Johnson Tract Project PEA: $615M NPV, 60% IRR
Dolly Varden Silver Corp.'s Johnson Tract Project 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 Project has reported Preliminary Economic Assessment (PEA) results for the gold (au-ag-cu-zn-pb polymetallic) project in Alaska, USA. The study headlines an after-tax net present value of $615M at a 5% discount rate. It reflects Dolly Varden Silver Corp.'s (DV.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $615M using a 5% discount rate. 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 sold. Economics are based on Base case $4,000/oz Au; sensitivity at $2,000, $2,200, $3,000 and $4,000 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 AuEq.
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 kt | 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 koz Au, 673 koz Ag, 43.1 Mlb Cu, 51.5 Mlb Pb, 400.8 Mlb Zn, 1,053 koz AuEq |
Our Analysis
- IRR after-tax
- 60%
higher than 85% of 376 projects we track
- NPV after-tax
- $615M
higher than 49% of 537 projects we track
- Initial capex
- $214M
35% of NPV
costlier than 40% of 510 projects we track
- Payback
- 1yrs
slower than 10% of 304 projects we track
- Mine life
- 7yrs
- Discount rate
- 5%
- Study price assumption
- Base case $4,000/oz Au; sensitivity at $2,000, $2,200, $3,000 and $4,000 Au
- Spot gold today
- $4,225.70/oz
A 60% after-tax IRR from a $214M build is the combination that makes this project worth a closer look: the capital is small enough to be financed without transforming the company, and the returns rank in the top quartile of the 376 projects we track. Payback of one year, faster than 90% of the 304 projects we track, means the cash comes back before most development risk has time to compound. For a developer weighing a ~15% after-tax hurdle to attract project finance, that spread is the whole pitch.
The catch is what sits underneath it. This is a PEA, scoping-level work that may lean on inferred resources, and its capital estimate typically carries a plus or minus 50% band. A 7-year mine life is short: there is little time to recover from a bad year, a grade miss or a cost overrun, and the NPV of $615M ranks only mid-pack among the 537 projects we track despite the headline IRR. The study assumes $4,000/oz gold against a live spot of $4,225.70/oz, so the base case is not stretched, and the sensitivity runs down to $2,000, which is where the real question about margin lives. Alaska is a mining-friendly jurisdiction, but remote northern builds carry their own logistics and permitting weight.
Capex at 35% of NPV is genuinely light, and this is one of 6 projects in a diversified portfolio, so the funding burden does not fall on a single asset. The unchanged figures versus the 2025 PEA tell you nothing has been re-engineered, only re-stated. The deciding question is whether a 7-year, scoping-level mine can be converted into a feasibility-grade reserve without the capital number moving against it.
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.