As the new royalty regime is implemented, we expect Vista and Mt. Todd to benefit in several ways. Turning to the present year. In March, earlier this month, we have published our inaugural Environmental, Social and Governance Report. This report provides transparency and outlines progress on our ESG performance in 2023 and goals and key objectives for the coming year. We have recognized the importance of conducting our business in a responsible and sustainable manner and we are fully committed to aligning our business practices with current and evolving ESG principles to ensure the long-term success and positive impact of our operations. We continue to maintain strong working relationships with the people and the leaders of the Jawoyn Association Aboriginal Corporation.
We also continue to work with leaders and stakeholders in the Katherine area and more broadly in the Northern territory, as well as the NT government. I’m pleased that, our social license is firmly in place and strongly supported. We remain committed to responsible environmental management, protecting heritage sites and developing Mt. Todd in a way and at the time that maximizes the benefit for our shareholders and stakeholders in the Northern territory. Last week, we announced the results from an updated feasibility study for the Mt. Todd project. The updated feasibility study reflects changes in project economics that have occurred since the previous feasibility study was filed in February of 2022. Material capital and operating cost components have been updated with new quotes obtained in the first quarter of 2024.
The updated study also reflects the current outlook for the long term gold price and foreign exchange rates and the recently announced royalty. Mt. Todd mineral resources and mineral reserves, mine plans, gold recoveries and gold production schedules remain unchanged. Project economics are approximately the same or slightly better than reported two years ago, inclusive of cost increases that affected the entire gold mining sector. We are pleased that Mt. Todd’s value is confirmed at the given foreign exchange rates and conservative gold price selected. A few highlights of the updated feasibility study include: at an $1800 gold price and a $0.69 foreign exchange rate, the after tax, net present value percent discount rate is estimated to be $1.13 billion, up $131.5 million from the previous study and the IRR is estimated to be 20.4%, down 0.2% from the previous study.
Average cash costs are estimated to be $913 per ounce, which is up $96 per ounce from the previous study. Average all-in sustaining costs are estimated to be $10.34 per ounce, up $104 from the previous study and that’s on a life of mine basis. Using a gold price of $2,100, a little less than today’s gold price and a $0.66 foreign exchange rate, which is slightly more than today’s foreign exchange rate, the company believe and we believe that these numbers are more reflective of current market conditions, the after tax net present value at a 5% discount rate of the project is estimated to be $1.88 billion and IRR is estimated at 29.6%. Initial capital requirements of the project are now estimated to be $1.03 billion which is up $138 million from the previous study.
We continue to use and these numbers reflect the use of third-party owner operator of the power plant. Moving on, earlier this year, we also appointed Mike Sylvester as Director of Vista Gold and a member of our Health, Safety, Environment and Social Responsibility Committee. Mr. Sylvester is a successful mining executive with over 45 years of international and domestic industry experience with major, mid-tier and junior companies. He retired in November 2022 from his position as Senior Vice President, Americas at Kinross Goldcorp. Mike’s well rounded technical expertise, corporate leadership roles and international experience will be valuable as we pursue strategic opportunities for Vista and its Mt. Todd Gold Project. We continue to work with CIBC Capital Markets to identify and advance interest in Mt. Todd and are focused on achieving a transaction that maximizes shareholder value.
Management expects to continue to host side business and response to enquiries from engaged parties. Our evaluation of a smaller scale stage development strategy for Mt. Todd complements the work that we are doing with CIBC and increases optionality. We remain focused on recognizing value for shareholders through the completion of the right transaction. One that realizes a greater portion of the intrinsic value of Mt. Todd and provides ample opportunity for future additional value recognition. In January, we commenced drill program expected to total 6,000 to 7,000 meters with the focus to add shallow resources at the north end of the — deposit. We believe that if we are able to convert gold resources to gold reserves in this area that it would add value to Mt. Todd by improving cash flow as a result of more constant production profile, reduced stripping and increased mine life for all development scenarios.
We expect to report initial results of the program in the coming weeks. The drilling is expected to have an all-in cost of approximately $2 million and to be completed by end of the year. As part of our evaluation of our state development strategy for Mt. Todd, we plan to leverage the results of the drilling program and all of our prior technical studies by advancing evaluations of smaller-scale stage development scenarios. Previous studies demonstrated the opportunity to significantly lower the initial CapEx, maintain high margins and deliver attractive economic returns. We believe that, alternative development strategies offer valuable optionality, as we focus on creating shareholder value and attracting investor interest in Mt. Todd. The scope of technical studies will be defined after initial drilling results are evaluated.
Now, in conclusion, the Mt. Todd gold project is one of the largest and most-advanced undeveloped gold projects in Australia with 7 million ounces of proven and probable reserves Mt. Todd controls or Vista controls towards Mt. Todd project, the second largest reserve package in Australia. In addition to its size, Mt Todd provides a number of other advantages for investors and for those interested in a potential transaction. Mt Todd is ideally located in the Northern Territory of Australia, an extremely stable and mining-friendly jurisdiction. The existing project infrastructure in Mt. Todd provides very distinct construction timeline and risk mitigation advantages. All the major permits for the development of Mt. Todd had been approved. Of equal importance, we have earned the trust of the local stakeholders and are confident that our social license is firmly in hand.
