Carmacks PEA: C$330M NPV, 38% IRR
Cascadia Minerals Ltd.'s Carmacks in Yukon, Canada has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$330M, an after-tax IRR of 38%, and initial capital of C$220M. The mine plan runs 9 years at about 34 Mlbs CuEq/yr per year.
Cascadia Minerals Ltd.'s Carmacks has reported Preliminary Economic Assessment (PEA) results for the copper-gold project in Yukon, Canada. The study headlines an after-tax net present value of C$330M at a 5% discount rate. It reflects Cascadia Minerals Ltd.'s (CAM.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$330M using a 5% discount rate. After-tax IRR is 38%. Initial capital expenditure is estimated at C$220M. The study models a payback period of 1.5 years. Economics are based on Base case: US$3.75/lb Cu, US$1,800/oz Au, US$22/oz Ag; Case 1: US$4.25/lb Cu, US$2,000/oz Au, US$25/oz Ag. Exchange rate C$1:US$0.75.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 9 years. Average annual production is approximately 34 Mlbs CuEq/yr. Average head grade is 0.81% Cu, 0.26 g/t Au, 3.3 g/t Ag (1.04% CuEq M&I).
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Cascadia Minerals Ltd.'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 | 36.3 Mt | 0.81% Cu, 0.26 g/t Au, 3.3 g/t Ag (1.04% CuEq) | 651 Mlbs Cu, 302 koz Au, 3.8 Moz Ag |
| Inferred | 2.9 Mt | 0.60% Cu, 0.14 g/t Au, 2.3 g/t Ag (0.76% CuEq) | 38 Mlbs Cu, 13 koz Au, 0.2 Moz Ag |
Our Analysis
The 38% after-tax IRR ranks in the upper half of our tracked peer set and clears the practical financing hurdle for a single-asset junior by a wide margin. The 5% discount rate used for NPV reporting is at the low end of convention, which flatters the headline C$330M figure—this is not a sign of conservatism. The fast 1.5-year payback reduces near-term risk, but the 9-year mine life is short, limiting long-term cash flow.
The NPV sits at roughly 5.5x market cap, which cuts two ways: it could signal the market has not priced in the asset, or it could reflect skepticism on permitting, jurisdiction risk in the Yukon, or financing. Initial capex of C$220M is 67% of NPV—moderately capital-intensive—and large relative to market cap, meaning dilution risk is real for a developer. The base-case copper price of US$3.75/lb is well below the live spot of US$6.15/lb, so returns may be conservative on price assumptions. The key watch-item is funding: a junior with this capex-to-market-cap ratio will likely need equity or debt, and any permitting delays in the Yukon could compound that risk.
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.