Romero Project PFS: $203M NPV, 28.2% IRR
Goldquest Mining Corp.'s Romero Project in Tireo Property, Dominican Republic has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $203M, an after-tax IRR of 28.2%, and initial capital of $159M. The mine plan runs 8 years at about 2800 t/d milled (throughput) per year.
Goldquest Mining Corp.'s Romero Project has reported Pre-Feasibility Study (PFS) results for the gold project in Tireo Property, Dominican Republic. The study headlines an after-tax net present value of $203M at a 5% discount rate. It reflects Goldquest Mining Corp.'s (GQC.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $203M using a 5% discount rate. After-tax IRR is 28.2%. Initial capital expenditure is estimated at $159M, with life-of-mine sustaining capital of $92M. The study models a payback period of 2.5 years. All-in sustaining costs are pegged at 595 USD/oz Au. Economics are based on Gold US$2.50/lb Cu price basis referenced for break-even; Economic Assumptions table (Table 1.9) not provided in text. Cash cost net of by-products based on constant Cu price of US$2.50/lb and Ag price of US$20/oz..
Production and mine plan. The project envisions an underground operation. Life of mine is 8 years. Average annual production is approximately 2800 t/d milled (throughput). Average head grade is 0.88% Cu, 3.72 g/t Au, 4.33 g/t Ag. Metallurgical recovery averages 94.6%.
These figures are extracted from Goldquest Mining Corp.'s technical disclosures and reflect the most recent PFS 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 |
|---|---|---|---|
| Proven & Probable | 7.03 Mt | 0.88% Cu, 3.72 g/t Au, 4.33 g/t Ag | — |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 18,390 kt (Romero) | 2.57 g/t Au, 0.65% Cu, 0.31% Zn, 4.2 g/t Ag, 3.43 g/t AuEq | 1,520 koz Au, 2,028 koz AuEq |
| Indicated | 1,840 kt (Romero South) | 3.69 g/t Au, 0.25% Cu, 0.18% Zn, 1.6 g/t Ag, 4.01 g/t AuEq | 218 koz Au, 237 koz AuEq |
| Total Indicated | 20,230 kt | 2.67 g/t Au, 0.61% Cu, 0.30% Zn, 4.0 g/t Ag, 3.48 g/t AuEq | 1,738 koz Au, 2,265 koz AuEq |
| Inferred | 2,120 kt (Romero) | 1.80 g/t Au, 0.39% Cu, 0.36% Zn, 3.2 g/t Ag, 2.32 g/t AuEq | 123 koz Au, 158 koz AuEq |
| Inferred | 900 kt (Romero South) | 2.57 g/t Au, 0.20% Cu, 0.21% Zn, 2.1 g/t Ag, 2.84 g/t AuEq | 74 koz Au, 82 koz AuEq |
| Total Inferred | 3,020 kt | 2.03 g/t Au, 0.33% Cu, 0.32% Zn, 2.9 g/t Ag, 2.47 g/t AuEq | 197 koz Au, 240 koz AuEq |
Our Analysis
- IRR after-tax
- 28.2%
higher than 31% of 118 projects we track
- NPV after-tax
- $203M
higher than 26% of 187 projects we track
- Initial capex
- $159M
78% of NPV
costlier than 38% of 172 projects we track
- Payback
- 2.5yrs
slower than 65% of 101 projects we track
- Mine life
- 8yrs
- Discount rate
- 5%
- Study price assumption
- Gold US$2.50/lb Cu price basis referenced for break-even; Economic Assumptions table (Table 1.9) not provided in text. Cash cost net of by-products based on constant Cu price of US$2.50/lb and Ag price of US$20/oz.
- Spot gold today
- $4,155.30/oz
The Tireo Property sits in the middle of the pack we track: a 28.2% after-tax IRR ranks above only 31% of the 118 gold projects in our database, and its $203M after-tax NPV beats just 26% of 187 peers. That is not a disqualifying profile, but it is a firmly average one, and the practical read matters more than the percentile. Developers generally need roughly 15% after-tax to clear project finance, and 20%-plus where the developer is a higher-risk junior with little else in the portfolio, which fits this company. At 28.2%, Tireo clears that higher bar with room, and a 2.5-year payback (lower than 35% of 101 peers) reinforces it. The returns work; they simply do not stand out.
The constraint is funding. Initial capex of $159M is 78% of NPV and roughly 0.7x the company's entire US$225M market cap, against an NPV that is itself only about 0.9x that cap. A micro-cap cannot quietly finance a build of that size relative to its equity, and with this being one of just 2 projects we track for the company, there is no portfolio cushion to absorb an overrun. That capex-to-market-cap ratio is the sharpest risk signal here, sharper than the moderately capital-intensive 78%-of-NPV figure suggests on its own.
Two further caveats. This is a PFS, which narrows estimates to roughly a plus or minus 25% band but is not yet a build decision, so the numbers carry real revision risk. And the study's economic assumptions reference a US$2.50/lb copper price and US$20/oz silver for by-product credits, with the gold price basis not disclosed in the text provided, so we cannot test the revenue deck against today's $4,155.30/oz spot. The jurisdiction, the Dominican Republic, is a workable but not frictionless mining destination, and permitting timelines there should be read as a genuine variable rather than a formality. The question that decides this project: can a US$225M company fund a US$159M build without diluting away the 28.2% return it is trying to sell?
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.