Colomac Gold Project PEA: C$1.17B NPV, 34.6% IRR
STLLR Gold Inc.'s Colomac Gold Project in Northwest Territories, Canada (200 km north of Yellowknife) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$1.17B, an after-tax IRR of 34.6%, and initial capital of C$654M. The mine plan runs 11 years at about 290 koz Au per year.
STLLR Gold Inc.'s Colomac Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Northwest Territories, Canada (200 km north of Yellowknife). The study headlines an after-tax net present value of C$1.17B at a 5% discount rate. It reflects STLLR Gold Inc.'s (STLR.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$1.17B using a 5% discount rate. After-tax IRR is 34.6%. Initial capital expenditure is estimated at C$654M, with life-of-mine sustaining capital of C$665M. The study models a payback period of 2.1 years. All-in sustaining costs are pegged at 828 USD/oz. Economics are based on US$2,000/oz gold (after-tax NPV5% headline); base case US$1,600/oz gold; long-term gold price US$1,600/oz in PEA economics table.
Production and mine plan. The project envisions an open-pit & underground operation. Life of mine is 11 years. Average annual production is approximately 290 koz Au. Average head grade is 1.57 g/t Au (1.28 g/t Au per mine plan). Metallurgical recovery averages 96.3%. The open-pit strip ratio is 9.04 (including OVB).
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from STLLR Gold 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 |
|---|---|---|---|
| Indicated | 70,432 Kt | 1.50 g/t Au | 3,387,000 oz Au |
| Inferred | 24,434 Kt | 2.17 g/t Au | 1,702,000 oz Au |
| Indicated (OP) | 59,945 Kt | 1.45 g/t Au | 2,804,000 oz Au |
| Inferred (OP) | 11,070 Kt | 2.33 g/t Au | 830,000 oz Au |
| Indicated (UG) | 10,486 Kt | 1.73 g/t Au | 583,000 oz Au |
| Inferred (UG) | 13,364 Kt | 2.03 g/t Au | 872,000 oz Au |
Our Analysis
- IRR after-tax
- 34.6%
higher than 40% of 114 projects we track
- NPV after-tax
- C$1.17B
higher than 78% of 151 projects we track
- Initial capex
- C$654M
56% of NPV
costlier than 82% of 148 projects we track
- Payback
- 2.1yrs
slower than 52% of 93 projects we track
- Mine life
- 11yrs
- Discount rate
- 5%
- Study price assumption
- US$2,000/oz gold (after-tax NPV5% headline); base case US$1,600/oz gold; long-term gold price US$1,600/oz in PEA economics table
- Spot gold today
- $4,331.80/oz
A C$654M build against a US$177M market capitalisation is the whole story here. The company is proposing to spend roughly 2.7 times its entire equity value on a single mine, and that ratio, not the headline return, is what decides whether this ever gets built. A micro-cap cannot fund a cheque that size from the treasury, and at 2.7x market cap even a heavily dilutive equity raise does not close the gap on its own. The realistic paths are a partner or buyer carrying the construction bill, a streaming or royalty package that sells forward a chunk of the ounces, or a takeover that hands the asset to someone with a balance sheet. Each of those transfers value away from current holders, which is the trade an investor is actually underwriting.
The economics themselves are respectable without being exceptional. After-tax NPV of C$1.17B ranks above 78% of the 151 gold projects we track, and the 34.6% after-tax IRR sits above only 40% of the 114 we track, with a 2.1-year payback that is middling. Judged against the roughly 15% hurdle project financiers typically require, and the 20%-plus a junior with little else in the portfolio needs to justify the risk, the return clears the bar but leaves limited margin. The 5% discount rate is a reporting convention rather than an investment test, and it does lift the NPV headline.
Two further caveats matter. This is a PEA, scoping-level work that may lean on inferred material and carries a capital estimate with a plus or minus 50% band, so the C$654M could move materially in either direction. And the study's US$2,000/oz headline case sits well above the US$1,600/oz base case, while spot is US$4,331.80/oz, so the near-term price environment is not the constraint. The question that settles it: who writes the cheque, and what do they take for 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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