Tower Gold Project PEA: C$ 1.35B NPV, 13.4% IRR
STLLR Gold Inc.'s Tower Gold Project in Ontario, Canada (Timmins Mining Camp) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$ 1.35B, an after-tax IRR of 13.4%, and initial capital of C$ 1.87B. The mine plan runs 19 years at about 273 koz Au per year.
STLLR Gold Inc.'s Tower Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Ontario, Canada (Timmins Mining Camp). The study headlines an after-tax net present value of C$ 1.35B 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 C$ 1.35B using a 5% discount rate. After-tax IRR is 13.4%. Initial capital expenditure is estimated at C$ 1.87B, with life-of-mine sustaining capital of C$ 1.76B. The study models a payback period of 5.8 years. All-in sustaining costs are pegged at 1537 USD/oz. Economics are based on Base case LT gold price US$2,500/oz (2025 PEA); Tower 2025 PEA highlights at US$3,200/oz gold; cost metrics in US$.
Production and mine plan. The project envisions an open-pit & underground operation. Life of mine is 19 years. Average annual production is approximately 273 koz 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. 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 |
| Indicated - OP | 135,230 Kt | 0.84 g/t Au | 3,656,400 oz Au |
| Inferred - OP | 157,837 Kt | 0.81 g/t Au | 4,133,600 oz Au |
| Indicated - UG | 5,194 Kt | 2.07 g/t Au | 345,800 oz Au |
| Inferred - UG | 42,456 Kt | 2.07 g/t Au | 2,827,100 oz Au |
Our Analysis
- IRR after-tax
- 13.4%
higher than 2% of 104 projects we track
- NPV after-tax
- $1.35B
higher than 83% of 141 projects we track
- Initial capex
- $1.87B
138% of NPV
costlier than 98% of 134 projects we track
- Payback
- 5.8yrs
slower than 99% of 81 projects we track
- Mine life
- 19yrs
- Discount rate
- 5%
- Study price assumption
- Base case LT gold price US$2,500/oz (2025 PEA); Tower 2025 PEA highlights at US$3,200/oz gold; cost metrics in US$
- Spot gold today
- $4,432.00/oz
A 13.4% after-tax IRR does not clear the practical financing hurdle for a micro-cap developer, and that is the central fact of this project. With a US$189M market cap, the company would need to finance an initial capex of US$1.87B, roughly 9.9 times its entire equity value. The NPV of US$1.35B, about 7.2x the market cap, is a two-sided coin: either the market is ignoring a substantial asset, or it is correctly pricing the near-impossibility of funding a build of this scale without massive dilution or a partner taking a controlling stake. The long 5.8-year payback and bottom-quartile IRR ranking (higher than only 2% of tracked peers) reinforce that this is not a shovel-ready, bankable proposition.
The 19-year mine life is the asset's strongest feature, suggesting a durable, long-dated gold resource in the Timmins Mining Camp, a mining-friendly Ontario jurisdiction. That longevity is what makes the project worth watching, but it does not solve the near-term problem. The PEA is scoping-level, with the usual plus or minus 50% capital estimate band, so the US$1.87B figure could move materially in either direction. The study's base case uses a US$2,500/oz gold price, while the current spot of US$4,432/oz is far above it; even the study's own US$3,200/oz highlight case would improve the economics meaningfully. A higher realized gold price, a lower capex through engineering, or a strategic partner are the three levers that could change the outcome.
The single question that decides whether this gets built is not the grade or the jurisdiction: it is whether the company can find a partner willing to carry a US$1.87B build for a project whose returns, at base case, do not justify the risk. Without that, the NPV remains a theoretical figure on a page.
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.