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 Base Case: Gold Price US$1,800/oz, FX (C$:US$) 1.33.
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); average open pit grade 1.36 g/t Au; average underground grade 2.25 g/t Au. Metallurgical recovery averages 89.5%. The open-pit strip ratio is 5.4 w:o.
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 tonnes | 1.55 g/t Au | 3,440,600 oz Au |
| Inferred | 50,822,000 tonnes | 1.62 g/t Au | 2,640,500 oz Au |
Our Analysis
- IRR after-tax
- 18%
higher than 5% of 107 projects we track
- NPV after-tax
- $588M
higher than 56% of 143 projects we track
- Initial capex
- $706M
120% of NPV
costlier than 84% of 141 projects we track
- Payback
- 4.8yrs
slower than 95% of 87 projects we track
- Mine life
- 11yrs
- Discount rate
- 5%
- Study price assumption
- Base Case: Gold Price US$1,800/oz, FX (C$:US$) 1.33
- Spot gold today
- $4,478.90/oz
The build cost is the story. At roughly 0.8x the company’s entire US$905M market cap, the US$706M initial capex cannot be quietly financed. This is a small-cap with a diversified five-project portfolio, but even so, writing that cheque means either substantial dilution, a strategic partner, or project-level debt that lenders will scrutinize hard. An 18% after-tax IRR sits in the bottom quartile of the 107 gold projects we track, and while that clears the ~15% hurdle developers typically need for project finance, it does so by a thin margin. The 4.8-year payback, longer than 95% of peers, means capital is tied up for a while before the cash flows turn decisively positive. Existing holders should read this as: the financing terms, not the geology, will determine whether this creates value.
The economics are the supporting act. The after-tax NPV of $588M is roughly in line with the company’s market cap, which cuts both ways: either the market has not priced in the project’s full potential, or it is skeptical about the dilution and execution risk embedded in that 0.8x capex-to-market-cap ratio. The study’s 5% discount rate, at the low end of reporting convention, flatters that NPV figure, so the real margin of safety is thinner than the headline suggests. Capital intensity is high, with initial capex at 120% of NPV, a level lower than only 16% of the 141 gold projects we track. That is a lot of upfront money for a return stream that takes nearly five years to pay back.
The study is a PEA, scoping-level, so the capital estimate carries a wide band and the mine life of 11 years is preliminary. The base case assumes gold at US$1,800/oz, far below today’s spot of $4,478.90/oz, which offers meaningful upside if prices hold, but also means the project’s viability is unusually sensitive to the metal price at the moment of financing. Quebec is a stable jurisdiction, which helps on the permitting and execution side. The single question that decides whether this works: can the company secure funding for a US$706M build without giving away so much equity that the 18% IRR becomes an illusion for current shareholders?
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.