Canada’s G Mining Ventures (TSX: GMIN) announced a new feasibility study for its Oko West project in northern Guyana, showing significant improvements in economic projections. At a 5% discount rate, the project is expected to generate a post-tax net present value (NPV) of $2.2 billion and a post-tax internal rate of return (IRR) of 27%, reflecting a 58% increase in NPV compared to last year’s preliminary assessment.
Oko West, along with the Tocantinzinho project in Brazil, is central to G Mining’s future output. Tocantinzinho has already begun gold production, contributing to the company’s cash flow. G Mining CEO Louis-Pierre Gignac called the feasibility study a “major milestone,” highlighting the project’s long-life, high-margin potential supported by solid infrastructure.
The company expects a final environmental permit this quarter, with construction decisions to be made in the second half of the year. Construction is projected to take 34 months, with commissioning set for late 2027.
G Mining estimates a payback period of 2.9 years with a gold price of $2,500 per ounce, and initial capital expenditures of $972 million. If gold averages $3,000 per ounce, the NPV increases to $3.2 billion, with an IRR of 35% and a reduced payback period of 2.1 years.
Located 120 km southwest of Georgetown, Oko West will produce an estimated 4.3 million ounces of gold over 12.3 years, averaging 350,000 ounces annually. The project will create 1,270 direct permanent jobs.
Shares of G Mining rose 1.4% to C$19.48, giving the company a market value of approximately C$4.4 billion.
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