Mercur Gold Project PEA: $741M NPV, 56% IRR
Revival Gold Inc.'s Mercur Gold Project in Utah, USA (Tooele & Utah Counties) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $741M, an after-tax IRR of 56%, and initial capital of $208M. The mine plan runs 10 years at about 95600 oz Au/yr per year.
Revival Gold Inc.'s Mercur Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Utah, USA (Tooele & Utah Counties). The study headlines an after-tax net present value of $741M at a 5% discount rate. It reflects Revival Gold Inc.'s (RVG.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $741M using a 5% discount rate. After-tax IRR is 56%. Initial capital expenditure is estimated at $208M. The study models a payback period of 2 years. All-in sustaining costs are pegged at 1385 USD/oz. Economics are based on $2,000/oz gold (resource estimate); economics at US$3,000/oz gold base case; also shown $4,000/oz gold.
Production and mine plan. The project envisions an open-pit heap leach operation. Life of mine is 10 years. Average annual production is approximately 95600 oz Au/yr. Average head grade is 0.60 g/T Au (66 MT). Metallurgical recovery averages 75%. The open-pit strip ratio is 2.8:1.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Revival Gold 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 |
|---|---|---|---|
| Indicated | 35,299 kT | 0.66 g/T | 746.0 koz |
| Inferred | 36,246 kT | 0.54 g/T | 626.0 koz |
Our Analysis
- IRR after-tax
- 56%
higher than 73% of 109 projects we track
- NPV after-tax
- $741M
higher than 67% of 144 projects we track
- Initial capex
- $208M
28% of NPV
costlier than 54% of 143 projects we track
- Payback
- 2yrs
slower than 50% of 88 projects we track
- Mine life
- 10yrs
- Discount rate
- 5%
- Study price assumption
- $2,000/oz gold (resource estimate); economics at US$3,000/oz gold base case; also shown $4,000/oz gold
- Spot gold today
- $4,444.40/oz
The first question here is not whether the mine works, but who writes the cheque. Initial capex of $208M is roughly 1x the company's entire US$217M market cap, and the NPV is about 3.4x that same cap. A micro-cap with two other tracked projects cannot quietly fund a build equal to its own equity value; the realistic paths are a major strategic investor, a streaming or royalty partner, or significant dilution. Each route changes the per-share math materially, and existing holders should assume their stake is the funding currency before they celebrate the returns.
The economics are good enough to justify the effort, just not to paper over the financing gap. The 56% after-tax IRR ranks above 73% of tracked gold peers and clears the 20% hurdle a higher-risk junior typically needs by a wide margin. The $741M after-tax NPV ranks above 67% of peers, and the 2-year payback is moderate. But this is a PEA, scoping-level, with a capital estimate that carries a wide error band, and the study's 5% discount rate sits at the low end of convention, flattering the headline NPV. The base case uses $3,000/oz gold, well below the current $4,444.40 spot, so the price deck is conservative today, which provides cushion against the PEA's inherent uncertainty. The Utah jurisdiction is a genuine quality signal, mining-friendly and low-risk, which helps on the financing front.
The project itself, a 10-year gold mine in Utah, is straightforward. The tension is entirely in the capital structure. A 56% IRR and a $741M NPV mean little if the funding package costs existing holders half the company. The decisive question is whether management can secure capital on terms that leave current shareholders with a meaningful slice of the upside, or whether the build cost, at roughly the size of the entire company, forces a dilution that transfers most of the value to new investors.
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.