Quinchía Gold Project PEA: $534M NPV, 21.3% IRR
Tiger Gold Corp.'s Quinchía Gold Project in Colombia, Department of Risaralda, Mid-Cauca porphyry belt 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, Mid-Cauca porphyry belt. 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 fixed at US$29.51/oz Ag.
Production and mine plan. Average annual production is approximately 140 koz Au.
Resources and ownership. Mineral resources: 510,000 oz Au Measured & Indicated at Miraflores; 1,570,000 oz Au (Inferred) at Miraflores and Tesorito; plus 495,000 oz Au historical estimate at Dos Quebradas.
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.
Our Analysis
A 21.3% pre-tax IRR lands in the bottom quartile of the 95 gold projects we track, and for a single-asset junior in Colombia, the practical financing hurdle is closer to 20% after-tax. This project barely clears that bar on a pre-tax basis, implying a thin margin for error. The 5% discount rate used for NPV reporting is at the low end of convention, which flatters the headline $534M figure; a more conservative rate would compress that number significantly.
The NPV is roughly 11.6x market cap, which cuts two ways: it could mean the market has not yet priced in the asset, or it could reflect skepticism about financing, permitting, or jurisdictional risk in Colombia’s Mid-Cauca belt. Initial capex of $480M is 90% of NPV and well above market cap, pointing to material dilution risk for a developer. The study’s base case gold price of $2,650/oz sits far below today’s spot of $4,038.60, so returns are likely optimistic unless costs escalate proportionally. The single biggest watch-item is funding: a $480M build on a small market cap in a higher-risk jurisdiction is a heavy lift.
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.