G2 Goldfields (TSX: GTWO) has released a preliminary economic study for their Oko Gold Project in Guyana. The project is estimated to have an after tax net present value of $2.6 billion, alongside an IRR of 39% and a payback period of 2.6 years at $3,000 an ounce gold.
That net present value at $4,000 an ounce gold meanwhile is estimated to rise to $4.2 billion, while the internal rate of return moves to 54% and the payback period drops to 2.0 years.
Those estimates are based on an open pit and underground mining operation that would operate for 14 years, with annual production of 228,000 ounces of gold. Much of that production is front loaded, with production estimated to average 281,000 ounces over years 2 through 11.
Total production over the entire life of mine is estimated at 3.2 million ounces, with those ounces expected to be produced at an all in sustaining cost of $1,191 per ounce.
On the processing side of things, ore is to be processed using a 10,000 tonne per day carbon in leach process which will be used to produce dore. Head grades here are expected to average 2.39 g/t, with expected recoveries of 94%.
Initial capital requirements for the operation are estimated at $664 million, while sustaining capital is estimated at $366 million. Total capital expenditures, including reclamation costs of $29 million, are estimated at $1.06 billion.
“This PEA places the Oko Project firmly within one of the most attractive development projects globally. The PEA demonstrates the Project has the potential to generate very significant annual production at an average AISC cost of US$1,137/oz and is hosted in mining-friendly Guyana which actively promotes the development of large-scale gold mining,” commented Daniel Noone, CEO of G2 Goldfields.
With the PEA now complete, G2 is able to submit preliminary mine designs to the Environmental Protection Agency to apply for environmental permits. A filing is expected in Q1 2026, with a temporary permit expected to be received within 24 months to allow the commencement of early works activities.
The company has indicated that they now intend to “aggressively” proceed to feasibility and construction of the Oko project.
G2 Goldfields last traded at $5.02 on the TSX.
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