Colomac Gold Project PEA: $1.59B NPV, 56.2% IRR
STLLR Gold Inc.'s Colomac Gold Project in Canada, Northwest Territories has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $1.59B and an after-tax IRR of 56.2%. The mine plan runs 11.2 years at about 290000 oz Au per year.
STLLR Gold Inc.'s Colomac Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Canada, Northwest Territories. The study headlines an after-tax net present value of $1.59B 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 $1.59B using a 5% discount rate. After-tax IRR is 56.2%. All-in sustaining costs are pegged at 828 USD/oz. Economics are based on US$2,000/oz gold (headline); base case US$1,600/oz gold.
Production and mine plan. The project envisions an open-pit & underground operation. Life of mine is 11.2 years. Average annual production is approximately 290000 oz Au. Average head grade is 1.57 g/t Au (PEA mill head grade); 1.28 g/t Au (feed grade per mine plan slide). Metallurgical recovery averages 96.3%. The open-pit strip ratio is 9.04.
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 |
Our Analysis
The 56.2% after-tax IRR ranks in the upper half of our tracked gold projects and clears the practical financing hurdle for a single-asset junior by a wide margin. However, the 5% discount rate used to report the $1.59B NPV is at the low end of convention, which inflates the headline figure; a more standard rate would materially reduce that NPV. The NPV sits roughly 10.5x the company’s market cap, which cuts two ways: it could signal the market has not yet priced in the project’s potential, or it could reflect skepticism about the developer’s ability to finance and permit a large, remote asset in the Northwest Territories.
The study’s base case gold price of $1,600/oz is well below today’s spot of $4,123.70/oz, suggesting the headline returns are conservative relative to current market conditions. The single most important risk is funding: absolute capex is large relative to market cap, meaning significant dilution or debt financing will be required for a developer with no cash flow, and the jurisdiction, while mining-friendly, adds logistical and regulatory complexity that can delay timelines.
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.