GoldMining (TSX: GOLD) has released the first economic study for its São Jorge gold project in Brazil, the results of which are positive.
The company released a preliminary economic assessment on Thursday outlining an after-tax net present value of $532 million and an internal rate of return of 42.4% for the Brazilian asset, using a base case gold price of $3,500 per ounce and a 5% discount rate. After-tax payback lands at 2.8 years.
Those figures stretch considerably at higher prices. Pegging gold at the spot level of $4,400 per ounce, the after-tax NPV climbs to $836.8 million from $532 million in the base case, the IRR widens to 58.6% from 42.4%, and payback shortens to 2.4 years.
The operation is designed as a conventional open pit, truck and shovel mine feeding a processing plant at 5,500 tonnes per day. Gravity and leach circuits would recover 90% of the gold, working through ore grading an average of 0.91 g/t.
Production averages out to roughly 51,250 ounces of gold annually across a 10.6 year mine life, peaking near 57,200 ounces per year through years two to four. Over its life the project is expected to yield about 543,000 ounces.
Initial capital is estimated at $202.2 million, a figure that includes a 25% contingency and leaves the project with a 2.6 to 1 ratio of base case NPV to upfront spend. GoldMining attributes the relatively light capital bill partly to existing infrastructure, with the site sitting next to power lines and a paved highway. Sustaining capital over the mine’s life is pegged at $53 million, with closure costs adding another $12 million.
In terms of per ounce metrics, the assessment puts total cash costs at $1,344 per ounce and all-in sustaining costs at $1,464 per ounce.
“More than just a standalone project, the PEA highlights that São Jorge has the potential for resilient margins and rapid payback potential to become a cornerstone self-funding asset for us,” commented Alastair Still, CEO of GoldMining.
São Jorge sits in the Tapajós gold district of Brazil, a granite hosted system that GoldMining compares to G Mining Ventures’ nearby Tocantinzinho mine, which began production in 2024 and turned out roughly 172,000 ounces last year. The deposit carries a defined strike length of 1.4 kilometres within a broader geochemical footprint measuring 12 by 7 kilometres, leaving the door open for additional drilling.
GoldMining said it intends to move into pre-feasibility studies and permitting as it advances the project toward a construction decision.
GoldMining last traded at $1.21 on the TSX.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
