Castelo de Sonhos PFS: $603M NPV, 40% IRR
TriStar Gold Inc.'s Castelo de Sonhos in Brazil, Pará State has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $603M, an after-tax IRR of 40%, and initial capital of $296M. The mine plan runs 11 years at about 121 koz Au per year.
TriStar Gold Inc.'s Castelo de Sonhos has reported Pre-Feasibility Study (PFS) results for the gold project in Brazil, Pará State. The study headlines an after-tax net present value of $603M at a 5% discount rate. It reflects TriStar Gold Inc.'s (TSG.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $603M using a 5% discount rate. After-tax IRR is 40%. Initial capital expenditure is estimated at $296M. The study models a payback period of 2 years. All-in sustaining costs are pegged at 1111 USD/oz. Economics are based on Base case US$2,200/oz gold; sensitivity to US$3,200/oz gold.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 11 years. Average annual production is approximately 121 koz Au. Average head grade is 1.3 g/t Au Phase 1; 0.8 g/t Au Phase 2. Metallurgical recovery averages 98%.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from TriStar Gold Inc.'s technical disclosures and reflect the most recent PFS 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 |
|---|---|---|---|
| Probable | 24.2 Mt | 1.3 g/t Au | 1.0 Moz |
| Probable | 3.1 Mt | 0.8 g/t Au | 0.1 Moz |
| Probable | 11.4 Mt | 0.8 g/t Au | 0.3 Moz |
| Probable | 38.7 Mt | 1.1 g/t Au | 1.4 Moz |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 29.0 Mt | 1.3 g/t Au | 1.2 Moz |
| Indicated | 5.0 Mt | 0.8 g/t Au | 0.1 Moz |
| Indicated | 19.1 Mt | 0.7 g/t Au | 0.4 Moz |
| Indicated | 53.1 Mt | 1.0 g/t Au | 1.8 Moz |
| Inferred | 10.0 Mt | 1.2 g/t Au | 0.4 Moz |
| Inferred | 12.8 Mt | 0.7 g/t Au | 0.3 Moz |
| Inferred | 3.3 Mt | 0.9 g/t Au | 0.1 Moz |
| Inferred | 26.0 Mt | 0.9 g/t Au | 0.7 Moz |
Our Analysis
- IRR after-tax
- 40%
higher than 56% of 119 projects we track
- NPV after-tax
- $603M
higher than 49% of 189 projects we track
- Initial capex
- $296M
49% of NPV
costlier than 61% of 175 projects we track
- Payback
- 2yrs
slower than 50% of 102 projects we track
- Mine life
- 11yrs
- Discount rate
- 5%
- Study price assumption
- Base case US$2,200/oz gold; sensitivity to US$3,200/oz gold
- Spot gold today
- $4,225.70/oz
A US$296M build against a US$63M market capitalisation is the whole story here. The company cannot fund this from its own balance sheet, and it cannot fund it from equity without handing over control: the cheque is roughly 4.7 times everything the company is currently worth, and this is the only project we track for it, so there is no portfolio cash flow to lean on. Whoever writes that cheque, whether a streamer, a royalty holder, a joint-venture partner or a syndicate of lenders, will extract terms that materially dilute or subordinate existing holders. That is the decision the market is actually pricing, not the headline return.
The economics are good enough to make the financing conversation worth having. A 40% after-tax IRR sits in the upper half of the 119 gold projects we track, comfortably clear of the roughly 15% developers need for project finance and the 20%-plus a single-asset junior with nothing else in the portfolio should demand. Payback of 2 years is moderate, and an 11-year mine life gives a funder a reasonable window to recover exposure. Capex at 49% of NPV is genuinely capital-light against the 175 gold projects we track, though that ratio flatters a company of this size: the constraint is the absolute number, not its proportion of NPV.
Two caveats temper the read. This is a pre-feasibility study, so the estimate carries roughly a plus or minus 25% band and is not yet a build decision. And the base case uses US$2,200/oz gold against a live spot of US$4,225.70/oz, so the study is not leaning on an aggressive price; if spot holds anywhere near current levels, the returns have real headroom. The question that decides this project is simple: can this company finance US$296M without surrendering the asset to whoever provides it?
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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