Cerro Caliche Gold Project PEA: $224M NPV, 50% IRR
Sonoro Gold Corp.'s Cerro Caliche Gold Project in Sonora, Mexico (near Magdalena, Cucurpe) 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 mine plan runs 10 years at about 458863 oz AuEq (recovered over LOM; 45,886 oz AuEq/yr avg) per year.
Sonoro Gold Corp.'s Cerro Caliche Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Sonora, Mexico (near Magdalena, Cucurpe). 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 $3,500/oz gold (base case); silver price assumptions visible in sensitivity.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 10 years. Average annual production is approximately 458863 oz AuEq (recovered over LOM; 45,886 oz AuEq/yr avg).
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
A 50% after-tax IRR places this project in the upper quartile of our tracked gold developers and well above the 15-20% threshold that single-asset juniors require to attract project finance. The 8% discount rate used for NPV reporting is relatively low, which flatters the $224M NPV figure; a higher discount rate would compress it materially. The NPV sits at roughly 4.3x market cap—a gap that could signal the market has not yet priced in the project's value, or equally, that it is discounting financing, permitting, or jurisdictional risk in Sonora, Mexico, a mining-friendly but not risk-free jurisdiction.
The $83M initial capex is capital-light at 37% of NPV, reducing funding risk, but it remains large relative to a small market cap, meaning equity dilution is a real possibility. The 1.7-year payback and 10-year mine life are strong, but the base-case gold price of $3,500/oz sits well below the current spot of $4,123.70/oz, implying upside if prices hold. The single most important risk is the jurisdiction: while Sonora is a known mining region, any shift in regulatory or fiscal policy could delay permitting or compress margins. Watch the financing plan closely—debt terms and dilution mechanics will define realized returns.
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.