Duparquet Gold Project PEA: $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 $588M, an after-tax IRR of 18%, and initial capital of $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 $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 $588M using a 5% discount rate. After-tax IRR is 18%. Initial capital expenditure is estimated at $706M, with life-of-mine sustaining capital of $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 Gold: US$1,800/oz; FX: 0.75 (C$1.33:US$1.00).
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. 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 |
|---|---|---|---|
| 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 3% of 95 projects we track
- NPV after-tax
- $588M
- Initial capex
- $706M
120% of NPV
- Payback
- 4.8yrs
- Mine life
- 11yrs
- Discount rate
- 5%
- Study price assumption
- Gold: US$1,800/oz; FX: 0.75 (C$1.33:US$1.00)
- Spot gold today
- $4,027.50/oz
This project delivers an 18% after-tax IRR, which sits in the bottom quartile of the 95 gold projects we track. While it clears the practical financing hurdle for developers, it falls short of the 20%+ threshold typically required for single-asset juniors, which this issuer is. The 5% discount rate used to report the $588M NPV is at the low end of convention, meaning the headline NPV is flattered relative to what a more conservative rate would show. The NPV-to-market-cap ratio is roughly 0.9x, which cuts both ways: the market may not be pricing in the asset’s full value, or it may be discounting financing, permitting, or execution risk.
Capital intensity is the standout concern. Initial capex of $706M is 120% of NPV and far exceeds the company’s market cap, implying significant dilution or debt risk for a developer. The 4.8-year payback is long for an 11-year mine life, adding pressure on cash flow timing. Quebec is a mining-friendly jurisdiction, which lowers political risk, but the study’s gold price assumption of $1,800/oz sits well below the current spot of $4,027.50/oz, meaning returns could be materially higher if that price holds. The single most important watch-item is funding: the capital intensity relative to market cap makes financing the primary risk to execution.
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.