Paramount Gold’s Sleeper Project Delivers $402M NPV, 45% IRR and $867M Upside
PZG•Paramount Gold Nevada’s Initial Assessment for its 100%-owned Sleeper Gold Project shows an after-tax NPV of $402 million and IRR of 45% at $3,600/oz gold, with a 1.4-year payback and 17-year mine life. At $4,700/oz gold and $80/oz silver, NPV jumps to $867 million with IRR rising to 66%.
1. Initial Assessment Highlights
Paramount Gold Nevada’s Initial Assessment for the Sleeper Gold Project evaluates processing of existing waste rock and in situ oxide resources through a 30,000 tonne per day heap-leach facility. At $3,600/oz gold and $48/oz silver, the after-tax NPV at an 8% discount rate is $402 million with a 45% IRR and a 1.4-year payback.
2. Production and Mine Life Projections
Over a 17-year mine life, the project is projected to produce an average of 65,000 ounces of gold and 205,000 ounces of silver per year, totaling approximately 1.1 million payable ounces of gold and 3.38 million ounces of silver. Early production leverages 47 million tonnes of mineralized waste dumps containing about 420,000 gold ounces, reducing upfront capital needs.
3. Project Economics and Upside
Capital requirements include $201 million initial investment, $343 million sustaining capital and $52 million closure costs, with base case cash costs of $2,048/oz and all-in sustaining costs of $2,407/oz. At $4,700/oz gold and $80/oz silver, after-tax NPV rises to $867 million with a 66% IRR and 1.2-year payback, highlighting significant economic upside and exploration optionality.
