RPX Gold Inc. Delivers Robust Preliminary Economic Assessment and Updated Mineral Resource Estimate for Wawa Gold Project
RPX Gold Inc. Delivers Robust Preliminary Economic Assessment and
Updated Mineral Resource Estimate for Wawa Gold Project
Highlights
After-tax NPV5% C$523 million and after-tax IRR of 99.7% at a base case gold price of
US$3,500/ounce (“oz”) and an after-tax NPV5% of C$935M and an IRR of 181% at a
gold price of US$4,500/oz
Base case average annual after-tax free cash flow1 (excluding initial capital
expenditures) of C$85M and cumulative after-tax free cash flow of C$767M; first 5
years of production $354 M after-tax free cash flow (excluding initial capital
expenditures)
LOM Cash Costs1 of US$1,835/oz and All-In Sustaining Costs (“AISC”)1 of
US$2,149/oz at the base case gold price
81% of the gold production coming from Indicated resources
Initial Capital: ~C$51 million
Payback Period: <1 year
Phased open-pit and underground development utilizing toll milling
TORONTO--(BUSINESS WIRE)--February 18, 2026--RPX Gold Inc. (“RPX Gold” or the
“Company”) (TSXV: RPX) is pleased to announce the results of a Preliminary Economic
Assessment (“PEA”) for its 100%-owned Wawa Gold Project (the “Project”) located in
northwestern Ontario, Canada. The PEA was prepared by DRA Americas Inc. (“DRA”), in
accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI
43-101”). All amounts are in Canadian dollars, unless otherwise stated.
The PEA outlines a phased development plan beginning with open pit mining of near surface
mineralization followed by underground mining. The Project has been evaluated at a life of mine
(“LoM”) average of 2,000 tonnes per day (“t/d”) of Run of Mine (“ROM”) and demonstrates
strong economics using a long-term gold price of US$3,500/oz (the “Base Case”), and enhanced
economics using a long-term gold price of US$4,500/oz (the “Upside Case”). Readers are
cautioned that at this time no production decision in respect of the Project has been made. Any
such decision will be dependent on further exploration and the preparation of a feasibility study
which has not been completed, as well as other factors.
The PEA is supported by an updated mineral resource estimate (“2026 MRE”), which resulted in
a 48% increase in indicated ounces of gold (compared to the 2024 MRE announced on
September 4, 2024), showing improved confidence in the estimation upon which the PEA is
based. The 2026 MRE is inclusive of an open pit- and underground mineral resource, prepared
by WSP Canada Inc. (“WSP”).
Michael Michaud, President and CEO of RPX Gold commented: “The PEA marks a significant
milestone for RPX Gold, outlining an expedited, phased development plan, transitioning from
open pit to underground mining, with a low-capital path to the first stage of gold production.
This mining scenario leverages existing infrastructure and nearby milling capacity that
potentially eliminates the need for a mill or tailings facility, streamlining both permitting and
construction. The PEA validates the Wawa Gold Project as a highly attractive development
opportunity with substantial exploration upside. In the event a production decision is made, the
low risk, staged development approach provides an opportunity to generate cash flow from the
initial open pits to be used to further explore and develop the larger mineral resource.”
Project Economics
The financial highlights of the Wawa Gold Project are presented in Table 01.
Table-01: Financial Highlights
PEA Base Case Alternate Upside
Pricing Case
Gold Price – US$ $3,500 $4,500
Exchange Rate – C$/US$ 1.35 1.35
Life of Mine - years 9 9
All amounts in million C$ unless otherwise
specified
Average Annual After -Tax Free Cash Flow1 $85 $145
Pre-Tax Net Present Value (5% discount rate) $789 $1,401
After-Tax Net Present Value (5% discount rate) $523 $935
Internal rate of return (after-tax) 99.7% 181%
Payback (after-tax) 0.9 years 0.5 years
Capital Expenditure (Initial) $51 $51
Capital Expenditure (Sustaining) $235 $235
AISC (US$ per ounce)1 US$2,149 US$2,169
NOTES
1. LoM Cash costs per ounce of gold, all-in sustaining cost (“AISC”) per ounce of gold and free cash flow are
non-GAAP measures or ratios. These measures have no standardized meaning under IFRS and may not be
comparable to similar measures used by other issuers. Refer to the “Non-GAAP Financial Measures” section of
this news release for more information, including a detailed description of these measures.
2. Reference date of the economic analysis is the production decision on the Project. The analysis assumes that no
initial capital is spent in advance of this decision, which has not been made as of the date hereof.
Production Highlights
The production highlights of the Wawa Gold Project are presented in Table 02.
Table-02: Production Highlights
Units Open Pit
Years 1-3
Underground
Years 3-9
Operating Units
Material Processed (LoM) Mt 2.1 4.5
Material Processed, Annual average 3 Mt/y 0.70 0.73
Gold Grade (LoM average) g/t Au 2.4 3.6
Gold Recovery (LoM average) % 88 88
Gold Production, Annual average 3 koz Au 48 74
Strip Ratio w:o 10.6 -
Operating Costs
Mining C$/t processed $66 $124
Material Transport and Processing C$/t processed $96 $96
General and Administrative C$/t processed $15 $15
Royalties1,2 C$/t processed $9 $9
NOTES
1. The royalties cost in terms of C$/t material processed presented above excludes C$1.8M in royalty
buyback costs, which are included elsewhere in the economic analysis of the Project.
2. Royalties based on US$3,500 gold price.
3. Underground annual averages are based on the 6 years of substantial production from the underground
mine, excluding the smaller quantities of material mined during ramp up in Y2 and during ramp down in
Y9.
Cautionary statement: Readers are cautioned that a PEA is preliminary in nature, it includes
inferred mineral resources that are considered too speculative geologically to have economic
considerations applied to them that would be enable them to be categorized as mineral reserves,
and there is no certainty that the PEA will be realized. In addition, the assumption that toll
milling will be utilized for processing the material requires agreement with a third-party, which
has not been obtained.
The Base Case free cash flow (after-tax) and cumulative cash flow (after-tax) profile is shown in
Figure 01, which illustrates the impact of capital expenditures on these parameters.
Economic Sensitivities
A sensitivity analysis was carried out, using the Base Case as a starting point, to assess the
impact of changes in the price of gold, total capital expenditures (“Capex”) and operating
expenditures (“Opex”) on the Project’s net present value (“NPV”) at a 5% discount rate and
internal rate of return (“IRR”). The impact of each variable is examined individually with an
interval of ±30% and increments of 15% applied. The after-tax results of the sensitivity analysis
are shown in Figure 02 and Figure 03. The Project is sensitive to the gold price, with lower
sensitivities observed to changes in Capex and Opex.
The sensitivities of the key after-tax economic metrics of the Project were also evaluated at
specific gold prices. The results of this analysis are shown in Table 03 with the Base Case
highlighted.
Table-03: After-Tax Sensitivity of Economic Parameters to Gold Price
Gold Price US$/oz
2,450
(Base
-30%)
2,975
(Base
-15%)
3,500
(Base)
4,025
(Base
+15%)
4,550
(Base
+30%)
NPV @ 5% C$M $86 $305 $523 $739 $955
IRR % 19% 58% 100% 143% 185%
Payback Period years 5.5 3.2 0.9 0.7 0.5
Development Strategy and Capital Discipline
The PEA was deliberately designed around a capital efficient, high-margin development strategy
intended to generate early free cash flow, reduce execution risk, and position the Project to
become self-sustaining at an early stage of development.
The mine plan prioritizes easily accessible near-surface mineralization in the early years using an
elevated cut-off grade strategy, followed by underground production, while leveraging existing
regional infrastructure and toll milling potential. This approach significantly reduces upfront
capital requirements by avoiding the construction of a standalone processing facility, resulting in
an initial Capex of approximately $51 million, which is materially lower than comparable
projects.
With a strong projected cash flow profile with C$303 million cumulative after-tax cash flow net
of capital expenditures in the first 5 years of production, rapid payback, and high internal rates of
return, the Project is expected to fund ongoing underground development, exploration, and future
optimization to reduce reliance on repeated equity financings and thus, shareholder dilution. The
Project retains flexibility to scale operations as market conditions permit. Additionally, the
Company has available up to C$69 million in tax pool balances that are not reflected in the
financial model for the Project.
Importantly, once the Project has achieved steady-state cash flow, the PEA mine plan maximizes
the value of the existing mineral resource while preserving substantial upside for future
expansion with its demonstrated nearby exploration potential. This phased strategy provides
RPX Gold with a clear pathway from development to production while maintaining financial
discipline and long-term optionality.
Mineral Resource Estimate
The PEA is supported by the 2026 MRE as presented in Table 04. The 2026 MRE shows a
quantity of Indicated mineral resources of 1,244,000 ounces, representing an increase of more
than 400,000 ounces (from 842,000 ounces to 1,244,000 ounces), or 48% from the 2024 MRE,
while the overall size of the mineral resource remains comparable to the 2024 MRE. This
demonstrates a marked improvement in confidence in the mineral resource model supporting the
PEA.
The 2026 MRE continues to refer to a small portion of the Company’s land holdings. Numerous
historic zones and high priority targets are included in the Wawa Gold Project property and have
potential to expand the mineral resource. In both the Jubilee and the Minto deposits, the mineral
resource remains open along strike and down-dip.
The 2024 MRE and the 2026 MRE were derived using a 3D block modelling approach, based on
Inverse Distance Cubed (ID3) grade interpolation and reported from grade cut-offs and
constraining volumes for open-pit (OP) and underground (UG) mining.
Mineral resources are not mineral reserves, and do not demonstrate economic viability. There is
no certainty that all, or any parts, of this mineral resource that are the subject of this press release
will be converted into mineral reserves. Inferred mineral resources are considered too speculative
geologically to have economic considerations applied to them that would enable them to be
categorized as mineral reserves.
Table-04: 2026 Mineral Resource Estimate for the Wawa Gold Project
(Effective Date December 8, 2025)
Category Resource Tonnes Au (g/t) Au (oz)
Indicated Open Pit 22,378,000 1.65 1,190,000
Indicated Underground 531,000 3.16 54,000
Total Indicated 22,909,000 1.69 1,244,000
Inferred Open Pit 7,534,000 1.24 300,000
Inferred Underground 2,417,000 2.69 209,000
Total Inferred 9,951,000 1.59 509,000
Notes:
1) The 2026 MRE has been reported in-situ and has been prepared in accordance with the CIM Standards (2014)
and follows Best Practices outlined by the CIM (2019).
2) Mineral resources that are not mineral reserves do not have demonstrated economic viability. There are no
mineral reserves for the Wawa Gold Project.
3) The QP (for purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-
101")) for the 2026 MRE is Brian Thomas, P.Geo., an employee of WSP and is "independent" of the Company
within the meaning of Item 1.5 of NI 43 -101.
4) The effective date of the 2026 MRE is December 8, 2025.
5) A minimum thickness of 3 metres was used when interpreting the mineralized bodies.
6) The 2026 MRE is based on sub-blocked models with a main block size of 3 metres x 3 metres x 3 metres.
7) The open pit-constrained mineral resources are reported at a 0.4 g/t Au cut-off grade considering an Operating
Expense (“Opex”) of C$28.00/t ($4.00/t mining, $19.00/t processing, $5.00/t G&A)
8) The underground constrained mineral resources are reported at a 1.5 g/t Au cut-off and a minimum of 2,000 t of
contiguous material contained within a 1.40 g/t grade envelope. The 1.5 g/t cut-off assumes underground long
hole mining with an Opex of C$144.00/t ($120.00/t mining, $19.00/t milling, $5.00/t G&A).
9) A bulk density factor of 2.77 tonnes per cubic metre (t/m3) was applied for the 2026 MRE.
10) A gold price of C$3,864 (US$2,800) per ounce as used, and a C$/US$ exchange rate of 1.38.
11) Mill recovery of 87% was assumed.
12) Royalty of 2.0% (reduced from 3.5% assuming expected re-purchasing of 1.5% of NSR from previous joint
venture partner for C$1.75 million. Franco-Nevada holds an option to purchase additional royalty of 0.5% upon
completion of feasibility study). Neither the proceeds to purchase this potential additional royalty nor the 0.5%
has been included in the PEA.
13) Rounding may result in apparent summation differences between tonnes, grade, and metal content.
Mining
The mining methods used for the PEA are conventional open pit mining using truck and shovel
followed by underground mining using long hole stoping. The mining schedule assumes one year
of pre-production development for the open pits, followed by open pit mining during Years 1 to
3 from a north pit and a south pit, with underground development beginning in Year 2 and
underground mining commencing in Year 3 (Figures 04 and 05). The stripping ratio for the open
pits is approximately 10:1 given the elevated cut-off grade (0.83 g/t Au) for transporting and
processing material at a toll mill. Additionally, wider ramps were designed to allow for larger
haul trucks to ensure the 2,000 tonne per day production rate. The lower grade material below
the cut-off grade (based on mining and on-site processing costs) will be stockpiled for potential
processing in a possible on-site mill in the future, as economics allow.
The main part of the underground mine will be accessed from three portals; two located within
the south pit and one within the north pit. Contract mining is assumed to be utilized for both the
open pit and underground operations. Therefore, no mining equipment capital costs have been
included, as contractor-supplied equipment is incorporated into operating costs over the life of
mine. The Capex includes initial capital provisions for mining services, buildings, maintenance
facilities, and supporting infrastructure.
Approximately 63% of the ounces in the open pits and 86% of the ounces in the underground
mine plan considered in the PEA are in the indicated category, outlining a clear path forward for
a drill program required to complete the conversion of inferred ounces (currently included in the
mine plan) to indicated in preparation for a pre-feasibility study (“PFS”).
Processing
The gold production profile by year is shown in Figure 06.
The ROM material stockpile will be primary crushed and sampled on site using mobile
equipment and placed in a secondary stockpile area for further downstream processing. All
crushed material will be transported by highway truck to the selected off-site toll milling facility
for processing to produce gold doré bars. Potential toll milling facilities within 150 km are
shown in Figure 07). It is assumed that the selected toll milling facility will process material
from the Project in the same year as it is mined. There are no current agreements in place with
potential toll milling facilities for the Project.
Metallurgical test work completed in 2019 at McClelland Labs Inc. in Reno, NV and at SGS-
Lakefield (SGS) in 2025 supports the applicability of conventional cyanidation recovery on
Wawa Gold Project mineralogy at a grind size of 80% passing 75 µm. This processing would be
deemed conventional and readily processed at various regional mill sites.
For assumed average head grade of 3.2 g/t Au, the modeled gold extraction over a range in
arsenic and sulphide contents is estimated at 88% based on test work completed.
Infrastructure
The infrastructure scope includes the primary on-site facilities and supporting infrastructure
required to sustain both open pit and underground mining operations (Figure 08). This includes
essential site access roads, operational buildings, water management systems, power and utilities,
and waste handling infrastructure. Allowance for site access roads is also incorporated, reflecting
the development and improvement of road infrastructure required to provide reliable access to
the mine site and support the consistent transport of personnel, supplies, and mined material.
The infrastructure scope in the PEA provides for key operational and support facilities required
on site, including maintenance, administrative, and service-related infrastructure necessary for
day-to-day operations, as well as power transmission and distribution facilities. The PEA also
includes allowances for waste management infrastructure to support the safe handling, storage,
and management of mine waste materials throughout the life of mine. Allowance for a water
treatment facility has been included to manage site water discharge and ensure compliance with
applicable environmental regulations and water quality standards. Figure 08 shows the general
site plan.
Initial and Sustaining Capital Cost Estimates
The total LOM Capex for the PEA over the 9-year mine life is broken down into Initial Capital
and Sustaining Capital Costs (Table 05).
The initial capital cost covers all upfront infrastructure required for mining (excluding mining
fleet), crushing, power line, utilities and infrastructure.
The sustaining capital cost schedule (Figure 09) is primarily driven by underground mine
development and sustaining underground infrastructure. Sustaining capital costs for underground
mine development in Year 2 enable the Project’s transition from open pit mining to underground
production. This represents the capital required to initiate underground access and infrastructure
in preparation for underground production anticipated in Year 3. The sustaining capital costs
across Years 3 through 9 represent ongoing underground development required to support
continued underground production. Sustaining capital costs ensure ongoing mine development
required to access production stopes, maintain underground infrastructure, and support long-term
operations.
The Capex conforms to Class 5 guidelines established by the Association for the Advancement
of Cost Engineering International (AACE International).
Table-05: Total Capital Costs
Item Cost Estimate1
(C$M)
Initial Capital Costs
Mining $15.3
Processing $7.6
Power & Utilities $1.0
Infrastructure $14.2
Contingency $11.4
Royalty Buyback $1.8
Total Initial Capital1 $51.2
Sustaining and Closure Capital Costs
Underground, Development $61.8
Underground, Sustaining $151.4
Exploration $6.5
Closure and Reclamation $15.7
Total Sustaining and Closure Capital Costs 1 $235.4
Total Capital Costs1 $286.6
1. Amounts may not add up precisely due to rounding
Permitting and Community Engagement
Baseline environmental studies are underway and early engagement with indigenous
communities and local stakeholders has commenced. The phased development approach reduces
permitting complexity and the Project’s environmental footprint.
Next Steps
Advance toll milling discussions to a Letter of Intent
Continue resource expansion and drilling
Conduct additional metallurgical test work
Advance Project towards a PFS
Continue Baseline studies, and permitting efforts
Continue Indigenous consultation and discussions
Source contract mining and highway trucking suppliers
Qualified Persons
The technical information in this news release has been reviewed and approved by qualified
persons as defined under NI 43-101. Full details will be provided in the associated NI 43-101
Technical Report.
Syed Saad Mohsin Ali, P. Eng., DRA Americas Inc.
Alex Duggan, P. Eng., DRA Americas Inc.
Dave Frost, FAusIMM, DRA Americas Inc.
Nigel Fung, P. Eng., DRA Americas Inc.