White Gold Project PEA: C$1.86B NPV, 40.7% IRR
White Gold Corp.'s White Gold Project in Yukon, Canada has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$1.86B, an after-tax IRR of 40.7%, and initial capital of C$1.00B. The mine plan runs 9.4 years at about 188 koz Au per year.
White Gold Corp.'s White Gold 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$1.86B at a 5% discount rate. It reflects White Gold Corp.'s (WGO.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$1.86B using a 5% discount rate. After-tax IRR is 40.7%. Initial capital expenditure is estimated at C$1.00B, with life-of-mine sustaining capital of C$332M. The study models a payback period of 1.5 years. All-in sustaining costs are pegged at 1482 USD/oz. Economics are based on Base case US$3,600/oz gold (flat); spot case US$4,500/oz gold (flat); US$0.72 = C$1.00; long-term consensus pricing.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 9.4 years. Average annual production is approximately 188 koz Au. Average head grade is 1.54 g/t Au. Metallurgical recovery averages 87%. The open-pit strip ratio is 9 : 1.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from White 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 |
|---|---|---|---|
| Indicated | 35.2 Mt | 1.53 g/t Au | 1,732,300 oz |
| Inferred | 32.3 Mt | 1.22 g/t Au | 1,265,900 oz |
Our Analysis
- IRR after-tax
- 40.7%
higher than 56% of 106 projects we track
- NPV after-tax
- C$1.86B
higher than 89% of 142 projects we track
- Initial capex
- C$1.00B
54% of NPV
costlier than 92% of 139 projects we track
- Payback
- 1.5yrs
slower than 29% of 86 projects we track
- Mine life
- 9.4yrs
- Discount rate
- 5%
- Study price assumption
- Base case US$3,600/oz gold (flat); spot case US$4,500/oz gold (flat); US$0.72 = C$1.00; long-term consensus pricing
- Spot gold today
- $4,529.90/oz
The build cost is the story. At roughly 1.9x the company's entire market cap, this C$1.00B initial capex cannot be quietly financed. A US$378M small-cap with a diversified portfolio of five tracked projects would need to write a cheque that dwarfs its equity value, meaning the path to construction runs through significant dilution, a strategic partner, or project-level debt that lenders will only provide at a meaningful premium to the 40.7% after-tax IRR. That IRR ranks in the upper half of the 106 gold projects we track, and the 1.5-year payback is genuinely fast, but neither matters if the funding gap forces existing holders to absorb heavy dilution before a single ounce is poured.
The economics support the build, but with caveats. The after-tax NPV of C$1.86B ranks higher than 89% of the 142 gold projects we track, and the 9.4-year mine life suggests a durable, if not exceptionally long, asset. However, this is a PEA, scoping-level work where capital estimates typically carry a plus or minus 50% band. The study's base case assumes US$3,600/oz gold, well below the current spot of US$4,529.90/oz, which provides a cushion if prices hold, but the 5% discount rate sits at the low end of reporting convention and flatters the headline NPV. Yukon, Canada is a mining-friendly jurisdiction, which helps de-risk the permitting side, but it does not shrink the financing hurdle.
The two-sided read on the NPV-to-market-cap gap is straightforward: either the market has not priced in a project worth roughly 3.6x its equity value, or it is skeptical that a company this size can fund a build this large without crippling dilution. Both are plausible. The single question that decides whether this works is not the grade or the IRR, but who writes the cheque for C$1.00B, and at what cost to current shareholders.
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.