G Mining Ventures Delivers Robust New Feasibility Study at Permitted Tocantinzinho GOLD Project
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February 9, 2022 TSXV:GMIN
G MINING VENTURES DELIVERS ROBUST NEW FEASIBILITY STUDY
AT PERMITTED TOCANTINZINHO GOLD PROJECT
All amounts are in USD unless stated otherwise
o Feasibility Study reflects optimized development plan and current cost environment
o After-tax NPV5% of $622 million and after-tax IRR of 24% at $1,600/oz gold price
o 10.5-year mine life with average annual gold production of 174,700 ounces at AISC of $681/oz
o Years 1-5: Average annual gold production of 196,200 at AISC of $666/oz
o A 12% increase in mineral reserves to 2.0 million gold ounces
o A 7% increase in initial capital to $4 58 million and 4 4% decrease in sustaining capital to $83 million,
resulting in an overall 4% decrease in LOM capital costs to $564 million
o Launch of project financing process targeting 60% to 70% from non-equity sources, with target start of
construction in mid-2022
o Well-funded with $58 million of cash and $27 million of in the money warrants maturing in Q2-22i
BROSSARD, QC – February 9, 2022 - G Mining Ventures Corp. (“GMIN” or the “Corporation”) is pleased to
announce the results of its 2022 Feasibility Study (the “FS” or the “Study”) for the development of its wholly-
owned and permitted Tocantinzinho Gold Project, located in Para State, Brazil (“TZ” or the “ Project”). The
Study replaces the 2019 Feasibility Study (the “2019 FS”) completed by Eldorado Gold Corporation (“ELD”),
with updated mineral resource and mineral reserve estimates, re-sequenced mine plan, refined mill designs,
and updated current capital and operating cost estimates.
The FS confirms robust economics for a low cost, large scale, conventional open pit mining and milling
operation, with industry leading operating costs and high rate of return. The Study outlines total gold
production of 1.8 million gold ounces over 10.5 years, resulting in an average annual gold production profile
of 174, 700 ounces with an All -In-Sustaining Cost (“ AISC”) per ounce of $ 681. The Project after -tax net
present value (“ NPV”) (5% discount rate) is $ 622 million with an after -tax internal rate of return (“ IRR”) of
24% at a gold price of $1,600 per ounce, and $833 million and 29% at a spot gold price of $1,800 per ounce.
Louis-Pierre Gignac, President & Chief Executive Officer of GMIN, commented: “The Feasibility Study
builds on previous technical work while incorporating several improvements and optimization s, notably to
the pit design , production schedule, process plant design and support infrastructures . The capital and
operating cost estimate s rely on recent budgetary quotes reflecting the current cost environment and our
project execution approach . Our procurement strategy is to favor sourcing from in-country manufacturers
where possible to maxim ize local benefits and benefit from simplified logistics. The Project provides an
attractive gold production profile of approximately 175,000 ounces per year over a 10.5 year mine life ,
making it one of the premier gold development projects in Brazil and a key socio-economic contributor to the
Tapajos Region of P ara State. Factoring recent inflationary pressure seen within the industry from a new
project perspective, GMIN has delivered a study that highlights a very attractive rate of return. Our
experience and expertise, proven in recent successful mine developments for Newmont and Lundin Gold, will
play a key role as capital is deployed to deliver on these economics.”
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Table 1: Key Economic Outputs of the Study
Description Units GMIN
2022 FS 2019 FS
Production Data (Operations Period)
Mine Life years 10.5 10.0
Average Milling Throughput tpd 12,587 11,890
Average Milling Throughput MMt / year 4.6 4.3
Strip Ratio waste : ore 3.4 3.7
Pre-Strip Tonnage Mt 17.1 22.7
Total Tonnage (exclusive of pre-strip) Mt 194.9 164.6
Ore Tonnage Milled Mt 48.3 40.0
Gold Head Grade g/t 1.31 1.41
Contained Gold koz 2,036 1,817
Recovery % 90.1% 89.5%
Total Gold Production koz 1,834 1,625
Average Annual Gold Production koz 175 163
First Five Full Years koz 196 187
Operating Costs (Average LOM)
Mining Cost USD/t mined $2.36 $2.77
Mining Cost USD/t milled $9.51 $11.41
Processing Cost USD/t milled $8.83 $9.03
G&A Cost USD/t milled $3.13 $2.99
Total Site Costs USD/t milled $21.48 $23.43
Total Site Costs USD/oz $565 $577
Total Operating Costs / Cash Costs USD/oz $623 $633
AISC USD/oz $681 $735
Capital Costs
Initial Capital USD MM $427 $400
Life of Mine Sustaining Capital USD MM $71 $129
Closure Costs USD MM $24 $27
Capital Costs before Tax USD MM $522 $556
Net Taxes Payable USD MM $42 $35
Total Capital Costs USD MM $564 $590
Financial Evaluation
Gold Price Assumption USD/oz $1,600 $1,500
USD:BRL FX Assumption x 5.20 4.00
After-Tax NPV5% USD MM $622 $409
After-Tax IRR % 24.2% 19.7%
Payback Years 3.2 3.4
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Figure 1: Average Annual Gold Production and Operating Costs
Table 2: Sensitivity Analysis
Scenario
Downside
Gold Price
Case
Base
Case
Spot
Gold Price
Case
Upside
Gold Price
Case
Gold Price USD/oz $1,400 $1,600 $1,800 $2,000
After-Tax NPV5% USD MM $410 $622 $833 $1,044
After-Tax IRR % 19% 24% 29% 34%
LOM Free Cash Flow USD MM $744 $1,043 $1,343 $1,642
LOM EBITDA USD MM $1,437 $1,792 $2,147 $2,502
Payback Years 3.7 3.2 2.7 2.3
93
203
163
206
233
175
137
180
209
163
70
-
$200
$400
$600
$800
$1,000
$1,200
-
50
100
150
200
250
300
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
Costs (USD/oz)
Production (koz Au)
Gold Recovered Total Cash Cost AISC
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FS Overview
The Corporation retained G Mining Services Inc. (“ GMS”) and SRK Consulting Canada Inc. (“ SRK”) as lead
consultants, along with other engineering consultants, to complete the Study and prepare a technical report
in compliance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”).
Property Description, Location, and Access
The Project is an advanced -stage development gold project located in Pará State, Brazil, 200 km south -
southwest of the city of Itaituba, 108 km from the Mora es de Almeida district, and 1,150 km southwest of
Belém, capital of Pará State. The climate in northwestern Brazil is tropical, with a rainy season from January
to April and a dry season extending from June to December. The average annual precipitation is
approximately 1,957 mm. The land tenure totals 99,574 hectares (996 km2) and is comprised of two mining
concessions covering an area of 12,889 hectares (129 km2), 23 exploration licenses covering an area of
76,116 hectares (761 km2), and two applications for exploration licenses covering 10,569 hectares (106 km2).
The Project is accessible by road via a 72 -km municipal dirt road connecting to the Transgarimpeira State
Road which connects to the Federal BR-163 Cuiaba-Santarem paved highway; the dirt road was built by ELD
prior to the sale of the Project. Air access is via an existing 775m long airstri p; a new 1,300m long airstrip
capable of landing larger planes is planned that will be used for personnel, priority supplies, medical
emergencies and exporting gold. At the Project site , there is an existing exploration camp with a capacity of
about 90 beds complete with kitchen, recreation room, clinic, fuel storage, core shacks, and office space.
Figure 2: Project Location Map
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Mineral Resource Estimate
Measured and Indicated Resources (“M&I”) total 48.1 million tonnes (“Mt”) at an average gold grade of 1.3 6
grams per tonne (“g/t”) for 2,102,000 contained ounces of gold (inclusive of Mineral Reserves) as of December
10, 2021. Contained gold in the M&I category represents 97% of the global resource. The Mineral Resource
Estimate for the Project is effectively unchanged from the estimate incorporated into the 2019 FS. SRK was
commissioned to audit the mineral resource model prepared in the 2019 FS , to audit the surface garimpeiro
tailings mineral resource model prepared by GMS (2021) , and to assume the Qualified Person responsibility
for these mineral resource models.
The mineral resource model only considers work completed by previous operators and consists of 78 core
boreholes (22,134 metres) drilled during February 2004 to September 2008, and 74 core boreholes (22,030
metres) drilled during September 2008 to December 2010. In ad dition, some 155 tailing boreholes (1,594
metres) drilled in 2011 and 2014 were considered for the tailings mineral resource model.
Table 3: Mineral Resource Estimate
Classification Tonnes
(kt)
Grade Gold
(g/t)
Contained Gold
(koz)
Measured 17,609 1.49 841
Indicated 30,505 1.29 1,261
Total M+I 48,114 1.36 2,102
Inferred 1,580 0.99 50
Note: Mineral resources are not mineral reserves and have not demonstrated economic viability. All figures are rounded to reflect the relative accuracy
of the estimates. Assays were capped where appropriate. Open pit mineral resources are reported at a cut-off grade of 0.30 g/t gold. The cut-off grades
are based on a gold price of US$1,600 per troy ounce and metallurgical recoveries of 78% for gold in saprolite rock, 90% for gold in granite fresh rock,
and 82% for gold in artisanal miner tailings. Effective date of this estimate is December 10, 2021.
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Mineral Reserve Estimate
The Project mine plan is based on Proven and Probable Mineral Reserves of 48.7 Mt at an average gold grade
of 1.31 g/t for 2,042,000 contained ounces of gold as of December 10, 2021. The contained gold in the proven
category represents 41% of the total ore reserve estimate, and the Mineral Reserves almost represent 100%
of the Mineral Resource. The saprolite and garimpeiro tailings represent only 5% of the ore reserve contained
gold (or 6% of tonnage) with the granite fresh rock being the main material type at 95% of contained gold (or
94% of tonnage).
The Proven and Probable ore reserves are inclusive of mining dilution and ore loss. The external mining
dilution around the ore blocks results in a dilution tonnage of 2.6 Mt @ 0.11 g/t, entailing a mining dilution of
5.5%.
For mine planning purposes, GMS built a sub -blocked model for the tailings and the contact between the
models using a SMU block size of 1 m x 1 m x 1 m and the remainder of the orebody using a SMU block size of
10 m x 10 m x 10 m in line with a bulk mining approach and appropriate to the style of mineralization.
Table 4: Mineral Reserve Estimate
Classification Tonnes
(kt)
Grade Gold
(g/t)
Contained Gold
(koz)
Proven 17,973 1.46 842
Probable 30,703 1.22 1,200
Total P&P 48,676 1.31 2,042
Notes: CIM definitions were followed for mineral reserves. Mineral reserves are estimated for a gold price of $1,400/oz. Mineral reserve cut-off grade
of 0.36 g/t. A dilution skin width of 1 m was considered resulting in an average mining dilution of 5.5%. Bulk density of ore is variable with an average of
2.67 t/m3. The average strip ratio is 3.4:1/ Numbers may not add due to rounding. Effective date of this estimate is December 10, 2021.
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Production Profile
The Study outlines an average annual gold production profile of 174,700 ounces over the 10.5 years of mine
life, with Year 1 as partial year considering 6 months of commercial production. Total gold production is 1,838
koz with an average gold grade milled of 1.31 g/t, and metallurgical recovery of 90%. Included in this total is
4 koz of gold recovered during pre-production with the balance of 1,834 koz during commercial production.
Figure 3: Gold Production Profile
Year
1
Year
2
Year
3
Year
4
Year
5
Year
6
Year
7
Year
8
Year
9
Year
10
Year
11
Ore Milled (kt) 2,236 4,705 4,705 4,705 4,705 4,705 4,705 4,705 4,552 4,340 4,222
Grade Milled (g/t) 1.47 1.48 1.19 1.51 1.71 1.29 1.02 1.33 1.58 1.29 0.57
Contained Gold (koz) 106 224 180 228 258 196 154 201 232 180 78
Recovery 88% 91% 90% 90% 90% 90% 89% 90% 90% 91% 91%
Gold Recovered (koz) 93 203 163 206 233 175 137 180 209 163 70
93
203
163
206
233
175
137
180
209
163
70
1.33
1.48
1.19
1.51
1.71
1.29
1.02
1.33
1.58
1.29
0.57
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
0
50
100
150
200
250
300
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
Grade Milled (g/t Au)
Production (koz Au)
Gold Recovered Grade Milled
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Mining
Mining is contemplated as a conventional open pit operation using 16.5 m3 hydraulic excavators and fleet of
92 t mine trucks. A bulk mining approach is well suited for the massive ore body with mining to take place on
10 meter (“m”) high benches. The mine is planned as an owner mining operation with blasting activities to be
outsourced.
The mine consists of a single open pit that will be developed in four phases, which allows for deferral of waste
stripping over the mine life and maximizing mill feed grade during the earlier years with an objective of
optimizing the production schedule and resulting economics.
Table 5: Mining Physicals Summary by Phase
Summary by Mining Phase Unit Total Phase 0 Phase 1 Phase 2 Phase 3
Length of Phase years 11.0 1.0 1.3 3.4 5.3
Strip Ratio W:O 3.4 2.1 1.3 2.6 5.4
Total Tonnage kt 212,067 5,273 16,220 84,166 106,407
Waste Tonnage kt 163,391 3,576 9,135 60,788 89,891
Rock Tonnage kt 133,185 2,021 5,237 47,513 78,415
Saprolite Tonnage kt 29,715 1,474 3,644 13,122 11,475
Tailings Tonnage kt 491 81 254 153 2
Ore Tonnage kt 48,676 1,697 7,085 23,378 16,516
Gold Grade g/t Au 1.31 1.00 1.41 1.30 1.30
Contained Gold koz 2,042 55 320 979 688
2.7
7.0
14.9
25.9 26.0 25.0
27.5
24.8
21.4
19.6
12.0
5.3
-
5
10
15
20
25
30
(Year 2) (Year 1) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Tonnage Mined (Mt)
Phase 0 Phase 1 Phase 2 Phase 3