Coffee gold project economics: capex, returns and schedule for mine planners
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
Fuerte Metals’ Coffee gold project in Yukon now carries an after-tax NPV of $2.3 billion and 47.8% IRR at $3,620/oz, rising to $4 billion NPV and 67% IRR at $5,000/oz, on initial capex of C$983 million plus C$1.72 billion including sustaining capital. The 13‑year, open‑pit heap‑leach operation is planned to produce 249,000 oz/a for the first five full years (217,000 oz/a LOM) at AISC of $1,274/oz, drawing on 80 Mt at 1.15 g/t Au M&I and 21.2 Mt at 1.17 g/t inferred. Key infrastructure includes a C$71.3 million Northern Access Route from Dawson City, with 40,000 m of drilling and a feasibility study due Q4 2026 ahead of a 2027 construction decision.
Technical Brief
- Capital allocation includes C$71.3 million for the Northern Access Route linking site to Dawson City.
- Fuerte acquired the 700 sq. km Coffee property from Newmont in October for up to $150 million.
- Newmont retains ~19% equity plus a 3% NSR, with a C$100 million NSR buyback option.
- Agnico Eagle holds an 8% equity stake, adding another major-operator backer to the project.
- CEO Tim Warman’s prior build-operate-exit track record (Fiore Gold, Aurelian/Fruta del Norte) de-risks execution capability.
Our Take
Newmont’s decision to vend Coffee while retaining a 19% equity stake in Fuerte Metals and a 3% NSR mirrors its broader capital rotation seen in our recent coverage, where it has been prioritising higher-return brownfield spend such as the US$800 million Cerro Negro Expansion 1 project in Argentina.
With Coffee ranked among Canada’s 10 largest heap-leach projects and carrying a 13-year mine life in the PEA, its C$1.72 billion total capital requirement is large relative to Fuerte’s roughly C$1.1 billion market value, suggesting project finance will likely rely heavily on debt, royalties or streams rather than pure equity.
The very short 1.2–1.7 year payback sensitivity at US$3,620–5,000/oz gold stands out against other gold items in our database, implying Coffee could remain competitive even if prices retrace sharply from the recent spike that saw April gold futures in our coverage briefly above US$4,700/oz.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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