Mike Fagan,
Editor
April 11, 2025
Revival Gold Inc. (TSX-V: RVG)(OTC: RVLGF) — currently trading around C$0.50 per share in a record high gold market — has released a Preliminary Economic Assessment (PEA) for its 100%-owned Mercur Gold Project, Utah, outlining a robust heap leach operation with promising returns in today’s record gold price environment.
The study indicates that Mercur could be economically viable with relatively low capital intensity and a path to near-term development thanks, in part, to its brownfields status as a past-producing, high-grade, USA mine site.
Revival Gold CEO Hugh Agro — whom you’re about to hear from directly in our exclusive interview coming right up — commented on the positive PEA at Mercur via press release:
“Completion of this PEA highlights the potential economic value of Mercur and more than doubles Revival Gold’s underlying net asset value from gold. Mercur presents a unique opportunity for relatively near-term US gold production from a low-risk, low capital project at a logistically superior domestic mine site. The Project features robust economics including a $294 million after-tax NPV and a compelling 27% after-tax IRR at $2,175 gold increasing to $752 million and 57% at $3,000 gold. Over the course of the next two years, Revival Gold intends to focus on low-risk resource conversion and expansion, additional engineering studies and the completion of Project permitting.”
Economic Highlights
At a base case gold price of US$2,175 per ounce — the 36-month trailing average used in the PEA — Mercur shows an after-tax Net Present Value (NPV) of US$294 million and an internal rate of return (IRR) of 27%.
The project would produce an average of 95,600 ounces of gold per year over a 10-year mine life for a total of approximately 956,000 ounces recovered. The mine plan calls for processing 65.6 million tonnes of mineralized material grading 0.60 g/t gold with a 75% average recovery rate.
Under that scenario, the operation would require US$208 million in pre-production and working capital and an additional US$110 million in sustaining capital over the life of the mine.
The all-in sustaining cost (AISC) is estimated at US$1,363 per ounce with an average cash cost of US$1,205 per ounce. At US$2,175 gold, the payback period is projected at 3.6 years.
Sensitivity to Higher Gold Prices
Importantly, Mercur’s economics become substantially more attractive at today’s elevated gold prices.
With the yellow metal trading firmly above US$3,200 per ounce for the first time in history — a key milestone driven by rising inflation, renewed recession concern, rising geopolitical tension, unprecedented tariff uncertainty, and increased central bank buying — the Carlin-style Mercur Project stands to benefit significantly in the current gold price environment.
At US$3K per ounce Au, the after-tax NPV jumps to US$752 million with the IRR nearly doubling to 57%. The payback period shrinks to just 1.7 years, highlighting the project’s strong leverage to rising gold prices.
That increased valuation underscores why projects like Mercur become particularly compelling in high gold price environments: the capital investment remains fixed while cash flows rise steeply with each incremental gain in the price of the underlying metal.
Given that Mercur’s AISC of US$1,363/oz is but a fraction of today’s gold price of ~US$3,245/oz — an all-time high — the project could generate wide margins and substantial cash flow in today’s gold market with which to fund additional exploration and development, thereby lowering the overall risk factor of the project.
Strategic Advantages and Opportunities
The PEA benefits from the Mercur site’s brownfields status, which includes paved road access, an existing water supply system, a nearby electrical substation, and proximity to a skilled labor force.
Those factors, along with the site’s history of strong environmental performance, contribute to a relatively short estimated permitting timeline of about two years.
In addition to the current mine plan based on 746,000 ounces of Indicated resources and 626,000 ounces of Inferred resources, RVG has identified several opportunities to further improve project economics, including:
- Infill and step-out drilling at the Main and South Mercur zones to upgrade and potentially expand the resource.
- Exploration at new targets across the 6,628-hectare land package, such as West Dip and Porphyry Ridge.
- Testing historical heap leach and tailings material for economic reprocessing.
- Evaluating potential for increased production rates if additional heap-leachable material is identified.
Next Steps Toward Production
Revival Gold plans to advance the Mercur Project to a Pre-Feasibility Study (PFS). To support this, the company will conduct additional reverse circulation and core drilling, geophysics, metallurgical and geotechnical studies, and environmental baseline work.
The company’s goal is to complete the required technical and environmental work while refining the project design and potentially extending mine life through new discoveries.
With gold trading firmly above US$3,200 per ounce for the first time ever, advancing Mercur quickly and efficiently could position RVG as one of the few US-focused gold developers with a near-term, economically viable project.
The Mercur PEA outlines a solid foundation for development under conservative price assumptions and, as noted, becomes even more attractive in the context of today’s record high gold market, making the project one-to-watch as progress continues toward production.
Flagship Beartrack-Arnett Gold Project
For those who may be new to the Revival Gold story, the company is concurrently advancing its flagship Beartrack-Arnett gold project in Idaho.
RVG has successfully increased Measured & Indicated (M&I) Mineral Resources at the project to 86.2 million tonnes grading 0.87 g/t Au containing 2.42 Moz Au and Inferred Mineral Resources to 50.7 Mt grading 1.34 g/t Au containing 2.19 Moz Au — for 4.6 Moz Au across all categories.
Combined with Mercur, Revival is sitting on a resource of ~6.2 Moz Au across all categories, making RVG one of the largest junior gold development companies by ounces in the ground in the United States.
RVG is continuing to make steady progress toward an open pit heap leach restart at Beartrack-Arnett supported by a recent PFS, which successfully outlined a low-cost, phased development approach focused initially on the near-surface heap leach mining component.
Importantly, the relative close proximity of Mercur to Beartrack-Arnett brings with it the potential for future heap leach gold production synergies across the two formerly-producing mine sites wherein the RVG team is targeting combined production of ~150,000 gold ounces per year.
With the yellow metal continuing to set record high after record high, our own Gerardo Del Real of Junior Resource Monthly caught up with Revival Gold CEO Mr. Hugh Agro to go over the positive PEA at Mercur and next steps in the advancement of the project toward first-phase heap leach gold production and, as well, at Beartrack-Arnett. Please enjoy!
To learn more about Toronto-based Revival Gold Inc., please contact the company’s IR department at 416-366-4100 or via email at info@revival-gold.com.
Visit the Revival Gold corporate website and sign up to receive updates directly from the company here.
Yours in profits,
Mike Fagan
Editor, Resource Stock Digest
Click here to see more from Revival Gold Inc.
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