A preliminary economic assessment (PEA) for White Gold's (TSXV: WGO; US-OTC: WHGOF) namesake project places it among the Yukon's top-tier undeveloped gold assets by economics and returns, with a projected $1.9 billion value nearly double the initial capital requirement. Shares surged on the news.

Discounted at 5%, the study yields a post-tax net present value (NPV) of $1.9 billion and an after-tax internal rate of return (IRR) of 38%, based on initial capital costs of $1 billion and a 1.7-year payback period, the company reported Monday. However, the PEA's gold price assumption of US$3,600 per ounce is considerably higher than those used by peer companies and exceeds the record spot levels above US$2,600 per ounce that gold reached in late 2024. As a PEA — the most preliminary stage of economic assessment in the mine development sequence — these projections carry a lower degree of certainty than the pre-feasibility and feasibility studies that typically follow. The project is located approximately 95 km south of Dawson City.

"Our maiden PEA is a significant milestone for White Gold," CEO David D'Onofrio said in a release.

"Even more exciting is the growth potential of the White Gold project based on previous and ongoing drilling not included in the PEA, future drilling and the substantial potential of our underexplored truly district scale land package within the White Gold district," D'Onofrio added, noting that investment in the area has been significant.

Top-Tier Economics

The study ranks White Gold among the Yukon's top three undeveloped gold projects by overall economics, trailing Snowline Gold's (TSXV: SGD; US-OTC: SNWGF) Valley project and Fuerte Metals' (TSXV: FMT; US-OTC: FUEMF) Coffee project.

White Gold shares jumped more than 10% to $2.15 each on Monday morning in Toronto, bringing the company's market capitalization to approximately $434.7 million. The stock has traded in a 12-month range of 42 cents to $2.38.

Production Profile: 188,000 Annual Ounces

The PEA estimates the open-pit project could produce 188,000 ounces of gold annually over a nine-year mine life at all-in sustaining costs of US$1,480 per ounce.

The mine plan incorporates the Golden Saddle, Arc, Ryan's Surprise, and VG deposits, which together represent roughly 60% of White Gold's total resource estimate outlined in a report published one year ago. That resource estimate comprises 35.1 million indicated tonnes grading 1.53 grams gold per tonne for 1.73 million ounces, plus 32.3 million inferred tonnes at 1.22 grams gold per tonne for 1.26 million ounces. This positions the project as one of the largest deposit packages in the Yukon. The remaining 40% of the resource base, along with exploration targets across the company's district-scale land holdings, is not included in the current mine plan and could factor into future economic studies.

Infrastructure Plans

Although White Gold is situated in a historically prolific gold mining region, the project currently lacks road access. The company proposes connecting the project to the planned 214-km Northern Access Route (NAR) running from Dawson City to neighbouring properties. Fuerte Metals awarded Cobalt Construction a contract to build the NAR in March, and the company will partner with the Tr'ondëk Hwëch'in First Nation on the initiative. The road, once completed, would provide shared infrastructure access for multiple projects across the district, potentially reducing capital requirements for companies connecting to it. White Gold is located approximately 33 km north of the Coffee project.