Cerro de Oro Project PEA: $28M Capex Over a 8.2-Year Mine Life
Minera Alamos Inc.'s Cerro de Oro Project in Zacatecas, Mexico has a Preliminary Economic Assessment (PEA) outlining initial capital of $28M. The mine plan runs 8.2 years at about 58 koz Au per year.
Minera Alamos Inc.'s Cerro de Oro Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Zacatecas, Mexico. It reflects Minera Alamos Inc.'s (MAI.V) latest disclosed economics for the asset.
Economics. Initial capital expenditure is estimated at $28M. All-in sustaining costs are pegged at 873 USD/oz. Economics are based on $151M NPV5% at $1,600/oz; $718M NPV5% at $4,000/oz.
Production and mine plan. The project envisions an open-pit, heap leach operation. Life of mine is 8.2 years. Average annual production is approximately 58 koz Au. The open-pit strip ratio is 0.30:1.
These figures are extracted from Minera Alamos 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 |
|---|---|---|---|
| Inferred | 67 Mt | 0.37 g/t Au | 790 koz Au |
| Inferred | 78 Mt | 0.35 g/t Au | 865 koz Au |
Our Analysis
- IRR after-tax
- 111%
higher than 92% of 103 projects we track
- Initial capex
- $28M
costlier than 11% of 136 projects we track
- Payback
- 0.9yrs
slower than 10% of 83 projects we track
- Mine life
- 8.2yrs
- Discount rate
- 5%
- Study price assumption
- $151M NPV5% at $1,600/oz; $718M NPV5% at $4,000/oz
- Spot gold today
- $4,410.10/oz
The 111% after-tax IRR ranks in the top decile of the 103 gold projects we track, and the 0.9-year payback is faster than 90% of its peers. That is a genuinely strong position, but the rank is worth less than it looks at first glance. The study is a PEA, scoping-level work with a capital estimate that typically carries a plus or minus 50% band, and the 5% discount rate sits at the low end of reporting convention, flattering the headline NPV. The real question is not whether the project clears a hurdle, it clears the practical project-finance bar several times over, but whether the PEA's economics survive the transition to a feasibility-level estimate.
The funding picture is where this project becomes practical rather than theoretical. Initial capex of $28M is lower than 89% of the 136 gold projects we track, and that build cost is small relative to the company's US$431M market cap. This is not a single-asset junior stretching to finance a mine worth several times its equity; it is one of 11 projects in a diversified portfolio, so the balance sheet can absorb the spend without the dilution overhang that typically discounts small-cap developers. The 8.2-year mine life is short, but at this capital scale, the project does not need a long life to pay for itself.
The price assumption is the swing factor. The study shows an NPV5% of $151M at $1,600/oz and $718M at $4,000/oz, while today's gold spot sits at $4,410.10/oz, well above both cases. That points to upside, but it also means the project's viability is heavily leveraged to a commodity price that has already moved far beyond the study's base case. The jurisdiction, Zacatecas, Mexico, is a known mining region, but it carries the usual permitting and community considerations. The single question that decides whether this works: can the PEA's economics, built on a 5% discount rate and a price assumption now well below spot, hold up when the capital estimate is firmed up and the discount rate moves toward market convention? If they do, the rank is deserved. If not, the top-decile IRR is an artifact of the study's assumptions, not a durable investment case.
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.