KGL Resources' (ASX:KGL) baseline economic model for its Jervois copper-silver-gold project in the Northern Territory confirmed "attractive economics" and offered a basis for project financing and the start of development, according to a Friday filing with the Australian bourse.

Results of the baseline economic model show a pre-tax net present value of about AU$1.23 billion, a pre-tax internal rate of return of 37%, and an average steady state operating cash flow of AU$260 million per year, according to the filing.

Additionally, the project's construction capital cost estimate is AU$439 million, and its additional mining and sustaining capital forecast is AU$290 million, which would be funded from cash flow generated during operations, the company said.

Shares of KGL Resources were down 2% in recent Friday trade.