Tonopah Gold Project PEA: $112M NPV, 17.6% IRR
Viva Gold Corp.'s Tonopah Gold Project in Tonopah, Nevada, USA has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $112M, an after-tax IRR of 17.6%, and initial capital of $220M. The proposed mine plan runs 7 years.
Viva Gold Corp.'s Tonopah Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Tonopah, Nevada, USA. The study headlines an after-tax net present value of $112M at a 5% discount rate. It reflects Viva Gold Corp.'s (VAU.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $112M using a 5% discount rate. After-tax IRR is 17.6%. Initial capital expenditure is estimated at $220M, with life-of-mine sustaining capital of $70M. All-in sustaining costs are pegged at 1264 USD/oz. Economics are based on $2,400/oz Au (base case).
Production and mine plan. The project envisions an open-pit operation. Life of mine is 7 years. The open-pit strip ratio is 3.9:1.
These figures are extracted from Viva Gold 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 |
|---|---|---|---|
| Measured | 1,691 x 1,000 | 1.41 g/t Au, 3.11 g/t Ag | 77,000 oz Au, 169,000 oz Ag |
| Indicated | 25,002 x 1,000 | 0.53 g/t Au, 1.98 g/t Ag | 427,000 oz Au, 1,593,000 oz Ag |
| Measured & Indicated | 26,693 x 1,000 | 0.59 g/t Au, 2.05 g/t Ag | 504,000 oz Au, 1,762,000 oz Ag |
| Inferred | 6,905 x 1,000 | 0.37 g/t Au, 1.81 g/t Ag | 83,000 oz Au, 402,000 oz Ag |
Our Analysis
This project delivers a 17.6% after-tax IRR, placing it in the bottom quartile of the 92 gold peers we track. While that return clears the practical 15% financing hurdle for developers, it is thin for a single-asset junior, where the market typically demands 20%+ to compensate for execution risk. The 5% discount rate used to calculate the $112M NPV is at the low end of reporting convention, which flatters the headline number; a more standard rate would compress that value significantly.
The NPV sits at roughly 6.6x the company’s market cap—a wide gap that could signal the market has not yet priced in the asset, or that it is discounting substantial financing and permitting risk. Initial capex of $220M is 197% of NPV, a capital-intensive profile that raises dilution risk given the small market cap. The 7-year mine life is short, limiting the margin for error. The Nevada jurisdiction is a clear positive for stability. The study’s $2,400/oz gold price is well below the current $4,186.60 spot, offering a large cushion if sustained, but the tight IRR leaves little room for cost overruns. The single most important watch-item is securing project financing without excessive dilution.
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.