Tonopah West PEA: $437M NPV, 28% IRR
Blackrock Silver Corp.'s Tonopah West in Nye and Esmeralda Counties, Nevada, USA has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $437M, an after-tax IRR of 28%, and initial capital of $190M. The mine plan runs 11.2 years at about 7.118e+06 oz AgEq per year.
Blackrock Silver Corp.'s Tonopah West has reported Preliminary Economic Assessment (PEA) results for the silver project in Nye and Esmeralda Counties, Nevada, USA. The study headlines an after-tax net present value of $437M at a 5% discount rate. It reflects Blackrock Silver Corp.'s (BRC.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $437M using a 5% discount rate. After-tax IRR is 28%. Initial capital expenditure is estimated at $190M, with life-of-mine sustaining capital of $280M. The study models a payback period of 3.5 years. All-in sustaining costs are pegged at 17.44 USD/oz AgEq. Economics are based on Silver $31/oz, Gold $2,700/oz.
Production and mine plan. The project envisions an underground operation. Life of mine is 11.2 years. Average annual production is approximately 7.118e+06 oz AgEq. Average head grade is 2.26 g/t Au, 175.7 g/t Ag (385.3 g/t AgEq).
These figures are extracted from Blackrock Silver 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 |
|---|---|---|---|
| Indicated | 2,750,000 t | 216.8 g/t Ag, 2.25 g/t Au, 454.3 g/t AgEq | 19,167,000 oz Ag, 199,000 oz Au, 40,159,000 oz AgEq |
| Inferred | 5,538,000 t | 188.5 g/t Ag, 2.62 g/t Au, 465.8 g/t AgEq | 33,560,000 oz Ag, 467,000 oz Au, 82,943,000 oz AgEq |
Our Analysis
The 28% after-tax IRR lands in the lower half of our silver-project peer group, but it clears the practical financing hurdle for a single-asset junior by a comfortable margin. The 5% discount rate is a tell: it flatters the headline NPV, as this is the low end of reporting convention. The after-tax NPV of $437M sits at roughly 1.7x the company's market cap—a gap that cuts both ways. It could mean the market has not priced in the project's value, or it could reflect skepticism on financing, permitting, or execution risk in a jurisdiction that is mining-friendly but not without regulatory friction.
Capital intensity is low at 43% of NPV, which reduces funding risk, but the $190M initial capex is still large relative to market cap, implying potential dilution. The study's silver price assumption of $31/oz sits well below the current spot of $58.70/oz, suggesting material upside to returns if that price holds. The single most important watch-item is the permitting timeline in Nevada—any delay would stretch the 3.5-year payback and pressure the financing plan.
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.