Sandman PEA: $203M NPV, 105% IRR
Borealis Mining Company Ltd.'s Sandman in Nevada, USA (12 miles NW of Winnemucca) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $203M, an after-tax IRR of 105%, and initial capital of $36M. The mine plan runs 9 years at about 35 koz Au per year.
Borealis Mining Company Ltd.'s Sandman has reported Preliminary Economic Assessment (PEA) results for the gold project in Nevada, USA (12 miles NW of Winnemucca). The study headlines an after-tax net present value of $203M at a 6% discount rate. It reflects Borealis Mining Company Ltd.'s (BOGO.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $203M using a 6% discount rate. After-tax IRR is 105%. Initial capital expenditure is estimated at $36M. The study models a payback period of 1.1 years. All-in sustaining costs are pegged at 1823 USD/oz. Economics are based on Base case US$2,600/oz gold (sensitivity from US$1,950 to US$5,200/oz).
Production and mine plan. The project envisions an open-pit (heap leach) operation. Life of mine is 9 years. Average annual production is approximately 35 koz Au. Average head grade is 0.73 g/t Au.
These figures are extracted from Borealis Mining Company Ltd.'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 |
|---|---|---|---|
| Indicated | 18,550,000 t | 0.73 g/t Au | 433,000 oz Au |
| Inferred | 3,246,000 t | 0.58 g/t Au | 60,800 oz Au |
Our Analysis
- IRR after-tax
- 105%
higher than 92% of 118 projects we track
- NPV after-tax
- $203M
higher than 27% of 187 projects we track
- Initial capex
- $36M
18% of NPV
costlier than 11% of 172 projects we track
- Payback
- 1.1yrs
slower than 17% of 101 projects we track
- Mine life
- 9yrs
- Discount rate
- 6%
- Study price assumption
- Base case US$2,600/oz gold (sensitivity from US$1,950 to US$5,200/oz)
- Spot gold today
- $4,155.30/oz
A US$203M after-tax NPV against a US$103M market cap is the kind of gap that demands an explanation. One reading is straightforward: the market has not caught up to an asset with a nine-year life in Nevada, twelve miles northwest of Winnemucca, and a payback of 1.1 years. The other reading is that the market has looked at the study and discounted it, because a PEA is scoping-level work, may lean on inferred resources, and carries a capital estimate with a plus or minus 50% band. Both readings are live, and the gap alone does not settle which is right.
The returns themselves are not the problem. A 105% after-tax IRR ranks above 92% of the 118 gold projects we track, and the 1.1-year payback sits below 83% of the 101 we track on that measure. Against the practical hurdle, developers typically need roughly 15% after-tax to attract project finance, and 20% or more where the developer is a higher-risk junior with little else in the portfolio, which fits this company. The 6% discount rate is a reporting convention, not a hurdle, and carries no signal here.
What matters more is the funding arithmetic. Initial capex of US$36M is genuinely modest, 18% of NPV and lower than 89% of the 172 gold projects we track. But set against a US$103M micro-cap, the build is roughly 0.3x the company's entire equity value, and this is one of three projects we track for it. That is the sharpest risk in the file: a company of this size cannot quietly finance a build of that proportion without dilution or a partner. The study assumes US$2,600/oz gold against a live spot of US$4,155.30/oz, so the economics carry real headroom. The question that decides this project is whether the PEA converts into a feasibility study with a firmer capital number before the funding window closes.
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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