Doby George PEA: $211M NPV, 62.2% IRR
Western Exploration Inc.'s Doby George in Nevada, USA has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $211M, an after-tax IRR of 62.2%, and initial capital of $115M. The mine plan runs 4.2 years at about 58 koz Au per year.
Western Exploration Inc.'s Doby George has reported Preliminary Economic Assessment (PEA) results for the gold project in Nevada, USA. The study headlines an after-tax net present value of $211M. It reflects Western Exploration Inc.'s (WEX.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $211M. After-tax IRR is 62.2%. Initial capital expenditure is estimated at $115M. The study models a payback period of 1.25 years. All-in sustaining costs are pegged at 1197 USD/oz. Economics are based on $3,000/oz Gold.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 4.2 years. Average annual production is approximately 58 koz Au. Average head grade is 1.01 g/t. Metallurgical recovery averages 70%.
These figures are extracted from Western Exploration 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 | 13.7 Mt | 0.90 g/t | 394k oz |
| Inferred | 3.3 Mt | 0.68 g/t | 71k oz |
Our Analysis
This project delivers a 62.2% after-tax IRR, placing it in the top quartile of the 97 gold developers we track and well above the 15-20% threshold required to attract project finance. The NPV of $211M is roughly 8.6x the company's market cap, which cuts two ways: it signals the market has not priced in the asset's value, but also that investors may be discounting financing risk, the short mine life, or Nevada permitting timelines. The study's $3,000/oz gold price sits well below the current spot of $4,033.90/oz, suggesting material upside to returns if prices hold.
The 1.2-year payback is exceptional, but the 4.2-year mine life is a structural limitation—this is a high-grade, short-duration project, not a long-term production base. Initial capex of $115M is 55% of NPV, moderate capital intensity, but the absolute figure is large relative to the company's market cap, creating meaningful dilution risk for a single-asset junior. The single most important watch-item is funding: the company must secure financing for a $115M build on a small equity base, and any delay or cost overrun would compress an already short mine life.
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.