G Mining Ventures reach construction decision for Tocantinzinho Gold

Highlights:

• Positive construction decision approved by the Board of Directors on Tocantinzinho Gold, with project to move forward with construction.
• Extension to key installation licenses received.
• Advancing procurement and commitments for long lead items, with US$136 million committed to date (29% of total) in line with budget, with detailed engineering 30% complete.
• Early works activities have been completed on time and on budget with no lost time incidents.
• Appointment of Mathieu Gignac as project director, Julie-Anaïs Debreil as vice-president geology & resources, and Eduardo Leão as sustainability manager.

Louis-Pierre Gignac, President & Chief Executive Officer, commented:

“GMIN was reorganised in October 2020 with the objective of building the next intermediate gold producer. In less than two years, the management team acquired a great project in TZ, released an updated feasibility study in February 2022, and completed a US$481 million comprehensive financing package in a turbulent and volatile capital markets environment. 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.

“The updated feasibility study from February 2022 incorporated many of the inflationary pressures seen in the industry, while still demonstrating very positive results of NPV5% of US$622 million and IRR of 24% using a US$1600 p/oz gold price. We are very pleased that the regulators agree with the high quality of our ongoing detail engineering work, and have approved several of the key permit extensions we had requested. Lastly, we welcome additional highly qualified team members with extensive relevant experience to continue to advance TZ. With this formal construction decision, we target commercial production at TZ in 2H24.”

Louis Gignac Sr., Chairman of the Board of Directors of GMIN, commented:

“The board of directors’ formal decision to begin construction on TZ reflects our confidence in the significant value that the project can bring to stakeholders in the state of Pará and all GMIN shareholders. The board also extends its gratitude to GMIN’s established supportive shareholders, as well as the new shareholders established through its recently completed financing package, with whom we are fully aligned to grow GMIN into the next intermediate gold producer, using TZ as the foundational asset.”

Read the article online at: https://www.globalminingreview.com/mining/14092022/g-mining-ventures-reach-construction-decision-for-tocantinzinho-gold/