Valley Deposit (Rogue Project) PEA: C$3.37B NPV, 25% IRR
Snowline Gold Corp.'s Valley Deposit (Rogue Project) in Yukon, Canada has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$3.37B, an after-tax IRR of 25%, and initial capital of C$1.69B. The mine plan runs 20 years at about 544 koz Au per year.
Snowline Gold Corp.'s Valley Deposit (Rogue Project) has reported Preliminary Economic Assessment (PEA) results for the gold project in Yukon, Canada. The study headlines an after-tax net present value of C$3.37B at a 5% discount rate. It reflects Snowline Gold Corp.'s (SGD.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$3.37B using a 5% discount rate. After-tax IRR is 25%. Initial capital expenditure is estimated at C$1.69B. The study models a payback period of 2.7 years. All-in sustaining costs are pegged at 569 USD/oz. Economics are based on Study price US$2,150/oz Au; engineering designs based on $1,950/oz gold price; high case US$4,500/oz Au.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 20 years. Average annual production is approximately 544 koz Au. Average head grade is 1.34 g/t Au (LOM); 2.01 g/t Au (first 5 full years processed). Metallurgical recovery averages 92.2%. The open-pit strip ratio is 1.09 : 1.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Snowline Gold 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 |
|---|---|---|---|
| Measured | 69.7 Mt | 1.41 g/t Au | 3.15 Moz Au |
| Indicated | 134.3 Mt | 1.11 g/t Au | 4.79 Moz Au |
| Measured & Indicated | 204.0 Mt | 1.21 g/t Au | 7.94 Moz Au |
| Inferred | 44.5 Mt | 0.62 g/t Au | 0.89 Moz Au |
Our Analysis
- IRR after-tax
- 25%
higher than 20% of 113 projects we track
- NPV after-tax
- C$3.37B
higher than 98% of 151 projects we track
- Initial capex
- C$1.69B
50% of NPV
costlier than 95% of 147 projects we track
- Payback
- 2.7yrs
slower than 72% of 93 projects we track
- Mine life
- 20yrs
- Discount rate
- 5%
- Study price assumption
- Study price US$2,150/oz Au; engineering designs based on $1,950/oz gold price; high case US$4,500/oz Au
- Spot gold today
- $4,431.80/oz
Against the 113 gold projects we track, this one sits in the bottom quartile on returns: a 25% after-tax IRR, higher than only 20% of that peer set. That is the number to hold onto, because it clears the roughly 15% after-tax threshold developers typically need to attract project finance without much room to spare. Where it stands out is scale of value: the after-tax NPV of C$3.37B ranks higher than 98% of the 151 gold projects we track. So the picture is a large, modest-returning asset rather than a small, high-returning one, and the payback of 2.7 years, lower than 28% of the 93 projects we track, is moderate rather than quick.
The binding constraint is the build. Initial capex of C$1.69B is about 0.5x the company's entire US$2.25B market cap, and 50% of NPV. A mid-cap carrying a build worth half its equity value cannot fund it quietly: this is where dilution, partnering or staged development becomes the real question, not the IRR. The NPV-to-market-cap gap of roughly 1.1x cuts both ways. It can mean the market has yet to price the asset, or that it is discounting exactly this funding risk, plus the study's preliminary nature. The 5% discount rate is a reporting convention, not an investment hurdle, and is worth noting only because it is the low end of the convention.
Two things temper confidence. This is a scoping-level PEA, may rest on inferred resources, and its capital estimate carries a plus or minus 50% band, so the capex figure that drives the funding risk could move materially. And the study's US$2,150/oz assumption sits well below today's live spot of $4,431.80/oz, which leaves genuine upside if prices hold, though the engineering is designed around $1,950/oz. Yukon is a mining-friendly jurisdiction, which helps. The deciding question: can this company fund a C$1.69B build without gutting the equity case?
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.