Stormlands Mining, an Ireland-based data analytics company, has released a new case study on the Ulu gold project in Nunavut, owned by Blue Star Gold (TSXV: BAU).
Since Ulu is currently without a formal preliminary economic assessment (PEA), Stormlands’ artificial intelligence (AI) created a base economic model using data extracted from Blue Star’s NI 43-101 mineral resource estimate and technical report. The modelling program then generated results that increased the site’s net present value (NPV) from US$518.1 million at a 5% discount rate in the base model to US$949.7 million — an 83.3% increase — an amount greater than the 45.6% increase in gold price.
Using an updated gold price of US$3,350 per ounce, Stormlands increased life-of-mine revenue from US$1.63 billion to US$2.38 billion, with life-of-mine EBITDA increasing from US$1.22 billion to US$1.97 billion. The project's internal rate of return (IRR) rose from 58.6% to 96.3% while the modelled payback period went from 19 months to 12 months.
The Ulu gold project encompasses 12,000 hectares and hosts the advanced-stage Flood Zone gold deposit, where significant high‑grade resources have been outlined.
Industry impact
Róisín O’Connell, the chief executive officer at Stormlands, said these results show why the mining industry needs to move the valuation layer earlier in the asset lifecycle. “The industry often waits until a formal economic study before it starts to connect technical disclosure to value in a structured way. That creates a gap between geology and economics. AI and analytics now make it possible to close that gap,” said O’Connell.
The case study is part of the Stormlands library series, an effort to create a set of resources for mining companies to predict and assess economic conditions. Other studies have re-examined the Whistler, MPD and Barlorne projects.
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