Fenelon Gold Project PEA: C$706M NPV, 21% IRR
Wallbridge Mining Company Limited's Fenelon Gold Project in Quebec, Canada (Abitibi Greenstone Province) 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 107000 oz Au per year.
Wallbridge Mining Company Limited's Fenelon Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Quebec, Canada (Abitibi Greenstone Province). 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. The study models a payback period of 4 years. All-in sustaining costs are pegged at 1046 USD/oz. Economics are based on Assumed gold price of US$2,200/oz; FX 1.35 CAD:USD.
Production and mine plan. The project envisions an underground (predominantly) & open-pit operation. Life of mine is 16 years. Average annual production is approximately 107000 oz Au. Average head grade is 3.34 g/t Au (average grade mined). Metallurgical recovery averages 96%.
Resources and ownership. Royalties and streams: Royalty (4%).
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 | 15,087 kt | 3.62 g/t Au | 1,754 koz Au |
| Inferred | 15,028 kt | 3.41 g/t Au | 1,649 koz Au |
| Indicated | 4,703 kt | 2.29 g/t Au | 346 koz Au |
| Inferred | 3,870 kt | 3.11 g/t Au | 387 koz Au |
| Indicated (Total Fenelon & Martiniere OP & UG) | 19,970 kt | 3.30 g/t Au | 2,100 koz Au |
| Inferred (Total Fenelon & Martiniere OP & UG) | 18,899 kt | 3.35 g/t Au | 2,037 koz Au |
Our Analysis
- IRR after-tax
- 21%
higher than 11% of 104 projects we track
- NPV after-tax
- C$706M
higher than 66% of 140 projects we track
- Initial capex
- C$579M
82% of NPV
costlier than 81% of 137 projects we track
- Payback
- 4yrs
slower than 94% of 84 projects we track
- Mine life
- 16yrs
- Discount rate
- 5%
- Study price assumption
- Assumed gold price of US$2,200/oz; FX 1.35 CAD:USD
- Spot gold today
- $4,595.50/oz
The build cost is the story here, and it is a heavy one. Initial capex of C$579M is roughly 3.2x this company's entire US$134M market cap. That is not a funding gap a micro-cap bridges with operating cash flow or a modest credit line; it demands equity issuance, a strategic partner, or project-level debt on terms that will dilute existing holders substantially. The NPV sits at about 3.9x market cap, which cuts both ways: either the market is ignoring a cheap asset, or it is pricing in the reality that financing a build several times the company's equity value will be painful. With only two projects tracked, there is no other balance-sheet strength to lean on.
The economics are the supporting act, and they are adequate, not exceptional. The 21% after-tax IRR clears the practical hurdle for a higher-risk junior needing 20%+ to attract capital, but it ranks in the bottom quartile of the 104 gold projects we track. The C$706M after-tax NPV is more respectable, ranking above 66% of peers, though it is flattered by a 5% discount rate at the low end of convention. A 16-year mine life gives the asset durability and supports the NPV, but the study is only a PEA, scoping-level, with a capital estimate carrying a typical plus or minus 50% band. That band alone could erase the margin between the IRR and the financing hurdle.
The assumed US$2,200/oz gold price sits far below today's spot of $4,595.50/oz, which provides meaningful upside to the returns if prices hold, but it also raises the question of why the study was so conservative. Quebec's Abitibi is a mining-friendly jurisdiction, which lowers execution risk. The single question that decides this project is whether the company can secure the roughly C$579M without destroying shareholder value; if it cannot, the NPV is academic.
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.