G Mining Ventures (TSX: GMIN) has received the operational licenses for its Tocantinzinho gold project in Brazil as it ramps up output to a commercial level this year.
These licenses, the final permitting milestone, include approvals for the mining operations, processing plant, tailings facilities and a new airstrip for the site in the state of Pará. The company this month sold its first gold doré produced at Tocantinzinho.
Over a mine life of 10.5 years, the mine is expected to produce 1.83 million oz. of gold, averaging 175,000 oz. per year. Over the first five years, annual gold production is expected to reach 196,000 ounces.
Shares in G Mining Ventures were flat on Wednesday afternoon in Toronto at $8.41 apiece, valuing the company at $1.8 billion. They’ve traded in a 52-week range of $4.36 to $10.83.
Stockpiled ore
Since the start of hot commissioning on June 11, about 77,000 tonnes of ore have been processed through the plant. The company also reported that approximately 2 million tonnes of ore have been stockpiled.
Construction of Tocantinzinho, estimated to cost about US$458 million, started in September 2022 following a definitive feasibility study completed that February.
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.
The Montreal-based company is also advancing a preliminary economic assessment due this quarter for its Oko West gold project in Guyana. More exploration results for Tocantinzinho and OKO West are due later this year.
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