Stormlands Mining has released a model for Galway Metals’ (TSXV: GVM) Clarence Stream gold-antimony project in New Brunswick. The study lifts the site’s net present value (NPV) to $676.1 million (C$940.84 million) after applying current gold and antimony prices to its May mineral resource estimate (MRE).
Located about 70 km southwest of Fredericton, Clarence Stream comprises more than 60,000 hectares with 65 km of strike length along the Sawyer Brook fault system, which straddles several intrusives believed to have the conditions necessary for gold deposition.
“Clarence Stream is interesting because the headline description is gold-antimony, but the valuation tells a much more specific story,” said Róisín O’Connell, the CEO of Stormlands. “Gold accounts for more than 95% of modelled revenue and almost all of the value uplift when we update commodity prices.” In addition, almost 99% of the $1.25 billion increase in life-of-mine revenue comes from gold.
With a formal preliminary economic assessment (PEA) currently in progress, Stormlands’ model instead uses the project’s 2026 MRE. While Stormlands’ data modeling demonstrates Clarence Stream sensitivity to gold pricing, it does not replace the engineering, cost work and risk analysis required for a full PEA.
Modeled revenue lift
Stormlands' base model produced an NPV of $442.5 million at a 5% discount rate before Stormlands applied a gold price of $4,245.22 per ounce and an antimony price of $31,000 per ounce, increasing the valuation by 52.8%.
The higher metal prices raised projected life-of-mine revenue to $5.48 billion from $4.23 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) went to $4.17 billion from $2.93 billion.
The internal rate of return (IRR) rose to 44.86% from 31.15%, and the estimated payback period fell by about one year compared to the base model.
Growing 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, Kinsley and Fremont projects.
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