Getchell Gold Outlines $474 Million After-Tax NPV For Fondaway Canyon
Getchell Gold Corp (CSE: GTCH) has released a preliminary economic assessment for its Fondaway Canyon gold project in Nevada. The PEA outlines an after-tax net present value of $474 million and an internal rate of return of 46.7% using a 10% discount rate.
The assessment is based on a proposed open pit mine that operates for a 10.5 year time span. The associated milling complex is expected to process 8,000 tonnes per day, producing a high grade concentrate that will be sent to a third party refinery for pressure oxidation or roasting to turn the concentrate into dore bars.
Average annual gold production is pegged at 117,300 ounces at a grade of 1.50 g/t, with life of mine recoveries estimated at 1.23 million ounces. Cash costs are estimated at $1,189 per ounce of gold produced.
The payback period is estimated at 3.1 years.

Initial capital costs for the project are estimated at $226.5 million, which includes a 20% contingency, while operating costs over the life of mine are pegged at $1,078 million.
Those economics estimates are based on $2,250 gold. At a gold price of $2,500 per ounce, the after-tax net present value is said to jump to $618 million, while the IRR climbs to 57.0%, which is again based on a 10% discount rate.
The study is said to have been limited to just the open pit mineral resource in the Central Area of the project, which covers a single square kilometre. The project covers just a portion of the 7 kilometre long east-west gold corridor, and does not include the underground mineral resources at the Main Pit, nor the open pit mineral resources outside the Central Area, which accounts for 15% of the current mineral resources at Fondaway Canyon.
“This PEA readily demonstrates the potential for a robust economic open pit mining operation at Fondaway Canyon. In addition, there remain multiple avenues to pursue in 2025 to further improve the economics beyond the current enviable level. There is significant potential to increase the mineral resource within the current minable shape, along strike, and dip, and to optimize the mining and processing of the gold,” commented Mike Sieb, President of Getchell Gold.
Getchell Gold last traded at $0.185 on the CSE.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.