G Mining Ventures to Acquire the CentroGold Project from BHP GMIN to acquire the CentroGold Project in Brazil's prospective Gurupi Gold Belt from BHP CentroGold contains 1.7 million ounces of indicated and 0.6 million ounces of inferred JORC-compliant gold resource
G Mining Ventures to Acquire the CentroGold Project
from BHP
GMIN to acquire the CentroGold Project in
Brazil's
prospective Gurupi Gold Belt from BHP
CentroGold contains 1.7 million ounces of indicated and 0.6 million ounces of inferred JORC-compliant gold resource
that is open for expansion in all directions and at depth
District-scale land package comprises 47 tenements covering ~1,900 km
2
and offers potential for multiple new
discoveries
CentroGold to provide long-term growth following Tocantinzinho ramp-up and
Oko West
development
Accretive transaction adds to GMIN's project pipeline with no upfront cost
BROSSARD, QC
,
Sept. 9, 2024
/CNW/ -
G Mining Ventures Corp.
("
GMIN
" or the "
Corporation
") (TSX: GMIN)
(OTCQX: GMINF) is pleased to announce that it has entered into a purchase and sale agreement to acquire tenements in
the Gurupi Gold Belt from wholly-owned subsidiaries of BHP Group Limited ("
BHP
") (ASX: BHP, NYSE: BHP, LSE: BHP,
JSE: BHG). This includes the CentroGold Project ("
CentroGold
" or the "
Project
"). In consideration for the acquisition,
GMIN will grant BHP a 1.0% NSR royalty on the first 1 million ounces of gold produced at the tenements and a 1.5% NSR
royalty on gold production thereafter (the "
Transaction
").
CentroGold is in the state of Maranhão, located in northern
Brazil
, and comprises 47 tenements encompassing ~1,900
square kilometers ("
km
2
"). The Project hosts multiple identified gold targets along a +80 km mineralized trend, including
the Blanket, Contact and Chega Tudo open pit deposits, which currently host 2.3 million ounces of JORC-compliant gold
resources and remain open for expansion. In
July 2019
, Oz Minerals Limited ("
Oz Minerals
"), which was later acquired by
BHP in 2023, released a pre-feasibility study on the Blanket and Contact deposits. The pre-feasibility study envisioned a
10-year mine life with an average annual gold production of 100,000 to 120,000 ounces per year, with 190,000 to 210,000
ounces of gold per year in the first two years of production.
GMIN views the Project as an advanced-stage exploration asset with extensive exploration and engineering work
completed to date, which includes over 135,000 meters of exploration core drilling. The Project's size, scope, and
development timeline will be redesigned to suit GMIN's long-term growth plans, ensuring resources are allocated in line
with our strategy of maximizing value for all stakeholders. GMIN intends to build on CentroGold's existing geologic model
and redesign the Project from first principles to better fit today's new permitting requirements and economic environment.
Shortly after the Transaction's closing, GMIN plans to update the JORC-compliant gold resource to meet National
Instrument 43-101 – Standards of Disclosure for Mineral Projects ("
NI 43-101
"). The current corporate priorities that will
take precedence are ramping up the Tocantinzinho Gold Mine in
Brazil
to nameplate capacity and advancing the Oko West
Gold Project in
Guyana
toward a construction decision in H2-25.
Louis-Pierre Gignac
, President & Chief Executive Officer
, commented: "
We are excited to acquire another
prospective project and begin to grow into the multi-asset growth company we always envisioned to become. CentroGold
boasts an attractive starting resource base on a large land package that covers ~1,900 km
2
with significant exploration
upside, located within a proven geological belt. This acquisition rounds out a high-quality portfolio of gold assets, which
includes a producing mine in Tocantinzinho, a development project in
Oko West
, and a high-potential exploration project
in CentroGold. I believe this cash-flowing and high-growth portfolio offers our shareholders tremendous opportunity for
value creation."
Du
š
an Petkovi
ć
, Senior Vice President, Corporate Strategy
, commented:
"The acquisition of CentroGold perfectly
aligns with our strategy of acquiring high-quality, undervalued assets that GMIN is uniquely qualified to unlock. 2024 has
been a transformational year for GMIN, headlined by two acquisitions that have grown our gold resource base from 2.1
million ounces measured and indicated to 8.1 million ounces, and from 50 thousand inferred to 2.2 million ounces,
creating an exciting pipeline of near-term and longer-dated growth projects. Looking forward, we are excited to
demonstrate and realize our asset base's immense potential."
GMIN Projects Portfolio (CNW Group/G Mining Ventures Corp)
CentroGold Highlights
High-quality resource base open for expansion –
1.7 million ounces of indicated and 0.6 million ounces of inferred
JORC-compliant gold resource across three open pit deposits that are open for expansion
Large prospective land package –
~1,900 km
2
land package with multiple identified gold targets, which remain
under-explored, with existing resource occupying only ~8% of the total land package
District-scale potential –
Property encompasses +80 km mineralized trend covering +80% of the total prospective
Gurupi geological province
Opportunity for tier 1 project –
A pre-feasibility study was completed by Oz Minerals in
July 2019
that outlines the
potential for a compelling initial project with high operating margin and return
Leverages GMIN's expertise –
GMIN's management team is ideally positioned to unlock CentroGold's value,
leveraging in-country and global community engagement experience to advance Project permitting
Fortifies GMIN Growth Pipeline –
Ideally sequenced to provide long-term growth following Tocantinzinho ramp-up,
brownfield exploration, and
Oko West
development and construction
Blanket & Contact Reserve & Resource Estimate
Tonnage
Grade
Contained
Reserve & Resource Estimate
(000 t Material)
(g/t Au)
(000 oz Au)
Proven & Probable Reserves
20,000
1.7
1,100
Indicated Resources
21,000
1.9
1,300
Inferred Resources
7,300
1.8
410
Total Resources
28,300
1.9
1,710
Note: (1)(2)(3)(4)(5)(6)(7)
Chega Tudo Resource Estimate
Tonnage
Grade
Contained
Resource Estimate
(000 t Material)
(g/t Au)
(000 oz Au)
Indicated Resources
8,200
1.6
425
Inferred Resources
3,100
1.5
152
Total Resources
11,300
1.6
577
Note: (1)(2)(3)(4)(5)(6)(7)
Transaction Summary
GMIN has agreed to purchase the CentroGold Project from BHP in exchange for a 1.0% NSR royalty on the first 1 million
ounces of gold produced at the Project and 1.5% NSR on gold production thereafter.
The Transaction is expected to close in Q1-25 and is subject to customary closing conditions, including BHP receiving the
appropriate approvals from the Vietnamese and Brazilian Competition bodies.
Advisors and Counsel
RBC Capital Markets is acting as financial advisor to GMIN and its Board of Directors. Blake, Cassels & Graydon LLP
and
Mattos Filho
,
Veiga Filho
, Marrey Jr. e Quiroga Advogados are acting as GMIN's legal advisors.
Qualified Person
Louis-Pierre Gignac
, President & Chief Executive Officer of GMIN, a QP as defined in NI 43-101, has reviewed the press
release on behalf of the Corporation and has approved the technical disclosure contained in this press release.
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 Project in
Brazil
and Oko West Project in
Guyana
, both mining friendly and prospective jurisdictions.
Additional Information
For further information on GMIN, please visit the website at
www.gmin.gold
.
Notes
1.
For details on the estimation of mineral resources and reserves, including the key assumptions, parameters and methods used to estimate the mineral resources and mineral reserves, Canadian investors should
refer to the ASX JORC Code Technical Reports for CentroGold and on file at www.asx.com.au and the Oz Minerals 2020 Annual Report.
2.
See Oz Minerals December 2020 Quarterly Report Presentation.
3.
See technical report titled "Gurupi province potential strengthened on CentroGold Pre-Feasibility Study" dated July 11, 2019 and report titled "CentroGold Project Combined 'Blanket' and 'Contact' Mineral
Resource as at 06 May 2019 and Ore Reserve as at 24 June 2019 Statement".
4.
See Avanco Copper Chega Tudo ASX technical report titled "CentroGold Resources Increase 45% and Exceeds 1.8 Million Ounces" dated November 13 2017.
5.
Numbers may not add due to rounding.
6.
Mineral resources which are not mineral reserves do not have demonstrated economic viability.
7.
Mineral resources are inclusive of mineral reserves.
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) GMIN closing the Transaction in Q1 2025; (ii) CentroGold's
resources being open for expansion in all directions and at depth; (iii) CentroGold hosting multiple gold targets; (iv)
CentroGold's prospective land package and exploration upside; (v) the conclusions of the
July 2019
pre-feasibility study;
(vi) GMIN's plans to allocate the CentroGold resources in line with its strategy and build on CentroGold's existing
geological model to redesign it; (vii) GMIN's plans to update CentroGold's existing resource to NI 43-101 standards;
(viii) GMIN's priorities to ramp up the Tocantinzinho mine to nameplate capacity and to advance
Oko West
toward a
construction decision in H2 2025; (ix) the quoted expectations of GMIN's President & Chief Executive Officer and those
of GMIN's Senior Vice President, Corporate Strategy; and
* more generally,
the two tables outlining the resource
estimates" as well as the sections entitled "CentroGold Highlights" and "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,
those outlined in the 2019 pre-feasibility study and those underlying the items listed on the above sections entitled
"CentroGold Highlights" and "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, the Corporation will (i) CentroGold will provide long-term growth and prove an accretive
transaction, (ii) any of CentroGold's targets will lead to additional resources and eventually to gold production, (iii) the
expected mine life and annual gold production indicated in the 2019 pre-feasibility study will materialize, (iv) GMIN's
expectations regarding CentroGold, as set out in the section entitled "CentroGold Highlights" will materialize, (v) GMIN
will achieve its stated objectives for Tocantinzinho and
Oko West
, or (vi) use TZ and
Oko West
to grow GMIN into the
next intermediate 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 Corporation's (i) Annual Information Form dated
March 27, 2024
, for the financial year ended
December 31, 2023
,
and (ii) 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 07:30e 09-SEP-24