Valentine Gold Mine (Phase 1 + Phase 2) PFS: $3.10B NPV, $436M Capex
Orla Mining Ltd.'s Valentine Gold Mine (Phase 1 + Phase 2) in Newfoundland, Canada has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $3.10B and initial capital of $436M. The mine plan runs 12 years at about 223 koz Au per year.
Orla Mining Ltd.'s Valentine Gold Mine (Phase 1 + Phase 2) has reported Pre-Feasibility Study (PFS) results for the gold project in Newfoundland, Canada. The study headlines an after-tax net present value of $3.10B at a 5% discount rate. It reflects Orla Mining Ltd.'s (OLA.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $3.10B using a 5% discount rate. Initial capital expenditure is estimated at $436M. All-in sustaining costs are pegged at 1665 USD/oz. Economics are based on Gold $4,500/oz (used for Phase 1 + Phase 2 combined economics).
Production and mine plan. The project envisions an open-pit operation. Life of mine is 12 years. Average annual production is approximately 223 koz Au. Average head grade is 1.69 g/t Au average mill feed grade.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Orla Mining Ltd.'s technical disclosures and reflect the most recent PFS 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 |
|---|---|---|---|
| Proven | 22,096 kt | 1.87 g/t Au | 1,330 koz Au |
| Probable | 29,394 kt | 1.50 g/t Au | 1,418 koz Au |
| Proven & Probable | 51,490 kt | 1.66 g/t Au | 2,748 koz Au |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 6,428 kt | 1.18 g/t Au | 243 koz Au |
| Indicated | 22,961 kt | 1.25 g/t Au | 926 koz Au |
| Measured & Indicated | 29,389 kt | 1.24 g/t Au | 1,169 koz Au |
| Inferred | 31,989 kt | 1.10 g/t Au | 1,128 koz Au |
Our Analysis
- NPV after-tax
- $3.10B
higher than 94% of 181 projects we track
- Initial capex
- $436M
14% of NPV
costlier than 70% of 168 projects we track
- Mine life
- 12yrs
- Study price assumption
- Gold $4,500/oz (used for Phase 1 + Phase 2 combined economics)
- Spot gold today
- $4,162.30/oz
On the numbers we track, this is a top-decile gold project: an after-tax NPV of $3.10B puts it ahead of 94% of the 181 gold projects in our database. That ranking is the honest headline, but it says more about scale than about edge. Nothing in the study is an outlier, and the returns sit inside the range we see from comparable development-stage assets. What the rank buys an investor is a project large enough to matter to a mid-cap balance sheet, not a mispricing.
The constraint that matters is not capital. Initial capex of $436M is 14% of NPV and about 0.1x the company's US$3.69B market cap, a build cost small enough to be funded without the kind of dilution that usually defines development risk. That is the sharpest signal here: a company this size can carry this construction programme. It also means the usual lever, financing overhang, is largely absent, and the equity story rests on execution rather than on the next raise.
Two things temper the read. The study is a PFS, which narrows estimates to roughly a plus or minus 25% band but is not a build decision, so the $3.10B NPV and the 12-year mine life will move before a construction call. And the economics assume $4,500/oz gold against a live spot of $4,162.30/oz, so the headline carries embedded price optimism rather than a discount to market. Newfoundland is a favourable jurisdiction, and this is one of 11 projects the company holds, which spreads risk but also means management attention is divided. The question that decides this one: does the feasibility work hold the NPV near $3.10B at a gold price closer to spot?
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.