BROSSARD, QC, Jan. 21, 2025 /PRNewswire/ - G Mining Ventures Corp. ("GMIN" or the "Corporation") (TSX: GMIN) (OTCQX: GMINF) announces its 2025 operational and cost guidance for Tocantinzinho Gold Mine ("TZ"), along with planned capital expenditures to progress the Oko West Gold Project ("Oko West") in Guyana and the Gurupi exploration Project ("Gurupi") in Brazil.
G Mining Ventures logo (CNW Group/G Mining Ventures Corp)
Highlights Production, unit cost and capital expenditure guidance for the full year 2025 are outlined in the table below.
Figure 1:Full Year 2025 Operational and Cost Guidance
Operational & Cost Guidance
2025
Tocantinzinho Gold Mine
Gold Production
k oz
175 to 200
Total Cash Costs
$/oz Au sold
$590 to $655
All-in Sustaining Costs 1,2
$/oz Au sold
$995 to $1,125
Sustaining Capital Expenditures
Sustaining
M$
$35 to $45
Near-mine exploration
M$
$2
Capitalized Waste Stripping
M$
$23
Total Sustaining
M$
$60 to $70
Non-Sustaining Capital Expenditures
TZ Regional Exploration
M$
$9
Oko West Exploration
M$
$8
Oko West Project Development
M$
$200 to $240
Gurupi Project
M$
$2 to $4
Total Non-Sustaining
M$
$219 to $261
1.
See the non-IFRS financial measures section.
2.
Guidance assumes a realized gold price of $2,350 and BRL/USD of 5.25
"We expect to build on GMIN's 2024 operational success in the year ahead, as TZ ramps up throughput, reaching nameplate capacity early in the year, generating meaningful free cash flow to advance development activities at Oko West," commented Louis-Pierre Gignac, President & Chief Executive Officer, "TZ will remain our focus in 2025 but will be complemented by Oko West development initiatives, including permitting and early works activities. We plan to increase our investment in greenfield and brownfield exploration across our portfolio to uncover low-cost, high-value ounces."
Tocantinzinho Gold Mine
The Corporation is focused on ramping up production and controlling operating costs at TZ. Annual gold production at TZ is forecasted to range between 175,000 and 200,000 ounces. The mill is expected to operate at its nameplate capacity of 12,890 tonnes per day, processing a blend of fresh rock and softer ores, as successfully demonstrated in 2024. Gold output is anticipated to be higher in the second half of the year (56% of the total) as higher-grade mineralization becomes accessible according to the mine plan. The grade segregation and low-grade stockpiling strategy will remain in place in 2025 to manage excess ore mined. Furthermore, in Q1 2025, we aim to complete the installation of an advanced process control system to enhance the efficiency of the grinding and flotation processes at the plant.
Cash Costs and All-in-Sustaining-Costs ("AISC") are expected in the ranges of $590 and $655 per ounce sold and $995 and $1,125 per ounce sold, respectively. The midpoint of cost guidance assumes an average Brazilian Real ("BRL") to US dollar exchange rate of 5.25 for the full year. Approximately 75% of costs are denominated in local currency. The AISC incorporates three years of inflation since the publication of the Feasibility Study, includes corporate costs, and reflects timing variations in sustaining capital expenditures. Mining and processing costs primarily align with standard inflationary trends, while general and administrative ("G&A") costs have increased beyond the Feasibility Study estimates due to higher camp and site service expenses, as well as an expanded G&A team headcount.
Total sustaining capital expenditures for 2025 are projected at $60 to $70 million, which includes $23 million for capitalized stripping and $2 million for near-mine exploration. The near-mine exploration, included in sustaining capital (AISC), encompasses approximately 5,600 meters of drilling to test depth extensions of the deposit and further delineate the northwest extension explored in 2024.
Sustaining capital expenditures, excluding capitalized waste stripping, are estimated at $35 to $45 million. This includes $20 million for mining equipment, $10 million for major components of the mobile fleet, $4.5 million for tailings management, and additional minor expenditures related to the process plant and other capital items.
Regional exploration in the Tapajos within the mining concession and surrounding claims is classified as non-sustaining and excluded from AISC. A budget of $9 million is planned for 2025 to test 23 targets within a 5km radius with the primary goal to identify additional deposits.
Oko West Project
This year, the focus is advancing the Oko West Gold Project by progressing permitting activities to secure a full environmental license from the Guyana Environmental Protection Agency. In the meantime, with the interim environmental permit already in hand, the plan is to commence early works, including site preparation, earthworks, and the construction of the barge landing, permanent camp facilities, and other support infrastructure. To align with the project delivery timeline, the procurement of long-lead items including grinding mills, primary crusher, power generators and mobile equipment fleet will also be initiated. A total budgeted expenditure of $200M to $240M has been allocated, part of the project's initial capital cost. This expenditure is funded by cash on hand and free cash flow generated from TZ.
The Feasibility Study, scheduled for publication in Q2 2025, will feature updated mineral resource and mineral reserve estimates. A favorable outcome from the study, combined with the receipt of final permits, is anticipated to support an official construction decision.
To support the objective of expanding the mineral resource inventory to improve future mine plans and extend the mine's operational life, the Oko West exploration program has been allocated a budget of $8 million. The program focuses on increasing resources within the pit footprint, exploring underground mineralization in Blocks 5 and 6, evaluating additional mineralized saprolite material, and identifying new deposits across the land package.
Gurupi Project
The primary objective at the Gurupi Project is to restart exploration activities this year to expand mineral resources. The plan is also to strengthen relationships with government agencies and regional stakeholders. Exploration efforts will focus on data compilation and interpretation, machine learning-based core relogging, conducting a high-resolution survey across 720 km² of highly prospective terrain, and completing soil sampling on targeted areas. These activities aim to prioritize exploration targets and streamline GMIN's future efforts. Additionally, in Q1 2025, the Corporation plans to release a NI 43-101 compliant mineral resource estimate for the Contact, Blanket, and Chega Tudo deposits. A budget of $2 to 4 million has been allocated for the project.
The guidance ranges reflect the Corporation's operating plans, which include known risks and uncertainties. Unit costs are calculated based on planned production volumes, and variances from estimated production ranges may impact unit costs.
2025 Catalysts
Over 2025, the Corporation will focus on the following activities:
Commencement of early works at Oko West (Q1-2025)
Oko West FS publication (Q2-2025)
Oko West financing (Q2-2025)
Formal construction decision on Oko West (H2-2025)
Continuation of detailed engineering at Oko West (2025)
Greenfield and brownfield exploration (2025)
About G Mining Ventures Corp.
G Mining Ventures Corp. (TSX: GMIN) (OTCQX: GMINF) is a mining company engaged in the acquisition, exploration and development of precious metal projects to capitalize on the value uplift from successful mine development. GMIN is well-positioned to grow into the next mid-tier precious metals producer by leveraging strong access to capital and proven development expertise. GMIN is currently anchored by the Tocantinzinho Gold Mine in Brazil and Oko West Gold Project in Guyana, both mining friendly and prospective jurisdictions.
Additional Information For further information on GMIN, please visit the website at www.gmin.gold
Cautionary Statement on Forward-Looking Information All statements, other than statements of historical fact, contained in this press release constitute "forward-looking information" and "forward-looking statements" within the meaning of certain securities laws and are based on expectations and projections as of the date of this press release. Forward-looking statements contained in this press release include, without limitation, those related to (i) the beginning of site preparation and early works construction activities at Oko West all data set out in Figure 1 of this press release; (ii) the TZ mill being expected to operate at nameplate capacity enumerated activities to be advanced during H1-2025; (iii) higher-grade mineralization becoming accessible at TZ in 2025; (iv) the expected enhancement of the TZ grinding and flotation processes; (v) the securing of a full environmental license for Oko West from the Guyana Environmental Protection Agency; (vi) the commencement of early works at Oko West, and of procurement of long-lead items; (vii) the publication of a Feasibility Study for Oko West in Q2 2025, featuring updated mineral reserves and resources; (viii) the restart of exploration activities at Gurupi; (ix) the release of a NI 43-101 compliant mineral resource estimate for Gurupi; * the quoted comments of GMIN's President & Chief Executive Officer; (iv) the above-described steps under which the EPA will reach its final decision (e.g., comment period, disclosure meetings);and (xiv) the above-listed development catalysts at Oko West; and (vi) more generally, the section entitled "About G Mining Ventures Corp.".
Forward-looking statements are based on expectations, estimates and projections as of the time of this press release. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect. Such assumptions include, without limitation, those relating to the price of gold and currency exchange rates (notably the BRL/USD exchange rate), those outlined in the ESIA and those underlying the data set out in Figure 1 of this press release as well as the items listed in the above section entitled "About G Mining Ventures Corp.".
Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that, notably but without limitation, (i) receiving the IEP and the "No Objection" letter will guarantee the issuance of the final environmental permit for Oko West GMIN's 2024 operational success at TZ will be repeated in 2025, or (ii) TZGMIN will generate sufficient free cash flow to advance the Oko West Project above-listed activities contemplated for H1-2025 on a timely basis, or (iii) near-mine exploration at TZ or regional exploration in the Tapajos area will yield positive results the above-listed development catalyst at Oko West will materialize as contemplated, or (iv) the EPA process to issue and deliver the final environmental permit for Oko West Feasibility Study will prove positive and the final permits will be obtained unfold as contemplated, or (v) an official construction decision for Oko West will be made in 2025, or (vi) the Oko West exploration program will lead to expanding its mineral resource inventory, or (vii) the relationships with government agencies and stakeholders will be strengthened as regards Gurupi, or (viii) the exploration efforts at Gurupi will prove fruitful, or (ix) more generally, GMIN will achieve its stated objectives for TZ and Oko West or use TZ and Oko West to grow GMIN into the next mid-tier precious metals producer, as future events could differ materially from what is currently anticipated by the Corporation. In addition, there can be no assurance that Brazil and/or Guyana will remain mining friendly and prospective jurisdictions.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. Readers are cautioned not to place undue reliance on these forward-looking statements as a number of important risk factors and future events could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements and those made in the Corporation's other filings with the securities regulators of Canada including, but not limited to, the cautionary statements made in the relevant sections of the (i) Annual Information Form of G Mining TZ Corp. (then known as G Mining Ventures Corp.) dated March 27, 2024, for the financial year ended December 31, 2023, (ii) Annual Information Form of G Mining Guyana Corp. (then known as Reunion Gold Corporation) dated April 25, 2024, for the financial year ended December 31, 2023, and (iii) Management Discussion & Analysis. The Corporation cautions that the foregoing list of factors that may affect future results is not exhaustive, and new, unforeseeable risks may arise from time to time. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
