Cadillac Gold Project PEA: C$1.00B NPV, 26.6% IRR
Cartier Resources Inc.'s Cadillac Gold Project in Canada, Quebec, Abitibi-Témiscamingue (approx. 35 km ESE of Val-d'Or) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$1.00B, an after-tax IRR of 26.6%, and initial capital of C$306M.
Cartier Resources Inc.'s Cadillac Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Canada, Quebec, Abitibi-Témiscamingue (approx. 35 km ESE of Val-d'Or). The study headlines an after-tax net present value of C$1.00B at a 5% discount rate. It reflects Cartier Resources Inc.'s (ECR.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$1.00B using a 5% discount rate. After-tax IRR is 26.6%. Initial capital expenditure is estimated at C$306M, with life-of-mine sustaining capital of C$1.06B. The study models a payback period of 4.3 years. All-in sustaining costs are pegged at 2107 USD/oz payable. Economics are based on Base case US$3,600/oz Au, exchange rate 1.38 C$/US$ (spot case US$4,300/oz).
Production and mine plan. The project envisions an underground operation. Metallurgical recovery averages 94.8%.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: Royalty (1.5%) – $101.7M over LOM.
These figures are extracted from Cartier Resources 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 |
|---|---|---|---|
| Measured | 1,770,000 t (open pit) | 2.16 g/t Au | 123,300 oz Au |
| Measured | 4,210,000 t (underground) | 2.80 g/t Au | 379,300 oz Au |
| Measured | 5,988,000 t (total) | 2.61 g/t Au | 502,600 oz Au |
| Indicated | 1,730,000 t (open pit) | 1.52 g/t Au | 84,500 oz Au |
| Indicated | 2,240,000 t (underground) | 2.51 g/t Au | 180,600 oz Au |
| Indicated | 3,965,000 t (total) | 2.08 g/t Au | 265,200 oz Au |
| Measured & Indicated | 3,500,000 t (open pit) | 1.84 g/t Au | 207,800 oz Au |
| Measured & Indicated | 6,450,000 t (underground) | 2.70 g/t Au | 559,900 oz Au |
| Measured & Indicated | 9,953,000 t (total) | 2.40 g/t Au | 767,800 oz Au |
| Inferred | 4,740,000 t (open pit) | 1.13 g/t Au | 172,600 oz Au |
| Inferred | 30,450,000 t (underground) | 2.29 g/t Au | 2,244,200 oz Au |
| Inferred | 35,185,000 t (total) | 2.14 g/t Au | 2,416,900 oz Au |
Our Analysis
- IRR after-tax
- 26.6%
higher than 28% of 122 projects we track
- NPV after-tax
- C$1.00B
higher than 63% of 195 projects we track
- Initial capex
- C$306M
31% of NPV
costlier than 62% of 177 projects we track
- Payback
- 4.3yrs
slower than 94% of 106 projects we track
- Discount rate
- 5%
- Study price assumption
- Base case US$3,600/oz Au, exchange rate 1.38 C$/US$ (spot case US$4,300/oz)
- Spot gold today
- $3,898.90/oz
A C$306M build against a US$62M market cap is the fact that governs everything else here. The company cannot fund this from its own balance sheet, and it cannot raise equity of that order without handing control of the asset, and arguably the company, to whoever writes the cheque. That points to a partner, a joint venture, a royalty or streaming package, or an outright sale of the project, rather than a straightforward project-finance deal. Existing holders should read the headline economics with that dilution or divestment path in mind, because the value that survives to them depends on the terms of a transaction that has not happened yet.
The returns themselves are decent but not exceptional. A 26.6% after-tax IRR ranks above only 28% of the gold projects we track, and it clears the roughly 15% hurdle developers need for project finance and the 20%+ that a junior with a thin portfolio would want. The NPV of C$1.00B ranks above 63% of peers, and capex at 31% of NPV looks capital-light next to the 38% average across the 177 projects we track. But that ratio flatters a company this small: relative to equity, the build is several times the entire business. Payback of 4.3 years is long, ranking above only 6% of the 106 projects we track, so capital sits at risk for a considerable stretch before it returns.
Two caveats temper the numbers. This is a scoping-level PEA, with inferred material potentially in the mine plan and a capital estimate that typically carries a plus or minus 50% band, so neither the C$306M nor the C$1.00B should be treated as fixed. The study also assumes US$3,600/oz gold against a live spot of US$3,898.90/oz, so the base case is not aggressive on price. Quebec's Abitibi is a mining-friendly jurisdiction, which helps permitting and partner appetite. The deciding question is whether a fundable partner can be found on terms that leave existing holders with meaningful exposure to a mine that takes 4.3 years to pay back.
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.
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