GCM Mining delivers robust PEA for Toroparu gold and copper project in Guyana, with $1.7 billion free cash flow
(Kitco News) - GCM Mining (TSX: GCM, OTCQX: TPRFF) today announced positive preliminary results of a Preliminary Economic Assessment ("PEA") for the Toroparu Project in Guyana, which is one of the largest undeveloped gold/copper projects in the Americas.
The company said that the PEA affirms the economic viability of the open pit and underground mining operations at the Toroparu Project.
The PEA assumes total life-of-mine ("LoM") gold production of 5.4 million ounces ("Mozs") representing 88.4% of the 6.2 Mozs of gold fed to the milling circuit at an average grade of 1.78 g/t Au over the 24-year mine life. Average annual gold production is 225,000 ounces over the 24-year mine life.
The copper concentrator will facilitate the recovery of 141.3 million pounds ("Mlbs") of copper over its 19 years of operation, the company added.
According to a press-release, the PEA delivers solid financial results with LoM total revenue of US$8.0 billion, US$3.5 billion of operating margin and US$1.7 billion of after-tax free cash flow.
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The LoM PEA financial results are based on long-term prices of US$1,500/oz gold, US$20.22/oz silver and US$3.13/lb copper. LoM cash cost is US$742/oz and LoM all-in sustaining cost ("AISC") is US$916/oz.
The PEA estimates a US$794 million after-tax NPV5%, a 46% IRR and a two-year after-tax payback of the initial capital cost of the project.
Additionally, the company announced updated Mineral Resource Estimate for Toroparu of 8.4 Mozs Measured and Indicated gold resource at 1.42 g/t and 396 Mlbs Measured and Indicated copper resource at 0.1% in 185 million tonnes of rock.
GCM Mining is a mid-tier gold producer focused on Latin America. In Colombia, the company is currently the largest underground gold and silver producer with several mines in operation at its high-grade Segovia Operations. In Guyana, the company is advancing the Toroparu Project, one of the largest undeveloped gold/copper projects in the Americas.