Mining
Monday, September 12th, 2022 9:15 am EDT
“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,” G Mining CEO Louis-Pierre Gignac said in a media release.
“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.”
Tocantinzinho is an open-pit gold deposit located on an underexplored land package covering nearly 1,000 square kilometres. The property has direct access via 103 km of all-weather roads starting from the national highway, the BR-163, that links the industries in southern Brazil to the city of Belem in the north.
The history of Tocantinzinho dates back to the 1970s. The property is located in the Tapajos region, the site of the largest gold rush in history that took place from the late 1970s until the late 1990s. According to the Brazilian Department of Mineral Production, the region had a total historical production of between 20 and 30 million oz. of placer gold.
After trading hands through different corporates, it was acquired by Eldorado Gold in 2010, which has since invested $90 million into the project.
In late 2021, G Mining acquired the Tocantinzinho project for $115 million, and shortly after published an updated feasibility study, showing an after-tax net present value (at 5% discount) of $622 million and internal rate of return of 24.2%.
Over a mine life of 10.5 years, the TZ project is expected to produce 1.83 million oz. of gold, averaging 175,000 oz. per year. Over the first five years, annual gold production is expected to reach 196,000 oz. Its initial capital cost is estimated at $427 million, with another $71 million in life of mine sustaining capital.
To date, G Mining has committed $136 million (29% of total budget) on major equipment required for the process plant and mining. Detailed engineering is 30% complete and on track to service construction with all required drawings to start execution.
This post has been syndicated from a third-party source. View the original article here.
