Bonterra Releases Robust Preliminary Economic Assessment for the Barry Project, Highlighted by After-Tax NPV of C$665 Million and IRR of 54% at US$3,500/oz Long-Term Gold Price

Bonterra’s PEA projects strong economics for the Barry gold project, but execution risk remains high.

What the company is saying

Bonterra Resources Inc. is highlighting the results of its independent preliminary economic assessment (PEA) for the Barry open pit and underground gold project in Quebec, prepared by BBA Consultants under NI 43-101 standards. The company asserts the project’s economic viability, citing a base case after-tax NPV of C$665 million at a 5% discount rate, a 54% IRR, and a 2.5-year payback, using a long-term gold price of US$3,500/oz and an exchange rate of C$1.00 = US$0.74. Bonterra’s narrative emphasizes modest upfront capital (C$119 million initial, C$354 million sustaining), average annual pre-tax cash flow of C$131 million, and a projected average annual gold production of 87,097 ounces over 7.2 years. The company stresses that the PEA was prepared solely by Bonterra, with no endorsement or commitment from JV partner Gold Fields or its affiliate Windfall Mining. Executive Chairman and Interim CEO Cesar Gonzalez frames the PEA as demonstrating robust project potential, while also noting that only 40% of the February 2026 resource estimate is included in the mine plan, suggesting further upside. The announcement is confident in tone but repeatedly caveats that all scenarios are contingent on permitting, infrastructure, and JV decisions.

What the data suggests

The PEA presents a technically detailed and comprehensive economic model for the Barry project, projecting total life-of-mine (LOM) payable gold of 696,772 ounces at 93% recovery from 8.4 million tonnes grading 2.79 g/t Au. The model forecasts LOM cash costs of C$2,411/oz (US$1,786/oz) and all-in sustaining costs (AISC) of C$3,017/oz (US$2,235/oz), with total LOM revenue of C$3,292 million and after-tax free cash flow of C$827 million. Initial capital is C$118.7 million (including C$23.7 million contingency), with total capital outlay of C$480.3 million. Sensitivity analysis shows project economics are highly leveraged to gold price: at US$4,100/oz, after-tax NPV rises to C$976 million and IRR to 77%. The mine plan uses both open pit (4.9 Mt at 1.9 g/t Au, 302,000 oz) and underground (3.4 Mt at 4.05 g/t Au, 448,000 oz) methods, with a strip ratio of 6.7:1. The PEA assumes existing infrastructure and permitting, but provides no evidence these are in place. The JV agreement allows Gold Fields to earn 70% by spending C$30 million over three years, but there is no commitment to fund or build the project. The technical report will be filed within 45 days. All figures are projections; no construction, funding, or permitting milestones have been achieved.

Analysis

The announcement presents a detailed and technically robust PEA for the Barry project, with comprehensive projections for capital costs, production, and financial returns. However, nearly all key claims—NPV, IRR, payback, production, and cash flow—are forward-looking model outputs, not realised results. The PEA is not an approved development decision, and the company explicitly notes that neither Gold Fields nor Windfall Mining is committed to funding or implementing the mine plan. The project requires a large upfront and sustaining capital outlay (C$480.3 million total), but there is no immediate earnings impact or construction start; all benefits are contingent on future approvals, permitting, and funding. The tone is optimistic ('robust results'), but the actual evidence is limited to a technical study, with no operational or financial milestones achieved. The gap between narrative and evidence is moderate: the technical disclosure is thorough for a PEA, but the language inflates the signal by implying project advancement that is not yet committed.

Risk flags

• ●The project’s economics are entirely model-based and contingent on future permitting, infrastructure access, and a JV partner decision to proceed; no construction or production decision has been made, so all value is speculative at this stage.
• ●Gold Fields, the JV partner, has not endorsed or committed to the PEA scenario, and there is no assurance it will fund or advance the project; the entire development scenario could be delayed or abandoned if the partner declines.
• ●The PEA assumes the availability of permits, mining lease, and third-party arrangements, but provides no evidence these are secured; any permitting or regulatory delays could materially impact timelines and costs.
• ●The project requires substantial upfront and sustaining capital (C$480.3 million total), and any cost overruns or funding shortfalls would threaten project viability; sensitivity analysis shows NPV is highly exposed to gold price and operating costs.
• ●Only 40% of the February 2026 resource estimate is included in the mine plan, meaning future expansion is possible but not guaranteed; resource conversion and mine plan extension require further drilling, studies, and permitting.

Bottom line

Bonterra’s PEA for the Barry project lays out a technically robust but entirely conceptual gold mine scenario, projecting a C$665 million after-tax NPV and 54% IRR at US$3,500/oz gold, with C$480.3 million in total capital required. The model’s economics are attractive on paper, but all benefits are long-dated and depend on future permitting, infrastructure, and a JV partner decision—none of which are secured. Gold Fields, the JV partner, is under no obligation to fund or build the project, and the PEA itself is not an approved development plan. The sensitivity analysis underscores that project value is highly exposed to gold price and operating cost assumptions. Investors should treat these projections as preliminary and contingent; the most important next step is whether Gold Fields elects to proceed and whether key permits can be obtained. Until a binding funding or construction decision is made, the PEA remains a technical study, not a value realization event.

Announcement summary

(TSXV:BTR, OTCQB:BONXF, FSE:9BR2) Bonterra Resources Inc. announced robust results from the independent preliminary economic assessment (PEA) for the Barry open pit and underground project in the Urban-Barry Camp, northern Quebec. The PEA was prepared by BBA Consultants in accordance with NI 43-101 and is based on a recent mineral resource estimate by P&E Mining Consultants Inc. The project is under a definitive earn-in and joint venture agreement with Gold Fields Limited, through its affiliate Windfall Mining Group Inc., which allows Gold Fields to acquire a 70% interest by spending C$30 million in work expenditures, with a minimum of C$10 million per year over three years. The PEA, prepared solely by Bonterra, outlines a base case using a long-term gold price of US$3,500/oz and an exchange rate of C$1.00 = US$0.74. The after-tax net present value (NPV) at a 5% discount rate is C$665 million, with an after-tax internal rate of return (IRR) of 54% and a payback period of 2.5 years. Initial capital costs are estimated at C$119 million, with sustaining life-of-mine (LOM) capital costs of C$354 million, and total capital cost of C$480.3 million. The mine plan contemplates eight years of operations, producing approximately 700,000 ounces of gold, with a total mill feed of 8.4 million tonnes at 2.79 g/t Au and a LOM average annual payable gold of 87,097 oz. LOM total production is 696,772 oz at 93.0% mill recovery. LOM cash costs are C$2,411/oz (US$1,786/oz), and LOM all-in sustaining costs (AISC) are C$3,017/oz (US$2,235/oz). At a spot gold price of US$4,100/oz, the after-tax NPV is estimated at C$976 million and after-tax IRR at 77%. The open pit mine design consists of 10.0 m benches, a slope angle of 45 degrees, and a strip ratio of 6.7:1, with open pit production of more than 302,000 ounces at an average grade of 1.9 g/t Au. Underground mining comprises 3.4 Mt at 4.05 g/t Au, containing approximately 448,000 ounces. The PEA assumes the availability of existing infrastructure and necessary permits. The project’s total LOM revenue is C$3,292 million, with total royalty costs (including buyback) of C$66 million, total LOM operating costs of C$1,682 million, and total LOM pre-tax cash flow of C$1,183 million. Average annual pre-tax cash flow is C$131 million, and average annual after-tax free cash flow is C$92 million. Infrastructure costs in initial capital are C$42.4 million (C$41.8 million for power/electrical, C$0.6 million for processing plant), general and civil costs are C$33.4 million, indirect costs are C$19.2 million, and contingency is C$23.7 million. Most underground sustaining capital is for lateral/vertical development (C$210.8 million) and an electrical station (C$36.6 million). Site closure cost is C$7.3 million. Operating costs per tonne milled are C$73.33 (open pit), C$199.28 (underground), C$44.56 (processing), C$10.41 (transport/refining), and C$20.86 (G&A), for a total of C$200.95/t milled. Sensitivity analysis shows gold price has the most significant influence on NPV and IRR, followed by OPEX, capital costs, and exchange rate. The effective date of the PEA is October 8, 2026. The full technical report will be available on SEDAR+ within 45 days. The PEA mine plan incorporates only about 40% of the contained gold ounces in the February 2026 MRE. The project includes an existing mining lease, established infrastructure, and an underground ramp. Qualified Persons for the PEA include Gabriel Monty, P.Eng.; Vera Gella, P.Eng.; Benoit Ouellet, P.Eng.; Hugo Latulippe, P.Eng. (BBA Consultants); and Antoine Yassa, P.Geo. OGQ (P&E Mining Consultants Inc.). In November 2023, Bonterra entered into an earn-in and joint venture agreement with Osisko Mining Inc. for the Urban-Barry properties, including the Gladiator and Barry deposits. In October 2024, Gold Fields Ltd, through Windfall Mining Group Inc., completed the acquisition of Osisko Mining for C$2.16 billion.

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