The open-pit gold mine located in the Brazilian state of Para is estimated to have an average annual gold production of 175koz
First Cat 6030 hydraulic mining shovel arriving at the Tocantinzinho gold project. (Credit: G Mining Ventures Corp.)
G Mining Ventures (GMIN) said that its board of directors has formally decided to move ahead with the construction of the $564m Tocantinzinho gold project in Brazil.
The decision follows a $481m financing package secured by the company in July 2022 from Franco-Nevada, Eldorado Gold, La Mancha Investments, and Caterpillar Financial Services.
Besides, G Mining Ventures has all the required environmental installation permits in place to progress with the full construction of the Tocantinzinho gold project. The open-pit gold project is located in Para State.
According to the company, site preparation works for the project began in mid-August 2022. They were initially focused on the permanent camp area, where full construction is slated to begin next month.
G Mining Ventures acquired the construction-ready Tocantinzinho gold project last October for $115m from Eldorado Gold.
G Mining Ventures claimed that its construction activities are supported by the environmental team of Brazauro. The latter’s team is said to follow protocols for rescuing fauna and flora, thereby limiting any possible effects on the local environment, while ensuring a stable ecosystem.
G Mining Ventures president and CEO Louis-Pierre Gignac said: “GMIN was reorganised in October 2020 with the objective of building the next intermediate gold producer. In less than two years, the management team acquired a great project in TZ, released an updated Feasibility Study in February 2022, and completed a $481 million comprehensive financing package in a turbulent and volatile capital markets environment.
“This construction decision is an important milestone which has been achieved by de-risking the technical, permitting and funding aspects, and that confirm the TZ project is both a robust and responsible development opportunity.”
As per the feasibility study of the project, the initial capital needed is $427m, while the life of mine sustaining capital is $71m.
The mine life of the Tocantinzinho gold project is 10.5 years. The mine is estimated to have an average annual gold production of 175koz.
G Mining Ventures board of directors chairman Louis Gignac Sr. said: “The Board of Directors’ formal decision to begin construction on TZ reflects our confidence in the significant value that the Project can bring to stakeholders in the State of Pará and all GMIN shareholders.”