Fenelon Gold Project PEA: C$706M NPV, 21% IRR
Wallbridge Mining Company Limited's Fenelon Gold Project in Quebec, Canada (Nord-du-Québec, ~75 km west northwest of Matagami) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$706M, an after-tax IRR of 21%, and initial capital of C$579M. The mine plan runs 16 years at about 3000 tpd per year.
Wallbridge Mining Company Limited's Fenelon Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Quebec, Canada (Nord-du-Québec, ~75 km west northwest of Matagami). The study headlines an after-tax net present value of C$706M at a 5% discount rate. It reflects Wallbridge Mining Company Limited's (WM.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$706M using a 5% discount rate. After-tax IRR is 21%. Initial capital expenditure is estimated at C$579M, with life-of-mine sustaining capital of C$449M. All-in sustaining costs are pegged at 1046 USD/oz. Economics are based on Base case gold price of US$2,200/oz; USD/CAD FX of 1.35.
Production and mine plan. The project envisions an underground operation. Life of mine is 16 years. Average annual production is approximately 3000 tpd. Average head grade is 3.34 g/t Au. Metallurgical recovery averages 96%.
Resources and ownership. Royalties and streams: 4% royalties.
These figures are extracted from Wallbridge Mining Company Limited'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 | 19,790 t (000s) | 3.30 g/t Au | 2,100 oz (000s) Au |
| Inferred | 18,899 t (000s) | 3.35 g/t Au | 2,037 oz (000s) Au |
Our Analysis
- IRR after-tax
- 21%
higher than 10% of 109 projects we track
- NPV after-tax
- C$706M
higher than 65% of 144 projects we track
- Initial capex
- C$579M
82% of NPV
costlier than 79% of 143 projects we track
- Payback
- 4yrs
slower than 94% of 88 projects we track
- Mine life
- 16yrs
- Discount rate
- 5%
- Study price assumption
- Base case gold price of US$2,200/oz; USD/CAD FX of 1.35
- Spot gold today
- $4,476.60/oz
The financing question is the project. Initial capex of C$579M is roughly three times this company’s entire market cap, a micro-cap with only two tracked projects to its name. No lender writes that cheque against the balance sheet; the realistic paths are a major strategic investment, a joint-venture partner, or heavy equity dilution. Each route carries the same implication for existing holders: their stake is the currency funding this build, and the NPV-to-market-cap gap of several times is as much a warning about that dilution as it is a sign of untapped value.
The economics are good enough to support that story, but not so strong that they erase the risk. The 21% after-tax IRR clears the practical hurdle for a higher-risk junior, yet it ranks in the bottom quartile of the 109 gold projects we track. The after-tax NPV of C$706M is more respectable, ranking above most peers, but it is calculated at a 5% discount rate, the low end of convention, which flatters the figure. A 16-year mine life in Quebec gives this asset durability and a mining-friendly jurisdiction, two qualities that matter when courting capital.
This is a scoping-level PEA, not a feasibility study, so the capital estimate carries a wide band and the returns are directional. The study holds its numbers flat against the 2025 PEA, and its base case gold price sits well below today’s spot, which suggests meaningful upside if prices persist. The single question that decides the outcome is not the grade or the mine life: it is who writes the C$579M cheque, and at what price 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.
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