Sandman PEA: $203M NPV, 104.9% 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 104.9%, 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 104.9%. 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 US$2,600 per oz gold.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 9 years. Average annual production is approximately 35 koz Au. Average head grade is 0.73 g/t gold.
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 - Oxide | 12,991,000 t | 0.63 g/t | 265,100 oz |
| Indicated - Fresh | 5,559,000 t | 0.94 g/t | 167,900 oz |
| Indicated - Total | 18,550,000 t | 0.73 g/t | 433,000 oz |
| Inferred - Oxide | 2,377,000 t | 0.46 g/t | 35,500 oz |
| Inferred - Fresh | 869,000 t | 0.91 g/t | 25,300 oz |
| Inferred - Total | 3,246,000 t | 0.58 g/t | 60,800 oz |
Our Analysis
- IRR after-tax
- 104.9%
higher than 89% of 99 projects we track
- NPV after-tax
- $203M
higher than 28% of 134 projects we track
- Initial capex
- $36M
18% of NPV
costlier than 14% of 125 projects we track
- Payback
- 1.1yrs
slower than 16% of 76 projects we track
- Mine life
- 9yrs
- Discount rate
- 6%
- Study price assumption
- US$2,600 per oz gold
- Spot gold today
- $4,107.00/oz
The valuation gap here is the whole story: a $203M after-tax NPV against a $92M market cap, roughly 2.2x the company's entire equity value. That spread reads two ways. Either the market has simply not repriced this asset, or it is skeptical that a micro-cap can finance and permit a build that costs about 0.4x its own market cap. The 9-year mine life supports the bull case: this is not a short-duration, high-grade flash in the pan, but a durable production profile that gives the NPV real substance. The skeptic's case is just as valid: a PEA is scoping-level, capital estimates carry a wide band, and a company this size cannot quietly absorb a $36M build without significant dilution or financing risk.
The economics themselves are exceptional on paper. The 104.9% after-tax IRR ranks in the top quartile of the 99 gold projects we track, and the 1.1-year payback is faster than most peers. Against the practical hurdle of 20%+ for a junior developer with limited portfolio depth, this clears by a wide margin. Capital intensity is the one genuinely reassuring metric: $36M initial capex is only 18% of NPV and lower than most of the 125 gold projects we track. That is a small, digestible build in a mining-friendly jurisdiction, Nevada, near Winnemucca. The catch is that the study assumes $2,600/oz gold while spot sits at $4,107/oz, meaning the returns are calculated on a price well below today's market, which adds upside but also underscores how much of the NPV is commodity-price dependent.
The decisive question is not whether the project works at these numbers, it clearly does, but whether the company can bridge the gap between a $92M equity value and a $36M build without destroying shareholder value in the process. A capital-light PEA in Nevada with a top-quartile IRR is exactly the kind of asset that attracts a buyer or a partner before a junior ever has to fund it alone. The market's discount on the NPV may simply be pricing in that this outcome is more likely than the company executing the build itself.
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.