Granite Creek Underground PEA: $155M NPV, 84% IRR
i-80 Gold Corp.'s Granite Creek Underground in Nevada, USA (Humboldt County) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $155M and an after-tax IRR of 84%. The mine plan runs 8 years at about 59.6 koz Au per year.
i-80 Gold Corp.'s Granite Creek Underground 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 $155M 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 $155M using a 5% discount rate. After-tax IRR is 84%. All-in sustaining costs are pegged at 1597 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 underground operation. Life of mine is 8 years. Average annual production is approximately 59.6 koz Au. Average head grade is 11.6 g/t Au. Metallurgical recovery averages 78%.
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 | — | 10.5 g/t Au | 261 koz Au |
| Inferred | — | 13.0 g/t Au | 326 koz Au |
Our Analysis
- IRR after-tax
- 84%
higher than 85% of 96 projects we track
- NPV after-tax
- $155M
- Mine life
- 8yrs
- 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
This project delivers an 84% after-tax IRR, placing it in the top quartile of the 96 gold projects we track and well above the 15-20% threshold required to attract financing for a single-asset junior. The 5% discount rate used for NPV reporting is at the low end of convention, which inflates the headline $155M NPV; a more standard rate would compress that figure meaningfully. The NPV sits at roughly 0.1x market cap, which is a two-sided signal: the market may be pricing in significant execution risk, or the asset is simply not yet reflected in the valuation.
The $2,175/oz gold price assumption is deeply conservative against today's spot of $4,034.70/oz, implying substantial upside to the base-case returns if prices hold. However, the 8-year mine life is short, and capital intensity relative to NPV and market cap creates meaningful funding risk for a developer in this jurisdiction. Nevada is a mining-friendly jurisdiction, but the primary watch-item remains financing: the company must bridge a large capex gap with limited equity value, likely requiring significant dilution or a strategic partner.
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.