(Kitco News) - G Mining Ventures (TSXV: GMIN) said today that its Board of Directors has made a formal decision to proceed with the construction of the Tocantinzinho gold project, located in Brazil.
Tocantinzinho is a permitted, construction ready, open-pit gold deposit containing 2.0 million ounces of reserves located in Para State, Brazil. Eldorado Gold acquired Tocantinzinho in 2010 through the $120 million acquisition of Brazauro Resources and invested over $90 million into the project prior to G Mining's $115 million acquisition in Q421.
The company said that an updated feasibility study from February 2022 incorporated many of inflationary pressures seen in the industry, while still demonstrating very positive results of NPV5% of $622 million and IRR of 24% using a $1,600 per ounce gold price.
Importantly, the company noted that the deposit is open at depth, and the large, underexplored land package presents an additional exploration potential that may yield satellite mineralized bodies.
President and CEO Louis-Pierre Gignac stated, "This construction decision is an important milestone which has been achieved by de-risking the technical, permitting and funding aspects, and that confirm the TZ project is both a robust and responsible development opportunity. We are happy to see step one of our "Buy, Build, Operate" strategy progressing as planned, and are excited to commence full construction of TZ, for what will be one of the largest primary gold mines in Brazil.
"We are very pleased that the regulators are in agreement with the high quality of our ongoing detail engineering work and have approved several of the key permit extensions we had requested."
The company also said it is advancing procurement and commitments for long lead items, with $136 million committed to date (29% of total) in line with budget, with detailed engineering 30% complete, adding that early works activities completed on time and on budget with no lost time incident.
|
| Equinox resumes operations at its Los Filos gold mine in Mexico |
