Goliath Gold Complex PFS: C$336M NPV, 25.4% IRR
NexGold Mining Corp.'s Goliath Gold Complex in Dryden, Ontario, Canada 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 91 koz AuEq per year.
NexGold Mining Corp.'s Goliath Gold Complex has reported Pre-Feasibility Study (PFS) results for the gold project in Dryden, Ontario, Canada. 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 1037 USD/oz. Economics are based on US$1,750/oz gold, US$21/oz silver.
Production and mine plan. The project envisions an open-pit & underground operation. Life of mine is 13 years. Average annual production is approximately 91 koz AuEq. 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 |
|---|---|---|---|
| Proven | 4,565 kt | 1.43 g/t Au, 4.98 g/t Ag | 210 koz Au, 731 koz Ag |
| Probable | 25,754 kt | 1.28 g/t Au, 1.20 g/t Ag | 1,057 koz Au, 993 koz Ag |
| Total Proven & Probable | 30,319 kt | 1.30 g/t Au, 1.77 g/t Ag | 1,267 koz Au, 1,724 koz Ag |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 6,393 kt | 1.33 g/t Au, 5.17 g/t Ag | 273.6 koz Au, 1,062.7 koz Ag |
| Indicated | 61,318 kt | 0.95 g/t Au, 2.92 g/t Ag | 1,865.0 koz Au, 2,459.3 koz Ag |
| Measured & Indicated | 67,711 kt | 0.98 g/t Au, 3.42 g/t Ag | 2,138.6 koz Au, 3,522.0 koz Ag |
| Inferred | 32,571 kt | 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 22% of 102 projects we track
- NPV after-tax
- C$336M
higher than 43% of 138 projects we track
- Initial capex
- C$335M
100% of NPV
costlier than 70% of 129 projects we track
- Payback
- 2.8yrs
slower than 76% of 79 projects we track
- Mine life
- 13yrs
- Discount rate
- 5%
- Study price assumption
- US$1,750/oz gold, US$21/oz silver
- Spot gold today
- $4,194.70/oz
The build cost is the story. At C$335M, initial capex stands at roughly 1.1x the company’s entire US$216M market cap, a micro-cap with only three tracked projects to its name. That is not a financing gap; it is a financing chasm. No lender writes a project-finance cheque of that size against a balance sheet this small without massive equity dilution or a strategic partner stepping in. Existing holders are effectively underwriting the outcome: either they absorb the dilution to fund construction, or they hand a controlling stake to whoever writes the cheque. The headline returns are secondary to that arithmetic.
The economics, taken on their own, are workable but unremarkable. The 25.4% after-tax IRR ranks in the bottom quartile of the 102 gold projects we track, though it clears the 20% hurdle a higher-risk junior typically needs to attract capital. The after-tax NPV of C$336M is roughly 1.1x market cap, which cuts both ways: it suggests the market has not priced in the asset, or it is pricing in the financing and dilution risk described above. Payback of 2.8 years is moderate, and the 13-year mine life in Dryden, Ontario offers a stable, mining-friendly jurisdiction. The study’s US$1,750/oz gold assumption sits far below today’s spot of $4,194.70/oz, implying meaningful upside if prices hold, but that gap is also why the project can look cheap on paper.
This is a pre-feasibility study, a plus-or-minus 25% estimate, not a build decision. The 5% discount rate flatters the NPV, but the real question is not the return profile; it is whether the company can fund the build without destroying existing shareholders. The single deciding factor: who pays the C$335M, and at what price?
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.