G Mining Ventures Releases 2025 Production and Cost Guidance
G Mining Ventures Releases 2025 Production and Cost
Guidance
All amounts are in USD unless stated otherwise.
BROSSARD, QC
,
Jan. 21, 2025
/CNW/ -
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
.
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.
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For further information:
Jessie Liu-Ernsting, Vice President, Investor Relations and Communications, 647.728.4176,
CO: G Mining Ventures Corp
CNW 06:36e 21-JAN-25