Tower Gold Project PEA: $2.50B NPV, 24% IRR
STLLR Gold Inc.'s Tower Gold Project in Canada, Timmins, Ontario has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $2.50B and an after-tax IRR of 24%. The mine plan runs 19 years at about 273000 oz Au per year.
STLLR Gold Inc.'s Tower Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Canada, Timmins, Ontario. The study headlines an after-tax net present value of $2.50B at a 5% discount rate. It reflects STLLR Gold Inc.'s (STLR.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $2.50B using a 5% discount rate. After-tax IRR is 24%. All-in sustaining costs are pegged at 1537 USD/oz. Economics are based on US$3,200/oz gold (base case); also sensitivities shown at US$2,500/oz.
Production and mine plan. The project envisions an open-pit & underground operation. Life of mine is 19 years. Average annual production is approximately 273000 oz Au. Average head grade is 0.99 g/t Au. Metallurgical recovery averages 92.7%. The open-pit strip ratio is 6.3.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: 1.5% royalties (Garrison).
These figures are extracted from STLLR Gold Inc.'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 | 140,424 Kt | 0.89 g/t Au | 4,002,200 oz Au |
| Inferred | 200,293 Kt | 1.08 g/t Au | 6,960,700 oz Au |
Our Analysis
The 24% after-tax IRR lands in the bottom quartile of the 92 gold projects we track, though it comfortably clears the ~15% financing hurdle for developers and the 20%+ threshold for single-asset juniors. The headline NPV of $2.50B is flattered by the 5% discount rate—the low end of reporting convention—meaning the project’s long-dated cash flows are given heavy weight. At roughly 16.5x market cap, the NPV-to-cap gap is wide: it could signal the market has not priced in the asset’s full value, but equally, it may reflect skepticism on financing risk, dilution, or execution in a jurisdiction that, while mining-friendly (Timmins, Ontario), still carries permitting and community timelines.
Capital intensity relative to NPV is not extreme, but the absolute capex size versus a modest market cap flags dilution risk for a developer. The study’s base case at $3,200/oz gold sits well below today’s spot of $4,123.70/oz, suggesting material upside to returns if prices hold—though the sensitivity at $2,500/oz shows the project’s vulnerability to a correction. The single most important watch-item is the financing path: bridging the gap between a small market cap and the capital required to build a 19-year mine in a competitive Canadian gold district.
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.