Volcan Gold Project PEA: $1.51B NPV, 29% IRR
Tiernan Gold Corp.'s Volcan Gold Project in Chile, Atacama Region, Maricunga Gold Belt has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $1.51B, an after-tax IRR of 29%, and initial capital of $1.02B.
Tiernan Gold Corp.'s Volcan Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Chile, Atacama Region, Maricunga Gold Belt. The study headlines an after-tax net present value of $1.51B at a 5% discount rate. It reflects Tiernan Gold Corp.'s (TNGD.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $1.51B using a 5% discount rate. After-tax IRR is 29%. Initial capital expenditure is estimated at $1.02B. All-in sustaining costs are pegged at 1094 USD/oz. Economics are based on $2,400/oz Au (base case).
Production and mine plan. The project envisions an open-pit operation. Average annual production is approximately 330 koz Au. Average head grade is 0.63 g/t Au. Metallurgical recovery averages 64.2%. The open-pit strip ratio is 1.5:1.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: 1.5% NSR on gold and copper production to Franco-Nevada; ROFR on future royalties or streams.
These figures are extracted from Tiernan 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 | 123,979 kt | 0.700 g/t Au | 2,792 koz |
| Indicated | 339,274 kt | 0.643 g/t Au | 7,013 koz |
| Measured & Indicated | 463,253 kt | 0.658 g/t Au | 9,804 koz |
| Inferred | 75,018 kt | 0.516 g/t Au | 1,246 koz |
Our Analysis
- IRR after-tax
- 29%
higher than 28% of 93 projects we track
- NPV after-tax
- $1.51B
- Initial capex
- $1.02B
67% of NPV
- Discount rate
- 5%
- Study price assumption
- $2,400/oz Au (base case)
- Spot gold today
- $4,137.10/oz
The 29% after-tax IRR lands in the lower half of our tracked gold projects, but it clears the practical financing hurdle for a single-asset junior by a wide margin. The real story is the NPV-to-market-cap gap: at roughly 6.1x, it signals either a deeply undervalued asset or the market pricing in material execution risk. The 5% discount rate is the low end of reporting convention, flattering the headline NPV; a more typical rate would shrink that number significantly.
Capital intensity is moderate at 67% of NPV, but the $1.02B initial capex is large relative to market cap — dilution or financing risk is the primary watch-item for a developer. The base-case gold price of $2,400/oz sits well below the current spot of $4,137.10, implying substantial upside to returns if that price holds. Chile’s Atacama region is a known mining jurisdiction, but the Maricunga belt carries permitting and water-access risks that often delay projects. The single most important risk is securing project finance without excessive dilution given the capex-to-market-cap ratio.
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.