Minnova Announces Positive Economics for PL Gold Mine Restart
News related to:Minnova Corp · 2 min read
Minnova Corp., an advanced development-stage gold company, has announced positive results from a Preliminary Economic Assessment (PEA) for the restart of its 100%-owned PL Gold Mine in central Manitoba. The PEA, prepared by A&B Global Mining (Pty) Ltd., confirms the project's strong economic viability, particularly at a conservative base-case gold price of US$3,000 per ounce.
According to the PEA, the restart of the PL Gold Mine is expected to deliver a robust after-tax net present value (NPV5%) of US$180.6 million at a 5% discount rate. The project also boasts an impressive after-tax internal rate of return (IRR) of 111%, with a payback period of just 0.7 years from the start of production. These figures are based on the same gold price used for the 2026 Mineral Resource Estimate.
The PEA also highlights the project's strong leverage to gold prices. At a US$3,500 per ounce gold price, the after-tax NPV5% rises to US$310.8 million, with an IRR of 152%. At a long-term US$4,000 per ounce gold price, the after-tax NPV5% increases to US$438.9 million, with an IRR of 187%.
The pre-production capital required for the restart is estimated at US$53.4 million over 2026-2027, including a 15% contingency. This low capital requirement reflects the refurbishment of the existing PL mill and site infrastructure. The total long-term open-pit and underground mining capital is estimated at US$120.9 million, including sustaining capital and closure.
The project is planned to commence production in 2028, with initial mill feed sourced from high-grade open-pit mining. Underground mining is expected to commence in mid-2028 and operate concurrently with open-pit mining through 2030. From 2031, underground mining is planned to supply all mill feed through the end of the current long-term open-pit and underground mining production schedule in 2037.
The PEA outlines a combined open-pit and underground operation that re-uses the existing processing plant at the past-producing PL mine site. Initial production is sourced from the high-grade open pits, with processing increasing from 492,000 tonnes in 2028 to 720,000 tonnes per year (approximately 2,000 tonnes per day) from 2029. The project is expected to recover 621.5 thousand ounces (koz) of gold over a 10-year mine life, averaging 62.2 koz per year. The first two years will see 165.4 koz in recovered gold, with peak production of 91.6 koz in 2029.
The project's long-term open-pit and underground mining all-in sustaining cost (AISC) is estimated at US$2,288 per ounce, with a total cash cost of US$2,183 per ounce. The after-tax free cash flow is projected at US$247.6 million at US$3,000 per ounce, US$427.7 million at US$3,500 per ounce, and US$604.9 million at US$4,000 per ounce.
Minnova's tight capital structure offers substantial leverage to the project's after-tax NPV, with an NPV of US$180.6 million at US$3,000 per ounce and US$438.9 million at US$4,000 per ounce. The company plans to continue drilling to grow the resource beneath the pits and at the satellite Nokomis deposit. The restart of the PL Gold Mine aligns with Premier Wab Kinew's goals to triple mine production in the province of Manitoba, creating significant long-term economic opportunities for local communities and the broader region.