Duparquet Gold Project PEA: C$588M NPV, 18% IRR
First Mining Gold Corp.'s Duparquet Gold Project in Quebec, Canada has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$588M, an after-tax IRR of 18%, and initial capital of C$706M. The mine plan runs 11 years at about 233 koz Au per year.
First Mining Gold Corp.'s Duparquet Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Quebec, Canada. The study headlines an after-tax net present value of C$588M at a 5% discount rate. It reflects First Mining Gold Corp.'s (FF.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$588M using a 5% discount rate. After-tax IRR is 18%. Initial capital expenditure is estimated at C$706M, with life-of-mine sustaining capital of C$738M. The study models a payback period of 4.8 years. All-in sustaining costs are pegged at 976 USD/oz. Economics are based on Base case: Gold US$1,800/oz; FX C$:US$ 1.33 (also cited 0.75 on summary page).
Production and mine plan. The project envisions an open-pit & underground operation. Life of mine is 11 years. Average annual production is approximately 233 koz Au. Average head grade is 1.51 g/t Au mill grade; OP 1.36 g/t Au, UG 2.25 g/t Au. Metallurgical recovery averages 89.5%. The open-pit strip ratio is 5.4:1.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from First Mining Gold Corp.'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 |
|---|---|---|---|
| Measured & Indicated | 69,206,300 t | 1.55 g/t Au | 3,440,600 oz Au |
| Inferred | 50,822,000 t | 1.62 g/t Au | 2,640,500 oz Au |
Our Analysis
- IRR after-tax
- 18%
higher than 5% of 123 projects we track
- NPV after-tax
- C$588M
higher than 47% of 196 projects we track
- Initial capex
- C$706M
120% of NPV
costlier than 82% of 185 projects we track
- Payback
- 4.8yrs
slower than 95% of 107 projects we track
- Mine life
- 11yrs
- Discount rate
- 5%
- Study price assumption
- Base case: Gold US$1,800/oz; FX C$:US$ 1.33 (also cited 0.75 on summary page)
- Spot gold today
- $3,907.10/oz
A C$706M build against a US$620M market cap is the fact that governs this project. The company cannot fund this from its own balance sheet; it either finds a partner, sells an interest, or issues equity on a scale that materially dilutes existing holders. That the build is roughly 0.8x the entire market capitalisation means the cheque is larger than the enterprise writing it, which narrows the field to majors, royalty and streaming players, or a consortium. This is one of seven projects in the portfolio, so the company is not cornered into a single-asset financing, but that same diversification means this asset competes internally for capital it may not win.
The economics support the funding story rather than lead it. An 18% after-tax IRR clears the roughly 15% practical hurdle for project finance, but only just, and it ranks above only 5% of the 123 gold projects tracked. Capital comes back slowly: 4.8-year payback, longer than all but a handful of the 107 peers. For a lender or partner, a marginal return with a slow payback is a hard case at this scale of commitment. The C$588M after-tax NPV sits mid-pack, and the 5% discount rate is a reporting convention, not a signal. The PEA stage matters: scoping-level numbers, potentially including inferred material, with a capital estimate carrying a plus or minus 50% band. Against the 2023 PEA, nothing has moved.
Quebec is a genuine positive, a mining-friendly jurisdiction that reduces permitting and political risk. The study's US$1,800/oz gold assumption sits well below the live US$3,907.10/oz spot, so the returns carry real upside if prices hold, though the study was not built on today's market. The question that decides this: can a small-cap assemble C$706M without diluting holders past the point where the 18% IRR means anything to them?
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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