07:22 AM EDT, 03/27/2025 (MT Newswires) -- Wallbridge Mining ( WLBMF ) reported Thursday the results of an updated preliminary economic assessment (PEA) on the Fenelon gold project in Quebec.

The study generated a net present value of $706 million based on a 5% discount, with a 21% internal rate of return and a four-year payback period, using a base case gold price of US$2,200 per ounce.

"This updated Fenelon PEA generates strong project economics under a lower risk, higher grade, lower startup capital scenario," CEO Brian Penny said. "Fenelon has now reached another milestone with a robust PEA that demonstrates a viable path to development and attractive economic returns based on reasonable assumptions."

Average production was estimated at 107,000 ounces per year over a 16-year mine life. The company projected initial capital expenditures of $579 million.

"In this historically high gold price environment, we need to rapidly advance the project," Penny said. "The current plan has a shorter payback than the previous plan and allows us to consider expansion options after payback has been achieved."

Wallbridge's share price slumped 11.5% on Wednesday to $0.0575 on the TSX.