Goldboro Gold Project Feasibility Study: C$328M NPV, 25.5% IRR
NexGold Mining Corp.'s Goldboro Gold Project in Nova Scotia, Canada has a Feasibility Study outlining an after-tax NPV of C$328M, an after-tax IRR of 25.5%, and initial capital of C$271M. The mine plan runs 10.9 years at about 100 koz Au per year.
NexGold Mining Corp.'s Goldboro Gold Project has reported Feasibility Study results for the gold project in Nova Scotia, Canada. The study headlines an after-tax net present value of C$328M at a 5% discount rate. It reflects NexGold Mining Corp.'s (NEXG.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$328M using a 5% discount rate. After-tax IRR is 25.5%. Initial capital expenditure is estimated at C$271M, with life-of-mine sustaining capital of C$63M. The study models a payback period of 2.9 years. All-in sustaining costs are pegged at 849 USD/oz. Economics are based on US$1,600/oz gold.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 10.9 years. Average annual production is approximately 100 koz Au. Average head grade is 2.26 g/t Au (average mill feed grade). Metallurgical recovery averages 95.8%. The open-pit strip ratio is 8.0.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from NexGold Mining Corp.'s technical disclosures and reflect the most recent Feasibility Study 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 |
|---|---|---|---|
| Measured | 9,255 kt | 3.56 g/t Au | 1,059 koz Au |
| Indicated | 12,338 kt | 3.84 g/t Au | 1,523 koz Au |
| Measured & Indicated | 21,593 kt | 3.72 g/t Au | 2,583 koz Au |
| Inferred | 3,181 kt | 4.73 g/t Au | 484 koz Au |
Our Analysis
- IRR after-tax
- 25.5%
higher than 23% of 102 projects we track
- NPV after-tax
- C$328M
higher than 42% of 138 projects we track
- Initial capex
- C$271M
83% of NPV
costlier than 65% of 129 projects we track
- Payback
- 2.9yrs
slower than 77% of 79 projects we track
- Mine life
- 10.9yrs
- Discount rate
- 5%
- Study price assumption
- US$1,600/oz gold
- Spot gold today
- $4,194.70/oz
The financing question is the project. Initial capex of C$271M sits at roughly 0.9x this company’s entire US$216M market cap, and the NPV is only about 1.1x that same cap. A micro-cap with two other tracked projects cannot quietly write that cheque. The realistic paths are project finance, a strategic partner, or significant equity dilution, and each carries a different implication for existing holders. A debt package at the required scale would load the balance sheet; an equity raise would likely be substantially dilutive at this valuation. The headline economics are the supporting act, not the deciding factor.
The feasibility study gives these numbers real weight, which cuts both ways. At a build-ready confidence level, the 25.5% after-tax IRR is a modest return, ranking in the bottom quartile of the 102 gold projects we track. That sits just above the 20% hurdle a junior with little else in the portfolio typically needs to attract financing, so it clears the bar, but without much margin. The C$328M after-tax NPV is middling, and the 2.9-year payback is unremarkable. The 5% discount rate used to derive that NPV is at the low end of reporting convention and flatters the figure; it is not an investment hurdle.
Nova Scotia is a stable, mining-friendly jurisdiction, and the study’s US$1,600/oz gold assumption sits far below today’s $4,194.70/oz spot, so the economics have meaningful upside if prices hold. But that gap also explains part of the NPV-to-market-cap spread: the market may be skeptical that a company this size can deliver a build this large without severe dilution. The single question that decides this project is not the grade or the jurisdiction, it is who writes the C$271M cheque, and at what cost to 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.