TSX-V-listed Honey Badger Silver has tasked consultancy JDS Energy & Mining to conduct an updated preliminary economic assessment (PEA) and mineral resource estimate (MRE) on the Prairie Creek project, in the Northwest Territories region of Canada, taking into account current metal prices and historical development on the project.  

The two pieces of work should be completed during the third quarter.

The updated PEA and MRE will be informed by input from consultancies and service providers including Global Mineral Resource Services, Knight Piésold, Giffen Consulting and T Engineering.

Honey Badger believes the studies could represent major technical and economic catalysts for the company, with updated technical assumptions in particular having the potential to materially enhance project economics relative to prior studies.

The last MRE on Prairie Creek was completed by Global Mineral Resources Services in October 2021, which outlined a measured and indicated resource of 9.8-million tonnes grading 139 g/t silver, 9.7% zinc and 8.8% lead. The estimate included an inferred resources of 6.4-million tonnes grading 150 g/t silver, 12.9% zinc and 6.7% lead. At the time, silver prices were $20/oz, zinc prices were $1.15/lb and lead prices were $1/lb.

Current spot prices for these metals are $79/oz, $1.60/lb and $0.91/lb, respectively.

Prairie Creek is one of the world’s highest-grade undeveloped silver, zinc and lead deposits with substantial historical infrastructure and development work, including five kilometres of underground development, existing mill and surface infrastructure, an airstrip, advanced permitting and agreements with Indigenous governments associated with the project area.

Notably, Honey Badger has a $25-million grant from the Canadian government in place under its National Trade Corridor Fund.

Honey Badger COO Ron Halas says given the rise in the price of silver and other metals since 2021, combined with the many project advancements having been completed by prior operators, the time is right for an updated MRE and PEA.

“We believe the updated studies will help better demonstrate the strategic importance and economic potential of the Prairie Creek silver mine. JDS is an excellent choice for a lead consultant given its extensive underground mine development and northern Canadian project experience.

“We are looking forward to working with this team of consultants to advance the project through these studies and ultimately toward production,” Halas states.

Importantly, the current studies are not expected to incorporate potential future upside associated with critical mineral opportunities, including germanium and tungsten, nor new technology, which Honey Badger intends to continue evaluating.