Quinchía Gold Project PEA: $534M NPV, 21.3% IRR
Tiger Gold Corp.'s Quinchía Gold Project in Colombia, Department of Risaralda has a Preliminary Economic Assessment (PEA) outlining a pre-tax NPV of $534M, a pre-tax IRR of 21.3%, and initial capital of $480M.
Tiger Gold Corp.'s Quinchía Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Colombia, Department of Risaralda. The study headlines a pre-tax net present value of $534M at a 5% discount rate. It reflects Tiger Gold Corp.'s (TIGR.V) latest disclosed economics for the asset.
Economics. The pre-tax NPV is $534M using a 5% discount rate. Pre-tax IRR is 21.3%. Initial capital expenditure is estimated at $480M, with life-of-mine sustaining capital of $219M. The study models a payback period of 3.8 years. All-in sustaining costs are pegged at 1340 USD/oz. Economics are based on Base Case US$2,650/oz Au; Spot Case US$3,700/oz Au; Silver price fixed at US$29.51/oz Ag in both cases.
Production and mine plan. Average annual production is approximately 138000 oz Au/yr.
These figures are extracted from Tiger 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 | 6.1 Mt | 2.62 g/t Au | 510,000 Oz Au |
| Inferred | 0.08 Mt | 2.81 g/t Au | 0.01 Moz Au |
| Inferred | 104 Mt | 0.47 g/t Au | 1.57 Moz Au |
Our Analysis
- IRR pre-tax
- 21.3%
higher than 10% of 105 projects we track
- NPV pre-tax
- $534M
higher than 55% of 141 projects we track
- Initial capex
- $480M
90% of NPV
costlier than 76% of 139 projects we track
- Payback
- 3.8yrs
slower than 91% of 85 projects we track
- Discount rate
- 5%
- Study price assumption
- Base Case US$2,650/oz Au; Spot Case US$3,700/oz Au; Silver price fixed at US$29.51/oz Ag in both cases
- Spot gold today
- $4,658.20/oz
The arithmetic here is brutal and simple: a US$72M micro-cap is proposing to spend US$480M. That build cost is roughly 6.7x the company's entire market value, and the NPV is about 7.4x the market cap. No bank lends into that gap without massive dilution or a strategic partner writing a very large cheque, and either path transfers most of the upside away from current holders. The project economics are the supporting act to this funding question, not the headline.
The returns are workable but not special. A 21.3% pre-tax IRR ranks in the bottom quartile of the 105 gold projects we track, and while the pre-tax NPV of US$534M sits above the median of its peer set, the study's 5% discount rate sits at the low end of reporting convention, which flatters that figure. Against the practical hurdle, a junior with little else in the portfolio typically needs 20%+ after-tax to attract project finance; this pre-tax number clears that bar only modestly, and the 3.8-year payback is moderate. The PEA stage adds another layer of caution: scoping-level capital estimates carry a wide band, and initial capex is unchanged from the prior filing, which is encouraging for consistency but still preliminary.
The spot price provides genuine upside if it holds. The study's base case assumes US$2,650/oz Au, its spot case US$3,700/oz, and today's gold sits at US$4,658.20/oz, well above both. That is real leverage, but it cuts both ways: a developer this small in a higher-risk jurisdiction like Colombia will be judged on execution and financing terms, not on a rising gold price. The single question that decides whether this works is whether anyone credible will fund a build worth nearly seven times the company's equity, and at what price for existing shareholders.
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.