Grey Fox PFS: $282M NPV, 24.8% IRR
McEwen Mining Inc.'s Grey Fox in Canada (Ontario, Fox Complex) has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $282M, an after-tax IRR of 24.8%, and initial capital of $177M.
McEwen Mining Inc.'s Grey Fox has reported Pre-Feasibility Study (PFS) results for the gold project in Canada (Ontario, Fox Complex). The study headlines an after-tax net present value of $282M at a 5% discount rate. It reflects McEwen Mining Inc.'s (MUX.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $282M using a 5% discount rate. After-tax IRR is 24.8%. Initial capital expenditure is estimated at $177M, with life-of-mine sustaining capital of $174M. Economics are based on US$3,000/oz Au.
Production and mine plan. The project envisions an underground operation. Average head grade is 3.24 g/t Au. Metallurgical recovery averages 90%.
These figures are extracted from McEwen Mining Inc.'s technical disclosures and reflect the most recent PFS 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 | 0 kt | 0.00 g/t Au | 0 koz Au |
| Probable | 9,406.8 kt | 3.24 g/t Au | 980.3 koz Au |
| Proven & Probable | 9,405.8 kt | 3.24 g/t Au | 980.3 koz Au |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 9,681 kt | 2.25 g/t Au | 701 koz Au |
| Inferred | 4,696 kt | 2.57 g/t Au | 388 koz Au |
Our Analysis
The 24.8% after-tax IRR sits in the bottom quartile of our 95-project gold peer set, though it clears the practical financing hurdle for a single-asset junior developer. The 5% discount rate is a low-end reporting convention that flatters the headline NPV; a more conservative rate would compress the project’s apparent value. The $282M NPV is roughly 0.3x the company’s market cap, which cuts two ways: the market may be pricing in skepticism on financing or permitting risk in Ontario, or the asset may simply lack the scale to command a premium.
Capital intensity is moderate at 63% of NPV, but $177M in initial capex is material relative to the company’s market cap, raising dilution risk for a developer. The gold price assumption of $3,000/oz sits well below today’s spot of $4,054.30, implying meaningful upside to the study’s returns if current prices hold. The single biggest watch-item is funding: a junior with this capex-to-market-cap profile must secure financing without excessive dilution, and Ontario’s permitting timeline—while generally mining-friendly—adds execution risk.
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.