Gowganda (Kilborn 1987 Feasibility Study) Feasibility Study: C$2M NPV, 49.3% IRR
Nord Precious Metals Mining Inc.'s Gowganda (Kilborn 1987 Feasibility Study) in Ontario, Canada has a Feasibility Study outlining a pre-tax NPV of C$2M, a pre-tax IRR of 49.3%, and initial capital of C$5M. The mine plan runs 7 years at about 325000 oz Ag/year per year.
Nord Precious Metals Mining Inc.'s Gowganda (Kilborn 1987 Feasibility Study) has reported Feasibility Study results for the silver project in Ontario, Canada. The study headlines a pre-tax net present value of C$2M at a 15% discount rate. It reflects Nord Precious Metals Mining Inc.'s (NTH.V) latest disclosed economics for the asset.
Economics. The pre-tax NPV is C$2M using a 15% discount rate. Pre-tax IRR is 49.3%. Initial capital expenditure is estimated at C$5M. Economics are based on Base-case at US$12/oz silver, sensitivity at US$6-$12/oz.
Production and mine plan. The project envisions a tailings reprocessing operation. Life of mine is 7 years. Average annual production is approximately 325000 oz Ag/year. Average head grade is 1.43 oz/t Ag (from tailings). Metallurgical recovery averages 85%.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Nord Precious Metals Mining Inc.'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.
Our Analysis
The 49.3% pre-tax IRR ranks in the upper half of the 21 silver projects we track and clears the practical financing hurdle for a single-asset junior by a wide margin. However, the study’s 15% discount rate is relatively conservative, which flatters the NPV; the pre-tax NPV of C$2M is only about 0.1x the company’s market cap. This gap could mean the market has not priced in the asset, or it could signal skepticism about financing risk given the initial capex of C$5M—208% of NPV—which is capital-intensive for a seven-year mine life.
The base-case price assumption of US$12/oz silver sits well below the current live spot of $57.72/oz, implying significant upside if prices hold, but also that the study’s returns are likely optimistic relative to today’s market. The Ontario jurisdiction is mining-friendly, reducing permitting risk. The single most important watch-item is funding: the capex-to-NPV ratio and small absolute NPV relative to market cap suggest material dilution risk for a developer.
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.