Lone Mountain (Zinc-Lead-Silver-Gold CRD) PEA: $43M NPV, 35% IRR
Minaurum Silver Inc.'s Lone Mountain (Zinc-Lead-Silver-Gold CRD) in Nevada, USA (near Barrick's Goldstrike/Carlin mines, Nevada Gold Mines) 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 (Zinc-Lead-Silver-Gold CRD) has reported Preliminary Economic Assessment (PEA) results for the zinc project in Nevada, USA (near Barrick's Goldstrike/Carlin mines, Nevada Gold Mines). 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%.
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 (Historic) | 3,257,000 tonnes | 7.57% Zn, 0.70% Pb | — |
Our Analysis
- IRR after-tax
- 35%
higher than 59% of 358 projects we track
- NPV after-tax
- $43M
higher than 5% of 458 projects we track
A 35% after-tax IRR puts this zinc project ahead of 59% of the 358 projects we track across all commodities, so it sits comfortably in the upper half of the peer set. That is a genuine signal, and it clears the practical financing bar: developers typically need around 15% after-tax IRR to attract project finance, and 20%+ where the developer is a higher-risk junior with little else in the portfolio, which fits this company. On returns alone, this is a project that can be financed.
The problem is scale, and it shows up in the NPV. At $43M after-tax, it ranks higher than only 5% of the 458 projects we track. That is the tension: a strong percentage return on a small absolute base. Against a US$126M market cap, the NPV is roughly 0.3x, below the company's equity value. For a micro-cap running a diversified portfolio of 9 projects, this is one asset among many, not a company-maker on its own. The NPV-to-market-cap gap cuts both ways: it can mean the market has not priced the asset, or that the market is skeptical on financing, dilution, permitting or commodity risk. Both reads are live here.
Confidence is the other constraint. This is a PEA, scoping-level work. It may include inferred resources, and its capital estimate typically carries a plus or minus 50% band. Nevada is a mining-friendly jurisdiction, near Barrick's Goldstrike/Carlin operations, which helps on permitting and infrastructure. But the returns rest on a preliminary study, and the study's own price assumption is the key sensitivity: if zinc realises below it, the economics thin quickly. The question that decides this project is whether a PEA-stage, $43M-NPV asset can be financed and built without diluting a US$126M company into irrelevance.
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.