Silver Bull Releases PEA for Sierra Mojada Project

Silver Bull Resources Inc. (TSX:SVB,NYSEMKT:SVBL) announced that it has completed a preliminary economic assessment( PEA) for its Sierra Mojada project, which is located in Coahuila, Mexico. It is expected to have an 18-year mine life, during which time it will mine and process 55.9 million tonnes of ore at a rate of 8,500 tonnes per day, averaging 73.4 grams per tonne silver and 2.79-percent zinc.

According to the press release, other highlights include:

• Pre-tax Net Present Value (“NPV”) at a 5% discount rate of $641.1 million and an Internal Rate of Return (“IRR”) of 26.9%;
• After-tax NPV at a 5% discount rate of $463.9 million and IRR of 23.1%;
• After-tax payback of 2.9 years after plant start-up;
• Pre-production capital cost (“CAPEX”) of $297.2 million including a 15% contingency;
• Sustaining Capital of $79.6 million over life of mine (“LOM”) including a 15% contingency;
• An overall strip on the open pit of 5.6:1, with the first 5 years of production ofthe phase 1 pit having a lower strip of 3.6:1;
• An average payable silver production of 5.5 million ounces of silver per year with a LOM cash cost of $6.58 per ounce of silver, net of by-product credits.
• Years 2 to 6 will produce an average of 7 million ounces a year with a peak production of 9.3 million ounces of silver in year 2;
• The JDS Study does not take into account the potential mining of an additional 37 million tonnes of “lower” grade ore which lies immediately outside of the pit and has the potential to extend the current projected mine life.

Click here to read the full Silver Bull Resources Inc. (TSX:SVB,NYSEMKT:SVBL) press release.