Grassy Mountain Feasibility Study: $375M NPV, 39% IRR
Paramount Gold and Silver Corp.'s Grassy Mountain in Malheur County, Eastern Oregon, USA has a Feasibility Study outlining an after-tax NPV of $375M, an after-tax IRR of 39%, and initial capital of $190M. The mine plan runs 9.3 years at about 41.4 koz Au per year.
Paramount Gold and Silver Corp.'s Grassy Mountain has reported Feasibility Study results for the gold project in Malheur County, Eastern Oregon, USA. The study headlines an after-tax net present value of $375M at a 5% discount rate. It reflects Paramount Gold and Silver Corp.'s (PZG) latest disclosed economics for the asset.
Economics. The after-tax NPV is $375M using a 5% discount rate. After-tax IRR is 39%. Initial capital expenditure is estimated at $190M, with life-of-mine sustaining capital of $65M. The study models a payback period of 2.2 years. All-in sustaining costs are pegged at 1442 USD/oz. Economics are based on Base Case $3,600/oz; Upside Case $4,618/oz.
Production and mine plan. Life of mine is 9.3 years. Average annual production is approximately 41.4 koz Au. Average head grade is 0.18 oz/ton (6.06 g/t). Metallurgical recovery averages 93%.
Resources and ownership. Mineral reserves: 405 koz P&P Gold Reserves. Mineral resources: 1.36M oz M&I Gold Resources (Inclusive of Reserves). The company holds a 100% interest in the project.
These figures are extracted from Paramount Gold and Silver Corp.'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
- IRR after-tax
- 39%
higher than 50% of 90 projects we track
- NPV after-tax
- $375M
- Initial capex
- $190M
51% of NPV
- Payback
- 2.2yrs
- Mine life
- 9.3yrs
- Discount rate
- 5%
- Study price assumption
- Base Case $3,600/oz; Upside Case $4,618/oz
- Spot gold today
- $4,135.70/oz
The 39% after-tax IRR ranks in the upper half of the 90 gold projects we track and clears the practical financing hurdle for a single-asset junior by a wide margin. The 5% discount rate is at the low end of reporting convention, which flatters the $375M NPV—a figure that is 3.6x the company’s market cap. That gap cuts two ways: it could signal the market has not yet priced in the project’s value, or it could reflect skepticism about financing, permitting, or jurisdictional risk. The $190M initial capex, at 51% of NPV, is moderately capital-intensive but manageable relative to the projected returns; however, it is large relative to market cap, meaning equity dilution is a real funding risk for a developer.
The Base Case price assumption of $3,600/oz sits well below the current spot of $4,135.70/oz, implying upside if prices hold. The single most important risk is the 9.3-year mine life: a relatively short horizon that leaves little margin for permitting delays or operational setbacks, and amplifies the impact of any gold price decline.
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.