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 (base case FS); feasibility study notes upside at US$1,920/oz.
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. Metallurgical recovery averages 95.8%. The open-pit strip ratio is 8.0 waste:ore.
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 | 9,255,000 t | 3.56 g/t Au | 1,058,000 oz Au |
| Indicated | 12,338,000 t | 3.84 g/t Au | 1,523,000 oz Au |
| Measured & Indicated | 21,593,000 t | 3.72 g/t Au | 2,581,000 oz Au |
| Inferred | 3,181,000 t | 4.73 g/t Au | 484,000 oz Au |
Our Analysis
- IRR after-tax
- 25.5%
higher than 24% of 120 projects we track
- NPV after-tax
- C$328M
higher than 40% of 179 projects we track
- Initial capex
- C$271M
83% of NPV
costlier than 61% of 165 projects we track
- Payback
- 2.9yrs
slower than 79% of 101 projects we track
- Mine life
- 10.9yrs
- Discount rate
- 5%
- Study price assumption
- US$1,600/oz gold (base case FS); feasibility study notes upside at US$1,920/oz
- Spot gold today
- $4,173.60/oz
A 25.5% after-tax IRR puts this squarely in the lower-middle of the pack: it ranks above only 24% of the 120 gold projects we track. That is not a disqualifying number. It clears the roughly 15% hurdle developers typically need for project finance, and it sits above the 20% mark that higher-risk juniors with little else in the pipeline usually have to show. But "clears the bar" is the whole of the case here. Against the projects we track, this is a middle-of-the-road asset, and the 2.9-year payback (lower than 21% of the 101 projects we compare) reinforces that: nothing here is an outlier in either direction.
The constraint that matters is funding. Initial capex of C$271M is 83% of the after-tax NPV of C$328M, and about 0.7x the company's entire US$269M market cap. That last ratio is the sharpest signal in the file: a micro-cap cannot quietly finance a build worth a large fraction of its own equity value, and this is one of three projects the company is carrying. The NPV at roughly 0.9x market cap cuts both ways. It can mean the asset is unpriced, or that the market is discounting financing, dilution and execution risk. With a build this size relative to the balance sheet, the second read is at least as plausible as the first.
Two things lift confidence. This is a feasibility study, the build-ready estimate, so the numbers carry more weight than a scoping-level PEA would. And Nova Scotia is a mining-friendly jurisdiction. The study's US$1,600/oz base case sits well below today's live spot of US$4,173.60/oz, with feasibility-level upside modelled at US$1,920/oz, so the returns are not leaning on an aggressive price deck. The question that decides this project is whether a micro-cap can fund a C$271M build without gutting the equity case for the shareholders who own it.
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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