Under the Glass: Bravada's PEA leans on 42% inferred tonnes. DLP's copper project earns two thirds of its revenue from molybdenum

For a reference point on prices: Lahontan Gold's October 14 release put spot at US$4,166 gold and US$59 silver as of October 13.

Bravada Gold (TSXV: BVA): Wind Mountain, Nevada

Bravada filed the technical report for its updated PEA on October 16. The August 31 results: after-tax NPV (5%) of US$415 million, 60% IRR and a two year payback at US$3,600 gold and US$48 silver, on US$98.1 million of initial capital and an AISC of US$1,653.

What the glass shows:

• Inferred share. The mine plan rests on 56.0 million tonnes indicated and 40.0 million tonnes inferred. By our arithmetic, inferred is about 42% of the tonnes, and about 25% of the 833,900 gold equivalent ounces.
• Recovery. Heap leach recoveries are 62% for gold and 15% for silver.
• Price. The pit was optimized at US$3,100 gold and US$36 silver. Bravada's own table gives US$520 million at US$4,000 gold and US$272 million at US$3,000, both at US$48 silver.

DLP Resources (TSXV: DLP): Aurora, Peru

DLP filed the Aurora PEA report on October 15. The September 1 results: after-tax NPV (8%) of US$2,703 million and 18.5% IRR at US$4.90 copper, US$25.40 molybdenum and US$45.30 silver, on initial capital of US$2,377 million. At DLP's own spot prices of August 26 (US$6.47 copper, US$33.57 molybdenum, US$68.50 silver) the NPV is US$4,812 million.

What the glass shows:

• It is a molybdenum mine on paper. Molybdenum is 65.6% of life of mine revenue. Copper is 30.6%.
• Inferred. The PEA includes inferred resources. The resource holds 1,118.80 million tonnes inferred and 614.84 million tonnes indicated, so inferred is about 65% of resource tonnes by our arithmetic. The mine plan uses about 30% of the resource.
• Authorisation. The October 15 filing release lists "the risk that the matters relating to the Project's authorisation cannot be resolved or cannot be resolved in a timely manner," and states an intention "to recommence drilling at Esperanza as soon as practicable." The release does not say what the authorisation matter is or why drilling stopped.

Outcrop Silver (TSX: OCG): a mine without a study

Outcrop says Colombia's National Mining Agency approved the work plan for a pilot plant and small underground mine of up to 40 tonnes a day at Santa Ana, targeting production in 2027. The environmental licence is still needed and is "expected in early 2027." The release gives no capital cost and no funding plan.

There is no PEA; one is planned after the resource technical report due by the end of October. The company's own statement: it "has not based its decision to construct and operate the Argentum pilot plant and small-scale mining operation on a feasibility study," and "there is increased uncertainty and there are multiple technical and economic risks of failure." By our arithmetic, a full year at 40 tonnes a day is about 14,600 tonnes, under 1% of the 1.79 million indicated tonnes.

Sources: Bravada filing and PEA results; DLP filing and PEA results; Outcrop Silver; spot reference from Lahontan Gold.