G Mining Ventures Corp. (TSX: GMIN) has taken significant steps to secure its future as a leading multi-asset gold producer with the acquisition of the CentroGold Project in Brazil and the delivery of a highly promising Preliminary Economic Assessment (PEA) for its Oko West Gold Project in Guyana.
In a major transaction, G Mining signed an agreement to acquire the CentroGold Project in the Gurupi Gold Belt, northern Brazil, from BHP Group. This project, which spans 1,900 square kilometers and encompasses 47 tenements, could transform G Mining’s portfolio. The site currently hosts 2.3 million ounces of gold resources and is part of a mineralized trend over 80 kilometers long, offering considerable potential for further discovery.
Under the terms of the agreement, BHP will retain a net smelter return (NSR) royalty of 1% on the first million ounces of gold produced at CentroGold and 1.5% on subsequent production. This ensures that BHP will still benefit from the project’s success while G Mining gains full operational control.
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CentroGold is viewed as an advanced-stage exploration asset, and G Mining plans to leverage the extensive work already completed, including over 135,000 meters of core drilling. G Mining aims to further develop the project, updating its geologic model and adhering to new permitting requirements.
According to Louis-Pierre Gignac, President and CEO of G Mining, the acquisition “rounds out a high-quality portfolio of gold assets, which includes a producing mine in Tocantinzinho, a development project in Oko West, and a high-potential exploration project in CentroGold.”
With the acquisition expected to close in early 2025, G Mining’s focus will shift toward finalizing resource estimates to meet National Instrument 43-101 standards and continuing its other active projects, like the ramp-up of the Tocantinzinho Gold Mine and the development of Oko West.
Oko West PEA Results: After-Tax NPV of $1.4 Billion
Simultaneously, GMIN has unveiled the results of its 2024 Preliminary Economic Assessment (PEA) for the Oko West Gold Project in Guyana. The study presents an exceptionally robust financial outlook for the project, confirming its viability as a large-scale, low-cost gold mine. The PEA outlines a blend of open-pit (OP) and underground (UG) mining operations with a mine life of 12.7 years.
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The highlights of the PEA include an after-tax Net Present Value (NPV5%) of $1.4 billion at a base-case gold price of $1,950/oz, an Internal Rate of Return (IRR) of 21%, and a payback period of 3.8 years. These metrics rise dramatically in a spot gold price scenario of $2,500/oz, with an after-tax NPV5% of $2.5 billion and a payback of just two years.
“This exceptionally positive PEA only captures a snapshot of the potential value of Oko,” said Gignac. “We continue to explore the prospective land package and evaluate value-enhancement opportunities for improved economics in a feasibility study planned for the first quarter of 2025.”
The PEA envisions average annual gold production of 353,000 ounces at an All-In Sustaining Cost (AISC) of $986 per ounce, positioning Oko as a low-cost operation. The project has a total upfront capital cost of $936 million, with sustaining capital costs over the life of the mine expected to be $537 million. Over its lifespan, Oko is anticipated to generate 4.5 million ounces of gold with a metallurgical recovery rate of 92.8%.
G Mining expects to submit the project’s Environmental and Social Impact Assessment (ESIA) by the end of 2024, with the feasibility study targeted for completion in the first quarter of 2025. This timeline aligns Oko with G Mining’s broader strategy to sequence its projects efficiently, leveraging its operational expertise and regional presence in South America.
The acquisition of CentroGold and the development of Oko West underscore G Mining’s aggressive growth strategy, which has already resulted in a substantial increase in its gold resource base. Over the course of 2024, the company expanded its measured and indicated gold resources from 2.1 million ounces to 8.1 million ounces, while inferred resources grew from 50,000 ounces to 2.2 million ounces.
G Mining Ventures last traded at $7.90 on the TSX.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
