Mineral Point Open Pit PEA: $614M NPV, 12% IRR
i-80 Gold Corp.'s Mineral Point Open Pit in Eureka County, Nevada, USA (Ruby Hill) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $614M and an after-tax IRR of 12%. The mine plan runs 17 years at about 280 koz AuEq per year.
i-80 Gold Corp.'s Mineral Point Open Pit has reported Preliminary Economic Assessment (PEA) results for the gold project in Eureka County, Nevada, USA (Ruby Hill). The study headlines an after-tax net present value of $614M at a 5% discount rate. It reflects i-80 Gold Corp.'s (IAU.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $614M using a 5% discount rate. After-tax IRR is 12%. All-in sustaining costs are pegged at 1400 USD/oz. Economics are based on $2,175/oz gold and $27.25/oz silver (base case); also shown at $2,900/oz gold & $32.75/oz silver and $3,000/oz Au & $35.00/oz Ag.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 17 years. Average annual production is approximately 280 koz AuEq.
These figures are extracted from i-80 Gold Corp.'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 | — | 0.48 g/t Au, 15.0 g/t Ag | 3.4Moz, 104.3Moz |
| Inferred | — | 0.34 g/t Au, 14.6 g/t Ag | 2.1Moz, 91.5Moz |
Our Analysis
- IRR after-tax
- 12%
higher than 1% of 105 projects we track
- NPV after-tax
- $614M
higher than 59% of 141 projects we track
- Mine life
- 17yrs
- Discount rate
- 5%
- Study price assumption
- $2,175/oz gold and $27.25/oz silver (base case); also shown at $2,900/oz gold & $32.75/oz silver and $3,000/oz Au & $35.00/oz Ag
- Spot gold today
- $4,658.20/oz
A 12% after-tax IRR does not clear the practical financing hurdle. Developers typically need roughly 15% to attract project finance, and this project sits below that line, ranking in the bottom quartile of the 105 gold projects we track. The after-tax NPV of $614M is real, but it is produced at a 5% discount rate, the low end of reporting convention, which flatters the headline figure. The question is not whether this is a good mine; it is whether it gets financed and built at all.
Scale does not rescue it. The NPV is about 0.4x a US$1.69B market cap, so the project is small relative to the company, which is diversified across 9 tracked projects. That cuts both ways: this is not a bet-the-company build, but it is also not a needle-mover. The PEA is scoping-level, with a capital estimate carrying a plus or minus 50% band, so the 12% IRR could shift meaningfully in either direction. At a 17-year mine life in Eureka County, Nevada, the jurisdiction is a genuine positive, but it does not offset a sub-hurdle return.
What changes the math? Price. The study's base case assumes $2,175/oz gold, while today's spot is $4,658.20/oz. At the study's own upside cases of $2,900/oz and $3,000/oz, returns would be materially higher, but those are assumptions, not guarantees. Lower capex or a partner sharing the build could also close the gap. The single question that decides this project: can the company either secure financing at a 12% IRR, or demonstrate that higher realized prices, not modeled prices, push the return past the hurdle?
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.