Key Takeaways
- Blackrock Silver’s Tonopah West PEA outlines a 7.1M AgEq oz/year operation with an after-tax IRR of 31% at US$28/oz silver.
- The project’s AISC of US$17.44/AgEq oz is among the lowest quartile globally for primary silver production.
- Walker Lane is home to several world-class silver deposits including Coeur Mining’s Rochester mine and First Majestic’s Jerritt Canyon assets.
- At current silver prices above US$32/oz, the project’s after-tax NPV increases by approximately 45% versus the base case.
Nevada’s Walker Lane trend is one of the most prolific silver and gold districts in North America, and Blackrock Silver Corp (BRC.V) is advancing the Tonopah West project a high-grade, open-pit-amenable silver deposit toward a construction decision that would create one of the few primary silver producers to come to market this decade. With a completed Preliminary Economic Assessment and institutional interest growing in primary silver exposure, Blackrock’s timing may be well-aligned with a strengthening silver market.
Tonopah West PEA: The Economics
The Tonopah West PEA, completed in Q4 2025, outlines a 15,500 tonne-per-day heap leach operation with an 11.2-year mine life. At the PEA base case silver price of US$28/oz and gold price of US$1,950/oz, the project delivers: an after-tax NPV(5%) of US$312 million, after-tax IRR of 31%, initial capital expenditure of US$185 million, and all-in sustaining costs of approximately US$17.44/AgEq oz. Annual silver equivalent production of approximately 7.1 million AgEq oz consists of roughly 5.8 million oz silver and a meaningful gold credit.
Walker Lane Geology and Comparable Deposits
The Walker Lane is a structural corridor that runs from southern Oregon through Nevada and into California, hosting epithermal silver and gold deposits associated with Miocene-age volcanism. The Tonopah region specifically is home to the historic Tonopah mine which produced over 174 million oz of silver during its operational period and nearby operations including Coeur Mining’s Rochester mine and several junior development-stage projects. Blackrock’s Tonopah West benefits from geological continuity with the historic district and exceptional infrastructure: paved road access, power grid connectivity, and a nearby skilled labour pool from the established Tonopah community.
Management and Institutional Ownership
CEO Andrew Pollard has assembled a management team with experience at Endeavour Silver, First Majestic Silver, and SilverCrest Metals companies with a track record of building and operating mid-scale silver mines in Mexico and the Americas. Institutional ownership of approximately 22% includes several Canadian and US resource-focused fund managers that have followed the company since the PEA stage. Insider ownership of approximately 14% aligns management with shareholders.
Financing Risk and Path to Production
The US$185 million initial capital requirement is the primary challenge for a company of Blackrock’s current market capitalization. Management is evaluating a combination of project debt financing, a potential streaming or royalty agreement, and equity financing for the construction decision expected in late 2026 or early 2027. The heap leach process used at Tonopah West is well-understood by project financiers, reducing technical financing risk compared to more complex milling circuits.
| Tonopah West PEA Metric | Base Case (US$28/oz Ag) | Current (~US$32/oz Ag) |
|---|---|---|
| After-Tax NPV (5%) | US$312M | ~US$450M |
| After-Tax IRR | 31% | ~41% |
| Initial CapEx | US$185M | US$185M |
| AISC | US$17.44/AgEq oz | US$17.44/AgEq oz |
| Annual Production | 7.1M AgEq oz | 7.1M AgEq oz |
| Mine Life | 11.2 years | 11.2 years |
The Bottom Line
Blackrock Silver’s Tonopah West is a low-cost, high-grade silver development project with compelling economics in a supportive silver price environment. The Walker Lane location, combined with management experience and institutional backing, positions the company well for a construction decision. The primary risk is the financing gap between current market cap and the US$185M capex requirement a bridge that requires either strong equity markets or a creative streaming/royalty structure to cross. Investors willing to bet on silver and management execution have a credible development-stage story here.
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