Rogue Project (Valley deposit) PEA: CDN 3.37B NPV, 25% IRR
Snowline Gold Corp.'s Rogue Project (Valley deposit) in Yukon Territory, Canada has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of CDN 3.37B, an after-tax IRR of 25%, and initial capital of CDN 1.69B. The mine plan runs 20 years at about 544 koz Au/yr (first 5 full years); 341 koz/yr LOM per year.
Snowline Gold Corp.'s Rogue Project (Valley deposit) has reported Preliminary Economic Assessment (PEA) results for the gold project in Yukon Territory, Canada. The study headlines an after-tax net present value of CDN 3.37B at a 5% discount rate. It reflects Snowline Gold Corp.'s (SGD.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is CDN 3.37B using a 5% discount rate. After-tax IRR is 25%. Initial capital expenditure is estimated at CDN 1.69B. The study models a payback period of 2.7 years. All-in sustaining costs are pegged at 844 US$/oz. Economics are based on Base case US$2,150/oz Au (study price); high case US$4,500/oz Au; engineering design price US$1,950/oz Au.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 20 years. Average annual production is approximately 544 koz Au/yr (first 5 full years); 341 koz/yr LOM. Average head grade is 1.34 g/t Au LOM; 2.01 g/t Au first 5 full years. Metallurgical recovery averages 92.2%. The open-pit strip ratio is 1.09 : 1.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Snowline 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 |
|---|---|---|---|
| Measured | 69.7 Mt | 1.41 g/t Au | 3.15 Moz Au |
| Indicated | 134.3 Mt | 1.11 g/t Au | 4.79 Moz Au |
| Measured & Indicated | 204.0 Mt | 1.21 g/t Au | 7.94 Moz Au |
| Inferred | 44.5 Mt | 0.62 g/t Au | 0.89 Moz Au |
Our Analysis
- IRR after-tax
- 25%
higher than 20% of 102 projects we track
- NPV after-tax
- $3.37B
higher than 98% of 138 projects we track
- Initial capex
- $1.69B
50% of NPV
costlier than 97% of 129 projects we track
- Payback
- 2.7yrs
slower than 71% of 79 projects we track
- Mine life
- 20yrs
- Discount rate
- 5%
- Study price assumption
- Base case US$2,150/oz Au (study price); high case US$4,500/oz Au; engineering design price US$1,950/oz Au
- Spot gold today
- $4,319.10/oz
The build cost is the story. At US$1.69B, initial capex is roughly 0.8x this company's entire US$1.98B market cap, and the NPV is only about 1.7x that same cap. That is not a build a small-cap quietly funds from cash flow or a modest equity raise. It implies either substantial dilution for existing holders, a heavy debt package, or a strategic partner writing a very large cheque. The project's 25% after-tax IRR, which ranks in the bottom quartile of the 102 gold projects we track, is only marginally above the ~15% hurdle developers typically need to secure project finance. The economics work, but they do not work so well that financing risk disappears.
The asset itself is a 20-year gold mine in the Yukon, a mining-friendly jurisdiction that lends credibility to the numbers. But this is a PEA, scoping-level work, where the capital estimate carries a plus or minus 50% band. A US$1.69B figure at that confidence level is a placeholder, not a commitment. The study's base case uses US$2,150/oz gold, well below today's spot of $4,319.10/oz, so the returns are not dependent on a heroic price deck. The high case at US$4,500/oz shows what happens if prices hold near current levels. The 5% discount rate is at the low end of convention and flatters the headline NPV, but the 2.7-year payback is moderate and does not rely on that rate.
The two-sided read on the valuation gap is clear: the market may be skeptical of a build this size relative to the company's equity, or it may simply be waiting to see how it gets paid for. This is one of three projects the company tracks, so it is not a single-asset bet, but that does not change the arithmetic of funding a US$1.69B build from a US$1.98B base. The single question that decides this project is not the grade or the mine life, it is who writes the cheque and at what cost to current 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.