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, adjacent to Trans-Canada Highway 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, adjacent to Trans-Canada Highway 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 for long-term mine planning; variable forward curve: 2025E $3,195/oz, 2026E $3,265/oz, 2027E $3,050/oz, 2028 $2,915/oz, 2029 $2,840/oz, LT $2,610/oz.
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: Franco-Nevada 50% net profit interest (NPI) on Interlake claims; attributable production is 100% of Williams + 50% of Interlake.
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 | 39,375 kt | 1.65 g/t Au | 2,085 koz Au |
| Probable (Open Pit) | 28,446 kt | 0.85 g/t Au | 781 koz Au |
| Probable (Underground) | 10,929 kt | 3.71 g/t Au | 1,304 koz Au |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| 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 |
| Indicated (Open Pit) | 71,923 kt | 0.87 g/t Au | 2,009 koz Au |
| Inferred (Open Pit) | 3,988 kt | 0.57 g/t Au | 73 koz Au |
| Measured (Underground) | 6,138 kt | 3.52 g/t Au | 695 koz Au |
| Indicated (Underground) | 15,719 kt | 3.46 g/t Au | 1,751 koz Au |
| Inferred (Underground) | 6,975 kt | 2.94 g/t Au | 659 koz Au |
Our Analysis
The after-tax NPV of $1.09B, roughly in line with the company’s market cap, suggests the market is already pricing in much of the project’s base-case value, leaving limited upside from the study alone. The IRR is not disclosed, but the long-term gold price assumption of $1,700/oz sits dramatically below the current spot of $4,025.10/oz, implying the returns are heavily understated if spot prices sustain. However, the study’s variable forward curve—peaking at $3,265/oz in 2026E—shows some near-term optimism, yet still well below spot. The discount rate is not given, but a low rate would flatter the NPV; given the jurisdiction (Ontario, Canada), a lower risk premium is reasonable, but the NPV-to-market-cap parity leaves little room for error.
The single most important risk is funding: with a 14-year mine life and capex likely large relative to market cap (given the NPV is ~0.8x cap), a developer this size faces material dilution or financing hurdles. The jurisdiction is mining-friendly, but the market’s skepticism may stem from execution risk or commodity price volatility—the wide gap between study assumptions and spot cuts both ways, either as hidden upside or a signal that the market expects prices to revert. Watch for the financing plan and any cost overruns.
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.