GCM Mining Reports US$794 Million After-Tax NPV, Measured & Indicated Resource Of 8.4 Million Gold Ounces For Toroparu Project

GCM Mining Corp. (TSX: GCM) shared today the preliminary economic assessment and updated mineral resource estimate for its Toroparu project in Guyana. The reports highlighted US$794.0 million after-tax NPV5% and 8.4 million gold ounces measured & indicated resource.

The preliminary economic assessment is said to “affirms the economic viability of the open pit and underground mining operations” at the project.

The report, effective November 26, 2021, stipulates a 46% after-tax IRR and a two-year payback period. Over the expected 24-year mine life, the firm foresees an initial 7,000 tonnes per day processing capacity, increasing to 14,000 tonnes per day at year 6 after following a planned construction of a copper concentrator.

Total gold recovered is expected to be 5.4 million ounces with 88.4% average gold recovery rate and at an average grade of 1.78 g/t gold. For the mine’s life, the average cash cost is foreseen to be US$742 per gold ounce sold while all-in sustaining cost is pegged at US$916 per gold ounce sold. At base case gold price of US$1,500, expected gold revenue for the life of mine is at US$8.0 billion, with operating cash flow at US$2.9 billion and free cash flow at US$1.9 billion.

The initial capital expenditure is estimated to be US$355.0 million while sustaining capital for the life of mine is expected to be US$944.0 million.

On the other hand, the mineral resource estimate, effective November 1, 2021, reported measured & indicted resource of 8.4 million gold ounces grading at 1.42 g/t gold coming from 7.9 million ounces grading at 1.36 g/t gold expected from open pit and 0.6 million ounces grading at 3.16 gt gold from underground mining.

The inferred resources are anticipated to be 1.2 million gold ounces grading at 2.74 g/t gold, which is composed of 0.3 million ounces grading at 1.5 g/t gold from the open pit and 1.0 million ounces grading at 3.53 g/t gold from the underground mining.

The gold producer relayed that it is expecting to produce in Q1 2022 a pre-feasibility study focused on the initial 10 years of surface mining while it also expects the government to review the preliminary economic assessment before issuing the mining license next year.

GCM Mining last traded at $5.02 on the TSX.


Information for this briefing was found via Sedar and the companies 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.

Video Articles

200 Grams of Gold And 21% Copper — That’s Not Normal | Matt Wilson – Sterling Metals

Silver at $100? This Time It Might Stay There. | David Morgan

Critical Minerals Are Rerating! | John Passalacqua – First Phosphate

Recommended

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Military Seizes Power in Madagascar After President Flees

Related News

Aurion Resources Looks To Raise At Least $5.0 Million

Aurion Resources (TSXV: AU) this morning announced that it intends to conduct a private placement...

Friday, January 29, 2021, 08:12:20 AM

Kirkland Lake Gold Reports Measured & Indicated Resource Of 14.7 Million Gold Ounces For Detour Lake

Kirkland Lake Gold Ltd. (TSX: KL) shared today the results of the 2021 mid-year mineral...

Thursday, September 2, 2021, 09:39:00 AM

Czech Central Bank Governor Calls for More Gold Holdings, Bigger Portfolio to Boost Bank’s Profits

The incoming governor of the Czech National Bank is calling for elevated interest rates, beefing...

Saturday, May 28, 2022, 03:17:00 PM

Gold Prices Reclaim Momentum as Central Banks Regain Buying Appetite

A number of central banks around the world haven once again directed their attention to...

Monday, July 5, 2021, 03:22:00 PM

Russia May Soon Be Hiding Its Gold And Foreign Reserves From The Public

After the Group of 7 nations announced a ban on Russia’s gold imports, Moscow appears...

Friday, July 8, 2022, 10:52:00 AM