New Pacific Metals Prepares to Plug Global Silver Supply Gap with Carangas Mine

The global silver supply/demand imbalance has reached crisis levels, with the Silver Institute predicting another year of structural deficits. New Pacific Metals Corp., a Vancouver-based mining exploration and development company, is working to address this issue through its Carangas Mine project.

The company owns two of the world's largest undeveloped open-pit silver projects: Silver Sand and Carangas. Both projects have significant mineral resources, with Carangas holding over 200 million ounces of silver and projected annual production of 15.5 million ounces. New Pacific Metals recently signed Administrative Mining Contracts for Carangas, a key milestone in advancing the mine from exploration to production.

The company expects drilling at the site to commence in September, with about 25,000 meters focused on upgrading mineral resources and step-out drilling. The project's planned open-pit design makes it generally cheaper and safer to operate than other mining methods. New Pacific Metals estimates that its costs will be around $12 per ounce of silver produced during the first eight years, compared to predicted silver prices.

While the mine is still in development, its potential contribution to global silver production could be significant. If it meets its targets and produces more than 15 million ounces of silver a year, it would represent about 1.8% of 2025's global mine production. With enough resources in the ground to keep operating for nearly two decades, Carangas Mine has the potential to become an important source of global silver.