Seabee Gold Operation (SGO) – Santoy Mine & Porky West Feasibility Study: $95M NPV Over a 4.2-Year Mine Life
SSR Mining Inc.'s Seabee Gold Operation (SGO) – Santoy Mine & Porky West in Saskatchewan, Canada (northern Saskatchewan, near Laonil Lake, ~125 km NE of La Ronge) has a Feasibility Study outlining an after-tax NPV of $95M. The mine plan runs 4.2 years at about 326.696 koz Au recovered (LOM total) per year.
SSR Mining Inc.'s Seabee Gold Operation (SGO) – Santoy Mine & Porky West has reported Feasibility Study results for the gold project in Saskatchewan, Canada (northern Saskatchewan, near Laonil Lake, ~125 km NE of La Ronge). The study headlines an after-tax net present value of $95M at a 5% discount rate. It reflects SSR Mining Inc.'s (SSRM) latest disclosed economics for the asset.
Economics. The after-tax NPV is $95M using a 5% discount rate. Economics are based on LOM average realized gold price of US$1,854/oz Au and silver price of US$23.74/oz Ag (analyst consensus prices as of November 2023).
Production and mine plan. The project envisions an underground (longitudinal and transverse open stoping) operation. Life of mine is 4.2 years. Average annual production is approximately 326.696 koz Au recovered (LOM total). Average head grade is 5.12 g/t Au (total ore feed to plant); LOM underground tonnes 5.12 g/t Au. Metallurgical recovery averages 96.4%.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: Private 3% net smelter return (NSR) royalty on LOM revenues with Osisko Gold Royalties; Saskatchewan mining royalty (mineral tax) 10% of net revenue after deductions for precious metals.
These figures are extracted from SSR Mining Inc.'s technical disclosures and reflect the most recent Feasibility Study 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 | 2.1 Mt | 5.17 g/t Au | 343,000 oz Au |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 0.9 Mt | 5.5 g/t Au | 16,300 oz Au |
| Indicated | 1.47 Mt | 4.3 g/t Au | 202,000 oz Au |
| Inferred | 2.75 Mt | 5.2 g/t Au | 462,500 oz Au |
Our Analysis
- NPV after-tax
- $95M
higher than 14% of 173 projects we track
- Mine life
- 4.2yrs
- Study price assumption
- LOM average realized gold price of US$1,854/oz Au and silver price of US$23.74/oz Ag (analyst consensus prices as of November 2023)
- Spot gold today
- $4,321.20/oz
Among the 173 gold projects we track, this one's after-tax NPV of $95M ranks above just 14% of them. That is the whole investment case in a sentence: a feasibility-stage, producing asset in northern Saskatchewan that sits in the bottom sixth of our peer set on value. The rank is not a verdict on the geology or the jurisdiction, both of which are sound, but it does tell you where the burden of proof lies. At this size, the project needs to be either unusually cheap to build or unusually high-margin to justify attention against the larger assets it competes with for capital.
The constraint that matters most is scale, and it cuts in an unexpected direction. This is one of 47 projects we track for a company with a market cap of roughly US$7.40B, so the asset is small relative to the parent: the NPV sits well below the company's market cap on a rough currency-adjusted basis. That is the opposite of the usual funding-risk problem. There is no question of a builder being unable to finance a build worth several times its equity; the question is whether a project this size moves the needle for a diversified mid-cap at all, or whether it is simply one line among many.
Two things sharpen the read. The study is a feasibility, the build-ready estimate carrying a plus or minus 15% band, so the numbers deserve more weight than a scoping-level PEA would. And the LOM average realized gold price of US$1,854/oz, an analyst consensus figure from November 2023, sits far below today's live spot of $4,321.20/oz, which means the headline economics were struck on a price the market has since left behind. Against a 4.2-year mine life, the deciding question is whether a short-life, modest-NPV asset can earn capital inside a portfolio that already has 46 other claims on it.
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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