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 23% of 119 projects we track
- NPV after-tax
- C$3.37B
higher than 97% of 189 projects we track
- Initial capex
- C$1.69B
50% of NPV
costlier than 95% of 175 projects we track
- Payback
- 2.7yrs
slower than 74% of 102 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
- $4,152.60/oz
Against the 119 gold projects we track, this one's 25% after-tax IRR ranks in the bottom quartile, ahead of only 23% of peers. That is the number to sit with. It clears the roughly 15% after-tax threshold developers typically need to attract project finance, so it is financeable in principle, but it sits in the lower tier of the peer set rather than standing out from it. Payback of 2.7 years is moderate, quicker than only 26% of the 102 projects with that data.
The constraint that matters most is the build. Initial capex of C$1.69B is about 0.6x the company's entire US$2.08B market cap, and at 50% of NPV the project is moderately capital-intensive, lower than just 5% of the 175 projects we track on that measure. A build worth a large fraction of equity value cannot be financed quietly: it points to debt, partners, dilution, or some combination. That the company carries this as one of 6 projects we track softens the single-asset risk but does not shrink the cheque. The after-tax NPV of C$3.37B, ranking above 97% of the 189 projects we track and roughly 1.2x market cap, is the counterweight, though a gap that size can equally signal the market discounting financing, permitting or jurisdiction.
Two caveats on the numbers themselves. This is a scoping-level PEA, which may lean on inferred resources and carries a capital estimate with a plus or minus 50% band, so the capex figure could move materially in either direction. And the study assumes US$2,150/oz gold against a live spot of US$4,152.60/oz, with engineering designs built on $1,950/oz: the economics are struck well below today's market, which is genuine upside if spot holds, but also means the headline case is not the one being engineered. Yukon is a mining-friendly jurisdiction, which helps on permitting. The question that decides this: can a mid-cap fund a build worth 0.6x its equity without gutting the returns that already rank in the bottom quartile?
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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