Hemlo Gold Mine Feasibility Study: $1.09B NPV Over a 14-Year Mine Life
Hemlo Mining Corp.'s Hemlo Gold Mine in Ontario, Canada (northwestern Ontario, near Marathon) has a Feasibility Study outlining an after-tax NPV of $1.09B. The mine plan runs 14 years at about 138 koz Au per year.
Hemlo Mining Corp.'s Hemlo Gold Mine has reported Feasibility Study results for the gold project in Ontario, Canada (northwestern Ontario, near Marathon). The study headlines an after-tax net present value of $1.09B at a 5% discount rate. It reflects Hemlo Mining Corp.'s (HMMC.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $1.09B using a 5% discount rate. All-in sustaining costs are pegged at 1395 USD/oz. Economics are based on $1,700/oz gold for long-term mine planning; also $3,195/oz (2025E), $3,265/oz (2026E), $3,050/oz (2027E), $2,915/oz (2028E), $2,840/oz (2029E), LT $2,610/oz for NPV calc.
Production and mine plan. The project envisions an underground & open-pit operation. Life of mine is 14 years. Average annual production is approximately 138 koz Au. Average head grade is 1.75 g/t Au. Metallurgical recovery averages 92.8%.
Resources and ownership. Royalties and streams: 50% net profit interest ('NPI') with Franco-Nevada Corporation on Interlake claims.
These figures are extracted from Hemlo Mining 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.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Probable | 28,446 kt | 0.85 g/t Au | 781 koz Au |
| Probable | 10,929 kt | 3.71 g/t Au | 1,304 koz Au |
| Probable | 39,375 kt | 1.65 g/t Au | 2,085 koz Au |
| Probable | 28,446 kt | 0.85 g/t Au | 781 koz Au |
| Probable | 10,929 kt | 3.71 g/t Au | 1,304 koz Au |
| Probable | 39,375 kt | 1.65 g/t Au | 2,085 koz Au |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 6,138 kt | 3.52 g/t Au | 695 koz Au |
| Indicated | 15,719 kt | 3.46 g/t Au | 1,751 koz Au |
| Inferred | 6,975 kt | 2.94 g/t Au | 659 koz Au |
| Measured | 6,137 kt | 3.52 g/t Au | 694 koz Au |
| Indicated | 87,643 kt | 1.33 g/t Au | 3,760 koz Au |
| Inferred | 10,963 kt | 2.08 g/t Au | 732 koz Au |
| Measured | 6,137 kt | 3.52 g/t Au | 694 koz Au |
| Indicated | 87,643 kt | 1.33 g/t Au | 3,760 koz Au |
| Inferred | 10,963 kt | 2.08 g/t Au | 732 koz Au |
Our Analysis
- NPV after-tax
- $1.09B
- Mine life
- 14yrs
- Study price assumption
- $1,700/oz gold for long-term mine planning; also $3,195/oz (2025E), $3,265/oz (2026E), $3,050/oz (2027E), $2,915/oz (2028E), $2,840/oz (2029E), LT $2,610/oz for NPV calc
- Spot gold today
- $4,034.70/oz
The after-tax NPV of $1.09B sits roughly in line with the company's market cap, which is a two-sided signal. It could mean the market has not yet priced in the project's full value, or it could reflect skepticism about financing, permitting, or execution risk in a single-asset junior. The IRR is not provided, but the project's viability hinges on the gap between the study's long-term gold price assumption of $1,700/oz and today's spot of $4,034.70/oz. That massive spread suggests the returns are likely highly optimistic at current prices, as the study's base case is deeply conservative relative to the market.
The jurisdiction—northwestern Ontario—is a clear positive, offering low political risk and established mining infrastructure. However, the 14-year mine life is modest, and capital intensity relative to NPV and market cap will determine funding risk. The single most important watch-item is the gold price trajectory: if prices fall toward the study's $1,700/oz assumption, the project's economics deteriorate sharply, and the NPV-to-market-cap parity could quickly become a discount reflecting stranded value.
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.