Salares Norte Gold Mine PFS: $1.47B NPV Over a 11-Year Mine Life
Gold Fields Limited's Salares Norte Gold Mine in Atacama Region (Region III), northern Chile has a Pre-Feasibility Study (PFS) outlining a pre-tax NPV of $1.47B. The proposed mine plan runs 11 years.
Gold Fields Limited's Salares Norte Gold Mine has reported Pre-Feasibility Study (PFS) results for the gold project in Atacama Region (Region III), northern Chile. The study headlines a pre-tax net present value of $1.47B at a 8.7% discount rate. It reflects Gold Fields Limited's (GFI) latest disclosed economics for the asset.
Economics. The pre-tax NPV is $1.47B using a 8.7% discount rate. Economics are based on Mineral resources based on $1,720/oz gold and $20/oz silver; mineral reserves based on $1,500/oz gold and $17.50/oz silver.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 11 years. Average head grade is 5.4 g/t Au, 72.21 g/t Ag (total probable reserve). Metallurgical recovery averages 72.4%.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: Salares Norte concessions subject to 2% NSR royalty payable to Franco-Nevada; MGFSN retains right to purchase one half of NSR for $6M within two years of commercial production, and right of first refusal on balance. Rio Baker 1, 2 and 3 mining concessions subject to 2% NSR royalty to Franco-Nevada; MGFSN retains right to purchase one quarter for $4M plus first right of refusal on balance..
These figures are extracted from Gold Fields Limited'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 |
|---|---|---|---|
| Probable | 15,173 kt | 5.4 g/t Au, 67.14 g/t Ag | 2,622 koz Au, 32,752 koz Ag |
| Total | 15,173 kt | 5.4 g/t Au, 67.14 g/t Ag | 2,622 koz Au, 32,752 koz Ag |
| Probable | 4,647 kt | 5.3 g/t Au, 88.75 g/t Ag | 793 koz Au, 13,261 koz Ag |
| Total | 4,647 kt | 5.3 g/t Au, 88.75 g/t Ag | 793 koz Au, 13,261 koz Ag |
| Probable | 19,821 kt | 5.4 g/t Au, 72.21 g/t Ag | 3,415 koz Au, 46,013 koz Ag |
| Total | 19,821 kt | 5.4 g/t Au, 72.21 g/t Ag | 3,415 koz Au, 46,013 koz Ag |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Inferred | 210 kt | 1.5 g/t Au, 8.3 g/t Ag | 10 koz Au, 56 koz Ag |
| Measured & Indicated | 2,892 kt | 2.3 g/t Au, 30.5 g/t Ag | 216 koz Au, 2,832 koz Ag |
Our Analysis
- NPV pre-tax
- $1.47B
higher than 72% of 186 projects we track
- Mine life
- 11yrs
- Study price assumption
- Mineral resources based on $1,720/oz gold and $20/oz silver; mineral reserves based on $1,500/oz gold and $17.50/oz silver
- Spot gold today
- $4,197.80/oz
An 11-year mine life is the first thing to register here, because it frames everything else: this is a solid, mid-length asset, not a generational one, and the study that describes it is a pre-feasibility, which narrows the estimate to roughly a plus or minus 25% band without yet being a build decision. The pre-tax NPV of $1.47B ranks higher than 72% of the 186 gold projects we track, which places it in the upper quartile of that peer set. That is a genuine signal of quality, but it is a ranking, not a verdict: the projects above it are the ones an investor is really comparing against, and a PFS-level number carries more uncertainty than a feasibility-level one.
The constraint that matters most is scale, not returns. The company's market cap is US$31.73B, a large-cap, and the NPV sits well below that figure on a rough currency-adjusted basis. For a company this size, a single $1.47B NPV project is not a needle-mover, and this is one of 15 projects we track for it. That diversified portfolio cuts both ways: it reduces single-asset risk, but it also means this project competes internally for capital against the rest of the portfolio, and a large-cap does not need to build it to grow.
The study's price assumptions are the other live question. Resources are based on $1,720/oz gold and $20/oz silver, reserves on $1,500/oz gold and $17.50/oz silver, both well below today's live spot of $4,197.80/oz. That gap is real upside if prices hold, but it also means the headline economics were not underwritten at anything close to current levels. Atacama is a mining-friendly jurisdiction, which helps. The deciding question is whether this large-cap commits capital to an 11-year, PFS-stage asset when it has other options in the portfolio.
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.