GoldMining Announces Positive Preliminary Economic Assessment for the La Mina Project, Colombia, with Life of Mine Production of 1.74 Million Gold Equivalent Ounces
GoldMining Announces Positive Preliminary Economic Assessment for the
La Mina Project, Colombia, with Life of Mine Production of 1.74 Million Gold
Equivalent Ounces
DESIGNATED NEWS RELEASE
VANCOUVER, BC
,
July 24, 2023
/CNW/ - GoldMining Inc. (the "
Company
" or "
GoldMining
") (TSX: GOLD) (NYSE AMERICAN: GLDG) is pleased to announce
the results of an updated preliminary economic assessment ("
PEA
") on the La Mina Project (the "
Project
") located in Antioquia,
Colombia
. The updated PEA
incorporates the recently discovered La Garrucha Deposit into the mine plan, which was the subject of a maiden mineral resource estimate announced on
January
23, 2023
. Please refer to the Company's news release dated
January 23, 2023
for further details.
All currency amounts herein are in US dollars unless otherwise indicated.
PEA Highlights
Total projected life of mine ("
LOM
") production of approximately 1.74 million gold equivalent ounces averaging 143,100 ounces over the estimated 12-year
life.
Projected LOM production of 1.29 million ounces of gold, 203.9 million pounds of copper and 2.98 million ounces of silver at recoveries of 91%, 80% and
64%, respectively.
After-tax Net Present Value ("
NPV (5%)
") of approximately
$274 million
at base case commodity prices of
$1,750
per ounce of gold,
$21
per ounce of silver,
and
$3.50
per pound of copper; and approximately
$434 million
at spot commodity prices
1
.
Total cash cost of
$786
per ounce of gold and All-In Sustaining Cost ("
AISC
") of
$1,142
per ounce of gold (net of by-product credits).
Initial capital expenditures of approximately
$425 million
for a 15,000 tonne per day processing facility fed by a conventional truck and loader open pit mining
operation with sustaining capital and mine closure expenditures of approximately
$193 million
.
Alastair Still
, CEO of GoldMining commented, "We are pleased to update our PEA on La Mina, demonstrating the value we have created through the exploration
discovery made at La Garrucha, such that the combined project represents a significant deposit of gold and copper with an attractive head grade above 1.0 g/t
gold equivalent. Deposits of this scale with exploration upside and robust economics are becoming increasingly scarce, and La Mina exemplifies our efforts to
advance our portfolio of projects in the Americas to unlock value for our shareholders. With current metal prices well above the
$1,750
per ounce of gold and
$3.50
per pound of copper used in the PEA, we believe the Project is well positioned for further enhanced economics and potential resource expansion."
Tim Smith
, Vice President of Exploration for GoldMining commented, "La Mina comprises a classic porphyry cluster of multiple gold-copper deposits, with
exploration potential for additional discoveries within the broader mineral system. Compared to many copper porphyry deposits globally, La Mina has a high ratio
of gold to copper and as such the feed grade at La Mina of 1.01g/t gold equivalent is well above global averages for mineable porphyry systems. La Mina also
has the added advantages of being located in moderate topography with existing road and power infrastructure, located just 40 km from the provincial capital city
of
Medellin
, as compared to many porphyry copper deposits that are in remote locations and at extreme elevations. We look forward to evaluating further
opportunities to expand the mineral resources at the existing deposits and to work towards additional discovery within the prospective regional land package."
1
Recent commodity spot prices of $1,975/oz Au, $25/oz Ag, and $3.75/lb Cu.
TABLE 1: PEA Summary of Key Metrics.
Parameter
Units
Base Case
Spot Price
Metal Prices
Gold
$oz
1,750
1,975
Copper
$/lb
3.50
3.75
Silver
$/oz
21.00
25.00
Production Data
Mine Life
years
12.2
Mined Mineralized Material
million tonnes
61.3
Process Plant Production Rate
tpd
15,000
Process Plant Feed Grade
Au g/t
0.72
Ag g/t
2.36
Cu %
0.19
AuEq g/t
1.01
Strip Ratio
ratio
5.81
Average Annual Production
oz AuEq
143,100
Total LOM Payable Production
million oz AuEq
1.69
Operating Costs
LOM Cash Unit Cost
$/t processed
21.01
LOM Total Cash Cost
$/oz
786
LOM All-In Sustaining Unit Cost
$/oz
1,142
Capital Costs
Pre-production Capital
$ million
424.8
Sustaining Capital
$ million
155.4
Closure
$ million
37.9
Total Capital
$ million
618.0
Financial Analysis
Pre-Tax NPV (5%)
$ million
443.3
669.8
After-Tax NPV (5%)
$ million
274.5
433.6
Pre-Tax IRR
%
19.0
25.0
After-Tax IRR
%
14.2
18.8
After-Tax Payback
years
6.2
5.3
The PEA is preliminary in nature, and there is no certainty that the reported results will be realized. Mineral Resources used for the PEA include Inferred Mineral
Resources which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as
Mineral Reserves, and there is no certainty that the projected economic performance will be realized. The purpose of the PEA is to demonstrate the economic
viability of the La Mina Project, and the results are only intended as an initial, first-pass review of the Project economics based on preliminary information.
The PEA examined several mining scenarios with varying rates of production and cut-off grades and determined that a 12.2-year LOM and 61.3 million
mineralized tonnes demonstrate robust financial returns using consensus metal prices. Refer to Figure 1 for the metal production profile.
Construction of the Project is expected to take approximately two years to complete and includes an assumed 15,000 tonne-per-day process plant. The operation
is envisioned to produce both a copper concentrate with precious metal credits and doré. Capital and operating costs are estimated as of 2023 benchmarks and
leverages on the Project's proximity to established infrastructure including roads, power and an available workforce.
FIGURE 1: Production profile of the Project illustrating annual gold equivalent production (gold equivalent ounces) and annual head grades (gold equivalent grade
expressed in grams per tonne). (CNW Group/GoldMining Inc.)
To prepare the PEA, the Company engaged Resource Development Associates Inc. of
Highlands Ranch, Colorado
, which has been involved with the La Mina
Project for the past 10 years and recently prepared the Mineral Resource Estimate for the La Garrucha Deposit.
The Company will continue to assess potential opportunities to further optimize the La Mina gold-copper porphyry open pit mine, with a view to advancing
optimization work and additional studies in the coming years. A summary of potential future opportunities is presented in Table 2.
TABLE 2: Potential Future Opportunities
Opportunity
Potential Benefits
Infill Drilling
Increase confidence in the geological models and controls on and
interpolation of grade; may increase resource grade overall and convert
mineral resources to higher categories.
Exploration Drilling
Exploration drilling outside of the current resources
Expansion opportunities at the existing deposits to delineate additional resources.
Porphyry cluster model predicts potential for new porphyry discoveries
within the existing La Mina district-scale land package.
Metallurgical test work &
Process design
Variability test work to optimize process flowsheet and improve gold,
copper and silver recoveries.
Geotechnical test work
Optimize pit wall slopes and potentially reduce strip ratio
and to assess
potential waste rock and tailings storage sites.
Infrastructure design &
Scheduling
Optimize site layout, material handling and pit backfill to reduce LOM
operating costs.
Environmental &
Sustainability Governance
(ESG)
Metal Prices
Environmental baseline & heritage studies, and community stakeholder
engagement
to inform the local community about the potential mining
opportunity and economic benefits.
Base case metal price assumptions in PEA are considerably below current spot prices for gold, copper and silver.
The Project is well positioned to potentially further enhance economics by utilizing metals prices which are currently higher than the base case metal prices used in
the PEA. Sensitivity to metal pricing is illustrated in Table 3.
TABLE 3: Economic Metrics Sensitivity Table.
Units
Gold Price (US$/oz)
1,650
1,700
1,750
1,800
1,850
1,900
1,950
Pre-Tax NPV (5%)
$ million
360.5
401.9
443.3
484.8
526.2
567.7
609.1
After-Tax NPV (5%)
$ million
216.2
245.4
274.5
303.6
332.7
361.9
391.0
IRR (After-Tax)
%
12.5 %
13.4 %
14.2 %
15.1 %
15.9 %
16.8 %
17.6 %
Payback
years
6.5
6.4
6.2
6.0
5.9
5.7
5.6
The mining plan utilized in the PEA uses conventional truck/loader open pit methods employing a fleet of trucks with haulage capacity of 139 tonnes and front-end
loaders equipped with 19 cubic metre buckets. Three pit areas will be mined over a period of 12.2 production years. One pre-production year of stripping will be
required followed by two years of stripping concurrent with production. Refer to Table 4 for the production and payable metal summary and to Figure 2 for the
mined schedule. Mineralized material will be transported by haulage trucks to a nearby process plant and waste rock will either be stored as backfill or in
proximity to the open pits. Mining will be conducted at an initial rate of 33 million total tonnes per annum (Mtpa) or 91 kilo tonnes per day (ktpd) to a peak rate of
52 Mtpa (142 ktpd) for total movement that will sustain the process plant.
The process plant feed is contained within an optimized subset of the Mineral Resource set out in the Pit Constrained Mineral Resource Estimate illustrated in
Table 6. Collectively, the three pits contain 61.3 Mt of process plant feed (inclusive of mining dilution and loss factors) averaging 0.19% Cu, 0.72 g/t Au and 2.36
g/t Ag. Over LOM,
356 Mt
of waste rock mined results in a waste to mineralized material strip ratio of 5.8:1.
Existing royalties have been included in the economic analysis and are comprised of a 2.0% net smelter return (NSR) royalty held by Gold Royalty Corp., and a
gross revenue royalty of 4.0% on precious metals and 5.0% on base metals imposed by the Colombian National Mining Agency.
TABLE 4: Production and Payable Metal Summary
Copper
Gold
Silver
Gold Equivalent
Contained
254.82 Mlbs
1,420 koz
4,660 koz
1,986 koz
Metallurgical Recovery
80 %
91 %
64 %
Production
203.86 Mlbs
1,293 koz
2,983 koz
1,736 koz
Payable
195.71 Mlbs
1 ,262 koz
2,828 koz
1,687 koz
FIGURE 2: LOM Profile for the Mined Schedule Showing Tonnage Moved and the Accompanying Strip Ratio. (CNW Group/GoldMining Inc.)
A recent metallurgical testing program was completed by ALS Global, based in
Kamloops, British Columbia
, Canada. The test work has identified an optimal
process flowsheet including a typical copper concentrate and tailings leaching that achieves recoveries for gold and copper of 91% and 80%, respectively. Key
components that describe the unit operating processes include the following:
Primary crushing and grinding in a SAG/ball mill circuit to a nominal 250-100 µm grind size;
Froth flotation to generate a copper rougher concentrate which is reground and subjected to two stages of cleaner flotation for copper grade improvement;
copper concentrate is thickened, filtered and prepared for shipment to a smelter;
Cyanidation leach, carbon adsorption, carbon stripping and thermal regeneration, electrowinning and smelting to produce doré; and
Cyanide destruction of the final tailings.
Capital costs for the Project have been estimated by initial and sustaining capital categories. Mine closure has been accounted for and is expected to reclaim
tailings and waste rock storage facilities (see Table 5).
TABLE 5: Capital Costs ($ Millions)
Initial
Sustaining
Total
Contractor Pre-Stripping
10.0
32.5
42.5
Mining + Maintenance
--
97.7
97.7
Process Plant + Maintenance
274.7
6.0
280.7
Tailings Management Facility
6.0
5.6
11.6
Site Infrastructure
65.0
--
65.0
Owner's Cost + Contingency
69.1
13.6
82.7
Sub-Total Capital
424.8
155.4
580.1
Mine Closure
--
37.9
37.9
Total Capital
424.8
193.3
618.0
TABLE 6: Pit Constrained Mineral Resource Estimate (Effective Date:
December 20, 2022
)
Grades
Contained Metal
Deposit
Tonnes
Au
Ag
Cu
AuEq
Au
Ag
Cu
AuEq
(kt)
(g/t)
(g/t)
( %)
(g/t)
(koz)
(koz)
(Mlbs)
(koz)
Indicated Mineral Resource
La Cantera
17,614
0.86
2.03
0.31
1.32
487.0
1,149.6
120.5
749.2
La Garrucha
7,358
0.65
3.14
0.11
0.84
153.8
742.8
17.8
199.5
Middle Zone
8,800
0.54
1.28
0.11
0.71
152.8
362.1
21.2
200.9
Total Indicated
33,772
0.73
2.08
0.21
1.06
793.6
2,254.5
159.4
1,149.6
Inferred Mineral Resource
La Cantera
11,175
0.71
1.85
0.3
1.15
255.1
664.7
727.1
413.0
La Garrucha
44,107
0.55
2.46
0.1
0.72
779.9
3,488.4
96.8
1,022.4
Middle Zone
949
0.47
1.15
0.09
0.61
14.3
35.1
1.9
18.6
Total Inferred
56,231
0.58
2.32
0.14
0.80
1,049.3
4,188.1
171.4
1,454.0
Notes:
1.
The qualified person for the above estimate is Scott Wilson, C.P.G, SME.
2.
Mineral Resources are classified as Indicated Resources and Inferred Resources and are based on the 2014 CIM Definition Standards. The estimation of Indicated Mineral Resources involves greater uncertainty as to their existence and economic feasibility than the estimation of
Mineral Reserves, and therefore investors are cautioned not to assume that all or any part of Indicated Mineral Resources will ever be converted into Mineral Reserves. The estimation of Inferred Mineral Resources involves greater uncertainty as to their existence and economic
viability than the estimation of other categories of Mineral Resources.
3.
Numbers may not add up due to rounding.
4.
Cut-Off Grade: 0.30 g/t Au.
5.
The Mineral Resource Estimate was based on US$ metal prices of $3.50/lb Cu, $1,700/oz Au and $21/oz Ag.
6.
Gold-equivalent grades were calculated using the following formula: AuEq = Au (g/t) + [Cu(%) x {Cu Price/Au Price} x 22.0462 x 31.1035] + [Ag (g/t) x {Ag Price/Au Price}].
7.
The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as Indicated or Measured Mineral Resources.
8.
The author knows of no environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant factors that may materially affect the Mineral Resource Estimate.
GoldMining will file an updated technical report for the La Mina PEA within 45 days of the date hereof.
Qualified Persons
Scott E. Wilson
, CPG, SME-RM is with Resource Development Associates Inc. and is the independent consultant specializing in Mineral Reserve and Resource
calculation reporting, mining project analysis and due diligence evaluations. Mr. Wilson is acting as the Qualified Person pursuant to Canadian Securities
Administrator's National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("
NI 43-101
"), for the PEA and is the primary author of the Technical
Report for the Mineral Resource estimate and has reviewed and approved the Mineral Resource estimate and the PEA summarized in this news release. Mr.
Wilson has over 31 years of experience in surface mining, resource estimation and strategic mine planning. Mr. Wilson is independent of the Company under NI
43-101. Mr. Wilson, a qualified person, has verified the data underlying the information disclosed herein, including sampling, analytical and test data underlying the
information by reviewing the reports of methodologies, results and all procedures undertaken for quality assurance and quality control in a manner consistent with
industry practice, and all matters were consistent and accurate according to his professional judgement. There were no limitations on the verification process.
Paulo Pereira
, P. Geo., President of GoldMining Inc. and a Qualified Person as defined in NI 43-101, has supervised the preparation of this news release and has
reviewed and approved the scientific and technical information contained herein.
About GoldMining Inc.
The Company is a public mineral exploration company focused on the acquisition and development of gold assets in the Americas. Through its disciplined
acquisition strategy, the Company now controls a diversified portfolio of resource-stage gold and gold-copper projects in
Canada
,
U.S.A.
,
Brazil
,
Colombia
and
Peru
. The Company also owns more than 21 million shares of Gold Royalty Corp (NYSE American: GROY), 9.8 million shares of U.S. GoldMining Inc. (Nasdaq:
USGO), and 16.6 million shares of NevGold Corp. (TSXV: NAU).
Notice to Readers
Disclosure regarding the Project, including the PEA and Mineral Resource estimates included herein, has been prepared by the Company in accordance with NI
43-101. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for public disclosure by issuer of scientific and
technical information concerning mineral projects. NI 43-101 differs significantly from the disclosure requirements of the United States Securities and Exchange
Commission ("
SEC
") generally applicable to U.S. companies subject to the SEC's disclosure requirements. For example, the terms "Indicated Mineral Resource"
and "Inferred Mineral Resource" are defined in NI 43-101 by reference to the guidelines set out in the CIM Definition Standards on Mineral Resources and Mineral
Reserves. Shareholders resident in
the United States
are cautioned that while terms are substantially similar to "indicated mineral resources" and "inferred mineral
resources" as defined by the SEC, there are differences in the definitions and standards under applicable SEC Rules and NI 43-101. Accordingly, there is no
assurance any mineral resources that the Company may report as "Indicated Mineral Resources" and "Inferred Mineral Resources" under NI 43-101 will be the
same as the reserve or resource estimates prepared under rules applicable to
United States
domestic issuers. Investors are cautioned not to assume that any
part or all of mineral resources will ever be converted into reserves. Pursuant to CIM Definition Standards, "Inferred mineral resources" are that part of a mineral
resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Such geological evidence is sufficient to
imply but not verify geological and grade or quality continuity. An inferred mineral resource has a lower level of confidence than that applying to an indicated
mineral resource and must not be converted to a mineral reserve. However, it is reasonably expected that the majority of inferred mineral resources could be
upgraded to indicated mineral resources with continued exploration. Under Canadian rules, estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource is economically
or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits
issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures.
Forward-looking Statements
This news release contains certain forward-looking statements that reflect the current views and/or expectations of GoldMining with respect to its expectations
and ongoing and proposed work at the La Mina Project
, future
exploration and work programs
, the results of the PEA, including the production, operating and
other cost estimates, metal price assumptions, cash flow projections, metal recoveries, mine life projections and production rates for the La Mina Project and
the Company's expectations regarding potential opportunities to build upon the PEA. Forward-looking statements are based on the then-current expectations,
beliefs, assumptions, estimates and forecasts about the business and the markets in which GoldMining operates. Investors are cautioned that all forward-
looking statements involve risks and uncertainties, including: the inherent risks involved in the exploration and development of mineral properties, fluctuating
metal prices, unanticipated costs and expenses, risks related to government and environmental regulation, social, permitting and licensing matters, and
uncertainties relating to the availability and costs of financing needed in the future. These risks, as well as others, including those set forth in GoldMiningꞌs
Annual Information Form for the year ended
November 30, 2022
, and other filings with Canadian securities regulators and the SEC, could cause actual results
and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no
assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate.
The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required
by applicable securities law.
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For further information:
GoldMining Inc., Amir Adnani, Co-Chairman; David Garofalo, Co-Chairman; Alastair Still, CEO, Telephone: (855) 630-1001, Email:
CO: GoldMining Inc.
CNW 06:55e 24-JUL-23