Mercur Gold Project PEA: $741M NPV, 56% IRR
Revival Gold Inc.'s Mercur Gold Project in USA, Utah (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 per year.
Revival Gold Inc.'s Mercur Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in USA, Utah (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. All-in sustaining costs are pegged at 1385 USD/oz. Economics are based on $3,000/oz Au (base-case for economics); resources at $2,000/oz Au.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 10 years. Average annual production is approximately 95600 oz Au. Average head grade is 0.60 g/T Au. 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. Royalties and streams: Variable NSR royalties, block-weighted average of 2.1%.
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 Au | 746 koz Au |
| Inferred | 36,246 kT | 0.54 g/T Au | 626 koz Au |
Our Analysis
The 56% after-tax IRR ranks in the upper tier of the 92 gold projects we track and easily clears the practical financing hurdle for a single-asset junior, which typically requires 20%+ to attract capital. The NPV of $741M, however, is reported at a 5% discount rate—the low end of industry convention, which inflates the headline figure. A more conservative rate would compress that NPV meaningfully, so the absolute value should be taken with that caveat.
The capital-light profile ($208M initial capex at 28% of NPV) reduces funding risk, but the NPV-to-market-cap gap of roughly 4.8x is a two-sided signal. It suggests the market has not priced in the project’s base-case economics, yet it equally implies skepticism about financing, permitting timelines, or execution in a Utah jurisdiction that, while mining-friendly, still carries development-stage uncertainty. The study’s $3,000/oz gold price sits well below the current $4,088.50 spot, so returns could prove conservative if costs hold. The single most important watch-item is permitting risk: a 10-year mine life leaves little room for delays before the NPV window closes.
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.