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 Laonil Lake, ~125 km northeast of La Ronge) has a Feasibility Study outlining an after-tax NPV of $95M. The proposed mine plan runs 4.2 years.
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 Laonil Lake, ~125 km northeast 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 US$1,854/oz Au and silver price US$23.74/oz Ag (analyst consensus prices as of November 2023).
Production and mine plan. The project envisions an underground operation. Life of mine is 4.2 years. Average head grade is 5.12 g/t Au (total ore feed to plant). 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) of 10% of net revenue 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 13% of 160 projects we track
- Mine life
- 4.2yrs
- Study price assumption
- LOM average realized gold price US$1,854/oz Au and silver price US$23.74/oz Ag (analyst consensus prices as of November 2023)
- Spot gold today
- $4,386.70/oz
Against the 160 gold projects we track, this one ranks higher than only 13% on after-tax NPV, a $95M figure that is well below the company's US$7.54B market cap on a rough currency-adjusted basis. That gap is the whole investment question in miniature, and it cuts both ways. Either the market has not connected this asset to the parent's value, or it has looked at a 4.2-year mine life in northern Saskatchewan and decided the cash flows do not move a mid-cap of this size. The second reading is at least as plausible as the first. For a company carrying 31 projects, a single $95M NPV is not a needle-mover; it is a rounding error against the portfolio, which means the equity case rests on everything else the company owns, not on this.
The feasibility study is the strongest form of estimate a project gets, typically a plus or minus 15% band, so these numbers deserve more weight than a scoping-level PEA would. But a build-ready study on a short-life mine still has to be financed, and the discipline of the exercise is that the company cannot quietly fund a construction program that is large relative to the NPV it generates. Saskatchewan is a mining-friendly jurisdiction, which helps on permitting and execution risk, but it does not change the arithmetic of a 4.2-year reserve life.
The study's LOM average realized gold price of US$1,854/oz sits well below today's live spot of $4,386.70/oz, so the returns as published may understate what the mine could earn at current prices. That is genuine upside, but it is also a reminder that the study was built on analyst consensus prices as of November 2023, and the market may not be willing to underwrite a spot-price case for a short-life asset.
The question that decides this project: can a 4.2-year mine, inside a 31-project portfolio, ever be big enough to matter to a US$7.54B company?
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.