G Mining Ventures Delivers PEA for High-Grade Oko West Gold Project in Guyana
All amounts are in USD unless stated otherwise
- After-tax NPV5% of
$1.4 billion , IRR of 21% and payback of 3.8 years at$1,950 /oz base case gold price (long-term consensus) - After-tax NPV5% of
$2.5 billion , IRR of 31% and payback of 2.0 years at$2,500 /oz spot gold price - Average annual gold production of 353,000 ounces at an AISC of
$986 /oz for 12.7 years - Startup capital cost of
$936 million and sustaining capital of$537 million over the life of mine - ESIA submission targeted by year end while progressing towards a Feasibility Study for Q1-2025
- An average of 1,260 direct permanent jobs to be created from the
Oko West Project
The PEA, completed by
PEA Overview
Oko is planned as a mix of conventional OP mine and mechanized long hole open stoping UG mine, with on-site treatment of the mined material processed through a conventional circuit consisting of comminution, gravity concentration, cyanide leach and adsorption via carbon-in-leach ("CIL"), carbon elution and gold recovery circuits. The OP mine will have a Life of Mine ("LOM") of 15 years, including 2 years of pre-stripping, from 4 pit phases, while the UG mine will have a LOM of 13 years, including 2 years of development, in 3 zones. The mill will operate for 13 years.
The PEA is derived using the Corporation's mineral resource estimate effective as at February 7, 2024 (the "MRE"). The effective date of the PEA is
Table 1 : Oko West Preliminary Economic Assessment Highlights
Description |
Units |
Figure |
Production Data |
|
|
OP Mill Feed Tonnage |
Mt |
61 |
UG Mill Feed Tonnage |
Mt |
15 |
Total Mineralized Material Mined |
Mt |
75 |
Total Waste Mined (OP and UG) |
Mt |
367 |
Total Tonnage Mined (OP and UG) |
Mt |
443 |
Strip Ratio |
waste : mineralized material |
6.0 |
Average Milling Throughput |
Mt/year |
6.0 |
Average Milling Throughput |
tpd |
16,110 |
Gold Head Grade |
g/t |
2.00 |
OP Head Grade |
g/t |
1.72 |
UG Head Grade |
g/t |
3.19 |
Contained Gold |
koz |
4,848 |
Average Recovery |
% |
92.8 % |
Total Gold Production |
koz |
4,500 |
Mine Life |
years |
12.7 |
Average Annual Gold Production |
oz |
353,000 |
Operating Costs (Average LOM) |
|
|
Total Site Costs |
USD/oz |
|
Government Royalties |
USD/oz |
|
Total Operating Cost |
USD/oz |
|
AISC |
USD/oz |
|
Capital Costs |
|
|
Total Upfront Capital Cost |
USD MM |
|
Initial UG Capital Costs ( |
USD MM |
|
|
USD MM |
|
Life of Mine Sustaining Capital |
USD MM |
|
Closure Costs |
USD MM |
|
Total Capital Costs |
USD MM |
|
Financial Evaluation |
|
|
Gold Price Assumption |
USD/oz |
|
After-Tax NPV 5% |
USD MM |
|
After-Tax IRR |
% |
21 % |
Payback |
Years |
3.8 |
Table 2 : Sensitivity Analysis
|
|
Downside |
Base |
Spot |
Scenario |
|
Case |
Case |
Case |
Gold Price |
USD/oz USD MM |
|
|
|
After Tax NPV5% |
|
|
|
|
Payback |
Years |
5.9 Years |
3.8 Years |
2.0 Years |
After-Tax IRR |
% |
13 % |
21 % |
31 % |
Average Annual EBITDA |
USD MM |
|
|
|
Average Annual Free Cash Flow |
USD MM |
|
|
|
LOM EBITDA |
USD MM |
|
|
|
LOM Free Cash Flow |
USD MM |
|
|
|
Note: Average annual figures represent the 12.7-year operating period. |
|
Table 3 : Sensitivity Analysis cont'd
|
After Tax |
Average Annual |
|||
Gold Price |
NPV5% |
IRR |
Payback |
EBITDA |
FCF |
(USD/oz) |
(USD M) |
( %) |
(years) |
(USD M) |
(USD M) |
|
( |
5 % |
10.4 |
|
|
|
|
8 % |
8.3 |
|
|
|
|
10 % |
6.9 |
|
|
|
|
13 % |
5.9 |
|
|
|
|
15 % |
5.2 |
|
|
|
|
18 % |
4.5 |
|
|
|
|
20 % |
4.0 |
|
|
|
|
21 % |
3.8 |
|
|
|
|
22 % |
3.6 |
|
|
|
|
24 % |
3.3 |
|
|
|
|
26 % |
3.0 |
|
|
|
|
27 % |
2.0 |
|
|
|
|
29 % |
2.0 |
|
|
|
|
31 % |
2.0 |
|
|
|
|
33 % |
2.0 |
|
|
Note: Average annual figures represent the 12.7-year operating period. |
|
Property Description, Location and Access
Oko is an advanced-stage gold development project, which straddles the Cuyuni-Mazaruni Mining Districts (administrative Region 7) in north central
In
The Project can be accessed via numerous methods: helicopter direct from
The climate is equatorial and humid. The Project has operated throughout the year without any interruptions related to the weather.
Mineral Resource Estimate
Measured and Indicated Mineral Resources ("M&I") total 64.6 million tonnes ("Mt") at an average gold grade of 2.05 grams per tonne ("g/t Au") for 4.27 million contained ounces of gold. Contained gold in the M&I category represents 73% of the global resource.
The MRE considers 397 diamond drill holes, 292 reverse circulation holes, and 59 trenches completed by Reunion Gold Corporation between
Table 4 : Mineral Resource Estimate
Category |
Tonnes (kt) |
Gold Grade (g/t) |
Contained Gold |
Pit Constrained Resource |
|||
Indicated |
64,115 |
2.06 |
4,237 |
Inferred |
8,107 |
1.87 |
488 |
UG Constrained Resource |
|||
Indicated |
491 |
1.85 |
29 |
Inferred |
11,510 |
3.01 |
1,116 |
Total OP and UG |
|||
Indicated |
64,606 |
2.05 |
4,266 |
Inferred |
19,617 |
2.54 |
1,603 |
These Mineral Resources are not Mineral Reserves as they have not demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimates. The lower cut-offs used to report open pit Mineral Resources are 0.30 g/t Au in saprolite and alluvium/colluvium, 0.313 g/t Au in transition, and 0.37 g/t Au in fresh rock. Underground Mineral Resources are reported inside potentially mineable volume and include below cut-off material (stope optimization cut-off grade of 1.38 g/t Au). A change in the reporting method for the underground part of the deposit explains the differences in tonnage and average grade between this PEA and the MRE published in |
Production Profile
The PEA outlines an average annual gold production profile of 353 thousand ounces ("koz") over the 12.7-year mine life. Total gold production is 4.5 million ounces with an average gold grade milled of 2.00 g/t Au, and metallurgical recovery of 92.8%.
The processing feed will be supplied by the open pit during the initial three years of commercial production. Starting in the fourth year of production, underground mining will contribute a significant tonnage of mineralized material.
Table 5 : Gold Production by Mil Feed Type
|
|
Underground |
Total OP + UG |
||||||
|
Material |
Grade |
Contained |
Material |
Grade |
Contained |
Contained |
|
Gold |
|
Milled |
Milled |
Gold |
Milled |
Milled |
Gold |
Gold |
Recovery |
Recovered |
Year |
(kt) |
(g/t) |
(koz) |
(kt) |
(g/t) |
(koz) |
(koz) |
( %) |
(koz) |
Year 1 |
6,368 |
1.63 |
334 |
40 |
1.97 |
3 |
336 |
94 % |
317 |
Year 2 |
6,933 |
1.54 |
343 |
67 |
2.09 |
4 |
348 |
93 % |
324 |
Year 3 |
6,714 |
1.58 |
340 |
286 |
2.63 |
24 |
365 |
93 % |
339 |
Year 4 |
6,054 |
1.41 |
275 |
946 |
2.39 |
73 |
347 |
94 % |
325 |
Year 5 |
4,655 |
1.46 |
219 |
1,345 |
3.18 |
138 |
357 |
93 % |
330 |
Year 6 |
4,405 |
1.51 |
213 |
1,595 |
3.43 |
176 |
389 |
93 % |
361 |
Year 7 |
4,432 |
1.46 |
208 |
1,568 |
3.16 |
159 |
368 |
93 % |
340 |
Year 8 |
4,260 |
1.86 |
255 |
1,562 |
3.19 |
160 |
416 |
93 % |
385 |
Year 9 |
3,455 |
1.72 |
192 |
1,545 |
3.08 |
153 |
344 |
93 % |
319 |
Year 10 |
3,489 |
1.90 |
213 |
1,511 |
2.96 |
144 |
357 |
93 % |
331 |
Year 11 |
3,518 |
2.31 |
261 |
1,482 |
3.37 |
161 |
422 |
93 % |
390 |
Year 12 |
3,572 |
2.23 |
256 |
1,428 |
3.45 |
158 |
415 |
93 % |
384 |
Year 13 |
2,406 |
3.04 |
235 |
1,125 |
3.66 |
132 |
367 |
93 % |
340 |
Total |
60,261 |
1.72 |
3,345 |
14,501 |
3.19 |
1,485 |
4,831 |
93 % |
4,484 |
Mining
The Project is planned as a mining operation that integrates both conventional open pit mining and mechanized long hole open stoping for the underground mine.
The main OP is centered on Block 4 with two smaller sub-pits positioned on the northern and southern extensions to the main pit. A total of 60.7 Mt of mineralized material will be mined from the OP at an average diluted gold grade of 1.72 g/t Au. 0.4 Mt of this material will be milled during the pre-production period. A total of 364.6 Mt of combined waste and overburden will be extracted, resulting in a strip ratio of 6.0x. The OP operation will be executed in 4 phases over 15 years, including 2 years of pre-production, with an owner-operated mining fleet.
The UG operation will take place in three zones: the main zone and two satellite zones, all accessible from a surface mine portal through the same main decline ramp. Long hole open stoping mining method will be used, including transverse stoping and longitudinal stoping variations. The average UG production rate is expected to be 4,250 tonnes per day ("tpd") of mineralized material, with 4,000 tpd and 250 tpd from stope production and lateral development, respectively. A total of 14.5 Mt of mineralized material is expected to be mined at an average diluted gold grade of 3.19 g/t Au. The UG mine is expected to be in production for 13 years, including a two-year development period. The initial 2 years of construction and development will use contract mining and transition to owner-operated mining thereafter.
Processing and Recovery
The proposed process plant design for Oko is based on a standard metallurgical flowsheet to treat gold bearing material and produce doré. The process plant is designed to nominally treat 6.0 Mtpy of fresh rock and will consist of comminution, gravity concentration, cyanide leach and adsorption via carbon-in-leach ("CIL"), carbon elution and gold recovery circuits. CIL tailings will be treated in a cyanide destruction circuit and pumped to a tailings storage facility.
The milling rate is initially set at 6.0 million tonnes per annum ("Mtpa") for hard rock but will be increased to 7.0 Mtpa when saprolite and transition materials are added. During the open pit operational period, the ramp-up period is 5 months. The mill will operate for 13 years.
Select key design criteria include crushing plant availability of 70%; grinding, gravity, CIL, gold recovery and tailings handling circuit availability of 92% through the use of standby equipment in critical areas, inline crushed material stockpile and reliable power supply; comminution circuit to produce a primary grind size of (P80) 80% passing 75 µm; and CIL residence time of 48 hours to achieve optimal gold extraction.
Table 6 : Metallurgical Recoveries
|
Feed |
Total |
Mill |
Feed Material |
Grade |
Recovery |
Feed |
Saprolite |
1.40 |
96 % |
10 % |
Transition |
1.47 |
95 % |
5 % |
Fresh Rock |
2.11 |
93 % |
85 % |
Total LOM |
2.00 |
93 % |
100 % |
Power
Plant site activities, including the process plant, UG mining, OP mine, and balance of plant infrastructure, will require an average of 37 megawatts ("MW") at full operation. The plant's full power consumption was benchmarked against similar projects, with OP mining and UG mining adjusted for processing throughputs.
The Project's base case scenario considers installing a dedicated Heavy Fuel Oil ("HFO") fired power plant. The power plant is anticipated to comprise six 9.4 MW engine generating sets ("genset"), totaling 56.4 MW installed capacity and 42.3 MW running capacity. This assumes that one of the generators would be on standby. One additional genset is planned in sustaining capital to allow for maintenance activities.
Alternative power supplies will be studied as part of the Feasibility Study, including using liquefied natural gas ("LNG") power plant.
Environmental and Permitting
Between 2022 and 2024, comprehensive physical, biological, and social baseline studies were conducted to support Project planning, including environmental assessments during both dry and wet seasons. These studies aim to identify potential concerns and recommend actions for effective Project design and regulatory compliance. The Project area is not a priority conservation site and does not overlap with any protected or Indigenous lands. Ongoing data collection will help refine Project design, identify potential environmental and social impacts, and contribute to the submission of an Environmental Impact Assessment ("EIA"). Future studies will also address additional project components such as power supply and road access.
The permitting process for the Oko involves obtaining environmental authorization from
The necessary permits covering the construction of the mine, processing plant, transmission line, port, HFO power generation, and access road, will be issued after the
Operating Costs
LOM operating costs are estimated at
Table 7 : Operating Cost and AISC Summary
Costs |
Unit Cost |
Unit Cost |
(USD/t milled) |
(USD/oz) |
|
Mining Costs - OP |
|
|
Mining Costs - UG |
|
|
Rehandle Costs |
|
|
Processing Costs |
|
|
Power Costs |
|
|
G&A Costs |
|
|
Transport & Refining |
|
|
Total Site Cost |
|
|
Royalty Costs |
|
|
Total Operating Costs |
|
|
Sustaining Capex |
|
|
Closure Costs |
|
|
Land Payments |
|
|
All-in Sustaining Costs ("AISC") |
|
|
Note: Total Cash Costs and AISC are non-GAAP measures and include royalties payable. |
|
Project Royalties
The PEA considers two federal government royalties:
- Underground Royalty: 3.0% of net smelter return of the mineral product.
- Open
Pit Royalty : 8.0% of net smelter return of the mineral product.
The production profile results in a blended royalty rate of 6.5%.
Capital Cost Estimates
The initial capital cost ("capex") is estimated to be
The total construction period, including the early works program, is forecast to be 28 months.
Table 8 : Capital Cost Summary
Initial CAPEX |
USD M |
100 - Infrastructure |
|
200 - Power & Electrical |
|
300 - Water Management |
|
400 - Surface Operations |
|
500 - Mining |
|
600 - Process Plant |
|
700 - Construction Indirects |
|
800 - General Services / Owner's Costs |
|
900 - Pre-Production, Start-up & Commissioning |
|
990 – Contingency (12%) |
|
Capital Costs |
|
Less: Pre-Prod. Credit net of TC/RC & Royalties |
( |
Total Capital Costs |
|
The sustaining capex is estimated to be
Table 9 : Sustaining Cost Summary
Sustaining Capex |
USD M |
USD/oz |
|
|
|
Underground (Initial capex) |
|
|
Underground |
|
|
Other |
|
|
Sustaining Capex |
|
|
Closure & Rehabilitation |
|
|
Total Sustaining Capex |
|
|
UG sustaining capex totals
Table 10 : Underground Sustaining Cost Summary
Underground Sustaining Capex |
USD M |
Lateral Development |
|
Mobile Equipment UG |
|
Construction UG |
|
Pre-Production UG |
|
|
|
Fixed Equipment UG |
|
Mobile Equipment UG Rebuild |
|
Other Equipment UG |
|
Total Underground Sustaining Capex |
|
Project Timetable and Next Steps
Corporate Timetable and Next Steps
Upcoming key milestones include:
- Q4-2024: Oko Exploration results
- Q4-2024:
Tocantinzinho Gold Mine ("TZ") exploration results - Q1-2025: TZ nameplate capacity
- Q1-2025: Oko Feasibility Study
- H1-2025: Oko Early Works and Construction Decision
- H2-2027: Oko Commissioning
- H1-2028: Oko Commercial Production
Preliminary Economic Assessment Study 3D VRIFY Presentation
To view a 3D VRIFY presentation of the Study please click on the following link: https://vrify.com/decks/16400 or visit the Corporation's website at www.gmin.gold.
Updated corporate presentation is available at: https://vrify.com/decks/14338.
Technical Report Preparation and Qualified Persons
The Study has an effective date of
GMS was responsible for the overall report and PEA coordination, property description and location, accessibility, history, mineral processing and metallurgical testing, mineral resource estimation, mining methods, recovery methods, project infrastructures, operating costs, capex, economic analysis and project execution plan. For readers to fully understand the information in this news release, they should read the technical report in its entirety, including all qualifications, assumptions, exclusions and risks. The technical report is intended to be read as a whole and sections should not be read or relied upon out of context.
The Qualified Persons ("QPs") are
The technical content of this press release has been reviewed and approved by the QPs who were involved with preparation of the Study. In addition,
About
Additional Information
For further information on GMIN, please visit the website at www.gmin.gold.
Cautionary Statement on Forward-Looking Information
All statements, other than statements of historical fact, contained in this press release constitute "forward-looking information" and "forward-looking statements" within the meaning of certain securities laws and are based on expectations and projections as of the date of this press release. Forward-looking statements contained in this press release include, without limitation, those related to t
he PEA results (as such results are set out in the various charts, figures, graphs, schedules and tables featured hereinabove, and are commented in the text of this press release), such as the Project's production profile, LOM, construction and payback periods, NPV, IRR (direct/indirect, before/after tax), startup capital costs, contingency, operating costs, AISC, sustaining capital costs, free cash flows, M&I resources, OP and UG mining phases, mill feed, milling process, recovery and output (for hard rock as well as saprolite), power supply arrangements and power consumption (and potentially available alternatives), and closure costs.
Forward-looking statements also include, without limitation, those related to (i) the job creation, (ii) the targeted ESIA submission (iii) the
Forward-looking statements are based on expectations, estimates and projections as of the time of this press release. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect. Such
assumptions include, without limitation, those underlying the items listed in the above section entitled "About
-
long-term consensus gold price at
$1,950 per ounce; - the USD:CAD foreign exchange rate;
-
low inflation environment and
Guyana's developing economy; - the various tax assumptions;
- the capital cost estimates being supported by budgetary quotes; and
-
the Project's permitting expectations, notably obtaining the
EPA authorization.
Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that, notably but without limitation:
- all permits necessary to build and bring Oko into commercial production will be obtained or, as applicable, reinstated;
- the price of gold environment and the inflationary context will remain conducive to bringing Oko into commercial production;
-
the business conditions in
Guyana will remain favorable for developing mining projects such as Oko; and - the Corporation will bring Oko into commercial production and that it will acquire any other significant gold assets.
In addition, there can be no assurance that, notably but without limitation, (i) the Corporation will use TZ as the flagship asset to grow GMIN into the next mid-tier precious metals producer and (ii)
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. Readers are cautioned not to place undue reliance on these forward-looking statements as a number of important risk factors and future events could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements and those made in the Corporation's other filings with the securities regulators of
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