G Mining sells first gold from Tocantinzinho
G Mining Ventures (TSX: GMIN, US-OTC: GMINF) has completed its first sale of doré gold produced at the Tocantinzinho project, located in Pará state, Brazil. The initial gold bars have already been sent to a refinery in Switzerland, the company said.
The project remains on schedule and within budget for commercial production in the second half of 2024. “This shipment represents the first export from a large-scale, modern gold mining operation in the state,” G Mining CEO Louis-Pierre Gignac said.
The start of production coincides with record-high gold prices, with every ounce sold by G Mining fetching over US$2,400 per ounce, significantly above its forecasts. G Mining acquired Reunion Gold and its Oko West project in Guyana in an $875-million all-share deal in April. It expects to release a preliminary economic study for the project in the third quarter. G Mining plans to advance the project with cash flow from Tocantinzinho.
Oko West holds 64.6 million indicated tonnes grading 2.05 grams gold per tonne for 4.3 million oz. and 19.2 million inferred tonnes grading 2.59 grams gold for 1.6 million ounces.
10-year mine life
Construction of Tocantinzinho began in September 2022. A feasibility study released earlier that year estimated initial costs at US$458 million. Over a mine life of 10.5 years, Tocantinzinho is expected to produce 1.8 million oz. of gold, averaging 175,000 oz. per year. Over the first five years, annual production is forecast at 196,000 ounces. Since the start of hot commissioning on June 11, 77,000 tonnes of ore have been processed through the plant at Tocantinzinho. The company also reported that 2 million tonnes of ore have been stockpiled at the site.
The property has direct access via 103 km of all-weather roads starting from the national highway, the BR-163, which links the industries in southern Brazil to the city of Belem in the north.
Source: https://www.northernminer.com/