Tower Gold Project PEA: C$2.50B NPV, 24% 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$2.50B, an after-tax IRR of 24%, 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$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 C$2.50B using a 5% discount rate. After-tax IRR is 24%. 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 US$3,200/oz gold (headline economics); sensitivity +/- US$500/oz. Appendix preliminary economics table lists LT gold price of 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 273 koz Au. Average head grade is 0.99 g/t Au. Metallurgical recovery averages 92.7%. The open-pit strip ratio is 6.3:1 (including OVB).
Resources and ownership. The company holds a 100% interest in the project.
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 |
| Indicated (UG) | 5,194 Kt | 2.07 g/t Au | 345,800 oz Au |
| Inferred (OP) | 157,837 Kt | 0.81 g/t Au | 4,133,600 oz Au |
| Inferred (UG) | 42,456 Kt | 2.07 g/t Au | 2,827,100 oz Au |
Our Analysis
- IRR after-tax
- 24%
higher than 18% of 118 projects we track
- NPV after-tax
- C$2.50B
higher than 91% of 191 projects we track
- Initial capex
- C$1.87B
75% of NPV
costlier than 97% of 175 projects we track
- Payback
- 5.8yrs
slower than 98% of 101 projects we track
- Mine life
- 19yrs
- Discount rate
- 5%
- Study price assumption
- US$3,200/oz gold (headline economics); sensitivity +/- US$500/oz. Appendix preliminary economics table lists LT gold price of US$2,500/oz
- Spot gold today
- $4,216.30/oz
The number that decides this project is not the C$2.50B after-tax NPV. It is the C$1.87B initial capex set against a company worth roughly US$152M. The build cost is about 9x the entire market capitalisation, and even the NPV is only about 12x it. A micro-cap with three projects in the portfolio cannot write that cheque from the treasury, and it cannot quietly finance it either. The realistic paths are a partner or buyer carrying the bulk of the capital, a joint venture that hands over a large share of the asset, or equity issuance on a scale that leaves existing holders with a small slice of a much larger company. Each route transfers value away from the current register, and that transfer, not the headline return, is what an investor is underwriting.
The economics are decent but not the point. A 24% after-tax IRR ranks above only 18% of the 118 gold projects we track, and the 5.8-year payback sits below 2% of the 101 we track. That is a long wait before cash returns, and it comes with a PEA: scoping-level work, potentially including inferred material, with a capital estimate that typically carries a plus or minus 50% band. The 5% discount rate is a reporting convention rather than an investment hurdle, so the C$2.50B NPV, which ranks above 91% of the 191 projects we track, should be read as a headline rather than a valuation. What the asset does have is a 19-year mine life in the Timmins camp, a genuinely favourable jurisdiction, and a study price of US$3,200/oz against a live spot of $4,216.30/oz, with an appendix case at US$2,500/oz.
So the question is not whether the orebody works. It is whether anyone can fund C$1.87B into a US$152M company on terms that leave today's shareholders with a meaningful stake in the result.
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.
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