Granite Creek Open Pit PEA: $421M NPV, 30% IRR
i-80 Gold Corp.'s Granite Creek Open Pit in Nevada, USA (Humboldt County) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $421M and an after-tax IRR of 30%. The mine plan runs 10 years at about 128.6 koz Au per year.
i-80 Gold Corp.'s Granite Creek Open Pit has reported Preliminary Economic Assessment (PEA) results for the gold project in Nevada, USA (Humboldt County). The study headlines an after-tax net present value of $421M at a 5% discount rate. It reflects i-80 Gold Corp.'s (IAU.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $421M using a 5% discount rate. After-tax IRR is 30%. All-in sustaining costs are pegged at 1225 USD/oz Au. Economics are based on $2,175/oz Au (base-case); also $2,900/oz and $3,000/oz sensitivities.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 10 years. Average annual production is approximately 128.6 koz Au. Average head grade is 1.25 g/t Au. Metallurgical recovery averages 86.6%.
These figures are extracted from i-80 Gold Corp.'s technical disclosures and reflect the most recent PEA 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 & Indicated | — | 1.18 g/t Au | 1.4 Moz Au |
| Inferred | — | 1.09 g/t Au | 75 koz Au |
Our Analysis
- IRR after-tax
- 30%
higher than 30% of 96 projects we track
- NPV after-tax
- $421M
- Mine life
- 10yrs
- Discount rate
- 5%
- Study price assumption
- $2,175/oz Au (base-case); also $2,900/oz and $3,000/oz sensitivities
- Spot gold today
- $4,034.70/oz
The 30% after-tax IRR sits in the lower half of our tracked Gold peer group, but it clears the practical financing hurdle for a single-asset junior developer by a wide margin. The 5% discount rate is a low-end reporting convention that flatters the headline NPV; a more typical rate would compress that figure materially. The NPV-to-market-cap ratio of ~0.4x is ambiguous: it could signal the market has not yet priced in the project’s value, or it could reflect skepticism around financing, dilution, or execution risk in a 10-year mine life.
Capital intensity relative to market cap is the key funding risk here. With the study’s base-case gold price of $2,175/oz sitting well below the current spot of $4,034.70/oz, the returns are likely conservative on the commodity assumption alone. The Nevada jurisdiction is a strong positive for permitting and operational stability. The single most important watch-item is financing dilution: the market cap is modest relative to the capital required to build this asset, and any equity raise will test the current valuation gap.
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.