Summit Gold and Silver Mine PEA: $177M NPV Over a 6-Year Mine Life
Golconda Gold Ltd.'s Summit Gold and Silver Mine in Steeple Rock Mining District, Grant and Hidalgo Counties, New Mexico, USA has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $177M. The mine plan runs 6 years at about 11000 oz AuEq per year.
Golconda Gold Ltd.'s Summit Gold and Silver Mine has reported Preliminary Economic Assessment (PEA) results for the gold, silver project in Steeple Rock Mining District, Grant and Hidalgo Counties, New Mexico, USA. The study headlines an after-tax net present value of $177M at a 5% discount rate. It reflects Golconda Gold Ltd.'s (GG.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $177M using a 5% discount rate. Economics are based on Gold:Silver $4,300:$60/oz used in cashflow forecast; NPV matrix at $75/oz Ag and gold prices US$3,500-$6,000/oz.
Production and mine plan. The project envisions an underground operation. Life of mine is 6 years. Average annual production is approximately 11000 oz AuEq.
Resources and ownership. Royalties and streams: Revenue shown net; Banner Mill is the only permitted plant and tailings facility for gold and silver in New Mexico.
These figures are extracted from Golconda Gold 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 |
|---|---|---|---|
| Measured & Indicated | — | — | 1,404k oz Ag and 26k oz Au |
| Inferred | — | — | 5,118k oz Ag and 74k oz Au |
Our Analysis
- NPV after-tax
- $177M
higher than 24% of 545 projects we track
- Mine life
- 6yrs
- Study price assumption
- Gold:Silver $4,300:$60/oz used in cashflow forecast; NPV matrix at $75/oz Ag and gold prices US$3,500-$6,000/oz
A US$152M micro-cap proposing a build whose after-tax NPV of US$177M sits above its own market capitalisation: that ratio, roughly 1.2x, is the fact that frames everything else. The NPV itself ranks higher than only 24% of the 545 projects we track across all commodities, so on absolute scale this is a modest asset rather than a standout. Its interest for an investor lies less in the headline number than in the mismatch between the size of the company and the size of the cheque it would have to write.
That mismatch is the constraint. A micro-cap cannot quietly fund a development worth more than its equity value, and here the study is a PEA: scoping-level work, potentially resting on inferred resources, with a capital estimate that typically carries a plus or minus 50% band. The 6-year mine life compounds the problem, because a short production window leaves little room to absorb a capital overrun before the orebody is exhausted. This is one of 2 projects we track for the company, so the balance sheet is not carrying a diversified pipeline of cash-generating assets to fall back on.
The economics rest on the study's own assumption of US$4,300 gold and US$60 silver per ounce, with an NPV matrix spanning US$3,500 to US$6,000 gold and US$75 silver. That range is the honest way to read the numbers: the outcome swings materially across the deck, and the sensitivities are the study's, not ours. New Mexico is a familiar, permitting-heavy US jurisdiction, which is a genuine positive for institutional comfort but not a shortcut. The question that decides this project is whether a micro-cap can finance a build larger than itself without destroying the equity case for the shareholders funding 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.