Johnson Tract PEA: $615M NPV, 60% IRR
Dolly Varden Silver Corp.'s Johnson Tract in Alaska, USA has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $615M, an after-tax IRR of 60%, and initial capital of $214M. The mine plan runs 7 years at about 102258 oz AuEq per year.
Dolly Varden Silver Corp.'s Johnson Tract has reported Preliminary Economic Assessment (PEA) results for the gold project in Alaska, USA. The study headlines an after-tax net present value of $615M. It reflects Dolly Varden Silver Corp.'s (DV.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $615M. After-tax IRR is 60%. Initial capital expenditure is estimated at $214M, with life-of-mine sustaining capital of $61M. The study models a payback period of 1 years. All-in sustaining costs are pegged at 860 USD/oz AuEq. Economics are based on Base case $4,000/oz Au for summary economics; sensitivity shown at $2,000-$4,000/oz Au.
Production and mine plan. Life of mine is 7 years. Average annual production is approximately 102258 oz AuEq. Average head grade is 7.58 g/t Au Eq.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Dolly Varden Silver 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 |
|---|---|---|---|
| Indicated | 3,489,000 t | 5.3 g/t Au, 6.0 g/t Ag, 0.56% Cu, 0.67% Pb, 5.21% Zn, 9.4 g/t AuEq | 598,000 oz Au, 673,000 oz Ag, 43.1 Mlb Cu, 51.5 Mlb Pb, 400.8 Mlb Zn, 1,053,000 oz AuEq |
Our Analysis
The 60% after-tax IRR places this project in the top quartile of the 95 gold developers we track, well above the ~15% threshold that typically unlocks project financing. The $615M NPV is nearly three times the $214M initial capex, a capital-light profile that reduces funding risk. The one-year payback is exceptionally fast, limiting exposure to gold price volatility during ramp-up. However, the 7-year mine life is short, meaning the asset’s value is concentrated in a narrow production window—any operational delay or grade variance would compress returns sharply.
The study’s base case uses a $4,000/oz gold price, which sits just above the current spot of $3,984.70/oz—so the headline returns are not reliant on an aggressive price deck. The NPV-to-market-cap gap is not provided, but the project’s small capital requirement relative to NPV suggests that if the market cap is modest, the gap could signal either unrecognized value or skepticism around Alaska’s permitting timeline, which is the single most important risk. A low discount rate would flatter the NPV; the study’s own rate is the only relevant benchmark, and here the returns are strong enough to withstand scrutiny even at higher rates.
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.