Cerro Caliche Gold Project PEA: $224M NPV, 50% IRR
Sonoro Gold Corp.'s Cerro Caliche Gold Project in Sonora, Mexico (Magdalena / Cucurpe area) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $224M, an after-tax IRR of 50%, and initial capital of $83M. The proposed mine plan runs 10 years.
Sonoro Gold Corp.'s Cerro Caliche Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Sonora, Mexico (Magdalena / Cucurpe area). The study headlines an after-tax net present value of $224M at a 8% discount rate. It reflects Sonoro Gold Corp.'s (SGO.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $224M using a 8% discount rate. After-tax IRR is 50%. Initial capital expenditure is estimated at $83M, with life-of-mine sustaining capital of $26M. The study models a payback period of 1.7 years. All-in sustaining costs are pegged at 1902 USD/oz. Economics are based on Gold $3,500/oz base case (spot $5,186/oz noted).
Production and mine plan. The project envisions an open-pit, heap-leach operation. Life of mine is 10 years.
These figures are extracted from Sonoro Gold Corp.'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 | 9.7 Mt | 0.41 g/t Au, 3.5 g/t Ag | 129,000 oz Au; 1,086,000 oz Ag; 133,000 oz AuEq |
| Indicated | 42.1 Mt | 0.36 g/t Au, 3.8 g/t Ag | 489,000 oz Au; 5,144,000 oz Ag; 511,000 oz AuEq |
| Inferred | 8.8 Mt | 0.33 g/t Au, 3.7 g/t Ag | 93,000 oz Au; 1,040,000 oz Ag; 97,000 oz AuEq |
Our Analysis
- IRR after-tax
- 50%
higher than 68% of 119 projects we track
- NPV after-tax
- $224M
higher than 31% of 189 projects we track
- Initial capex
- $83M
37% of NPV
costlier than 23% of 175 projects we track
- Payback
- 1.7yrs
slower than 34% of 102 projects we track
- Mine life
- 10yrs
- Discount rate
- 8%
- Study price assumption
- Gold $3,500/oz base case (spot $5,186/oz noted)
- Spot gold today
- $4,225.70/oz
A US$39M nano-cap proposing an US$83M build is the whole story here: the initial capex is roughly 2.1x the company's entire equity value, so whoever writes that cheque decides what existing holders end up owning. This is not a case where a modest raise tops up a largely funded programme. A build of that size relative to the market capitalisation means either a partner or acquirer carries it, or shareholders absorb heavy dilution, or the asset sits. The 37% capex-to-NPV ratio looks light in isolation, and it is lower than 77% of the 175 gold projects we track, but that ratio flatters a company this small: the constraint is not the project's capital efficiency, it is the gap between the cheque and the balance sheet.
The economics themselves are the supporting act, and they are decent. A 50% after-tax IRR ranks above 68% of the 119 gold projects we track, and payback of 1.7 years is faster than 66% of the 102 projects we track, which matters precisely because of the funding problem: capital that returns in under two years is easier to syndicate or sell than capital that takes five. The after-tax NPV of US$224M ranks above only 31% of the 189 projects we track, so the headline value is mid-pack even as the return rate is strong. The 8% discount rate is a reporting convention, not a hurdle, and says nothing useful here. The practical test is the roughly 15% after-tax IRR developers need for project finance, and 20%-plus for a higher-risk junior with little else in the portfolio, which fits this company: on that measure the project clears comfortably.
Two caveats temper the read. The study is a PEA, scoping-level, potentially built on inferred material, with a capital estimate that typically carries a plus or minus 50% band, so the US$83M could move materially. And the US$3,500/oz base case sits below today's US$4,225.70/oz spot, leaving room for the numbers to improve if prices hold. Sonora is a established mining jurisdiction, which helps. The deciding question is not the IRR: it is who funds US$83M against a US$39M market cap, and on what terms.
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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