en.Wedoany.com Reported - Stormlands Mining has conducted an economic assessment of the Ulu Gold Project, owned by Blue Star Gold (TSXV: BAU), using an AI model. The results show that the project's net present value could increase by 83.3% over the base valuation.
Stormlands Mining, a data analytics company headquartered in Ireland, has released a new case study involving the Ulu Gold Project located in the Nunavut region. As the mine has not yet completed a formal Preliminary Economic Assessment (PEA), Stormlands utilized artificial intelligence technology to extract data from Blue Star's NI 43-101 mineral resource estimate and technical report, establishing a base economic model. The model's results indicate that, at a 5% discount rate, the project's net present value increased from $518.1 million to $949.7 million, a growth of 83.3%, which exceeds the 45.6% increase in gold prices over the same period.
After applying an updated gold price of $3,350 per ounce, the model forecasts that mine life revenue rises from $1.63 billion to $2.38 billion, and mine life EBITDA increases from $1.22 billion to $1.97 billion. The project's internal rate of return (IRR) climbs from 58.6% to 96.3%, and the model shows the payback period shortens from 19 months to 12 months.
The Ulu Gold Project covers 12,000 hectares, and the Flood Zone gold deposit within the project is an advanced-stage deposit with a substantial amount of high-grade resources already delineated.
Stormlands CEO Róisín O'Connell stated that this case study demonstrates the importance of introducing valuation at an early stage of the asset lifecycle. O'Connell noted that the mining industry often waits until formal economic studies are completed before beginning to link technical disclosures with value in a structured manner, creating a gap between geology and economics. The application of artificial intelligence and analytics makes it possible to bridge this gap. This case study is part of a series by Stormlands aimed at creating a resource library for mining companies to forecast and assess economic conditions. Other studies have also covered projects such as Whistler, MPD, and Barlorne.
