Lemhi Gold Project Feasibility Study: $696M NPV, 34.4% IRR
Freeman Gold Corp.'s Lemhi Gold Project in USA, Idaho (Gibbonsville, Lemhi county) has a Feasibility Study outlining an after-tax NPV of $696M, an after-tax IRR of 34.4%, and initial capital of $330M. The proposed mine plan runs 15 years.
Freeman Gold Corp.'s Lemhi Gold Project has reported Feasibility Study results for the gold project in USA, Idaho (Gibbonsville, Lemhi county). The study headlines an after-tax net present value of $696M at a 5% discount rate. It reflects Freeman Gold Corp.'s (FMAN.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $696M using a 5% discount rate. After-tax IRR is 34.4%. Initial capital expenditure is estimated at $330M, with life-of-mine sustaining capital of $168M. The study models a payback period of 2.4 years. Economics are based on Base case $3,650/oz Au (headline); reserves cutoff at $3,000/oz Au; resource pit optimization at $4,000/oz Au, reporting cutoff $3,000/oz Au.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 15 years. Average head grade is 0.74 g/t Au (P&P reserve); 0.79 g/t Au (M&I resource). Metallurgical recovery averages 96.2%.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: 2.0% NSR royalty; 99.5% payable gold.
These figures are extracted from Freeman Gold 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 |
|---|---|---|---|
| Proven | 8.6 Mt | 0.85 g/t Au | 0.2 Moz |
| Probable | 34.4 Mt | 0.71 g/t Au | 0.8 Moz |
| Proven & Probable | 43.0 Mt | 0.74 g/t Au | 1.0 Moz |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 8,356,000 t | 0.92 g/t Au | 247,000 oz |
| Indicated | 39,954,000 t | 0.76 g/t Au | 974,000 oz |
| Measured & Indicated | 48,310,000 t | 0.79 g/t Au | 1,221,000 oz |
| Inferred | 10,683,000 t | 0.70 g/t Au | 240,000 oz |
Our Analysis
- IRR after-tax
- 34.4%
higher than 38% of 103 projects we track
- NPV after-tax
- $696M
higher than 66% of 140 projects we track
- Initial capex
- $330M
47% of NPV
costlier than 68% of 136 projects we track
- Payback
- 2.4yrs
slower than 61% of 83 projects we track
- Mine life
- 15yrs
- Discount rate
- 5%
- Study price assumption
- Base case $3,650/oz Au (headline); reserves cutoff at $3,000/oz Au; resource pit optimization at $4,000/oz Au, reporting cutoff $3,000/oz Au
- Spot gold today
- $4,410.10/oz
The build cost is the story, and it is a hard one. At roughly US$330M in initial capex, this project costs about four times the company’s entire US$83M market cap. That is not a financing gap; it is a financing chasm. No lender writes that cheque against a micro-cap with no other assets in the portfolio. Realistically, the path forward is substantial equity dilution, a strategic partner taking a large stake, or a sale of the project outright. Existing holders should assume their ownership is the currency that pays for construction, whatever the headline IRR says.
The economics are decent but not the kind that forces the market to overlook the funding problem. The 34.4% after-tax IRR ranks in the lower half of the 103 gold projects we track, though it clears the 20%+ hurdle a higher-risk junior needs to attract project finance. The US$696M after-tax NPV is stronger, ranking above two-thirds of peers, and the 2.4-year payback is moderate. Capital intensity is genuinely light at 47% of NPV, which helps, but it does not shrink the absolute cheque. The feasibility study carries real weight, a build-ready estimate with a typical plus or minus 15% band, and the US jurisdiction in Idaho is a quality signal, but none of that changes who has to write the cheque.
One nuance cuts in the investor’s favor: the study’s base case uses US$3,650/oz gold, while the current spot sits at US$4,410.10/oz. That gap is real upside if prices hold, and it could soften the dilution math. But it also means the financing risk is the only question that matters. The single decision that decides this project is whether a partner or buyer emerges who can fund a build worth four times the company’s equity value, and at what price for existing shareholders.
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.