Scottie Gold Mine (Blueberry Contact Zone) PEA: C$216M NPV, 60.3% IRR
Scottie Resources Corp.'s Scottie Gold Mine (Blueberry Contact Zone) in British Columbia, Canada (Golden Triangle, ~40 km from Stewart) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$216M, an after-tax IRR of 60.3%, and initial capital of C$129M. The mine plan runs 7 years at about 65400 oz Au per year.
Scottie Resources Corp.'s Scottie Gold Mine (Blueberry Contact Zone) has reported Preliminary Economic Assessment (PEA) results for the gold project in British Columbia, Canada (Golden Triangle, ~40 km from Stewart). The study headlines an after-tax net present value of C$216M at a 5% discount rate. It reflects Scottie Resources Corp.'s (SCOT.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$216M using a 5% discount rate. After-tax IRR is 60.3%. Initial capital expenditure is estimated at C$129M. The study models a payback period of 1.2 years. Economics are based on Base case USD$2,600/oz gold (DSO Base Case); scenarios at USD$3,400/oz and USD$4,200/oz gold.
Production and mine plan. The project envisions an open-pit & underground (contract mining) operation. Life of mine is 7 years. Average annual production is approximately 65400 oz Au. Average head grade is 6.86 g/t gold (average). Metallurgical recovery averages 94.7%.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: 2% GPR royalty ($8.1 M CAD) to Franco-Nevada; Ocean Partners equity investment and off-take agreement ($25 M USD financing).
These figures are extracted from Scottie Resources 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 |
|---|---|---|---|
| Open Pit (Pit Constrained) | 1,707 ktonnes | 3.17 g/t Au | 174 kOz Au |
| Underground | 1,897 ktonnes | 8.66 g/t Au | 528 kOz Au |
| Total | 3,604 ktonnes | 6.06 g/t Au | 703 kOz Au |
Our Analysis
- IRR after-tax
- 60.3%
higher than 81% of 118 projects we track
- NPV after-tax
- C$216M
higher than 31% of 191 projects we track
- Initial capex
- C$129M
60% of NPV
costlier than 33% of 175 projects we track
- Payback
- 1.2yrs
slower than 19% of 101 projects we track
- Mine life
- 7yrs
- Discount rate
- 5%
- Study price assumption
- Base case USD$2,600/oz gold (DSO Base Case); scenarios at USD$3,400/oz and USD$4,200/oz gold
- Spot gold today
- $4,216.30/oz
On the numbers we track, this is a top-quartile project that is not paid for like one. A 60.3% after-tax IRR ranks above 81% of the 118 gold projects in our database, and payback of 1.2 years is faster than 81% of the 101 projects we hold that figure for. Against the practical hurdle for a junior with little else to lean on (20%-plus), that return clears comfortably. The after-tax NPV of C$216M ranks above only 31% of 191 gold projects, so the value on paper is mid-pack even though the rate of return is not. The gap between those two ranks is the whole story: this is a high-return, small-scale asset.
The constraint is funding, and it is sharper than the headline capex suggests. Initial capital of C$129M is 60% of NPV, which is moderately intensive and lower than 67% of the 175 projects we track, so the build is not unusual for its size. What matters is the denominator: the company's market cap is roughly US$144M, and the build is about 0.7x that. A micro-cap cannot quietly fund a construction programme of that scale from its own balance sheet, so the realistic paths are equity dilution, debt against a PEA-stage study, a partner, or a combination. That funding question is the reason an NPV sitting at about 1.1x market cap is not automatically mispricing: it can mean the asset is unrecognised, or that the market is discounting exactly this financing and dilution risk.
Two further cautions. This is a scoping-level PEA, may rest on inferred material, and its capital estimate carries a plus or minus 50% band, so neither the IRR nor the capex should be read with feasibility-study confidence. And the base case assumes USD$2,600/oz gold against a live spot of $4,216.30/oz, with study scenarios at USD$3,400/oz and USD$4,200/oz. The economics are therefore conservative on price, which is genuine upside, but it also means the returns depend on a gold price far above the base case holding through a seven-year mine life. The jurisdiction, British Columbia's Golden Triangle, is a mining-friendly address and a positive, though remote.
The deciding question: can this micro-cap fund a C$129M build without diluting shareholders past the point where the 60.3% IRR reaches them?
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.