Kinsley NPV triples in Stormlands model

Stormlands Mining has modeled CopAur Minerals’ (CVE: CPAU) Kinsley gold project in Nevada. The study increases the site’s net present value (NPV) to US$122.7 million (C$169.7 million) after applying current metal prices to its July preliminary economic assessment (PEA).

Located southwest of West Wendover, Nevada, near the Utah border, Kinsley is the company’s flagship location. From 1995 to 1999, the project produced about 138,000 ounces of gold at an average grade of 1.34 grams of gold per tonne. The recent PEA showed a 52% increase in total ounces compared with CopAur’s 2021 technical estimates.

“There is a broader opportunity at Kinsley. The current economic plan contains only around 22% of the project's reported gold resource, with substantial sulfide mineralisation sitting outside the existing oxide restart plan,” said Róisín O’Connell, the CEO of Stormlands. 

Kinsley’s PEA, based on a gold price of $3,200 per ounce, projected an estimated post-tax NPV of $35 million at a 5% discount rate. Stormlands artificial intelligence (AI) platform more than triples the value. 

While the model demonstrates the project’s sensitivity to gold pricing, it does not replace the engineering, cost work and risk analysis required for a full PEA.

Revenue jump

Using an applied gold price of 4,245.22 per ounce, Stormlands lifted Kinsley’s valuation from $35 million to $122.7 million.  

The higher gold price raised projected life-of-mine revenue to $517.68 million from $390.07 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) went to $301.42 million from $177.64 million.

The internal rate of return (IRR) increased to 44.23% from 20.27%, and the estimated payback period fell to two years and one month from about two years and nine months.

Resource library

The case study is part of the Stormlands' library series, a set of resources for mining companies to predict and assess economic conditions. Recent studies examined the Odienné, MPD and Fremont projects.