Gabbs Project PEA: $943M NPV, 33.8% IRR
P2 Gold Inc.'s Gabbs Project in Nye County, Nevada, USA (Walker Lane Trend, ~150 miles from Reno) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $943M, an after-tax IRR of 33.8%, and initial capital of $383M. The proposed mine plan runs 14.2 years.
P2 Gold Inc.'s Gabbs Project has reported Preliminary Economic Assessment (PEA) results for the gold, copper project in Nye County, Nevada, USA (Walker Lane Trend, ~150 miles from Reno). The study headlines an after-tax net present value of $943M. It reflects P2 Gold Inc.'s (PGLD.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $943M. After-tax IRR is 33.8%. Initial capital expenditure is estimated at $383M. The study models a payback period of 2.4 years. Economics are based on Base case: Gold US$2,350/oz, Silver US$29.00/oz, Copper US$4.50/lb. Spot case: Gold US$3,885/oz, Silver US$47.92/oz, Copper US$4.81/lb..
Production and mine plan. The project envisions an open-pit operation. Life of mine is 14.2 years.
Resources and ownership. Royalties and streams: No royalty on production. The Company has the right to acquire a 2% NSR royalty on production at anytime for US$6.5 million..
These figures are extracted from P2 Gold Inc.'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 | 49.8 Mt | 0.45 g/t Au, 1.36 g/t Ag, 0.27% Cu | 1.16 M oz AuEq |
| Inferred | 112.2 Mt | 0.35 g/t Au, 0.84 g/t Ag, 0.23% Cu | 2.29 M oz AuEq |
Our Analysis
A 33.8% after-tax IRR places this project in the upper half of our tracked peer set and well above the practical financing hurdle for a single-asset junior developer. The after-tax NPV of $943M is roughly 6.1x the company’s market cap, a gap that can be read two ways: the market may not be pricing in the project’s full potential, or it may be discounting for financing, permitting, or execution risk in a jurisdiction that, while mining-friendly, still requires rigorous permitting in Nevada. The $383M initial capex is capital-light at 41% of NPV, which reduces funding risk, but the absolute size relative to market cap still implies meaningful dilution if equity is used.
The base-case price assumptions are the key variable: gold at $2,350/oz and copper at $4.50/lb are above historical averages, making the returns sensitive to metal price declines. The single most important watch-item is permitting timeline risk in Nevada, where federal and state approvals can stretch schedules, potentially delaying the 2.4-year payback and pressuring the project’s financing window.
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.