Summit Mine PEA: $182M NPV Over a 7-Year Mine Life
Golconda Gold Ltd.'s Summit Mine in Lordsburg, New Mexico, USA has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $182M. The proposed mine plan runs 7 years.
Golconda Gold Ltd.'s Summit Mine has reported Preliminary Economic Assessment (PEA) results for the silver/gold project in Lordsburg, New Mexico, USA. The study headlines an after-tax net present value of $182M 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 $182M using a 5% discount rate. Economics are based on Gold/Silver price $4,300:$60/oz (cashflow forecast title: AU:AG $4,300:$60/OZ).
Production and mine plan. The project envisions an underground operation. Life of mine is 7 years.
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
- $182M
higher than 24% of 360 projects we track
- Mine life
- 7yrs
- Study price assumption
- Gold/Silver price $4,300:$60/oz (cashflow forecast title: AU:AG $4,300:$60/OZ)
The PEA for this silver-gold project in Lordsburg, New Mexico sits at a specific point in our tracked universe: its after-tax NPV of $182M ranks higher than only 24% of the 360 projects we cover. That is a middle-to-lower tier position, not a standout. For an investor, the rank matters less than what it implies: this is a modest, single-mine opportunity where the upside case rests on execution, not on scale or grade outliers that would force a re-rating.
The study itself is scoping-level, and that should anchor expectations. A PEA with a capital estimate carrying a plus or minus 50% band, and potentially inferred resources, means the $182M NPV is a directional figure, not a commitment. The 7-year mine life reinforces the point: this is a short-duration cash flow, sensitive to any slippage in build or ramp-up. Confidence in these numbers is moderate at best, and the financing path is the constraint that matters most.
The build cost is roughly 1.6x the company's market cap of US$113M, a micro-cap with only two tracked projects. That gap cuts both ways: it could mean the market has not assigned full value to the asset, or it could mean the market is skeptical about how a company this size funds a development of this scale without significant dilution. The study's gold-silver price assumption of $4,300:$60/oz is the key sensitivity: any downward revision to that scenario would compress the NPV, while the US jurisdiction is a quality signal that does not solve the funding question. The single issue that decides whether this works is whether the company can finance the build without destroying the per-share value the NPV implies.
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.