Tonopah West Project PEA: $437M NPV, 28% IRR
Blackrock Silver Corp.'s Tonopah West Project 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 Project has reported Preliminary Economic Assessment (PEA) results for the silver, gold 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 Ag $31/oz, Au $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 175.7 g/t Ag, 2.26 g/t Au (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 | 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 | 188.5 g/t Ag, 2.62 g/t Au, 465.8 g/t AgEq | 33,560,000 oz Ag, 467,000 oz Au, 82,944,000 oz AgEq |
Our Analysis
A 28% after-tax IRR lands in the lower half of our tracked peer set, but it clears the practical financing hurdle for a single-asset junior developer by a comfortable margin. The 5% discount rate used for NPV reporting is at the low end of convention, which inflates the headline $437M figure; a more conservative rate would compress that number meaningfully. The NPV-to-market-cap ratio of roughly 1.7x is a two-sided signal: it could reflect market skepticism about financing or permitting risk in Nevada, or it could indicate the asset is not yet fully priced. Capital intensity is low at 43% of NPV, which reduces funding risk, though the $190M initial capex still represents a sizable financing task relative to the current market cap, implying potential dilution.
The single most important risk is the study's price deck—silver at $31/oz and gold at $2,700/oz—which sits well above the long-term averages that underpin many comparable studies. If those prices prove optimistic, the returns will compress. Nevada is a mining-friendly jurisdiction, which lowers political risk but does not eliminate permitting timelines or community considerations. The 3.5-year payback and 11.2-year mine life are moderate, offering no standout protection against price volatility.
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.