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 payable per annum per year.
Blackrock Silver Corp.'s Tonopah West Project 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 $280M. The study models a payback period of 3.5 years. All-in sustaining costs are pegged at 17.44 US$/oz AgEq. Economics are based on $31 Ag / $2,700 Au (base case); upside at $4,554/oz Au and $66.90/oz Ag.
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 payable per annum. Average head grade is AgEq 385.3 g/t; Ag 175.7 g/t; Au 2.26 g/t.
Resources and ownership. Royalties and streams: Royalties and Production Taxes LOM US$148M.
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 tonnes | 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 tonnes | 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
- IRR after-tax
- 28%
higher than 38% of 24 projects we track
- NPV after-tax
- $437M
higher than 37% of 27 projects we track
- Initial capex
- $190M
43% of NPV
costlier than 53% of 30 projects we track
- Payback
- 3.5yrs
slower than 86% of 14 projects we track
- Mine life
- 11.2yrs
- Discount rate
- 5%
- Study price assumption
- $31 Ag / $2,700 Au (base case); upside at $4,554/oz Au and $66.90/oz Ag
- Spot silver today
- $65.58/oz
A 28% after-tax IRR places this project in the lower half of the silver universe we track, ranking higher than just 38% of the 24 comparable projects. The NPV of $437M sits similarly, above only 37% of the 27 tracked. That clustering is the honest read: nothing here is an outlier, and investors should not expect a standout return profile. The 3.5-year payback is moderate, quicker than only 14% of the 14 projects we track. Against the practical financing hurdle of roughly 15% after-tax IRR for project finance, the 28% clears comfortably, and the company's portfolio (one of two projects we track) and US$312M market cap mean it is not a single-asset junior facing the higher equity hurdle.
The constraint that matters most is funding. Initial capex of $190M is capital-light at 43% of NPV, but that framing flatters the real risk: the build cost is about 0.6x the company's entire market cap. A company cannot quietly finance a build worth two-thirds of its equity value, so dilution or a strategic partner is effectively a prerequisite. The NPV at roughly 1.4x market cap cuts both ways: it suggests the market has not priced the asset fully, but it equally signals skepticism on how the build gets funded. The PEA stage compounds this, as scoping-level capital estimates typically carry a plus or minus 50% band, and the study's 5% discount rate is the low end of convention, flattering the headline NPV.
The Nevada jurisdiction is a genuine quality signal, mining-friendly and low-risk, which supports the project's development path. The price deck is the swing factor: the base case uses $31 Ag and $2,700 Au, while today's silver spot sits at $65.58/oz, well above the assumption. That gap implies meaningful upside if prices hold, but it also means the study's returns are not stress-tested against current market levels. The single question that decides whether this works is whether the company can fund a $190M build without destroying value through dilution, and whether the PEA's economics survive a feasibility-level estimate.
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.