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Preliminary Economic Assessment

We are taking a disciplined approach. We issued a revamped PEA in Q4 2021 that focused on high-grade early in the mine life and staged expansions to support manageable capital expenditures.

Highlights from the PEA include:

  • Excellent project economics: Base Case after-tax NPV5% of US$1.2 B and IRR of 38% (Ag - $22.00/oz, Au - $1,600/oz, Pb - $1.00/lb and Zn - $1.20/lb).
  • Exceptional silver price leverage: Upside Case after-tax NPV5% of US$1.9 B and IRR of 55% (Ag - $27.50/oz, Au - $1,880/oz, Pb - $1.10/lb and Zn - $1.45/lb based on one-year trailing 90th percentile prices).
  • Large-scale, high-margin, long mine life asset: 16-year mine life with average annual production of 26 Moz AgEq at an AISC of $12.35/oz AgEq.
  • Low capital intensity: initial development capex of $368 M; attractive NPV-to-capex ratio of 3.2x.
  • Rapid payback: post-tax payback of 2.0 years for Base Case and 1.4 years for Upside Case.
  • Technically robust study: 99% of tonnes processed in the PEA mine plan are in the Measured & Indicated category; process design and metallurgical recovery estimates based on the Company’s comprehensive 2021 metallurgical testwork program.

The Company’s 43-101 report for the PEA will be filed within 45 days of the PEA press release (November 30, 2021). Further details can be found in the 43-101 report at the top of this page or the summary presentation and press release below:

PEA Summary Presentation   PEA Press Release

*A Preliminary Economic Assessment should not be considered to be a prefeasibility or feasibility study, as the economics and technical viability of the Project have not been demonstrated at this time. The preliminary economic assessment is preliminary in nature and includes 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. Furthermore, there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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