Lone Mountain Zinc Project PEA: $43M NPV, 35% IRR
Minaurum Silver Inc.'s Lone Mountain Zinc Project 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 Project 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 (Historic) | 3,257,000 tonnes | 7.57% Zn, 0.70% Pb | — |
Our Analysis
- IRR after-tax
- 35%
higher than 60% of 402 projects we track
- NPV after-tax
- $43M
higher than 4% of 576 projects we track
A 35% after-tax IRR puts this Nevada zinc project ahead of 60% of the 402 projects we track, an upper-half return. That rank is worth something, but less than it first appears: the NPV of $43M ranks ahead of only 4% of the 576 projects we track. Strong percentage returns on a small absolute base is the signature of a modest asset, not a scarce one. For a junior, the 35% clears the practical financing bar (roughly 15% for project finance, 20%+ where the developer is a higher-risk junior with little else to lean on), so the return is genuinely financeable in principle. The peer comparison is the honest frame: this is a solid mid-table IRR attached to a bottom-decile NPV.
The constraint that matters is scale against the company. The NPV is roughly in line with the US$77M market cap, about 0.6x, so the asset is neither hidden nor stretched relative to equity. But this is one of 13 projects the company tracks, a diversified micro-cap portfolio, which cuts both ways: the project does not have to carry the whole story, yet it also will not command the single-asset focus that gets a build financed. A diversified micro-cap spreading attention across 13 projects rarely moves one of them quickly.
Weigh the study stage heavily. This is a PEA, scoping-level, potentially including inferred resources, with a capital estimate that typically carries a plus or minus 50% band. The returns versus the 2019 PEA are flat (NPV +0%, IRR +0 points), so the work has not moved the economics in years. Nevada is a mining-friendly jurisdiction, a real positive, but it does not offset a preliminary estimate. The question that decides this: can a micro-cap with 13 projects convert a scoping study into a funded build, or does the flat NPV and wide capital band keep it a paper asset?
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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