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/yr 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 US$12/oz silver (base case).
Production and mine plan. The project envisions a tailings re-processing operation. Life of mine is 7 years. Average annual production is approximately 325000 oz Ag/yr. Average head grade is 1.43 oz/t Ag (proven tailings). Metallurgical recovery averages 85%.
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.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 1,827,000 tons | 1.43 oz/t Ag | — |
Our Analysis
- IRR pre-tax
- 49.3%
higher than 61% of 23 projects we track
- NPV pre-tax
- C$2M
- Initial capex
- C$5M
208% of NPV
- Mine life
- 7yrs
- Discount rate
- 15%
- Study price assumption
- US$12/oz silver (base case)
- Spot silver today
- $57.52/oz
This project delivers a 49.3% pre-tax IRR, placing it in the upper half of the 23 tracked silver peers and well above the 20%+ threshold typically required for a single-asset junior. The 15% discount rate used for NPV reporting is relatively conservative, which flatters the NPV figure less than a lower rate would. Still, the pre-tax NPV of C$2M is only about 0.1x the company's market cap, a gap that cuts both ways: it may signal the market has not yet priced in the project, or it may reflect skepticism on financing risk given the capital intensity.
Initial capex of C$5M equals 208% of NPV, a heavy burden for a developer with a small market cap, implying material dilution risk. The base-case price assumption of US$12/oz sits far below the current spot of $57.52/oz, suggesting significant upside to returns if prices hold, but also raising the question of why the study used such a conservative assumption. Ontario is a mining-friendly jurisdiction, reducing political risk. The single most important watch-item is the funding gap: a 7-year mine life with capex more than double the NPV demands credible financing, and any equity raise will be highly dilutive at the current market cap.
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.