G Mining Ventures Corp. (GMIN) has announced positive results from its Preliminary Economic Assessment (PEA) for the development of its wholly owned Oko West Gold Project, located in Guyana. The PEA, completed by G Mining Services Inc. (GMS) as lead consultant, confirms robust economics for a low-cost, large-scale, conventional open pit and underground mining and milling operation. The project is expected to have operating costs below industry averages and a high rate of return.
The PEA, based on a long-term consensus gold price of $1,950 per ounce, projects an after-tax NPV 5% of $1.4 billion and an IRR of 21%. The project is ideally positioned to benefit from GMIN’s regional footprint, development expertise, anticipated free cash flow from its in-production Tocantinzinho Gold Mine in Brazil, and historically high gold prices.
The Oko West Project is planned as a mix of conventional open pit mining and mechanized long hole open stoping for the underground mine. The open pit mine is expected to have a mine life of 15 years, while the underground mine is expected to have a mine life of 13 years. The project is expected to produce an average of 353,000 ounces of gold per year over the 12.7-year mine life, resulting in a total gold production of 4.5 million ounces.
The PEA also outlines the project’s capital cost estimates, which total $936 million after accounting for pre-production credits and a 12% contingency. The sustaining capex is estimated to be $574 million, including closure and rehabilitation costs.
GMIN is targeting an Environmental Impact Assessment (EIA) submission by year-end 2024. The company expects to obtain the necessary permits for construction after the EPA’s review, which is anticipated to take approximately six months after submission of the EIA.
The project is expected to create an average of 1,260 direct permanent jobs during its operational phase.
GMIN is currently anchored by the Tocantinzinho Gold Mine in Brazil and the Oko West Project in Guyana, both mining-friendly and prospective jurisdictions. The company is well-positioned to grow into the next mid-tier precious metals producer by leveraging strong access to capital and proven development expertise.
