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 23% of 119 projects we track
- NPV after-tax
- C$3.37B
higher than 97% of 189 projects we track
- Initial capex
- C$1.69B
50% of NPV
costlier than 95% of 175 projects we track
- Payback
- 2.7yrs
slower than 74% of 102 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
- $4,152.60/oz
Among the 119 gold projects we track, this one's 25% after-tax IRR sits in the bottom quartile, ahead of only 23% of them. That is the number to hold onto. Developers typically need around 15% after-tax to get project finance across the line, so this clears the practical hurdle, but the peer rank says it is a middle-of-the-pack economics story rather than a standout one. The after-tax NPV of C$3.37B ranks above 97% of the 189 projects we track, which tells you the value is concentrated in scale and mine life rather than in exceptional per-dollar returns. A 2.7-year payback, quicker than only 26% of the 102 projects we track, fits that same picture: a long-life, 20-year asset that returns capital at a moderate pace.
The constraint that matters most is funding. Initial capex of C$1.69B is roughly 0.6x the company's entire US$2.08B market cap, and half the NPV. That is the sharpest signal here: a build of this size relative to equity cannot be financed quietly, and it is the reason the NPV-to-market-cap gap (about 1.2x) cuts both ways. It can mean the market has not priced the asset, or that it is discounting financing, dilution and execution risk. The company's six-project portfolio softens the single-asset problem but does not remove the capital call.
Two things temper how much weight the numbers deserve. This is a scoping-level PEA, so the capital estimate carries a plus or minus 50% band and may rest on inferred resources: the C$1.69B could move materially. And the base case uses US$2,150/oz against a live spot of $4,152.60/oz, so the study is priced well below today's market, leaving genuine upside if spot holds. The jurisdiction, Yukon, is a stable Canadian mining address, which supports permitting and financing credibility without erasing the scale of the build.
The question that decides this project: can a mid-cap carry a C$1.69B build to production without diluting away the NPV that makes it look cheap?
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.
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