G Mining Ventures Delivers Robust New Feasibility Study All amounts are in USD unless stated otherwise
- Feasibility Study reflects optimized development plan and current cost environment
- After-tax NPV5% of $622 million and after-tax IRR of 24% at $1,600/oz gold price
- 10.5-year mine life with average annual gold production of 174,700 ounces at AISC of $681/oz
- Years 1-5: Average annual gold production of 196,200 at AISC of $666/oz
- A 12% increase in mineral reserves to 2.0 million gold ounces
- A 7% increase in initial capital to $458 million and 44% decrease in sustaining capital to $83 million, resulting in an overall 4% decrease in LOM capital costs to $564 million
- Launch of project financing process targeting 60% to 70% from non-equity sources, with target start of construction in mid-2022
- Well-funded with $58 million of cash and $27 million of in the money warrants maturing in Q2-22i
BROSSARD, QC / ACCESSWIRE / February 9, 2022 /G Mining Ventures Corp. ("GMIN" or the "Corporation") is pleased to announce the results of its 2022 Feasibility Study (the "FS" or the "Study") for the development of its wholly-owned and permitted Tocantinzinho Gold Project, located in Para State, Brazil ("TZ" or the "Project"). The Study replaces the 2019 Feasibility Study (the "2019 FS") completed by Eldorado Gold Corporation ("ELD"), with updated mineral resource and mineral reserve estimates, re-sequenced mine plan, refined mill designs, and updated current capital and operating cost estimates.
The FS confirms robust economics for a low cost, large scale, conventional open pit mining and milling operation, with industry leading operating costs and high rate of return. The Study outlines total gold production of 1.8 million gold ounces over 10.5 years, resulting in an average annual gold production profile of 174,700 ounces with an All-In-Sustaining Cost ("AISC") per ounce of $681. The Project after-tax net present value ("NPV") (5% discount rate) is $622 million with an after-tax internal rate of return ("IRR") of 24% at a gold price of $1,600 per ounce, and $833 million and 29% at a spot gold price of $1,800 per ounce.
Louis-Pierre Gignac, President & Chief Executive Officer of GMIN, commented: "The Feasibility Study builds on previous technical work while incorporating several improvements and optimizations, notably to the pit design, production schedule, process plant design and support infrastructures. The capital and operating cost estimates rely on recent budgetary quotes reflecting the current cost environment and our project execution approach. Our procurement strategy is to favor sourcing from in-country manufacturers where possible to maximize local benefits and benefit from simplified logistics. The Project provides an attractive gold production profile of approximately 175,000 ounces per year over a 10.5 year mine life, making it one of the premier gold development projects in Brazil and a key socio-economic contributor to the Tapajos Region of Para State. Factoring recent inflationary pressure seen within the industry from a new project perspective, GMIN has delivered a study that highlights a very attractive rate of return. Our experience and expertise, proven in recent successful mine developments for Newmont and Lundin Gold, will play a key role as capital is deployed to deliver on these economics."
About G Mining Services Inc.
GMS a specialized mining consultancy firm based in Brossard, Qubec, offering a wide range of services to both underground and open pit mining projects. GMS possesses the capabilities to develop a resource from the exploration phase, to development, into construction, commissioning and then operations. GMS self-performs project development with an objective of building fit-for-purpose and cost effectively. GMS was directly involved in successful construction and development of the Fruta del Norte gold mine in Ecuador (Lundin Gold Inc.) and the Merian gold mine in Suriname (Newmont Mining Corp.), among others.
www.gmining.com.
About G Mining Ventures Corp.
G Mining Ventures Corp. (TSXV:GMIN) is a mineral exploration company engaged in the acquisition, exploration and development of precious metal projects. Its flagship asset, the permitted Tocantinzinho Project, is located in Para State, Brazil. Tocantinzinho is an open-pit gold deposit containing 2.0 million ounces of reserves at 1.3 g/t. The deposit is open at depth, and the underexplored 688km2 land package presents additional exploration potential.
www.gminingventures.com
https://www.accesswire.com/687957/G-Mining-Ventures-Delivers-Robust-New-Feasibility-Study-at-Permitted-Tocantinzinho-Gold-Project