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
- Metallurgy, Resource update, Other
- Extracted
- 2026-09-17 15:48:57 UTC
Analysis by Minestarters Atlas
Atlas analysis published:
Minestarters Atlas analysis
Summary
Honey Badger Silver Inc. has announced a positive Preliminary Economic Assessment (PEA) for its PC Silver Mine in the Northwest Territories. The project features a 22-year mine life with significant silver-equivalent production and an all-in sustaining cost (AISC) that could be negative due to substantial zinc, lead, and copper by-product credits.
Reasoning: The announcement of a positive PEA with negative AISC and strong NPV for the PC Silver Mine is a highly material development for the company.
Positive factors
- Significant silver-equivalent grades
- Negative AISC due to high by-product credits
- Strong project economics (NPV $1.2B, 29% IRR)
- Existing infrastructure reduces capital intensity
Negative factors
- PEA stage includes speculative Inferred resources
- High capital requirements for road and development
Facts used in scoring: 10
Classification and evidence
PEA-Supportingneutral
Resource estimate prepared to support a Preliminary Economic Assessment — early-stage study.
Why it applies: The announcement describes a Preliminary Economic Assessment (PEA) for the PC Silver Mine.
Evidence · text
“Honey Badger Silver Announces Positive Preliminary Economic Assessment”
Inferred Resourcenegative
Speculative category — limited drilling, geological continuity assumed but not confirmed. Cannot support economic studies alone.
Why it applies: The PEA includes a significant portion of Inferred resources which are considered too speculative for reserves.
Evidence · text
“includes Inferred Mineral Resources that are considered too speculative geologically”
Gravity Routeneutral
Gravity separation forms a material part of the flowsheet.
Why it applies: the document describes a gravity route ("dense media separation")
Multi-Domain Testedpositive
Variability across ore domains (oxide, transition, fresh) has been addressed.
Why it applies: 2 distinct composites were tested
Extracted facts
Stored fact records: 10. 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:df0f52aa25371fbc66e8
- Deposit or zone
- PC Silver Mine
- 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: Strong M&I resource grade of 424 g/t AgEq.
Positive factors
- High silver-equivalent grade
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:6ec2a67061f8f6e1d903
- Deposit or zone
- PC Silver Mine
- 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 in the speculative Inferred category.
Positive factors
- High silver-equivalent grade
Negative factors
- Inferred category is speculative
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
Metallurgical Results (8)
Fact 1silverHead Grade: 112Head Grade Unit: g/tView all detailsHide details
Identity
- Commodity
- silver
- Region
- northwest territories
- Reported Region
- Northwest Territories
- Ticker
- TUF
Test Work
- Sample
- Mined grade before DMS
Recovery
- Head Grade
- 112
- Head Grade Unit
- g/t
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-17T00:00:00.000Z
Reasoning: Reported mined grade before upgrading.
Evidence · text
“Mined grade before DMS is 112 g/t silver”
Tags used in scoring
Byproduct Commodityneutral
The tested commodity is a byproduct rather than the primary economic driver.
Why it applies: the release describes a byproduct credit
Fact 2leadHead Grade: 6.1Head Grade Unit: %View all detailsHide details
Identity
- Commodity
- lead
- Region
- northwest territories
- Reported Region
- Northwest Territories
- Ticker
- TUF
Test Work
- Sample
- Mined grade before DMS
Recovery
- Head Grade
- 6.1
- Head Grade Unit
- %
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-17T00:00:00.000Z
Reasoning: Reported mined grade before upgrading.
Evidence · text
“6.1% lead”
Tags used in scoring
Byproduct Commodityneutral
The tested commodity is a byproduct rather than the primary economic driver.
Why it applies: the release describes a byproduct credit
Fact 3zincHead Grade: 8.5Head Grade Unit: %View all detailsHide details
Identity
- Commodity
- zinc
- Region
- northwest territories
- Reported Region
- Northwest Territories
- Ticker
- TUF
Test Work
- Sample
- Mined grade before DMS
Recovery
- Head Grade
- 8.5
- Head Grade Unit
- %
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-17T00:00:00.000Z
Reasoning: Reported mined grade before upgrading.
Evidence · text
“8.5% zinc”
Tags used in scoring
Byproduct Commodityneutral
The tested commodity is a byproduct rather than the primary economic driver.
Why it applies: the release describes a byproduct credit
Fact 4copperHead Grade: 0.25Head Grade Unit: %View all detailsHide details
Identity
- Commodity
- copper
- Region
- northwest territories
- Reported Region
- Northwest Territories
- Ticker
- TUF
Test Work
- Sample
- Mined grade before DMS
Recovery
- Head Grade
- 0.25
- Head Grade Unit
- %
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-17T00:00:00.000Z
Reasoning: Reported mined grade before upgrading.
Evidence · text
“0.25% copper”
Tags used in scoring
Byproduct Commodityneutral
The tested commodity is a byproduct rather than the primary economic driver.
Why it applies: the release describes a byproduct credit
Fact 5silverHead Grade: 173Head Grade Unit: g/tView all detailsHide details
Identity
- Commodity
- silver
- Region
- northwest territories
- Reported Region
- Northwest Territories
- Ticker
- TUF
Test Work
- Sample
- Mill head grade after DMS
Recovery
- Head Grade
- 173
- Head Grade Unit
- g/t
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-17T00:00:00.000Z
Reasoning: Improved mill head grade after upgrading.
Positive factors
- Significant grade upgrade via DMS
Evidence · text
“mill head grade of 173 g/t silver”
Tags used in scoring
Byproduct Commodityneutral
The tested commodity is a byproduct rather than the primary economic driver.
Why it applies: the release describes a byproduct credit
Fact 6leadHead Grade: 9.4Head Grade Unit: %View all detailsHide details
Identity
- Commodity
- lead
- Region
- northwest territories
- Reported Region
- Northwest Territories
- Ticker
- TUF
Test Work
- Sample
- Mill head grade after DMS
Recovery
- Head Grade
- 9.4
- Head Grade Unit
- %
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-17T00:00:00.000Z
Reasoning: Improved mill head grade after upgrading.
Positive factors
- Significant grade upgrade via DMS
Evidence · text
“9.4% lead”
Tags used in scoring
Byproduct Commodityneutral
The tested commodity is a byproduct rather than the primary economic driver.
Why it applies: the release describes a byproduct credit
Fact 7zincHead Grade: 12.8Head Grade Unit: %View all detailsHide details
Identity
- Commodity
- zinc
- Region
- northwest territories
- Reported Region
- Northwest Territories
- Ticker
- TUF
Test Work
- Sample
- Mill head grade after DMS
Recovery
- Head Grade
- 12.8
- Head Grade Unit
- %
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-17T00:00:00.000Z
Reasoning: Improved mill head grade after upgrading.
Positive factors
- Significant grade upgrade via DMS
Evidence · text
“12.8% zinc”
Tags used in scoring
Byproduct Commodityneutral
The tested commodity is a byproduct rather than the primary economic driver.
Why it applies: the release describes a byproduct credit
Fact 8copperHead Grade: 0.39Head Grade Unit: %View all detailsHide details
Identity
- Commodity
- copper
- Region
- northwest territories
- Reported Region
- Northwest Territories
- Ticker
- TUF
Test Work
- Sample
- Mill head grade after DMS
Recovery
- Head Grade
- 0.39
- Head Grade Unit
- %
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-17T00:00:00.000Z
Reasoning: Improved mill head grade after upgrading.
Positive factors
- Significant grade upgrade via DMS
Evidence · text
“0.39% copper”
Tags used in scoring
Byproduct Commodityneutral
The tested commodity is a byproduct rather than the primary economic driver.
Why it applies: the release describes a byproduct credit
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.