of-Mine Capex (Post-tax NPV $M / IRP) |
558/32% |
530/29% |
501/26% |
473/23% |
444/21% |
Another sensitivity analysis was conducted
for the silver metal price. The change in NPV and IRR is presented in Table 22-7.
Table 22-7 Sensitivity analysis
of silver prices
|
Silver Price Sensitivity |
Silver Price (US$/oz) |
$18.00 |
$21.00 |
$24.00
(base case) |
$27.00 |
$30.00 |
Result (Post-tax NPV $M / IRP) |
254/17% |
378/22% |
501/26% |
625/30% |
748/34% |
An additional sensitivity analysis considering
different discount rates is shown in Table 22-8
Table 22-8 Sensitivity to Discount
Rate
Discount Rates (%) |
5% |
8% |
10% |
12% |
Post Tax NPV @ ($M) |
501 |
359 |
285 |
224 |
The sensitivity analysis results indicate
that the post-tax NPV remains positive across the evaluated sensitivity range. The NPV is highly sensitive to variations in silver price
and discount rate while showing moderate sensitivity to changes in capital and operating costs.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 201 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
The Carangas Project is advantageously
situated in proximity to several notable mining properties, which provide geological context and potential for regional infrastructure
synergies:
| § | San Cristóbal Mine (200 km SE): One
of Bolivia’s largest mining operations, the San Cristóbal Mine is operated by Sumitomo Corporation, producing significant quantities
of silver, zinc, and lead. Its large- scale infrastructure serves as a model of high-efficiency mining within the region, setting industry
benchmarks for extraction and processing. |
| § | Bolívar Mine (NE): Operated by the Bolivian
Mining Corporation (Comibol), the Bolívar Mine is a longstanding polymetallic mining site that yields zinc, lead, and silver. This
operation has a history of consistent production and highlights the potential for similar polymetallic resources in the Carangas vicinity. |
| § | Poopó Mining District (E): Known for
its tin and silver deposits, the Poopó district comprises a mix of small-scale and artisanal mining operations. The ongoing activity
in Poopó reflects continued interest and potential in the region, with opportunities for conventional and artisanal resource extraction. |
| § | Huanuni Mine (150 km E): Recognized as one
of the world’s most prominent tin (cassiterite) mines, the Huanuni Mine, also managed by Comibol, additionally yields silver as
a by-product. This operation further emphasizes the mineral diversity in the Oruro region. |
Strategic Implications for the Carangas
Project
The Carangas Project benefits from
its location within a well-established mining ecosystem. Neighbouring operations demonstrate a strong track record of polymetallic production,
infrastructure development, and market viability, indicating a significant upside for Carangas. These adjacent properties provide benchmarks
for the extraction, processing, and logistical frameworks necessary to advance the Carangas Project from exploration to development.
Conclusion
Given the Carangas Project’s favourable
positioning in a historically productive mining region, the project shows substantial promise for a high-value, polymetallic mining operation.
The proximal infrastructure and shared resource knowledge within the Oruro Department add critical support to the economic and technical
viability of the Carangas Project, positioning it as a strong candidate for further advancement through the PEA stage.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 202 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
| 24 | OTHER RELEVANT DATA AND INFORMATION |
No additional information or explanation
is necessary to make this Technical Report understandable and not misleading.
| 24.1 | Alternate
Project Development Plan |
A secondary project development plan
has been considered for the Carangas deposit. This alternate plan envisions a higher throughput mill and larger development footprint
to exploit the zinc zone below the PEA mine plan open pit and access and process the Lower Gold Zone of the deposit.
This Lower Gold Zone requires an alternate
metallurgical process, developing and alternate saleable product, and so a secondary mill scenario is also planned.
The minable quantities presented in this
section should not be added to the mine plan presented elsewhere in this Report.
The alternate production plan targets
the Lower Gold Zone area of the deposit. All mine planning design inputs described in Section 16.2 are still applied. The pit shell
target is the 0.80 PF shell described in Section 16.3.1 and Figure 16-3.
A series of open pit designs have
been completed to target this larger project pit shell. All pit design inputs described in Section 16.4 apply to these pits. Figure
24-1 and Figure 24-2 show the plan and section views of these larger pit designs accessing the Lower Gold Zone.
Table 16-1 summarizes the sub-set
of Mineral Resources contained in the alternate larger pit designs. Measured, Indicated and Inferred Class resources are included in the
mill feed contents. An NSR cutoff grade of $13.50/t is chosen, which covers payment for processing, G&A, and low-grade stockpile reclaim
costs.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 203 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Table 24-1 Alternate Pit Design
Contents
Factor |
Value |
Silver Zone Mill Feed |
196.0 Mt |
Mill Feed NSR |
$31.9/t |
Mill Feed Ag Grade |
37 g/t |
Mill Feed Pb Grade |
0.35 % |
Mill Feed Zn Grade |
0.65 % |
Gold Zone Mill Feed |
51.3 Mt |
Mill Feed NSR Grade |
$47.3/t |
Mill Feed Ag Grade |
12 g/t |
Mill Feed Au Grade |
0.75 g/t |
Waste Rock |
367.6 Mt |
Waste: Mill Feed Ratio |
1.5 |
Notes:
| (1) | The Alternate mine plan Mill Feed estimates are
a subset of the August 25, 2023, Mineral Resource estimates and are based on open pit mine engineering and technical information developed
at a Scoping level for the Carangas deposit. |
| (2) | PEA Mine Plan and Mill Feed estimates are mined tonnes
and grade. The reference point is the primary crusher. Mill Feed tonnages and grades include open pit mining method modifying factors,
such as dilution and recovery. |
| (3) | Net Smelter Prices (NSP) and metallurgical recoveries
are used to define the cutoff grade. NSPs include market price assumptions of $23.0/oz Ag; $2,094/t Pb, $2,756/t Zn. Various smelter and
refining terms, offsite costs, and a 6% royalty derive NSPs of $20.5/oz Ag, $1,418/t Pb, and $1,630/t Zn. Metallurgical recoveries of
90% Ag, 83% Pb, and 58% Zn are applied. |
| (4) | The chosen cut-off grade covers total operating
costs of $13.50/t, which exceeds estimated PEA processing and G&A cost estimates. |
| (5) | Estimates have been rounded and may result in summation differences. |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 204 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 24-1 Alternate Open Pit Design, P625
| Source: Moose
Mountain, 2024 | |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 205 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 24-2 Alternate Pit Designs,
NS Section View, 593150E
|
Source: Moose Mountain,
2024 |
|
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 206 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
An alternative WRSF and stockpile scenario,
shown in Figure 24-3, is designed at a scoping level to store all materials mined in this alternate mine plan. Resources mined
in excess of mill feed targets will be sent to on- surface stockpiles and reclaimed at the mill by the end of the project's life. The
low-grade stockpile is intended to store silver zone resources grading $13.50/t to $20.00/t NSR, and the medium-grade stockpile is intended
to store silver zone resources grading above $20.00/t NSR. The gold zone stockpile is intended to store all Lower Gold Zone resources.
Both the gold zone and mid-grade stockpiles are planned to be rehandled and exhausted before the open pit is exhausted. The low-grade
stockpiles are planned to be completely rehandled and exhausted after the open pit is mined out.
Figure 24-3 Mine General
Arrangement for Alternate Project Case
| Source: Moose Mountain, 2024 | |
The alternate mine plan initially
targets silver zone milling at a rate of 8 Mtpa (22 ktpd), expanding to 16 Mtpa (44 tpd) in Year 6 of the project. In Year 10 of the project,
half of the mill is converted to process Lower Gold Zone materials. Once the pit is completely mined out, in Year 16 of the project, the
entire mill is converted back to handle silver zone milling, and the low-grade stockpile is completely rehandled and exhausted. Figure
24-4 to Figure 24-6 describe the alternate mine plan production schedule, showing silver and gold zone mill feed tonnes and grade
and overall pit and stockpiled mined tonnes.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 207 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure 24-4 Alternate Production Scenario:
Silver Zone Mill Feed
|
Source: Moose
Mountain, 2024 |
|
Figure
24-5 Alternate Production Scenario Gold Zone Mill Feed
|
Source: Moose Mountain, 2024 |
|
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 208 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Figure
24-6 Alternate Production Scenario Mine Production Summary
| Source: Moose Mountain, 2024 | |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 209 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
| 25 | INTERPRETATION AND CONCLUSIONS |
| 25.1 | Geology and Mineralization |
Carangas is a large silver-gold-lead-zinc
polymetallic deposit hosted in a caldera-diatreme volcanic complex of the Tertiary age in the South American Epithermal-Porphyry Belt.
Controlled by the temperature and pressure of the underlying hydrothermal system, mineralization is zoned into separate zones: a near-surface
Upper Silver Zone dominated by silver plus a moderate amount of lead and zinc, a Middle Zinc Zone dominated by zinc plus minor amount
of silver and lead, and a Lower Gold Zone dominated by gold plus small amount of silver, copper and zinc. Gold mineralization remains
open to north and northeast directions at depth. Beyond the drilled area, there are multiple IP chargeability anomalies with geophysical
signatures similar to those of the known mineralization. These anomalies constitute targets for future drilling to assess if additional
material is suitable for consideration in Mineral Resources.
| 25.2 | Data Verification and Mineral Resources |
New Pacific has established working
procedures and protocols regarding core logging, sampling, core quality assurance/quality control (QAQC) and data validation, including
insertion of standards, duplicates, blanks and umpire check samples, with which the QP is satisfied. In the opinion of the QP, the data
acquisition, analysis and validation comply with the industry best practices and are appropriate for Mineral Resource estimate and technical
reporting, and there are no other known significant risks and uncertainties that could reasonably be expected to affect the reliability
or confidence in the exploration information and Mineral Resource estimate.
Under the assumptions presented in this Technical
Report, and based on the data available as of June 1, 2023, RPM estimated the Mineral Resources of the Project meet the 2014 CIM Definition
Standards, the 2019 CIM Best Practice Guidelines, NI 43-101 guidelines and show reasonable prospects of eventual economic extraction.
| 25.3 | Exploration Potential |
Previous work at the Carangas Project
demonstrated the potential to expand the Mineral Resources. Gold mineralization remains open to north and northeast directions and at
depth. Below the conceptual pit constraint, gold-dominated mineralized material of similar size and grade to the reported Mineral Resources
of the Au Domain exists within the conceptual pit.
Beyond the drilled area, multiple IP chargeability
anomalies with similar geophysical signatures to the known mineralization exist. These anomalies constitute targets for future drilling
to assess whether additional material suitable for consideration in Mineral Resources exists.
RPM notes that at this stage, any of the
IP chargeability anomalies prospects mentioned in this report have not been reported as Mineral Resources, and there is no guarantee that
through further exploration, Mineral Resources will be defined.
Reasonable open pit mine plans, mine
production schedules, and mine capital and operating cost estimates have been developed for the Carangas project PEA, exploiting 64.4
Mt of resource containing 63 g/t Ag, 0.44% Pb, and 0.80% Zn at a 1.7 waste to mill feed mining ratio.
Pit and stockpile layouts and mine operation
plans are typical of other regional open pit metal mines. Contractor- mined open pit activities have been proven effective in these other
regional operations.
The mine plan and estimated mine capital
and operating cost estimates are reasonable at a scoping level of engineering and support the cash flow model and financials developed
for the PEA.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 210 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
| 25.5 | Mineral Processing and Metallurgical Testing |
The metallurgical testwork program
in Section 13 was carried out by ALS Metallurgy in Kamloops, British Columbia, Canada, under the supervision of Dr. Jinxing Ji on behalf
of New Pacific Metals Corp. Dr. Jinxing Ji is a consulting metallurgist with JJ Metallurgical Services and is a registered professional
engineer (P.Eng) in the province of British Columbia, Canada.
The PEA metallurgical testwork program
was built upon the earlier metallurgical testwork carried out by Bureau Veritas Minerals/Metallurgical in Richmond, British Columbia,
Canada and ALS Metallurgy in Kamloops, British Columbia, Canada. The PEA metallurgical testwork program focused on flotation for the mineralized
materials in the Upper Silver Zone to produce silver/lead concentrate and zinc/silver concentrate and on cyanide leach for the mineralized
material in the Lower Gold Zone to produce gold doré. Furthermore, comminution testing, mineralogical analysis, gravity concentration,
gold flotation, and cyanide leach of gold flotation concentrate were also carried out. For flotation and cyanide leach, the PEA metallurgical
testwork program covered four composite samples from the Upper Silver Zone and one composite sample from the Lower Gold Zone. These composite
samples were selected from a large number of drill holes and intervals widely distributed across the deposit.
The QP reviewed the selection of these
composite samples, the metallurgical testing procedures, and data interpretations and considered them appropriate and reasonable. Nevertheless,
the completed metallurgical testwork programs are still preliminary and thus are limited to represent the entire deposit. Further metallurgical
testwork programs have been planned.
Process flowsheet for the silver/lead/zinc
mineralized materials from the Upper Silver Zone is summarized in the following:
| § | A conventional process flowsheet is selected for the
PEA. It includes a primary crushing circuit with a single jaw crusher. The crushed material is then conveyed to a coarse ore stockpile.
After being reclaimed, the crushed material is conveyed to a grinding circuit consisting of a SAG mill, a ball mill, and a pebble crusher.
The screen undersize of the product from the SAG mill is combined in a pumpbox with the product from the ball mill and then pumped to
a cyclone for classification. The cyclone underflow returns to the ball mill for further size reduction, and the cyclone overflow flows
to a trash screen. The screen undersize then flows to a conditioning tank in the silver/lead flotation circuit. |
| § | Collectors AP3418A and Aero 404 are used to float
the silver and lead mineralization. The silver and lead are first floated in a rougher circuit. After regrinding, the rougher concentrate
is upgraded in a three-stage cleaner circuit. The first-stage cleaner is operated in an open circuit to reject pyrite. The final silver/lead
concentrate is thickened and then filtered. |
| § | The tailings from the silver/lead circuit will be
thickened first, and then the thickener underflow is forwarded to a conditioning tank in the zinc circuit. Dilution water will be added
as required. Copper sulfate is used to activate sphalerite. The activated sphalerite is then floated with the collector SIPX. After regrinding,
the zinc rougher concentrate is updated in a three-stage cleaner circuit. The final zinc/silver concentrate is then thickened and then
filtered. The first-stage cleaner circuit will be operated in an open or closed circuit, subject to zinc recovery and pyrite rejection. |
| § | The tailing from the zinc circuit is then thickened,
and the resultant thickener underflow is pumped to the TSF for disposal. |
The processing plant proposed for the
Carangas Project is designed with a nominal capacity of 4.0 Mtpa with the LOM average head grades of 63 g/t silver, 0.44% lead and 0.80%
zinc. The life-of-mine total silver/lead concentrate production is 826 kt containing 3,975 g/t silver and 24.0% lead, and the life-of-mine
total zinc/silver concentrate production is 744 kt containing 356 g/t silver and 45.8% zinc.
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While the recovery methods under consideration
are well-established and widely applied, further testing and engineering studies are necessary to identify the optimal flowsheet, equipment
selection, design parameters, and projected metallurgical performance.
The project infrastructure described
in this report shows descriptions to be built at the Site before starting operations. The most essential infrastructures are the project's
water and power supply.
The power supply can be secured by
an agreement with the Government-owned power producer and build a transmission line to connect to the substation at the Site. The Company
has engaged with Bolivia's power transmission company ENDE (Empresa Nacional de Electricidad), obtaining quotations for transmission line
construction and power supply.
Raw water supply for construction
is secured by the stream that crosses the site after a few water containments inside the project area, but for operations, the water requirements
will be met through a pipeline system, drawing from a combination of groundwater via water wells and surface water from the nearby rivers.
The access road, especially the last
couple of kilometres to the site, will require an upgrade and maintenance every year.
Fuel is supplied by fuel trucks. It is
important to get an agreement with a contractor to ensure on-time supply and the required quantities. All non-process buildings required
to run the operations are typical buildings for this climate and will perform as required.
The QP believes that all in-site infrastructure
can support operations for the life of the mine. The next step of Detail Engineering and Design is to confirm or modify the infrastructure
at the Site.
| 25.8 | Tailings Storage Facility |
Three locations were considered for conventional
TSF options and one for a dry stack. Two of the conventional TSF locations (NE and SE tributaries of the Carangas River) were discarded
due to insufficient capacity. The third conventional TSF location is designated as Conventional TSF Option 1. It is located in the floodplain
of the Carangas River and allowed to achieve the required capacity.
A High-density Thickened Tailings TSF
was also considered preliminary. However, due to the site’s topography, it was estimated that it would require an area similar to
or larger than that of the Conventional TSF Option 1 and would require numerous discharge towers for the tailings to have adequate flow
and fill the impoundment. Therefore, this option was deemed unpractical and was not further evaluated.
The dry stack OPEX was estimated to be
several times that of the Conventional TSF Option 1. Therefore, Conventional TSF Option 1, which utilizes a well-known technology for
the project region, was selected for this PEA of the Carangas Project.
The Conventional TSF Option 1 has
been designed to be constructed in five stages. It has a total capital cost of U$48.24 million and a total OPEX of $22.87 million. The
PEA-level design of the conventional slurry TSF has been completed assuming that subsurface conditions will be adequate based on general
geology information, without performing a meteorological/hydrological study of the Carangas River, and assuming that waste rock will be
geochemically adequate for the construction of the containment embankment.
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| 25.9 | Environmental Studies |
The baseline studies that were initiated
are reasonable for what is expected to be able to produce the required EIA. These studies should continue to have an in-depth understanding
of the physical and biological aspects of the project's area of influence.
| 25.10 | Market Studies and Contracts |
The Carangas project will generate revenue
by selling silver-bearing lead and zinc/silver concentrates. The project is expected to produce approximately 826 kt of silver/lead concentrate
with an average grade of 3,975 g/t silver and 24% lead and 744 kt of zinc/silver concentrate with an average grade of 45.8% zinc and 356
g/t silver.
The primary commodities are traded at well-known
prices, ensuring stable sales prospects. The initial market response shows strong demand for the project's concentrates, with favourable
pricing and low treatment charges. The analysis suggests that these concentrates can be sold without penalties and emphasizes the stability
of the silver and lead market. Treatment and refining charge assumptions were provided by New Pacific Metals and are within the expected
market range. Different logistic assumptions were used for each concentrate. The silver/lead concentrate is considered being exported
to the international market, while the zinc/silver concentrate is to be sold to a Bolivian buyer.
Contracts: No contractual arrangements
for mining, concentrate trucking, rail freight, port usage, shipping, or smelting and refining are currently in place. Furthermore, no
contractual sales arrangements have been made for the silver/lead concentrate or zinc/silver concentrate at this time. Initial testwork
of the two concentrates indicates no penalty elements are expected. The payable elements in the zinc/silver concentrate are expected to
be zinc and silver. The silver/lead concentrate payables will be lead and silver, with a major contribution of silver to its final value
due to its high content.
The capital cost estimate is derived
from a blend of supplier quotations and industry benchmarking. It encompasses both direct and indirect costs, including, but not limited
to, engineering, procurement, construction, and start-up expenses. Cost estimate accuracies are considered sufficient for a PEA level
of study.
To address uncertainties inherent to the
PEA-level study, contingency was applied in areas of the capital costs estimate.
The initial capital expenditure is
projected at $324 million, while the total capital expenditure for the project is estimated at $490 million. Closure costs are anticipated
to be $39 million.
The operating cost estimate encompasses
mining, processing, and general and administrative (G&A) expenses. This estimate is derived from a combination of supplier quotations
and industry benchmarking. It is important to note that no inflation or contingency has been factored into the operating costs.
The life-of-mine operating cost is projected
to average $18.6 per tonne of processed ore.
| 25.13 | Indicative Economic Results |
A preliminary economics analysis for
the Carangas project was completed in connection with the PEA study. The economic analysis and its underlying assumptions are preliminary
in nature and include forward-looking statements. These statements involve a number of significant assumptions, including, but not limited
to, Mineral Resource estimates, the proposed mine plan, cost estimates, metallurgical recoveries, concentrate grades,
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environmental and social considerations,
infrastructure requirements, product marketing, and associated costs. There is no certainty that the economic projections within this
report will be realized.
The preliminary economics analysis includes
Inferred Mineral Resources that are considered geologically speculative. There is no certainty that the 2024 PEA based on the Mineral
Resources will be realized. Mineral Resources that are not mineral reserves have not demonstrated economic viability.
The discounted cash flow methodology
was employed to calculate the project’s net present value, internal rate of return, and payback period. The cash flow estimates
are unlevered and calculated at the Carangas asset level. This economic analysis does not incorporate any corporate-level considerations
from New Pacific Metals or any of its subsidiaries.
The NPV was calculated using a 5% discount
rate, which is a standard real discount rate for evaluating precious metals projects. The cash flows were discounted from the second half
of year –2. No inflation adjustments were applied to the cash flow model.
Considering the Project on a stand-alone
basis, the undiscounted pre-tax cash flow totals $1,447 million over the mine life, and post-tax payback occurs 3.2 years from the start
of production. The economic analysis yielded a post-tax NPV at 5% of $501 million, with an IRR of 26%.
A sensitivity analysis was conducted to
evaluate the influence of variations in LOM capital and operating costs. The sensitivity analysis results indicate that the post-tax NPV
remains positive across the evaluated sensitivity range. The NPV is highly sensitive to variations in silver price and discount rate while
showing moderate sensitivity to changes in capital and operating costs.
| 25.14 | Project Risks and Opportunities |
The key risks and opportunities identified
for the Carangas project are described below:
Economic and Market-Related Risks
| § | Metal Prices: Declines in metal prices could increase
the economic cutoff grade or reduce the selected open pit limits, decreasing the resource base available for the mine plan. |
| § | Operating Cost Assumptions: Preliminary estimates
rely on current market rates, including a $0.53/L diesel price subsidized by the Bolivian government. Changes to this subsidy or shifts
to market-driven fuel prices could significantly impact mining costs. |
| § | Treatment and Refining Charges: Current projections
are based on a preliminary quotation but may vary with market conditions and concentrate specifications. |
| § | Logistics for Zinc/silver concentrate: Assumes a local
Bolivian buyer, keeping transportation costs low. Costs may increase if export is required. |
| § | Capital and Operating Cost Estimates: Based on initial
quotes and benchmarks; further detailing may lead to adjustments as the project progresses potentially increasing cost estimates from
those presented in this report. |
Technical and Operational Risks
| § | Mineral Resources Classification: The PEA relies on
Inferred and Indicated Mineral Resources; upgrading to Measured Resources through additional drilling is essential to increase confidence
in the resource base. |
| § | Geotechnical and Hydrogeological Factors: Geotechnical
studies could result in shallower pit slope angles, raising the overall stripping ratio. Hydrogeological analysis may also reveal more
costly requirements for pit water management and slope depressurization. |
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| § | Geochemical Factors: Geochemical testing, especially
for open-pit waste rock, could identify a need for more stringent and costly potentially acid-generating management solutions than those
assumed in this study. |
| § | Metallurgical Assumptions and Processing Efficiency:
Metallurgical recoveries and concentrate grades are based on preliminary testing and observed correlations. Additional testing is needed
to refine these projections. |
| § | Mining and Milling Operations: Meeting the planned
production rate relies on maintaining grade control and achieving anticipated recoveries. Reduced selectivity, recovery rates, or increased
dilution would raise costs and challenge PEA production goals. |
| § | Tailings Storage Facility Design: TSF design and
cost assumptions depend on adequate subsurface conditions for embankment foundations and geochemically suitable waste rock for embankment
construction. |
Infrastructure and Resource Supply Risks
| § | Water Supply: The water supply sources have been
defined. Further hydrological studies and positive collaboration with the community will be essential to ensure stable water availability
and uninterrupted operations. |
| § | Power Supply: Although a plan exists to connect to
the national grid, further studies are needed to confirm the cost, schedule, and reliability of this option. |
| § | Workforce Availability: The project's remote location,
high altitude, and climate pose challenges to attracting skilled and unskilled labor. |
Environmental, Social, and Governance
(ESG) Risks
| § | Land Tenure, Permitting, and Social License: Maintaining
land tenure, securing environmental licenses, and upholding the social license to operate are critical. The project’s success will
depend on robust governance and a positive local presence. |
| § | Political and Economic Stability: Bolivia's recent
social, economic, and political instability increases risk for foreign investment. Political shifts could also impact fuel and power supplies
to the mine, posing a risk to uninterrupted operations. |
Economic and Market-Related Opportunities
| § | Metal Prices: If metal prices increase beyond the
PEA assumptions, it could enable processing of lower- grade stockpiles, which are currently excluded in the mine plan, thereby extending
the mine life and improving project economics. |
| § | Alternative Mining Plan: There is an opportunity
for an alternate production plan aimed at the Lower Gold Zone of the deposit, leveraging a larger open pit design. This approach retains
all the established mine planning and design criteria, utilizing the 0.80 PF pit shell as the target. With comprehensive open pit designs
tailored to access the Lower Gold Zone, this plan has the potential to expand resource extraction. |
Technical and Operational Opportunities
| § | Resource Expansion through Drilling: There is potential
to extend the Resource base a depth with further drilling. Furthermore, exploration in geophysical anomaly zones could lead to resource
expansion, potentially increasing the resource base. |
| § | Enhanced Metallurgical Recoveries: With the uncertainty
in the projected metallurgical recoveries, further metallurgical testing may allow for optimization of the processing flowsheet, improving
metal recoveries. |
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| § | Metallurgical Assumptions and Processing Efficiency:
Potential to reduce slurry viscosity in the zinc circuit through selective collectors, instead of Sodium Isobutyl Xanthate, may improve
processing at a moderately high pH level. More studies are required to confirm this. |
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The QPs make the following recommendations for further work.
Based on the outcomes of the Mineral Resource estimate and the
current stage of the Project, RPM recommends additional drilling be undertaken.
| § | Infill drilling: the existing drilling grid
is largely 50 m by 50 m in the majority of the drilled area and supports the Indicated Mineral Resources category. An appropriate amount
of infill drilling is needed in the core area of the known mineralization system to further confirm the continuity of mineralization,
hence enhancing the confidence in the Mineral Resources to facilitate future advanced technical and economic studies of the Project. |
| § | Step-out drilling: gold mineralization continues
below the conceptual pit constraint and remains open to the north and northeast directions. Therefore, step-out drilling is justified
to unveil the potential of additional Mineral Resources. |
| § | Exploration drilling: multiple strong IP chargeability
anomalies were identified beyond the drilled areas. These anomalies displayed geophysical signatures similar to that of the known mineralization
system. It is reasonable to anticipate that these anomalies may host mineralization similar to the one drilled so far and hope for the
addition of Mineral Resources through new drilling campaigns in the future. |
| 26.1.2 | Geology Study, Mapping and Prospecting |
| § | Maintain the partnership with the universities in
Bolivia to continue geological studies on the Carangas deposit to further understand the mineralization styles and genesis and support
future exploration targeting. |
| § | Initiate exploration programs of geological mapping
and prospecting over the IP chargeability anomalies for refining targets of drilling tests. |
The following recommendations are made with regard to advancing
the mine engineering of the Carangas project to a Pre-Feasibility Study, with a budget for each recommended program included:
| § | Reassess the mine plan upon completion of the drilling
aimed at upgrading Inferred class Mineral Resources to Indicated class Mineral Resources. |
| § | Targeted open pit geotechnical drilling using triple-tube
HQ holes and televiewer with oriented cores. Recommend five drillholes on all sides of the planned open pit and an estimated total length
of 3,500 m. Installation of vibrating wire piezometers in select holes. |
| − | Laboratory testing for intact rock strength (unconfined compressive strength tests, point load tests, and
indirect tensile strength tests) and discontinuity strength (direct shear tests). |
| − | Build up of 3D fault and rock mass fabric models. |
| − | Packer testing should be conducted to determine the pit’s hydrogeology and hydraulic conductivity,
including refining pit water inflow estimates. |
| § | Further hydrogeological and hydrological characterization are required
in the pit areas (costed elsewhere in recommendations). |
| § | Geochemical characterization of waste rock for the
purposes of updated PAG modelling. It is possible to utilize existing and planned exploration and geotechnical drill core for geochemical
samples, and no additional drilling has been planned for these studies in the estimated budget. |
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| § | Topsoil and overburden assessment for the open pit
to estimate topsoil and overburden storage requirements. |
| § | Condemnation drilling of the footprints identified
for the waste rock storage facilities, as well as site infrastructure. Condemnation drilling ensures no valuable mineralization exists
below these planned facilities so that it is not locked in the ground from future potential exploitation. |
| § | Drill penetration and blast fragmentation studies,
testing properties in all lithologies, as well as within mineralized areas and within waste rock. It is possible to utilize existing and
planned exploration and geotechnical drill core for rock samples, and no additional drilling has been planned for these studies in the
estimated budget. |
| § | Study the impact and potential economic benefit of
processing PEA planned stockpiled sub-grade waste, with contents of 41Mt averaging $22/t NSR. |
| § | Study the impact of mining to 0.80 PF pit shell, down
into the Lower Gold Zone, with the potential to exploit an additional 59 Mt of resources above $28/t NSR and a further 126 Mt resource
(beyond the 41 Mt already planned in this PEA) between the breakeven cutoff grade of $13.50/t NSR and the chosen $28/t NSR cutoff grade. |
| § | Updates to designs of open pits, waste storage piles,
stockpiles, and mine haul roads incorporating results from all other recommended work programs. |
| § | Mine operational and cost trade-off studies examining
contractor vs. owner equipment fleet, lease vs. purchase equipment fleet, cost comparisons of various equipment class sizes, and utilization
of electrically driven mine equipment (including trolley systems for haulers) over diesel-driven units. This includes further engagement
with multiple potential contractors for mining operations, with more detailed quotations for operations. |
| 26.3 | Mineral and Metallurgical Testing |
Further metallurgical testing is recommended to improve flotation
performance, reduce consumption of chemical reagents and generate necessary parameters for the process plant design.
| § | Coarse assay reject materials have so far been used
in the flotation testing. These materials might have been partially oxidized during storage. A composite sample consisting of core intervals
in the Upper Silver Zone is recommended for further flotation testing. |
| § | The bulk flotation was applied to the oxidized sample,
while the sequential selective flotation was applied to the transitional sample, sulfide sample and LOM composite sample. Operating conditions
between the bulk flotation and the selective flotation are fundamentally different. It is recommended that the flotation testing with
the individual samples be continued. |
| § | The issue of high slurry viscosity was encountered
in the zinc flotation circuit at a high pH with the addition of lime. The mitigation approaches need to be investigated. |
| § | More samples in various locations and elevations in the deposit are recommended for comminution testing. |
| § | Some of the zinc minerals may have been activated in
situ. Mineralogical investigations are recommended to identify the elements that result in such activation. Furthermore, the surface conditioning
is recommended for investigation to deactivate zinc minerals. |
| § | The cross-contamination of process waters between
silver/lead circuit and zinc circuit will likely deteriorate flotation performance. Thus, it is recommended to investigate and quantify
such impact. |
| § | The testing of thickening is required for the flotation tailings. |
| § | The testing of thickening and filtration is required for the silver/lead concentrate and zinc concentrate. |
| § | The measurement of transportable moisture limit is
recommended for the silver/lead concentrate and zinc/silver concentrate. |
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It is highly recommended that water
wells around the area be searched for as a primary source of fresh water for construction and operations. The search for water wells for
a period of 1 month will cost $25,000.
A hydrology study is required from
the project team to quantify the monthly water availability (dry and wet season) in the area from local streams and nearby rivers, analyze
the water quality, and locate the water catchment points and distance to the project industrial zone.
The information from these searches
and studies can modify the infrastructure’s Capex and Opex water usage and costs.
A geotechnical investigation is required
to confirm if subsurface conditions are adequate for the TSF containment embankment foundation and to evaluate infiltration from the impoundment
area.
A meteorological/hydrological study shall
be performed to model flood routing through the TSF impoundment to evaluate the hydraulic safety of the TSF and ensure that the assumed
freeboard is adequate.
The tailings embankment is presently designed
to be constructed with waste rock. The next project phase needs a geochemical evaluation to check it is not acid-forming or metal-leaching
above regulatory and guidelines thresholds.
| 26.5 | Environment
and Social |
The baseline work needs to continue to
get an in-depth understanding of the projects that are of influence and produce an EIA that will comply with the expectations of the regulator.
The social baseline should be initiated
as quickly as possible, whether or not there is a need for involuntary resettlement. The town of Carangas is close to the project, requiring
a robust community engagement plan and social investment plan.
| 26.6 | Estimated
Budget for Recommendations |
The estimated budget to complete the
abovementioned main activities is $6,925,000, as outlined in Table 26-1. This estimate excludes regular ongoing corporate costs
that are not considered at the project level.
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Table 26-1 Estimated Budget for Recommendations
Area |
Estimated Budget
(US$) |
Geology and Mineral Resources |
|
Drilling 12,000 m |
2,400,000 |
Geology Study Mapping and Prospecting |
200,000 |
Hydrogeology |
200,000 |
Total Estimated Cost – Next Phase of Geology Study |
2,800,000 |
Processing |
|
Metallurgical Testwork |
500,000 |
Total Estimated Cost – Next Phase of Metallurgical Testwork |
500,000 |
Mining and Design |
|
Open Pit Geotechnical Drilling and Analysis |
1,000,000 |
Open Pit Waste Rock Geochemical Sampling, Testing, and Analysis |
400,000 |
Open Pit Topsoil and Overburden Assessment |
200,000 |
Condemnation Drilling |
1,000,000 |
Drill Penetration and Blast Fragmentation Studies |
50,000 |
Updated Mine Optimization within the Lower Gold Zone and Stockpiled Low Grade |
150,000 |
Updated Open Pit Mine Engineering |
150,000 |
Mining Vendor and Contractor Engagement |
50,000 |
Total Estimated Cost – Next Phase of Mining Study |
3,000,000 |
Infrastructure |
|
Survey for wells for fresh water supply |
25,000 |
Total Estimated Cost – Next Phase of Infrastructure |
25,000 |
Tailings Storage Facility |
|
Geotechnical Investigation and Analyses for Embankment and Impoundment |
200,000 |
Meteorological/Hydrological Study for TSF Hydraulic Safety |
250,000 |
Geochemical Testing of Waste Rock for Embankment Construction |
150,000 |
Total Estimated Cost - Next Phase of Tailings Storage Facility |
600,000 |
Total Estimated Cost - Next Phase |
6,925,000 |
Source: compiled by RPMGLOBAL, 2024
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oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
| 24. | USGS, 1991, Mineral deposits and occurrences of the Bolivian altiplano and cordillera occidental,
PAGES: 355. https://pubs.usgs.gov/of/1991/0286/report.pdf |
| 25. | USGS-Servicio Geológico de Bolivia, 1975, Geology and Mineral Resources
of the Altiplano and CordilleraOccidental, Bolivia, pages: 365. |
| 26. | Ponce, J; & Avila-Salinas, W. 1964. Cuadrángulo de Carangas
a escala 1:100.000-Carta Geológica Nacional de Bolivia. |
| 27. | Environmental law 1333, April 27, 1992 |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 222 of 227 | |
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oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
IMPORTANT NOTICE AND CAUTIONARY NOTE
REGARDING FORWARD-LOOKING INFORMATION
This report was prepared as a National
Instrument 43-101 Technical Report for New Pacific Metals Corp (NPM) by RPMGlobal Canada Ltd (RPM). The quality of information, conclusions,
and estimates contained herein is consistent with the level of effort involved in RPM’s services, based on: i) information available
at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in
this report. This report is intended for use by NPM subject to the terms and conditions of its contract with RPM and relevant securities
legislation. The contract permits NPM to file this report as a Technical Report with Canadian securities regulatory authorities pursuant
to National Instrument 43-101, Standards of Disclosure for Mineral Projects. Except for the purposes legislated under provincial securities
law, any other uses of this report by any third party is at that party’s sole risk. The responsibility for this disclosure remains
with NPM. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if
a new Technical Report has been issued.
Certain of the statements and information
in this technical report constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation
Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws.
Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”,
“is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”,
“assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”,
“objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that
certain actions, events or results “may”, “could”, “would”, “might” or “will”
be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and
may be forward- looking statements or information. Such statements include, but are not limited to, statements regarding: inferred, indicated
or measured Mineral Resources or Mineral Reserves on the Project.
Forward-looking statements or information
are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ
from those reflected in the forward-looking statements or information, including, without limitation, risks relating to the factors described
under the heading “Risks” in this technical report and in the Company's annual information form for the year ended June 30,
2024 and its other public filings. This list is not exhaustive of the factors that may affect any of the Company’s forward- looking
statements or information.
The forward-looking statements are
necessarily based on a number of estimates and assumptions that, while considered reasonable by the authors, are inherently subject to
uncertainties and contingencies. These estimates, assumptions, beliefs, expectations and options include, but are not limited to, the
accuracy and reliability of estimates, projections, forecasts, studies and assessments. Although the forward-looking statements contained
in this technical report are based upon what the authors believe are reasonable assumptions, there can be no assurance that actual results
will be consistent with these forward-looking statements. All forward-looking statements in this technical report are qualified by these
cautionary statements. Accordingly, readers should not place undue reliance on such statements. Other than specifically required by applicable
laws, the Company is under no obligation and expressly disclaims any such obligation to update or alter the forward-looking statements
whether as a result of new information, future events or otherwise except as may be required by law. These forward-looking statements
are made as of the date of this technical report.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 223 of 227 | |
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oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
| 28 | DATE AND SIGNATURE PAGE |
This report titled “NI 43-101 Technical Report Carangas
Deposit Preliminary Economic Assessment” and with the effective date of September 5, 2024 was prepared and signed by the following
authors:
|
Original Signed |
|
|
|
|
|
|
Dated |
Mr. Anderson G. Candido, FAusIMM |
|
|
15 November 2024 |
Principal Geologist
RPMGlobal USA Inc. |
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|
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|
|
Original Signed |
|
|
|
|
|
|
Dated |
Mr. Marc Shulte, P.Eng (BC) |
|
|
15 November 2024 |
Vice President of Engineering and Operations
Moose Mountain
Technical Services |
|
|
|
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|
Original Signed |
|
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Dated |
Mr. Marcelo del Giudice, FAusIMM |
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|
15 November 2024 |
Principal Metallurgist
RPMGlobal Brazil |
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|
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|
Original Signed |
|
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|
|
Dated |
Mr. Jinxing Ji, P.Eng (BC) |
|
|
15 November 2024 |
Consulting Metallurgist |
|
JJ Metallurgical Services Inc |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 224 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
|
Original Signed |
|
|
|
|
|
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Dated |
Mr. Gonzalo Rios, FAusIMM |
|
|
15 November 2024 |
Executive Consultant - ESG
RPMGlobal Canada Ltd. |
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|
Original Signed |
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Dated |
Mr. Pedro Repetto, P.E. |
|
|
15 November 2024 |
Principal Civil/Geotechnical Engineer
RPMGlobal USA
Inc. |
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 225 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
29 | CERTIFICATE OF QUALIFIED PERSON |
CERTIFICATE OF QUALIFIED PERSON
I, Anderson G Candido, FAusIMM., as
an author of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the
“Technical Report”) prepared for New Pacific Metals Corp. with an effective date of September 5, 2024, do hereby certify that:
I am Principal Geologist
with RPMGlobal USA, Inc. of Suite 210, 7921 Southpark Plaza, Littleton, CO 80120 USA.
I am a graduate of
Bachelor of Science (Geology Engineer) from the Ouro Preto Federal University in 2003 with a Bachelor.
I am registered
as a Professional Geologist in the Australasian Institute of Mining and Metallurgy (Fellow Member n 990424 “FAusIMM”). I have
worked as a principal geologist for a total of 19 years since my graduation. My relevant experience for the purpose of the Technical Report
is:
Geology and Mineral Resource Evaluation
Exploration geological works
Geology Development and Operations
I have read the
definition of "qualified person" set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education,
affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to
be a "qualified person" for the purposes of NI 43-101.
I visited the Carangas
Gold-Silver Project site from March 27 to 30, 2023 to verify and have a good geology understanding and project perspectives.
I am responsible
for Sections 4, 5, 6, 7, 8, 9, 10, 11, 12, and 14 and partially for Sections 1, 2, 3, 25, 26, and 27 of the Technical Report.
I am independent of the Issuer applying the
test set out in Section 1.5 of NI 43-101.
I have had no prior involvement with the
property that is the subject of the Technical Report.
I have read NI
43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.
At the effective
date of the Technical Report, to the best of my knowledge, information, and belief, the Technical Report for which I am responsible contain
all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.
Dated Nov 15th,
2024
Original signed and
sealed by
Anderson G Candido, FAusIMM
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 226 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
CERTIFICATE OF QUALIFIED PERSON
I, Marc Schulte, P.Eng., working as the
Vice President of Engineering and Operations, with Moose Mountain Technical Services, with an office address of #210 1510 2nd Street North
Cranbrook, BC V1C 3L2, as an author of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic
Assessment” (the “Technical Report”) prepared for New Pacific Metals Corp. with an effective date of September 5, 2024,
do hereby certify that:
I am a member of the self-regulated
association Engineers and Geoscientists BC (#54035). I graduated with a Bachelor of Science in Mining Engineering from the University
of Alberta in 2002.
I have worked
as a mining engineer for over 24 years since my graduation from university. Throughout my career I have worked on numerous open pit base
and precious metals projects, within project engineering studies and within mining operations, on mineral reserve estimates, mine planning,
and mine cost estimates.
As a result of my
experience and qualifications, I am a Qualified Person as defined in National Instrument 43– 101 Standards of Disclosure for
Mineral Projects (NI 43–101) for those sections of the technical report that I am responsible for preparing.
I have not visited the Carangas Gold-Silver
Project site.
I am responsible for Sections 1.2.11,
1.2.12, 1.2.17 (mining costs), 15, 16, 21.1.1, 21.2.1, 24.1, 25.4, and 26.2 of the technical report.
I have had no prior involvement with the property that is the
subject of this Technical Report.
I am independent of New Pacific Metals Corp. as independence
is described by Section 1.5 of NI 43–101.
I have read NI 43–101 and
the sections of the technical report for which I am responsible have been prepared in compliance with that Instrument.
As of the effective date
of the technical report, to the best of my knowledge, information and belief, the sections of the technical report for which I am responsible
contain all scientific and technical information that is required to be disclosed to make those sections of the technical report not
misleading.
Dated Nov 15th, 2024
Original signed and sealed by
Marc Schulte, P.Eng.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 227 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
CERTIFICATE OF QUALIFIED PERSON
I, Marcelo del Giudice, FAusIMM, am working
as a Principal Metallurgist for RPM Global, of 8º floor,330 St Antonio de Albuquerque, Belo Horizonte, MG - Brazil. This certificate
applies to the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the
“Technical Report”) prepared for New Pacific Metals Corp. with an effective date of September 5, 2024, do hereby certify that:
I am a Fellow Member of the Australasian Institute
of Mining and Metallurgy (“FAusIMM”).
I am a professional
metallurgist having graduated with an undergraduate degree of Bachelor of Science (Metallurgical Engineering) from the Minas Gerais Federal
University in 2009. I obtained a Master of Science degree in Chemical Engineering in 2014 from the University of São Paulo.
I have been continuously and actively
engaged in the mineral processing, project development, and operation of mineral projects since graduation from university.
I am a Qualified Person for the purposes
of the National Instrument 43-101 of the Canadian Securities Administrators (“NI 43-101”).
I visited the Carangas Gold-Silver Project site between 30 October
and November 2, 2023.
I am the author of this report and responsible
for Sections 17, 18 (with the exception of 18.8), 19, 21,and 22, and partially for Sections 1, 2, 3, 25, and 26.
I have had no prior involvement with the properties that are the
subject of the Technical Report.
To the best of
my knowledge, information and belief, the Technical Report contains all the scientific and technical information that is required to be
disclosed to make the Technical Report not misleading as of the effective date of the report, 25 August 2023.
I am independent
of New Pacific Metals Corp. in accordance with the application of Section 1.5 of NI 43-101.
I have read NI
43-101 and Form 43-101F1 and the Technical Report has been prepared in compliance with that instrument and form.
I consent to
the filing of the Technical Report with any stock exchange or any other regulatory authority and any publication by them for regulatory
purposes, including electronic publication in the public company files on their website and accessible by the public, of the Technical
Report.
Dated Nov 15th,
2024
Original signed
and sealed by
Marcelo del Giudice, FAusIMM
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 228 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
CERTIFICATE OF QUALIFIED PERSON
I, Jinxing Ji, P.Eng., as an author
of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical
Report”) prepared for New Pacific Metals Corp. with an effective date of September 5, 2024, do hereby certify that:
I am employed as
Consulting Metallurgist with JJ Metallurgical Services Inc. with an office at 7547 Lambeth Drive, Burnaby, British Columbia, Canada, V5E
4A5.
I graduated
from Shanghai University in China with B.Eng Metallurgy in 1982 and M.Eng Metallurgy in 1985 and from The University of British Columbia
in Canada with Ph.D. Metallurgy in 1993.
I am a registered
professional engineer (license# 59035) in good standing of the Engineers and Geoscientists BC (EGBC) in the province of British Columbia,
Canada with core competency in metallurgy. I have practiced my profession in the mining industry continuously since 1993. My relevant
experiences include mineral/metallurgical testing, process development, base metal metallurgy, precious metal metallurgy, and process
plant design, commissioning, optimization and operational support.
I have read the
definition of "qualified person" set out in National Instrument 43-101 (NI 43101) and certify that by reason of my education,
affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to
be a "qualified person" for the purposes of NI 43-101.
I visited the Carangas Property in Bolivia
from 21 to 23 May 2022.
I am responsible
for Sections 13 and parts of Section 1, 17, 25 and 26 of the Technical Report in relation to metallurgy.
I am independent of the Issuer as the independence
is defined in Section 1.5 of NI 43-101.
I have had prior
involvement with the Carangas project as an independent metallurgical consultant for the mineral/metallurgical testing under “Carangas
Silver-Gold Project – Department of Oruro, Bolivia – NI43- 101 Mineral Resource Estimate Technical Report, New Pacific Metals
Corp.” with affective date of 25 August 2023.
I have read NI
43-101 and the sections of the Technical Report for which I am responsible have been prepared in compliance with NI 43-101 and Form 43-101F1.
As of the effective
date of the Technical Report, to the best of my knowledge, information and belief, the sections of the Technical Report for which I am
responsible contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.
Dated Nov 15th, 2024
Original
signed and sealed by
Jinxing Ji, P.Eng.
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 229 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
CERTIFICATE OF QUALIFIED PERSON
I, Gonzalo Rios, FAusIMM, as an author
of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical
Report”) prepared for New Pacific Metals Corp. with an effective date of September 5, 2024, do hereby certify that:
I am Executive
Consultant - ESG with RPMGlobal Canada, Inc. of 150 King Street West, Suite 308-03 Toronto, ON M5H 1J9 Canada.
I am a graduate of University of Toronto
in 1992 with a B.Sc. in Chemistry.
I am registered
as a Fellow in Australasian Institute of Mining and Metallurgy, FAusIMM 3089013. I have worked as
an environmental professional for a total of 30 years since my graduation. My relevant experience for the purpose of the Technical Report
is:
Environmental Management
Mine Closure and Remediation Planning
Environmental Permitting
I have read the
definition of "qualified person" set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education,
affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to
be a "qualified person" for the purposes of NI 43-101.
I did not visit the Carangas project.
I am responsible for Section 20
and partially for Sections 1, 2, 3, 25, and 26 of the Technical Report. I am independent of the Issuer applying the test set out in Section
1.5 of NI 43-101.
I have had no prior involvement with the property
that is the subject of the Technical Report.
I have read NI
43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.
At the effective
date of the Technical Report, to the best of my knowledge, information, and belief, the Technical Report contains/Section 20 in the Technical
Report for which I am responsible contain all scientific and technical information that is required to be disclosed to make the Technical
Report not misleading.
Dated Nov 15th,
2024
Original signed and sealed by
Gonzalo Rios, FAusIMM
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 230 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
CERTIFICATE OF QUALIFIED PERSON
I, Pedro Repetto, P.E., as an author of
the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical
Report”) prepared for New Pacific Metals Corp. with an effective date of September 5, 2024, do hereby certify that:
I am a Principal
Civil/Geotechnical Engineer with RPMGlobal USA, Inc. of Suite 1110, 7887 East Belleview Ave., Denver, CO 80111, USA.
I am a graduate
of Pontificia Universidad Catolica del Peru, Lima, Peru in 1966 with a degree of Civil Engineer; and Purdue University, Indiana, USA in
1970 with a degree of Master of Science in Civil Engineering.
I am registered
as a Professional Engineer in the state of Colorado, USA (Reg.# 0036946). I have worked as a civil engineer in mining projects for a total
of 54 years since my graduation. My relevant experience for the purpose of the Technical Report is:
Tailings Management
I have read the
definition of "qualified person" set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education,
affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to
be a "qualified person" for the purposes of NI 43-101.
I have not visited the Carangas Project site.
I am responsible for Section 18.18 Tailings Storage Facility
of the Technical Report. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.
I have had no prior involvement with the property that is the subject
of the Technical Report.
I have read
NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.
At the effective
date of the Technical Report, to the best of my knowledge, information, and belief, Section 18.18 of the Technical Report for which I
am responsible contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.
Dated Nov 15th, 2024
Original signed and sealed by
Pedro Repetto, P.E.,
| ADV-TO-00090 | NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment | September 2024 | | | Page 231 of 227 | |
| |
oThis report has been prepared for Pacific New Metals Corp and must be read in its entirety and subject to the limitations, assumptions and disclaimers contained in the body of the report. © RPMGlobal Canada Limited 2024 |
Exhibit 99.2
CERTIFICATE OF QUALIFIED PERSON
I, Anderson G Candido, FAusIMM., as an author of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical Report”) prepared for New Pacific Metals Corp. with an effective date of September 5, 2024, do hereby certify that:
1. |
I am Principal Geologist with RPMGlobal USA, Inc. of Suite 210, 7921 Southpark Plaza, Littleton, CO 80120 USA. |
|
|
2. |
I am a graduate of Bachelor of Science (Geology Engineer) from the Ouro Preto Federal University in 2003 with a Bachelor. |
|
|
3. |
I am registered as a Professional Geologist in the Australasian Institute of Mining and Metallurgy (Fellow Member n 990424 “FAusIMM”). I have worked as a principal geologist for a total of 19 years since my graduation. My relevant experience for the purpose of the Technical Report is: |
-
Geology and Mineral Resource Evaluation
-
Exploration geological works
-
Geology Development and Operations
4. |
I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43- 101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101. |
|
|
5. |
I visited the Carangas Gold-Silver Project site from March 27 to 30, 2023 to verify and have a good geology understanding and project perspectives. |
|
|
6. |
I am responsible for Sections 4, 5, 6, 7, 8, 9, 10, 11, 12, and 14 and partially for Sections 1, 2, 3, 25, 26, and 27 of the Technical Report. |
|
|
7. |
I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101. |
|
|
8. |
I have had no prior involvement with the property that is the subject of the Technical Report. |
|
|
9. |
I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1. |
|
|
10. |
At the effective date of the Technical Report, to the best of my knowledge, information, and belief, the Technical Report for which I am responsible contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading. |
Dated Nov 15th, 2024
Original signed and sealed by
Anderson G Candido, FAusIMM
Exhibit 99.3
CERTIFICATE OF QUALIFIED PERSON
I, Gonzalo Rios, FAusIMM, as an author of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical Report”) prepared for New Pacific Metals Corp. with an effective date of September 5, 2024, do hereby certify that:
1. |
I am Executive Consultant - ESG with RPMGlobal Canada, Inc. of 150 King Street West, Suite 308- 03 Toronto, ON M5H 1J9 Canada. |
|
|
2. |
I am a graduate of University of Toronto in 1992 with a B.Sc. in Chemistry. |
|
|
3. |
I am registered as a Fellow in Australasian Institute of Mining and Metallurgy, FAusIMM 3089013. I have worked as an environmental professional for a total of 30 years since my graduation. My relevant experience for the purpose of the Technical Report is: |
4. |
I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43- 101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101. |
|
|
5. |
I did not visit the Carangas project. |
|
|
6. |
I am responsible for Section 20 and partially for Sections 1, 2, 3, 25, and 26 of the Technical Report. |
|
|
7. |
I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101. |
|
|
8. |
I have had no prior involvement with the property that is the subject of the Technical Report. |
|
|
9. |
I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1. |
|
|
10. |
At the effective date of the Technical Report, to the best of my knowledge, information, and belief, the Technical Report contains/Section 20 in the Technical Report for which I am responsible contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading. |
Dated Nov 15th, 2024
Original signed and sealed by
Gonzalo Rios, FAusIMM
Exhibit 99.4
CERTIFICATE OF QUALIFIED PERSON
I, Jinxing Ji, P.Eng., as an author of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical Report”) prepared for New Pacific Metals Corp. with an effective date of September 5, 2024, do hereby certify that:
|
|
1. |
I am employed as Consulting Metallurgist with JJ Metallurgical Services Inc. with an office at 7547 Lambeth Drive, Burnaby, British Columbia, Canada, V5E 4A5. |
|
|
2. |
I graduated from Shanghai University in China with B.Eng Metallurgy in 1982 and M.Eng Metallurgy in 1985 and from The University of British Columbia in Canada with Ph.D. Metallurgy in 1993. |
|
|
3. |
I am a registered professional engineer (license# 59035) in good standing of the Engineers and Geoscientists BC (EGBC) in the province of British Columbia, Canada with core competency in metallurgy. I have practiced my profession in the mining industry continuously since 1993. My relevant experiences include mineral/metallurgical testing, process development, base metal metallurgy, precious metal metallurgy, and process plant design, commissioning, optimization and operational support. |
|
|
4. |
I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43- 101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101. |
|
|
5. |
I visited the Carangas Property in Bolivia from 21 to 23 May 2022. |
|
|
6. |
I am responsible for Sections 13 and parts of Section 1, 17, 25 and 26 of the Technical Report in relation to metallurgy. |
|
|
7. |
I am independent of the Issuer as the independence is defined in Section 1.5 of NI 43-101. |
|
|
8. |
I have had prior involvement with the Carangas project as an independent metallurgical consultant for the mineral/metallurgical testing under “Carangas Silver-Gold Project – Department of Oruro, Bolivia – NI43-101 Mineral Resource Estimate Technical Report, New Pacific Metals Corp.” with affective date of 25 August 2023. |
|
|
9. |
I have read NI 43-101 and the sections of the Technical Report for which I am responsible have been prepared in compliance with NI 43-101 and Form 43-101F1. |
|
|
10. |
As of the effective date of the Technical Report, to the best of my knowledge, information and belief, the sections of the Technical Report for which I am responsible contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading. |
Dated Nov 15th, 2024
Original signed and sealed by
Jinxing Ji, P.Eng.
Exhibit 99.5
|
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CERTIFICATE OF QUALIFIED PERSON |
I, Marc Schulte, P.Eng., working as the Vice President of Engineering and Operations, with Moose Mountain Technical Services, with an office address of #210 1510 2nd Street North Cranbrook, BC V1C 3L2, as an author of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical Report”) prepared for New Pacific Metals Corp. with an effective date of September 5, 2024, do hereby certify that:
1. |
I am a member of the self-regulated association Engineers and Geoscientists BC (#54035). I graduated with a Bachelor of Science in Mining Engineering from the University of Alberta in 2002. |
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2. |
I have worked as a mining engineer for over 24 years since my graduation from university. Throughout my career I have worked on numerous open pit base and precious metals projects, within project engineering studies and within mining operations, on mineral reserve estimates, mine planning, and mine cost estimates. |
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3. |
As a result of my experience and qualifications, I am a Qualified Person as defined in National Instrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101) for those sections of the technical report that I am responsible for preparing. |
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4. |
I have not visited the Carangas Gold-Silver Project site. |
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5. |
I am responsible for Sections 1.2.11, 1.2.12, 1.2.17 (mining costs), 15, 16, 21.1.1, 21.2.1, 24.1, 25.4, and 26.2 of the technical report. |
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6. |
I have had no prior involvement with the property that is the subject of this Technical Report. |
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7. |
I am independent of New Pacific Metals Corp. as independence is described by Section 1.5 of NI 43– 101. |
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8. |
I have read NI 43–101 and the sections of the technical report for which I am responsible have been prepared in compliance with that Instrument. |
As of the effective date of the technical report, to the best of my knowledge, information and belief, the sections of the technical report for which I am responsible contain all scientific and technical information that is required to be disclosed to make those sections of the technical report not misleading.
Dated Nov 15th, 2024
Original signed and sealed by
Marc Schulte, P.Eng.
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Moose Mountain Technical Services |
#210 1510 2nd Street North Cranbrook, BC V1C 3L2 |
www. https://moosemmc.com/ |
Exhibit 99.5
Exhibit 99.6
CERTIFICATE OF QUALIFIED PERSON
I, Marcelo del Giudice, FAusIMM, am working as a Principal Metallurgist for RPM Global, of 8º floor,330 St Antonio de Albuquerque, Belo Horizonte, MG - Brazil. This certificate applies to the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical Report”) prepared for New Pacific Metals Corp. with an effective date of September 5, 2024, do hereby certify that:
1. |
I am a Fellow Member of the Australasian Institute of Mining and Metallurgy (“FAusIMM”). |
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2. |
I am a professional metallurgist having graduated with an undergraduate degree of Bachelor of Science (Metallurgical Engineering) from the Minas Gerais Federal University in 2009. I obtained a Master of Science degree in Chemical Engineering in 2014 from the University of São Paulo. |
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3. |
I have been continuously and actively engaged in the mineral processing, project development, and operation of mineral projects since graduation from university. |
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4. |
I am a Qualified Person for the purposes of the National Instrument 43-101 of the Canadian Securities Administrators (“NI 43-101”). |
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5. |
I visited the Carangas Gold-Silver Project site between 30 October and November 2, 2023. |
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6. |
I am the author of this report and responsible for Sections 17, 18 (with the exception of 18.8), 19, 21,and 22, and partially for Sections 1, 2, 3, 25, and 26. |
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7. |
I have had no prior involvement with the properties that are the subject of the Technical Report. |
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8. |
To the best of my knowledge, information and belief, the Technical Report contains all the scientific and technical information that is required to be disclosed to make the Technical Report not misleading as of the effective date of the report, 25 August 2023. |
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9. |
I am independent of New Pacific Metals Corp. in accordance with the application of Section 1.5 of NI 43-101. |
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10. |
I have read NI 43-101 and Form 43-101F1 and the Technical Report has been prepared in compliance with that instrument and form. |
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11. |
I consent to the filing of the Technical Report with any stock exchange or any other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their website and accessible by the public, of the Technical Report. |
Dated Nov 15th, 2024
Original signed and sealed by
Marcelo del Giudice, FAusIMM
Exhibit 99.7
CERTIFICATE OF QUALIFIED PERSON
I, Pedro Repetto, P.E., as an author of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical Report”) prepared for New Pacific Metals Corp. with an effective date of September 5, 2024, do hereby certify that:
1. |
I am a Principal Civil/Geotechnical Engineer with RPMGlobal USA, Inc. of Suite 1110, 7887 East Belleview Ave., Denver, CO 80111, USA. |
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2. |
I am a graduate of Pontificia Universidad Catolica del Peru, Lima, Peru in 1966 with a degree of Civil Engineer; and Purdue University, Indiana, USA in 1970 with a degree of Master of Science in Civil Engineering. |
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3. |
I am registered as a Professional Engineer in the state of Colorado, USA (Reg.# 0036946). I have worked as a civil engineer in mining projects for a total of 54 years since my graduation. My relevant experience for the purpose of the Technical Report is: |
4. |
I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43- 101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101. |
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5. |
I have not visited the Carangas Project site. |
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6. |
I am responsible for Section 18.18 Tailings Storage Facility of the Technical Report. |
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7. |
I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101. |
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8. |
I have had no prior involvement with the property that is the subject of the Technical Report. |
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9. |
I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1. |
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10. |
At the effective date of the Technical Report, to the best of my knowledge, information, and belief, Section 18.18 of the Technical Report for which I am responsible contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading. |
Dated Nov 15th, 2024
Original signed and sealed by
Pedro Repetto, P.E.,
Exhibit 99.8
Anderson Goncalves Candido, FAusIMM
Principal Geologist
RPMGlobal
CONSENT of QUALIFIED PERSON
I, Anderson Goncalves Candido, consent to the public filing of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical Report”) prepared for New Pacific Metals Corp. (the "Issuer") with an effective date of September 5, 2024.
I also consent to any extracts from or a summary of the Technical Report in the Oct 1st, 2024 news release of the Issuer (the "News Release") that supports the Technical Report.
I certify that I have read the Oct 1st, 2024 News Release and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.
Dated this Nov 15th, 2024.
Original signed by
________________________
Anderson Goncalves Candido, FAusIMM
Exhibit 99.9
Gonzalo Rios, FAusIMM
Executive Consultant - ESG
RPMGlobal Canada Limited
CONSENT of QUALIFIED PERSON
I, Gonzalo Rios, consent to the public filing of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical Report”) prepared for New Pacific Metals Corp. (the "Issuer") with an effective date of September 5, 2024.
I also consent to any extracts from or a summary of the Technical Report in the Oct 1st, 2024 news release of the Issuer (the "News Release") that supports the Technical Report.
I certify that I have read the Oct 1st, 2024 News Release and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.
Dated this Nov 15th, 2024.
Original signed by
________________________
Gonzalo Rios, FAusIMM
Exhibit 99.10
Jinxing Ji, P.Eng.
JJ Metallurgical Services Inc.
7547 Lambeth Drive
Burnaby, BC
V5E 4A5
Canada
CONSENT of QUALIFIED PERSON
I, Jinxing Ji, P.Eng, consent to the public filing of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical Report”) prepared for New Pacific Metals Corp. (the "Issuer") with an effective date of September 5, 2024.
I also consent to any extracts from or a summary of the Technical Report in the Oct 1st, 2024 news release of the Issuer (the "News Release") that supports the Technical Report.
I certify that I have read the Oct 1st, 2024 News Release and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.
Dated this Nov 15th, 2024.
Original signed by
________________________
Jinxing Ji, P.Eng
Exhibit 99.11
Marc Schulte P.Eng
Mining Engineer
Moose Mountain Technical Services
CONSENT of QUALIFIED PERSON
I, Marc Schulte, P.Eng, consent to the public filing of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical Report”) prepared for New Pacific Metals Corp. (the "Issuer") with an effective date of September 5, 2024.
I also consent to any extracts from or a summary of the Technical Report in the Oct 1st, 2024 news release of the Issuer (the "News Release") that supports the Technical Report.
I certify that I have read the Oct 1st, 2024 News Release and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.
Dated this Nov 15th, 2024.
Original signed by
________________________
Marc Schulte, P.Eng
Exhibit 99.12
Marcelo del Giudice, FAusIMM
Principal Metallurgist
RPMGlobal
CONSENT of QUALIFIED PERSON
I, Marcelo del Giudice, consent to the public filing of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical Report”) prepared for New Pacific Metals Corp. (the "Issuer") with an effective date of September 5, 2024.
I also consent to any extracts from or a summary of the Technical Report in the Oct 1st, 2024 news release of the Issuer (the "News Release") that supports the Technical Report.
I certify that I have read the Oct 1st, 2024 News Release and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.
Dated this Nov 15th, 2024.
Original signed by
________________________
Marcelo del Giudice, FAusIMM
Exhibit 99.13
Pedro C. Repetto
Principal Civil/Geotechnical Engineer
RPMGlobal
CONSENT of QUALIFIED PERSON
I, Pedro C. Repetto, consent to the public filing of the technical report titled “NI 43-101 Technical Report Carangas Deposit Preliminary Economic Assessment” (the “Technical Report”) prepared for New Pacific Metals Corp. (the "Issuer") with an effective date of September 5, 2024.
I also consent to any extracts from or a summary of the Technical Report in the Oct 1st, 2024 news release of the Issuer (the "News Release") that supports the Technical Report.
I certify that I have read the Oct 1st, 2024 News Release and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.
Dated this Nov 15th, 2024.
Original signed by
________________________
Pedro C. Repetto, P.E., SME
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