Velardeña Project PEA: $88M NPV, 860.7% IRR
Golden Minerals Company's Velardeña Project in Velardeña, Durango State, Mexico has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $88M, an after-tax IRR of 860.7%, and initial capital of $7M. The proposed mine plan runs 10.5 years.
Golden Minerals Company's Velardeña Project has reported Preliminary Economic Assessment (PEA) results for the silver-gold-lead-zinc (polymetallic) project in Velardeña, Durango State, Mexico. The study headlines an after-tax net present value of $88M at a 8% discount rate. It reflects Golden Minerals Company's (AUMN) latest disclosed economics for the asset.
Economics. The after-tax NPV is $88M using a 8% discount rate. After-tax IRR is 860.7%. Initial capital expenditure is estimated at $7M. Economics are based on Metal prices for NSR cutoff are: $22.71/oz-Ag, $1,826/oz-Au, $1.02/lb-Pb, and $1.31/lb-Zn.
Production and mine plan. The project envisions an underground operation. Life of mine is 10.5 years.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Golden Minerals Company'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 | 203,200 t | 402 g/t Ag, 6.02 g/t Au, 1.71% Pb, 2.08% Zn | 2,625,900 oz Ag, 39,300 oz Au, 7,680,000 lb Pb, 9,306,300 lb Zn |
| Indicated | 462,700 t | 402 g/t Ag, 5.32 g/t Au, 1.68% Pb, 2.08% Zn | 5,983,000 oz Ag, 79,200 oz Au, 17,090,700 lb Pb, 21,173,100 lb Zn |
| Measured & Indicated | 665,900 t | 402 g/t Ag, 5.54 g/t Au, 1.69% Pb, 2.08% Zn | 8,608,900 oz Ag, 118,500 oz Au, 24,770,700 lb Pb, 30,479,400 lb Zn |
| Inferred | 1,059,900 t | 413 g/t Ag, 5.10 g/t Au, 1.81% Pb, 2.26% Zn | 14,067,200 oz Ag, 173,700 oz Au, 42,294,600 lb Pb, 52,697,800 lb Zn |
| Measured | 95,200 t | 318 g/t Ag, 6.62 g/t Au (Oxide) | 973,000 oz Ag, 20,300 oz Au |
| Indicated | 194,000 t | 323 g/t Ag, 6.01 g/t Au (Oxide) | 2,016,800 oz Ag, 37,500 oz Au |
| Measured & Indicated | 289,200 t | 321 g/t Ag, 6.21 g/t Au (Oxide) | 2,989,800 oz Ag, 57,800 oz Au |
| Inferred | 269,400 t | 500 g/t Ag, 5.56 g/t Au (Oxide) | 4,326,400 oz Ag, 48,200 oz Au |
| Measured | 298,400 t | 375 g/t Ag, 6.21 g/t Au, 1.71% Pb, 2.08% Zn (All) | 3,598,900 oz Ag, 59,600 oz Au, 7,680,000 lb Pb, 9,306,300 lb Zn |
| Indicated | 656,700 t | 379 g/t Ag, 5.53 g/t Au, 1.68% Pb, 2.08% Zn (All) | 7,999,800 oz Ag, 116,700 oz Au, 17,090,700 lb Pb, 21,173,100 lb Zn |
| Measured & Indicated | 955,100 t | 378 g/t Ag, 5.74 g/t Au, 1.69% Pb, 2.08% Zn (All) | 11,598,700 oz Ag, 176,300 oz Au, 24,770,700 lb Pb, 30,479,400 lb Zn |
| Inferred | 1,329,300 t | 430 g/t Ag, 5.19 g/t Au, 1.81% Pb, 2.26% Zn (All) | 18,393,700 oz Ag, 221,900 oz Au, 42,294,600 lb Pb, 52,697,800 lb Zn |
Our Analysis
- IRR after-tax
- 860.7%
higher than 100% of 383 projects we track
- NPV after-tax
- $88M
higher than 10% of 553 projects we track
- Initial capex
- $7M
8% of NPV
costlier than 5% of 521 projects we track
- Mine life
- 10.5yrs
- Discount rate
- 8%
- Study price assumption
- Metal prices for NSR cutoff are: $22.71/oz-Ag, $1,826/oz-Au, $1.02/lb-Pb, and $1.31/lb-Zn
- Spot silver today
- $61.02/oz
A US$4M market cap against a US$7M initial build is the whole investment case at Velardeña. The company cannot fund this from its own balance sheet, and at 1.7x its entire equity value the cheque is larger than anything a nano-cap writes quietly. Whoever pays (a partner earning in, a royalty or stream against the silver-gold-lead-zinc feed, a joint-venture farm-in, or equity issued at a price that would be punishing) determines what existing holders keep. That this is one of eight projects in the portfolio cuts both ways: management has other shots, but also other calls on whatever capital it can raise.
The economics themselves are not the constraint. An after-tax NPV of US$88M and an 860.7% after-tax IRR rank above 100% of the 383 projects we track on IRR, though the NPV ranks above only 10% of 553 on that measure, which tells you the return is a function of a very small capital base rather than of scale. Capex at 8% of NPV is genuinely capital-light, lower than 95% of the 521 projects we track, and the headline build is down 66% from the 2022 PEA. Against the roughly 15% after-tax IRR developers need for project finance, and the 20%+ a junior with little else would need, the return clears the practical hurdle comfortably. The 8% study discount rate is a reporting convention, not a hurdle.
Two caveats keep this from being a clean story. It is a scoping-level PEA, with the plus or minus 50% capital band that implies, and the 10.5-year mine life is modest. The study's US$22.71/oz silver assumption sits well below today's US$61.02/oz spot, so the revenue case is not stretched; if anything the risk sits on the cost and dilution side, not the price side. Durango is a working mining jurisdiction, which helps permitting but does not solve the funding gap.
The question that decides this: on what terms does US$7M arrive, and how much of the US$88M NPV survives it?
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.
Get the next one first
Be the first to know about new mining results, and how they compare to other projects.