Colomac Gold Project PEA: C$ 1.17B NPV, 34.6% IRR
STLLR Gold Inc.'s Colomac Gold Project in Northwest Territories, Canada 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. 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 Base case US$1,600/oz gold (2023 PEA); Colomac 2023 PEA highlights at US$2,000/oz gold; cost metrics in US$.
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. Metallurgical recovery averages 96.3%. The open-pit strip ratio is 9.04.
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 000s t | 1.50 g/t Au | 3,387,000 oz Au |
| Inferred | 24,434 000s t | 2.17 g/t Au | 1,702,000 oz Au |
| Indicated - OP | 59,945 000s t | 1.45 g/t Au | 2,804,000 oz Au |
| Inferred - OP | 11,070 000s t | 2.33 g/t Au | 830,000 oz Au |
| Indicated - UG | 10,486 000s t | 1.73 g/t Au | 583,000 oz Au |
| Inferred - UG | 13,364 000s t | 2.03 g/t Au | 872,000 oz Au |
Our Analysis
- IRR after-tax
- 34.6%
higher than 38% of 104 projects we track
- NPV after-tax
- $1.17B
higher than 80% of 141 projects we track
- Initial capex
- $654M
56% of NPV
costlier than 84% of 134 projects we track
- Payback
- 2.1yrs
slower than 52% of 81 projects we track
- Mine life
- 11yrs
- Discount rate
- 5%
- Study price assumption
- Base case US$1,600/oz gold (2023 PEA); Colomac 2023 PEA highlights at US$2,000/oz gold; cost metrics in US$
- Spot gold today
- $4,432.00/oz
The financing question dominates this project before any ounce of gold is mined. The initial capex is US$654M, roughly 3.5x the company's entire US$189M market cap, and the NPV sits at about 6.2x that same market cap. This is a micro-cap proposing to build an asset several times its own size, with only two other tracked projects in the portfolio to lean on. A cheque of that magnitude will not come from internal cash flow or a single strategic investor; it requires project finance, equity dilution, or a joint-venture partner, and each path carries a heavy cost for existing holders. The market is not ignoring this project, it is pricing in the difficulty of getting it built.
The economics are solid but not exceptional enough to erase that funding risk. The after-tax IRR of 34.6% clears the 20%+ hurdle a higher-risk junior typically needs to attract project finance, but it ranks in the lower half of the 104 gold projects we track, and the 2.1-year payback is middling. The US$1.17B NPV ranks high, yet that figure is flattered by a 5% discount rate, at the low end of reporting convention, and the study is only a PEA, scoping-level work where capital estimates carry a wide band. The base case assumes US$1,600/oz gold, far below today's US$4,432.00 spot, so the project has meaningful upside if prices hold, but that same gap underscores how much of the value depends on commodity strength rather than project efficiency.
The Northwest Territories jurisdiction is stable but remote, adding logistical and permitting complexity to an already stretched balance sheet. The single question that decides this project is whether the company can secure funding on terms that do not wipe out current shareholders, because at 3.5x market cap, the build cost is not a budget line, it is a restructuring event.
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.