By-Product Credits Can Push a Silver Mine's Cash Cost Below Zero
Original announcement by orestocks on
- Company
- Honey Badger Silver Inc.
- Ticker
- TUF
- Exchange
- Unavailable
- Region
- Northwest Territories
- Primary commodity
- Silver
- Secondary commodities
- Zinc, Lead, Copper
- Document categories
- Economic study, Resource update
- Extracted
- 2026-09-17 15:09:56 UTC
Analysis by Minestarters Atlas
Minestarters Atlas analysis
Summary
Honey Badger Silver Inc. has announced a positive Preliminary Economic Assessment (PEA) for its 100%-owned PC Silver Mine in the Northwest Territories. The study reports a 22-year mine life with an after-tax NPV of $1.2 billion and a 29% IRR, highlighted by a negative AISC of US$22/oz due to significant zinc, lead, and copper by-product credits.
Reasoning: The announcement of a positive PEA for the PC Silver Mine with exceptional negative AISC and strong NPV/IRR metrics represents a highly material development for the company.
Positive factors
- Strong economics with negative AISC due to by-product credits
- Significant silver equivalent production
- Existing infrastructure reduces capital requirements
- High IRR and NPV
Negative factors
- PEA stage includes significant Inferred resources
- High sensitivity to base metal prices for the negative AISC claim
- Significant capital required for road infrastructure
Facts used in scoring: 4
Classification and evidence
PEA Onlyneutral
Only Class 4 / Initial Assessment economics available. Not bankable.
Why it applies: The announcement is for a Preliminary Economic Assessment (PEA) which is a Class 4 study.
Evidence · text
“announced the results of an updated Preliminary Economic Assessment”
Inferred Heavy Feednegative
Material Inferred share of LOM mill feed, or the share is undisclosed.
Why it applies: The PEA includes 8.47 million tonnes of Inferred resources compared to 11.63 million tonnes of M&I.
Evidence · text
“11.63 million tonnes of Measured and Indicated resources... and 8.47 million tonnes of Inferred resources”
Maiden Resourceneutral
First formal MRE for the project — establishes baseline but typically exploration-stage with high Inferred component. No prior estimate exists, so every change band is not applicable.
Why it applies: The document describes an updated Mineral Resource Estimate, implying a previous baseline exists.
Evidence · text
“announced the results of an updated Preliminary Economic Assessment and updated Mineral Resource Estimate”
Resource Updateneutral
Revised estimate for an existing resource — compare to prior to assess progress.
Why it applies: The source explicitly discloses a revised resource estimate
Evidence · text
“updated Mineral Resource Estimate”
Extracted facts
Stored fact records: 2. Some facts used in scoring do not have a stored record.
Resource Estimates (2)
indicatedPC Silver Mine · silverTonnes: 11630000View all detailsHide details
Identity
- Project
- PC Silver Mine
- Commodity
- silver
- Region
- northwest territories
- Reported Region
- Northwest Territories
- Ticker
- TUF
Resource scope
- Estimate type
- resource
- Effective date
- 2026-06-21T00:00:00.000Z
- Reporting standards
- ni_43_101
- QP Signed
- Yes
- Qualified person names
- Mike Makarenko, Greg Mosher
- Resource group id
- resource:cfa99b9d00f7fa013948
- Mining method
- underground
- Ownership percent
- 100 %
Resource Data
- Category
- indicated
- Tonnes
- 11630000
Prior Estimate
- Resource Date
- 2026-06-21
Metal Equivalent
- Metal Eq. Grade
- 424
- Metal Eq. Unit
- g/t AgEq
- Assumptions Disclosed
- Yes
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-17T00:00:00.000Z
Reasoning: Solid M&I resource base.
Positive factors
- Significant M&I tonnage
Evidence · text
“11.63 million tonnes of Measured and Indicated resources grading 424 g/t AgEq”
Tags used in scoring
Indicated Resourcepositive
Reasonable geological confidence based on adequate drilling; continuity can be assumed. Basis for Probable Reserves.
Why it applies: category is "indicated"
Cut-off Undisclosednegative
High-grade interval reported without stating the cut-off grade used for compositing.
Why it applies: no cutoff_grade was stated
QP/CP Signedpositive
Qualified Person (QP) or Competent Person (CP) named and signed off — a member of a recognized professional association (e.g., AusIMM, SME, AIG, P.Geo) with relevant experience.
Why it applies: qp_signed is true
NI 43-101 Compliantpositive
Resource estimate prepared in compliance with NI 43-101 (Canada) — high reporting standard.
Why it applies: reporting_standards includes ni_43_101
No Contained Metalnegative
Tonnage and grade reported but contained metal not calculated or disclosed — incomplete reporting.
Why it applies: contained_metal was not reported
Resource Updateneutral
Revised estimate for an existing resource — compare to prior to assess progress.
Why it applies: the release compares against a previous estimate
PEA-Supportingneutral
Resource estimate prepared to support a Preliminary Economic Assessment — early-stage study.
Why it applies: the release names the study this estimate supports
DFS-Supportingneutral
Resource estimate prepared to support a Definitive Feasibility Study — requires high M&I confidence.
Why it applies: the release names the study this estimate supports
inferredPC Silver Mine · silverTonnes: 8470000View all detailsHide details
Identity
- Project
- PC Silver Mine
- Commodity
- silver
- Region
- northwest territories
- Reported Region
- Northwest Territories
- Ticker
- TUF
Resource scope
- Estimate type
- resource
- Effective date
- 2026-06-21T00:00:00.000Z
- Reporting standards
- ni_43_101
- QP Signed
- Yes
- Qualified person names
- Mike Makarenko, Greg Mosher
- Resource group id
- resource:2e3c0e0cc04bf31f8417
- Mining method
- underground
- Ownership percent
- 100 %
Resource Data
- Category
- inferred
- Tonnes
- 8470000
Prior Estimate
- Resource Date
- 2026-06-21
Metal Equivalent
- Metal Eq. Grade
- 492
- Metal Eq. Unit
- g/t AgEq
- Assumptions Disclosed
- Yes
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-17T00:00:00.000Z
Reasoning: High grade but speculative category.
Positive factors
- High grade inferred resource
Negative factors
- Speculative nature of inferred category
Evidence · text
“8.47 million tonnes of Inferred resources grading 492 g/t AgEq”
Tags used in scoring
Inferred Resourcenegative
Speculative category — limited drilling, geological continuity assumed but not confirmed. Cannot support economic studies alone.
Why it applies: category is "inferred"
Cut-off Undisclosednegative
High-grade interval reported without stating the cut-off grade used for compositing.
Why it applies: no cutoff_grade was stated
QP/CP Signedpositive
Qualified Person (QP) or Competent Person (CP) named and signed off — a member of a recognized professional association (e.g., AusIMM, SME, AIG, P.Geo) with relevant experience.
Why it applies: qp_signed is true
NI 43-101 Compliantpositive
Resource estimate prepared in compliance with NI 43-101 (Canada) — high reporting standard.
Why it applies: reporting_standards includes ni_43_101
No Contained Metalnegative
Tonnage and grade reported but contained metal not calculated or disclosed — incomplete reporting.
Why it applies: contained_metal was not reported
Resource Updateneutral
Revised estimate for an existing resource — compare to prior to assess progress.
Why it applies: the release compares against a previous estimate
PEA-Supportingneutral
Resource estimate prepared to support a Preliminary Economic Assessment — early-stage study.
Why it applies: the release names the study this estimate supports
DFS-Supportingneutral
Resource estimate prepared to support a Definitive Feasibility Study — requires high M&I confidence.
Why it applies: the release names the study this estimate supports
How Atlas produces this analysis
Minestarters Atlas uses automated extraction to summarize mining announcements, identify reported measurements, and classify supporting evidence. Sentiment reflects the extracted narrative and classification rules; it is an interpretation, not a reported measurement. Evidence quotes and context are provided where available. Missing data, low-confidence results, and review flags indicate limitations. Check the original publisher announcement before relying on an interpretation.