Lone Mountain (Nevada Zinc) PEA: $43M NPV, 35% IRR
Minaurum Silver Inc.'s Lone Mountain (Nevada Zinc) 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 (Nevada Zinc) 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% zinc and 0.70% lead (historic Inferred Resource).
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 59% of 362 projects we track
- NPV after-tax
- $43M
higher than 5% of 488 projects we track
A 35% after-tax IRR puts this zinc project ahead of 59% of the 362 projects we track, which is a respectable position but not a standout one: the upper half of the peer group, not its head. The more telling number is the after-tax NPV of $43M, which ranks above only 5% of the 488 projects we track. Read together, those two figures describe a project that earns well on the capital it deploys but does not deploy much of it. For an investor, that is a modest asset with a decent rate of return, not a company-maker.
The constraint is scale, and it runs in both directions. Against a US$130M market cap, the NPV is roughly 0.3x, so the asset sits well below the equity value of the company that owns it. That cuts two ways: it can mean the market has not credited the project, or that it is discounting the PEA, the zinc price deck, or the cost of building in a jurisdiction that is mining-friendly but not cheap. With ten projects in the portfolio, this one is a single line item rather than the thesis.
What decides it is the PEA itself. Scoping-level work can rest on inferred resources, and the capital estimate carries a plus or minus 50% band. At 35% the IRR clears the roughly 15% hurdle project finance typically demands, and the 20%-plus a junior with little else in the portfolio would need, but that margin is measured against a number that could move by half in either direction. The question is whether a feasibility study holds the capital estimate and the return.
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.