G Mining greenlights $973M Guyana gold mine
Canada’s G Mining Ventures (TSX: GMIN) said it’s going ahead with construction of the $973 million Oko West mine in Guyana that’s expected to start pouring gold in two years.The capital expenditure budget, which includes an 8.8% contingency, matches the amount outlined in the project’s pre-feasibility study, G Mining said Thursday. The decision to build follows the receipt of environmental permits and the conclusion of a financing package earlier this month.Oko West, located about 120 km southwest of Guyana’s capital Georgetown, is one of two projects that Brossard, Quebec-based G Mining is counting on to anchor future output. The other, Brazil’s Tocantinzinho, started producing gold in September 2024, with the company already booking cash flow.“With strong economics at spot prices, we see Oko West offering compelling valuation upside for G Mining as development and eventual construction milestones are met,” RBC Capital Markets mining analyst Michael Siperco said Thursday in a note to clients.On scheduleG Mining shares rose 1.8% to C$28.78 in Toronto Stock Exchange trading Thursday morning, boosting the company’s market value to about C$6.5 billion ($4.6 billion). The stock has traded between C$10 and C$34.80 in the past year.Earthworks, procurement and detailed engineering work at Oko West began before the formal go-ahead decision was made. Early works construction activities are advancing on schedule, and detailed engineering is 36% complete, G Mining said. Some $334 million has been committed to project construction so far, representing about one-third of the total budget.“The official launch of construction at Oko West marks a major milestone in G Mining’s evolution into an intermediate gold producer,” CEO Louis-Pierre Gignac said in the statement. “With financing secured, we are advancing this fully permitted, world-class project using the same disciplined, self-perform approach that delivered Tocantinzinho safely, on time and on budget. Oko West will build on that success as the next cornerstone of our growth strategy, with first gold targeted for the second half of 2027”.Oko West’s exploration camp is being expanded to 425 beds, and the first of two permanent dorms should be completed this month, G Mining said. A barge-accessible satellite camp has already been built.Some 710 people, 80% of whom are Guyanese nationals, are working on the mine’s construction.New roadAbout 15% of the site has been cleared, according to the company. A 12-km external road, which will reduce travel time by three hours on a return trip, is now operational.Oko West will integrate both conventional open pit mining and mechanized long-hole open stoping for the underground mine.Indicated mineral resources at Oko West total 80.3 million tonnes grading 2.1 grams gold per tonne for 5.4 million oz. of contained metal, G Mining said earlier this year. Gold contained in the indicated category represents 93% of the global resource. Inferred resources total 5.1 million tonnes grading 2.36 grams gold for about 400,000 oz. of contained metal.At a 5% discount rate, Oko West would generate a post-tax net present value (NPV) of $2.2 billion and a post-tax internal rate of return of 27%, G Mining said in April. That’s a 58% improvement in NPV compared with the preliminary economic assessment that the company issued in September 2024. G Mining envisions a payback period of 2.9 years if gold averages $2,500 per ounce.Weiter zum vollständigen Artikel bei Mining.com
Quelle: Mining.com
