Goliath Gold Complex PFS: C$336M NPV, 25.4% IRR
NexGold Mining Corp.'s Goliath Gold Complex in Ontario, Canada (Dryden) has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of C$336M, an after-tax IRR of 25.4%, and initial capital of C$335M. The mine plan runs 13 years at about 90 koz Au per year.
NexGold Mining Corp.'s Goliath Gold Complex has reported Pre-Feasibility Study (PFS) results for the gold project in Ontario, Canada (Dryden). The study headlines an after-tax net present value of C$336M 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$336M using a 5% discount rate. After-tax IRR is 25.4%. Initial capital expenditure is estimated at C$335M, with life-of-mine sustaining capital of C$198M. The study models a payback period of 2.8 years. All-in sustaining costs are pegged at 1072 USD/oz. Economics are based on US$1,750/oz gold, US$21/oz silver, FX $0.75.
Production and mine plan. The project envisions an open-pit & underground operation. Life of mine is 13 years. Average annual production is approximately 90 koz Au. Average head grade is 1.30 g/t Au, 1.77 g/t Ag. Metallurgical recovery averages 92.8%.
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 PFS 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 | 6,393,000 t | 1.33 g/t Au, 5.17 g/t Ag | 273.6 koz Au, 1,062.7 koz Ag |
| Indicated | 61,318,000 t | 0.95 g/t Au, 2.92 g/t Ag | 1,865.0 koz Au, 2,459.3 koz Ag |
| Measured & Indicated | 67,711,000 t | 0.98 g/t Au, 3.42 g/t Ag | 2,138.6 koz Au, 3,522.0 koz Ag |
| Inferred | 32,571,000 t | 0.75 g/t Au, 0.84 g/t Ag | 782.8 koz Au, 91.5 koz Ag |
Our Analysis
- IRR after-tax
- 25.4%
higher than 23% of 120 projects we track
- NPV after-tax
- C$336M
higher than 41% of 179 projects we track
- Initial capex
- C$335M
100% of NPV
costlier than 65% of 165 projects we track
- Payback
- 2.8yrs
slower than 77% of 101 projects we track
- Mine life
- 13yrs
- Discount rate
- 5%
- Study price assumption
- US$1,750/oz gold, US$21/oz silver, FX $0.75
- Spot gold today
- $4,173.60/oz
The question at Dryden is not whether the orebody works; it is who writes the cheque. A C$335M initial build sits against a company worth roughly US$269M, so the capex is about 0.9x the entire equity value. That is the whole investment case in one ratio. A micro-cap with three projects in its portfolio cannot fund a build of that size from cash flow or a conventional debt package; the realistic paths are a large equity raise, a partner carrying the construction bill, a streaming or royalty deal, or a sale. Each of those transfers value away from today's holders, and the dilution math matters more to a return than anything in the study's cash flow table.
The economics themselves are decent but not exceptional. After-tax IRR of 25.4% clears the roughly 15% hurdle project financiers typically demand, and the 20%-plus that a junior with little else in the portfolio needs to be financeable. Against the 120 gold projects we track, though, it ranks above only 23% of them, and the 2.8-year payback sits above just 23% of the 101 projects where we have that figure. The C$336M after-tax NPV ranks above 41% of 179 peers. This is a mid-table asset, not a standout, and the 5% discount rate used to produce that NPV is a reporting convention rather than a test of anything.
Two things soften the picture. The study assumes US$1,750/oz gold against a live spot of US$4,173.60/oz, so the headline numbers carry real upside if prices hold anywhere near current levels. And Ontario is about as good as gold jurisdictions get. But this is a PFS, not a feasibility study, so the capital estimate still carries roughly a plus or minus 25% band. The deciding question: can this company fund C$335M without handing away the project?
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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