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 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. 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 372 projects we track
- NPV after-tax
- $43M
higher than 5% of 527 projects we track
A 35% after-tax IRR puts this zinc project in the upper half of the 372 projects we track, ahead of roughly 59% of them. That is a genuinely respectable return, and it clears the ~15% hurdle developers typically need for project finance and the 20%+ demanded of a higher-risk junior with little else in the portfolio, which fits this company. But the peer comparison cuts both ways: the same project ranks above only 5% of the 527 projects we track on after-tax NPV, at $43M. A strong percentage return on a small absolute base is the signature of a modest asset, not a standout one.
The constraint that matters most is scale against the company itself. A US$121M micro-cap carrying a $43M NPV means the asset sits at roughly 0.4x market cap, below the company's own value. That is not a build the company can quietly finance from its own balance sheet, and with 11 projects in the portfolio, capital and management attention are spread thin. Nevada is a mining-friendly jurisdiction, which helps on permitting and execution risk, but it does not solve the funding question.
Weigh the study stage heavily here. This is a PEA: scoping-level, potentially built on inferred resources, with a capital estimate that typically carries a plus or minus 50% band. The IRR and NPV have not earned the confidence a feasibility study would command, and the capital number could move materially in either direction. The study's own price assumption is the swing factor to watch as a sensitivity. The question that decides this project is whether a micro-cap with a sub-0.5x NPV asset can fund and deliver a build without diluting shareholders past the point where the return means anything.
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.
Get the next one first
Be the first to know about new mining results, and how they compare to other projects.