Cadillac Project (Chimo Mine) PEA: C$1.00B NPV, 26.6% IRR
Cartier Resources Inc.'s Cadillac Project (Chimo Mine) in Val-d'Or, Abitibi, Quebec, Canada 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$276M. The mine plan runs 16.2 years at about 100000 oz Au per year.
Cartier Resources Inc.'s Cadillac Project (Chimo Mine) has reported Preliminary Economic Assessment (PEA) results for the gold project in Val-d'Or, Abitibi, Quebec, Canada. 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$276M. The study models a payback period of 4.3 years. All-in sustaining costs are pegged at 2137 USD/oz. Economics are based on Base case US$3,600/oz gold; upside case US$4,300/oz gold; exchange rate 1.38 C$/US$.
Production and mine plan. The project envisions an underground operation. Life of mine is 16.2 years. Average annual production is approximately 100000 oz Au. Metallurgical recovery averages 94.8%.
Resources and ownership. The company holds a 100% interest in the project.
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 & Indicated | — | — | 767,800 oz Au |
| Inferred | — | — | 2,416,900 oz Au |
Our Analysis
- IRR after-tax
- 26.6%
higher than 27% of 121 projects we track
- NPV after-tax
- C$1.00B
higher than 63% of 194 projects we track
- Initial capex
- C$276M
28% of NPV
costlier than 59% of 176 projects we track
- Payback
- 4.3yrs
slower than 94% of 105 projects we track
- Mine life
- 16.2yrs
- Discount rate
- 5%
- Study price assumption
- Base case US$3,600/oz gold; upside case US$4,300/oz gold; exchange rate 1.38 C$/US$
- Spot gold today
- $4,037.50/oz
A C$276M build against a US$65M market capitalisation is the fact that governs everything else here. The company would be asking the market to fund a mine roughly three times its own value, and micro-caps do not raise that quietly: it means equity issued at a discount, a partner taking a large stake, a streaming or royalty package, or project debt that will demand a feasibility-grade study and a completed permitting path. Existing holders should assume material dilution or a substantial share of the asset going to whoever writes the cheque. The four-project portfolio spreads the company's attention but does not change the arithmetic on this one.
The economics are respectable without being exceptional. After-tax NPV of C$1.00B against that capex ranks in the upper-middle of the gold studies we track, and the 26.6% after-tax IRR clears the roughly 15% threshold project lenders typically want and the 20%-plus a junior with limited production elsewhere would need to be financeable. But it ranks above only 27% of the 121 gold projects we track, and a 4.3-year payback sits below almost all of the 105 projects we compare it with. A 5% discount rate is a reporting convention rather than a hurdle and does much of the work in that headline NPV.
Two caveats temper the numbers further. This is a scoping-level PEA, so the capital estimate carries a wide band and may lean on inferred material; the IRR and NPV will move once engineering is real. And the base case assumes US$3,600/oz gold against a live spot of US$4,037.50/oz, so there is headroom, though the upside case at US$4,300/oz shows how much of the value depends on the price holding. Quebec's Abitibi is about as good a jurisdiction as this industry offers, which helps at the permitting and financing table. The question that decides the project is not the IRR but whether this company can carry a three-times-market-cap build to a construction decision without handing away the asset.
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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