Getchell Gold's PEA Shows US$1 Billion Pre-Tax NPV

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Gold investors are watching Getchell Gold Corp. (GTCH:CSE; GGLDF:OTCQB) after a recently updated PEA announcement.

Key Takeaways

• Getchell Gold released a PEA for its 100%-owned Fondaway Canyon gold project in Nevada, delivering a pre-tax NPV of US$1 billion at US$3,200/oz gold.
• The project shows a 58.8% pre-tax IRR and a 1.5-year payback, with initial capital costs estimated at US$265 million.
• Fondaway Canyon is projected to produce 1.52 million ounces of gold over a 10-year mine life, averaging 150,000 oz annually.
• The 2026 PEA marks a 28% increase in contained ounces and annual production, plus a 60%+ jump in base-case NPV, versus the 2025 PEA.
• The updated mine plan incorporates an April 2026 resource update, showing a 54% increase in Indicated Resources.
• The PEA covers only the Central Area's open-pit resource — about 68% of the total resource.

12,000 Tonnes Per Day Planned

On July 21, 2026, Getchell Gold announced results from an independent PEA completed on the Central Area of Fondaway Canyon, Nevada. The study contemplates open pit mining and a conventional flotation mill processing 12,000 tonnes per day of ore. Rather than producing doré on site, the operation would ship a low-mass, high-grade gold concentrate — roughly 20 g/t — to a third-party Nevada facility for pressure oxidation or roasting, followed by cyanidation.

Highlights of the PEA include:

• Strong Project Economics
  • US$1 billion pre-tax net present value discounted at 8% (NPV8%) and a 58.8% pre-tax internal rate of return (IRR), US$905 million after-tax NPV8%, and a 53.1% after-tax IRR at a US$3,200/ounce (oz) gold price.
  • Initial capital costs estimated at US$265 million (including a 20% contingency), with a short pre-tax payback of 1.5 years.
• Robust Operational Profile
  • 1.52 million ounces gold recovered (post-processing) over a 10-year life of mine ("LOM") with average annual gold production of 150,000 oz;
  • Average mined grade of 1.38 g/t Au(gold) (0.040 opt), estimated gold recovery to sales of 80%, and LOM strip ratio of 6.9 to 1; and
  • LOM operating costs (1) are estimated at US$1,373/oz, and cash costs (2) are estimated at US$1,740/oz of produced gold.
• Major Increase from 2025 PEA
  • 28% increase in both contained ounces of gold and average annual gold production; and
  • >60% increase in base case NPV.
• Economics incorporates significant development work completed in 2026
  • The PEA incorporated the Updated Mineral Resource Estimate (MRE) completed in April 2026 that reported a 54% increase in Indicated Mineral Resources and an 8% increase in Inferred relative to the previous 2024 Mineral Resource Estimate, based on the inclusion of 10 additional drill holes; and
  • Metallurgical test work refining the amenability of the mineralized material to conventional flotation and the generation of a low mass pull, high-grade concentrate.
• Significant Growth Potential
  • The scope of the PEA was limited to the open-pit mineral resource in the Central Area of the Project:
    • That does not include the Main Pit's underground mineral resource and the open-pit mineral resources outside of the Central Area along the gold corridor; and
    • represents only a portion of the largely underexplored 7 km long east-west gold corridor, covering a 10 km² prospective area.
  • The mineral resource remains open along strike and at depth with significant potential for expansion.

Mike Sieb, President of Getchell, said in the release: "This PEA readily demonstrates the potential for a robust economic open pit mining operation producing 150,000 ounces of gold per year.  This would likely place Fondaway Canyon in the top 10 mining operations in Nevada, an eminent threshold as wholly impressive as it sounds. Moreover, the mineralization remains open for expansion with continued drilling success, aiming to further enhance the mine model and extend the operation's longevity."

Chairman Bob Bass followed up, saying: "The strong economics outlined in this PEA support my high expectation for the Fondaway Canyon gold project and underscore the significant valuation upside potential for Getchell Gold Corp."

Getchell Gold Corp. is a gold exploration company focused on its advanced-stage Fondaway Canyon project — a past producer with a large MRE.

Gold Recovering After Tension Cools

Junior miners and exploration companies hit the ground running this year after gold rallied at a high of US$5,500 per ounce in January. Many companies chose to begin exploration or production amid these highs. While prices have since fallen, and even dipped below US$4,000 in June, rates are still up 24% compared to July 2025, and Gold.org wrote that: "[T]he stage is set for a possible breakout. On the upside, clear catalysts — a worsening economy or renewed geopolitical shock, a shift towards lower interest-rate expectations, or a wave of dip buying — could reignite gold's momentum and lift it back towards US$4,500/oz or above."

Gold prices have risen slightly on July 27, 2026, after tension between the U.S. and Iran cooled over the weekend. According to Trading Economics, gold rose 1% toward US$4,100 an ounce on Monday as easing tensions between the US and Iran sent oil prices sharply lower, easing inflation concerns and reducing fears that the Federal Reserve may need to tighten monetary policy more aggressively ahead of its meeting later this week.

In April, S&P Global wrote, "Gold is expected to remain volatile but structurally supported, with central bank demand and geopolitical risk helping to establish a price floor above recent correction lows."

As an industrial metal, silver is experiencing high demand from manufacturers of electric cars, solar panels, data centers, and more. Yahoo Finance quoted experts from both BlackRock and J.P. Morgan as saying, "By the end of 2026, experts predict silver's price will surpass US$80 per ounce, and it could reach US$100 per ounce by 2030."

Despite the volatility of gold and silver, the sector as a whole is only showing signs of improvement. On May 7, 2026, Brian Taylor of Recycling Today said that the World Bank Group has predicted that overall global metals prices will rise by 17% in 2026, which would mark the first overall market increase since 2022.

Atrium, Paydirt Both Rate "Buy"

On July 21, 2026, Ben Pirie of Atrium Research reiterated a "Buy" rating for Getchell but updated the price target to CA$1.30 from CA$1.10 after the company's press release announced the release of its PEA. Pirie wrote, "In our view, today's release marks a meaningful step-change in the project's profile from the 2025 PEA. Additionally, with the average annual gold production of 150Koz, we believe the project now ranks among the higher-quality gold development assets in the region. Further, this study sets the stage for the project to continue to be advanced along the development pipeline."

Later, on July 23, 2026, The Paydirt Prospector's  Daniel Flynn gave Getchell a "Buy" rating, arguing that the PEA strengthened the core reason an investor should own Getchell. Flynn wrote: "Jeff and I remain overweight and are holding for the next development and exploration steps, which should show just how big and valuable Fondaway Canyon can become . . . it can now officially go on the list of potential takeover candidates."

Plan of Operations to be Filed

According to the company's investor presentation, Getchell Gold will now complete further field studies at Fondaway and file a comprehensive plan of operations with regulatory authorities to accelerate the property's development.

Ownership & Share Information¹

Getchell Gold Corp. has a market cap of CA$56.78 million, with 202.64 million shares outstanding. The company's 52-week range is CA$0.21-CA$0.47. Management & Insiders own 12.83% of shares, and the remaining 87.17% of shares are Retail.

Frequently Asked Questions

Q: What is a Preliminary Economic Assessment (PEA)?

A: A Preliminary Economic Assessment (PEA) is an early-stage technical and economic study that evaluates whether a mineral project could be economically viable. It estimates potential production, costs, and returns using available geological data, but it is less detailed than a Pre-Feasibility Study (PFS) or Feasibility Study (FS).

Q: What do NPV and IRR mean in a mining study?

A: Net Present Value (NPV) estimates the current value of a project's future cash flows after accounting for development costs and the time value of money. Internal Rate of Return (IRR) estimates the project's expected rate of return. Higher NPV and IRR values generally indicate stronger project economics, although they depend on the assumptions used in the study.

Q: What is a Mineral Resource Estimate (MRE)?

A: A Mineral Resource Estimate (MRE) is a scientific estimate of the amount and grade of minerals contained within a deposit. Resource estimates are divided into categories such as Indicated and Inferred based on the amount and quality of geological evidence available.

Q: What does "open-pit mining" mean?

A: Open-pit mining is a surface mining method in which ore is extracted from a large excavation rather than through underground tunnels. It is commonly used when mineralization is located relatively close to the surface and can often reduce mining costs compared with underground operations.

Q: What does it mean when a mineral deposit is "open at depth and along strike"?

A: When a deposit remains open at depth or along strike, it means drilling has not yet identified the limits of the mineralization. This suggests there may be potential to expand the resource through additional exploration.

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