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.