Auld Creek (Reefton Project) PEA: $42M NPV, 17% IRR
Rua Gold Inc.'s Auld Creek (Reefton Project) in New Zealand, Reefton Goldfield has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $42M, an after-tax IRR of 17%, and initial capital of $133M. The mine plan runs 5.5 years at about 26665 AuEq oz/yr per year.
Rua Gold Inc.'s Auld Creek (Reefton Project) has reported Preliminary Economic Assessment (PEA) results for the gold & antimony project in New Zealand, Reefton Goldfield. The study headlines an after-tax net present value of $42M at a 5% discount rate. It reflects Rua Gold Inc.'s (RUA.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $42M using a 5% discount rate. After-tax IRR is 17%. Initial capital expenditure is estimated at $133M. The study models a payback period of 3.3 years. All-in sustaining costs are pegged at 1850 USD/oz. Economics are based on Long Term: Gold US$3,300/oz, Antimony US$27,000 per tonne, 85% recovery; AuEq = Au g/t + 2.15 x Sb%. Spot case: Gold US$4,700/oz.
Production and mine plan. The project envisions an underground (shallow) operation. Life of mine is 5.5 years. Average annual production is approximately 26665 AuEq oz/yr. Average head grade is 3.36 g/t AuEq (1,357 kt mined). Metallurgical recovery averages 85%.
These figures are extracted from Rua Gold Inc.'s technical disclosures and reflect the most recent PEA on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | — | 5.7 AuEq (g/t) | 54koz AuEq |
| Inferred | — | 3.7 AuEq (g/t) | 148koz AuEq |
Our Analysis
- IRR after-tax
- 17%
higher than 9% of 354 projects we track
- NPV after-tax
- $42M
higher than 5% of 453 projects we track
- Initial capex
- $133M
313% of NPV
costlier than 34% of 453 projects we track
- Payback
- 3.3yrs
slower than 66% of 285 projects we track
- Mine life
- 5.5yrs
- Discount rate
- 5%
- Study price assumption
- Long Term: Gold US$3,300/oz, Antimony US$27,000 per tonne, 85% recovery; AuEq = Au g/t + 2.15 x Sb%. Spot case: Gold US$4,700/oz
- Spot gold today
- $4,391.00/oz
A 17% after-tax IRR puts this project in the bottom quartile of the 354 we track, and that is the number to sit with. It clears the roughly 15% threshold developers typically need to attract project finance, but only just, and the NPV ranking is weaker still: $42M after tax places it above just 5% of the 453 projects in our database. Payback of 3.3 years is the better line on the page, quicker than 34% of the 285 projects we track, though "moderate" is the honest word for it. This is not a project that sells itself on its returns.
The binding constraint is the build. Initial capex of $133M is 313% of NPV, which is capital-intensive by our measure and heavier than 66% of the 453 projects we track. Against a diversified portfolio of 12 projects that is manageable rather than transformative, but it means the funding conversation, not the geology, will set the timetable. Add the study stage: this is a PEA, scoping-level work that may rest on inferred resources and carries a capital estimate with a plus or minus 50% band. At $133M, that band is wide enough to move the whole economics.
The price deck is where the upside sits. The study assumes gold at US$3,300/oz against a live spot of US$4,391/oz, with antimony at US$27,000 per tonne and 85% recovery. That gap is real but it is not a free option: the study's 5% discount rate is a reporting convention, not a hurdle, and it does the headline NPV no favours to lean on. The question that decides this one is whether a 17% return and a $133M build can be financed without diluting the portfolio that makes the capex survivable in the first place.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.