Honey Badger Silver Reports Positive PEA for PC Silver Mine
News related to:Honey Badger Silver Inc · 3 min read
Honey Badger Silver Inc. has announced positive results from a preliminary economic assessment (PEA) for its 100%-owned PC Silver Mine in the Northwest Territories, Canada. The PEA, based on spot pricing as of August 31, 2026, indicates that the mine could generate significant financial returns, even at lower-than-spot commodity prices.
According to the PEA, the PC Silver Mine has the potential to produce an average of 10.7 million ounces of silver equivalent (AgEq) over its first seven years of operation. The mine is expected to have a 22-year life, with an average annual production of 2.5 million ounces of silver, 117 million pounds of zinc, 95 million pounds of lead, and 1.3 million pounds of copper. This translates to a silver-equivalent production of 7.9 million ounces per year.
The company's Executive Chairman, Chad Williams, expressed satisfaction with the PEA results. "We are pleased with the results of this PEA for three reasons. First, we believe that PC Silver has the potential to become a significant North American silver and critical-minerals producer, generating substantial cash flow and long-term economic benefits, including meaningful employment for our Indigenous partners and in the Northwest Territories," Williams stated.
The PEA highlights that the mine could generate a pre-tax life-of-mine (LOM) free cash flow of $7.3 billion, with a net present value (NPV) of 8% at $4.1 billion and 5% at $5.3 billion. After-tax, the LOM free cash flow is estimated at $4.7 billion, with an NPV of 8% at $1.8 billion and 5% at $2.6 billion. The internal rate of return (IRR) is 48%, and the payback period is 2.1 years.
The PEA also shows that the All-In Sustaining Cost (AISC) for the mine is negative US$36 per ounce of silver, benefiting from substantial zinc, lead, and copper credits. At the long-term consensus pricing, the AISC is negative US$22 per ounce of silver. Under the last 12 months high pricing scenario, the AISC is negative US$40 per ounce of silver.
The PC Silver Mine is an existing operation that was built in the early 1980s. It has significant capital already invested, extensive existing infrastructure, key permits in place, and strong relationships with Indigenous governments, territorial and federal governments, and other partners. The mine is located in the Mackenzie Mountains of the Northwest Territories, approximately 90 kilometers from Nahanni Butte.
Williams added, "PC Silver is a low-cost silver mine, with the potential to be one of the largest silver mines in the world. The mine benefits from significant by-product revenue, which materially reduces the effective cost of silver production. On a net of by-product credit basis, the AISC for the long-term consensus pricing case is negative US$22 per Ag oz, the spot pricing case is negative US$36 per Ag oz, and the last 12 months high pricing case is negative US$40 per Ag oz."
The PEA also indicates that the mine has a large resource base, with a 22-year mine life based on mineral resources containing 11.63 million tonnes of measured and indicated resources grading 424 g/t AgEq and 8.47 million tonnes of inferred resources grading 492 g/t AgEq.
Honey Badger Silver Inc. is optimistic about the potential scale of the operation and the advanced nature of the asset. The company has already received inbound interest from major smelters and off-takers, debt providers, government agencies, and infrastructure investors, as well as two unsolicited expressions of interest for complete turnkey project financing.
The company plans to make a production decision at the PC Silver Mine as quickly and responsibly as possible. With the PEA now complete, the Board has authorized the company to immediately commence the next stage of engineering and advance directly toward a feasibility study, which is targeted for completion in the second quarter of 2027. Over that period, the company's focus will be on optimizing capital, development sequencing, and processing, evaluating a staged start, advancing critical-minerals opportunities, and determining how to unlock even more value from this asset.