(TheNewswire)
Toronto - TheNewswire – January 13, 2022: AbraSilver Resource Corp.(TSX.V:ABRA ) ( OTC:ABBRF) ("AbraSilver" or the“Company”) is pleased to announcethe filing of a National Instrument 43-101 – Standards of Disclosurefor Mineral Projects (“NI 43-101”) compliant Technical Reportdescribing the Preliminary Economic Assessment (the “PEA”)completed on its wholly-owned Diablillos project in Salta province,Argentina.
The results of the PEA were previously reported in theCompany’s news release dated November 29, 2021, and there are nodifferences in the Technical Report from those results.
Highlights of the PEA include:
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Robust Economics:
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Pre-Tax NPV 5% of $678.5 Million (CAD$ 882.1 Million) with an IRR of44.3%;
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After-Tax NPV 5% of $364.0 Million (CAD$ 473.2 Million) with an IRR of 30.2%;
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7,000 tonnes per day ("tpd") production ratewith an initial mine life of up to 16 years.
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Average annual production:
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In first 5 years of 8.0 Moz Ag and 44.3 koz Au, (11.4Moz AgEq);
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Over the Life-of-Mine of 4.2 Moz Ag and 52.0 koz Au,(8.5 Moz AgEq).
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Low cash operating costs:
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All-in Sustaining Cash Costs ("AISC") duringfirst 5 years of $10.41/oz AgEq;
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AISC during the Life-of-Mine of $11.97/ozAgEq.
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Initial Capital Expenditure of $255.0 million, withpayback period of 2.6 years.
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Several potential opportunities have been identifiedthat may further enhance the economic returns. One such opportunity isto increase the production rate above the 7,000 tpd used as the basecase in the PEA. It is believed that the Diablillos project couldsustain a higher production rate, especially if Mineral Resourcescontinue to grow as a result of additional drilling. A higherproduction rate may lead to improved operating efficiencies and futuretrade-off studies will evaluate the optimal throughput.
The PEA is preliminary in nature and includes InferredMineral Resources that are considered too speculative geologically tohave economic considerations applied to them that would enable them tobe categorized as Mineral Reserves. Mineral Resources that are notMineral Reserves do not have demonstrated economic viability. There isno certainty that the project as outlined in the PEA will berealized.
The full Technical Report was filed on January 13,2022, with an effective date of January 13, 2022, and is entitled“NI 43-101 Preliminary Economic Assessment Technical Report –Diablillos Project”. The Report can be found on the Company’swebsite ( www.abrasilver.com ) and onSEDAR (www.sedar.com).
The PEA was led by Mining Plus Peru S.A.C. withcontributions from Hanlon Engineering & Associates Inc. (asubsidiary of GR Engineering Services Limited) and SAXUM EngineeringLLC locally in Argentina.
Qualified Persons
The Qualified Persons responsible for sections of theTechnical Report are as follows:
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Luis Rodrigo Peralta, B.Sc. (Geo) FAusIMM for Sections1 to 12 and 23.
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María del Carmen Muñoz Lizarve, Geol MAIG (QP) forSection 14.
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Gabriel Alejandro Paganini, AusIMM CP (min) forSections 16, 18, 19, 20, 21, 22, 25, 26 and 27.
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Simon Richard Jeremy Perkins, FAusIMM CP (met) forSections 13 and 17.
The above authors of the Technical Report are each a“Qualified Person” as defined by NI 43-101 and are independent ofAbraSilver.
David O’Connor P. Geo., Chief Geologist forAbraSilver is a “Qualified Person” and he has reviewed andapproved the scientific and technical information in this newsrelease.
About AbraSilver
AbraSilver is a well-funded silver-gold focusedadvanced-stage exploration company. The Company is rapidly advancingits 100%-owned Diablillos silver-gold project in the mining-friendlySalta province of Argentina, which has a current Measured andIndicated Mineral Resource of over 90 million ounces of silver and 1.0million ounces of gold. The Company is led by an experiencedmanagement team and has long-term supportive shareholders includingMr. Eric Sprott and SSR Mining. In addition, AbraSilver owns aportfolio of earlier-stage projects including the La Coipitacopper-gold project in the San Juan province of Argentina. AbraSilveris listed on the TSX-V under the symbol “ABRA” and in the U.S.under the symbol “ABBRF”.
For further information please visit the AbraSilverResource website at www.abrasilver.com , ourLinkedIn page at , and follow us on Twitter at
Alternatively please contact:
John Miniotis, President and CEO
Tel: +1 416-306-8334
Cautionary Statements
This news release includes certain"forward-looking statements" under applicable Canadiansecurities legislation. Forward-looking statements are necessarilybased upon a number of estimates and assumptions that, whileconsidered reasonable, are subject to known and unknown risks,uncertainties, and other factors which may cause the actual resultsand future events to differ materially from those expressed or impliedby such forward-looking statements. All statements that address futureplans, activities, events or developments that the Company believes,expects or anticipates will or may occur are forward-lookinginformation. There can be no assurance that such statements will proveto be accurate, as actual results and future events could differmaterially from those anticipated in such statements. Accordingly,readers should not place undue reliance on forward-looking statements.The Company disclaims any intention or obligation to update or reviseany forward-looking statements, whether as a result of newinformation, future events or otherwise, except as required bylaw.
Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this news release
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