Gowganda Tailings (Miller Lake-O'Brien) Feasibility Study: C$2M NPV, 49.3% IRR
Nord Precious Metals Mining Inc.'s Gowganda Tailings (Miller Lake-O'Brien) 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 0.325 Moz Ag per year.
Nord Precious Metals Mining Inc.'s Gowganda Tailings (Miller Lake-O'Brien) 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$6-US$12/oz Ag (base case US$12/oz).
Production and mine plan. The project envisions a tailings reprocessing operation. Life of mine is 7 years. Average annual production is approximately 0.325 Moz Ag. Average head grade is 1.43 oz/t Ag (from Kilborn FS text). 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.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven (Kilborn 1987) | — | 1.43 oz/t Ag | ~2.0M recoverable oz @ 85% recovery |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Historic Resource (2011) - 5 g/t cut-off | 1,946,465 tonnes | 47.3 g/t Ag | 2,961,665 oz Ag |
| Historic Resource (2011) - 10 g/t cut-off | 1,937,520 tonnes | 47.5 g/t Ag | 2,959,487 oz Ag |
| Historic Resource (2011) - 20 g/t cut-off | 1,903,081 tonnes | 48.1 g/t Ag | 2,941,810 oz Ag |
| Historic Resource (2011) - 30 g/t cut-off | 1,743,690 tonnes | 50.1 g/t Ag | 2,806,483 oz Ag |
| Historic Resource (2011) - 40 g/t cut-off | 1,112,423 tonnes | 58.2 g/t Ag | 2,083,075 oz Ag |
Our Analysis
This project delivers a 49.3% pre-tax IRR, placing it in the upper half of the 22 silver peers we track and well above the practical financing hurdle for developers. The 15% discount rate used for NPV reporting is relatively conservative, which flatters the NPV less than a lower rate would. However, the pre-tax NPV of C$2M is only about 0.1x market cap—a gap that could signal the market has not yet priced in the asset, or that it is skeptical about financing risk given the capital intensity. Initial capex of C$5M equals 208% of NPV, a heavy burden for a junior developer that implies significant dilution risk.
The study’s base case price assumption of US$12/oz sits far below the current live spot of $57.39/oz, making the returns appear deeply conservative on commodity price. Ontario is a mining-friendly jurisdiction, which reduces political risk. The single most important watch-item is the short 7-year mine life: the project must generate strong early cash flows to justify the capital outlay and deliver the projected returns before depletion.
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.