Lone Mountain PEA: $43M NPV, 35% IRR
Minaurum Silver Inc.'s Lone Mountain in Nevada, USA has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $43M and an after-tax IRR of 35%.
Minaurum Silver Inc.'s Lone Mountain has reported Preliminary Economic Assessment (PEA) results for the zinc project in Nevada, USA. The study headlines an after-tax net present value of $43M. It reflects Minaurum Silver Inc.'s (MGG.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $43M. After-tax IRR is 35%.
Production and mine plan. Average head grade is 7.57% Zn and 0.70% Pb.
These figures are extracted from Minaurum Silver Inc.'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 |
|---|---|---|---|
| Inferred | 3,257,000 tonnes | 7.57% Zn, 0.70% Pb | — |
Our Analysis
- IRR after-tax
- 35%
higher than 60% of 383 projects we track
- NPV after-tax
- $43M
higher than 4% of 556 projects we track
Against the 383 projects we track, this one's 35% after-tax IRR sits in the upper half, ahead of roughly 60% of that field. That is a respectable rank, not a standout, and it clears the ~15% hurdle developers typically need for project finance and the 20%+ that higher-risk juniors with little else in the portfolio usually require. The catch is on the other side of the ledger: the after-tax NPV of $43M ranks ahead of only 4% of the 556 projects we track. Strong percentage returns on a small absolute base is the defining tension here, and it is the number an investor should weight.
The constraint that matters most is scale against the company. A US$105M micro-cap carrying a $43M NPV means the asset is worth about 0.4x the equity, and this is one of 13 projects in the portfolio, so it is not a company-defining bet on a single outcome. The modest NPV also caps how much debt a build could support, which pushes more of any funding requirement toward equity. For a micro-cap, that is the dilution risk to watch, not the headline return.
Confidence in these figures is limited by stage. This is a scoping-level PEA, preliminary by definition, potentially resting on inferred resources, with a capital estimate that typically carries a plus or minus 50% band. The comparison to the 2019 PEA is flat: after-tax NPV and IRR both effectively unchanged, so the work has not moved the economics. Nevada is a favourable, mining-friendly jurisdiction, which helps on permitting and execution. The decisive question is whether a study of this stage, on an asset this size, can be advanced to a feasibility-level number that justifies the capital.
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.
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