G Mining Ventures Corp (TSX-V:GMIN, OTCQX:GMINF) has updated on the progress at its 100%-owned Tocantinzinho Gold Project (TZ) in Brazil where it recently hosted investor and analyst site visits.
Advancements at TZ include detailed engineering, procurement, equipment delivery, workforce ramp up, construction, and progress on open pit mining, the company said, adding that the project remains on track and on budget for commercial production in the second half of 2024.
"The dedication of our project staff and the flawless execution of our proven self-perform approach has ensured that we continue to make excellent progress on all fronts on our TZ project,” Louis-Pierre Gignac, G Mining president and chief executive officer said in a statement.
READ: G Mining Ventures plots course for commercial production in 2024 in shareholder letter
Tocantinzinho Project Update
Detailed Engineering:
The company said detailed engineering is 62% complete, allowing for project procurement to progress to completion. Notable advancement to date include:
- Engineering areas completed or near completion include: camp with all supporting infrastructure, wash bay, administration building, site guard house, assay laboratory, mill office, fuel bay, temporary truck shop, temporary explosive storage and powerline;
- Geotechnical parameters are finalized to proceed with final stability analyses of the flotation tailings storage facility;
- Permanent camp civil and mechanical work is complete, with piping and electrical work on schedule to allow for full occupancy by end of March 2023; and
- Process plant detailed design has reached 60%.
Procurement and delivery:
Overall project procurement has progressed to 88% completion. Expenditures and commitments to date total $235 million (51% of total), with expenditures and schedule tracking in line with the Feasibility Study dated February 9, 2022. A portion of the equipment has been delivered to date commissioned, and comprises of:
- Four CAT 777E Haul Trucks
- One CAT 6030 Hydraulic Mining Excavator
- One Sandvik Leopard Di650 Drill Rig
- Two CAT 395 Hydraulic Excavators
- Two CAT 352 Hydraulic Excavators
- One CAT 980 Loader
- Three CAT 730 Articulated Trucks
Major bulk material packages issued include steel, cement and form work, rebar, architectural material and buildings, and powerline material while major equipment procured includes mining, processing and electrical equipment, cranes, aggregate plant and batch plant and major services procured include blasting, forest suppression, bussing and air transport, catering and freight forwarding, the company said.
Logistics network is working well, having moved 811 truckloads of material and supplies to site during Q4-2022.
Construction:
The following major milestones have been reached in construction:
- Improvements of deteriorated sections of the Transgarimpeira State Road from Morais Almeida to Jardim do Ouro were initiated;
- The municipal access road from Jardim do Ouro to site under the responsibility of Brazauro was upgraded with the installation of several culverts to improve overall drainage and to help control erosion during the rainy season. All wooden bridge approaches were installed and have enhanced safety on the road;
- The internal site road to the industrial area was completed;
- Four dorms of the 1,200-person permanent camp are completed and occupied, with work on track for completion of the full camp including welcome center, sewage treatment plant and water treatment plant in March;
- Permanent kitchen footings and walls were poured. The structural erection of the kitchen is advancing well with Civil, Structure and Architecture progress of 55% and overall completion reaching 50%; and
- Bulk fuel storage of 420,000 liters is in process with civil works completed and tanks installed.
Powerline Construction (as of Feb 26, 2023):
- Detailed engineering of the powerline and substations was completed, submitted, and approved by Equatorial Pará Distribuidora de Energia S.A., the entity responsible for energy distribution in the state of Pará;
- Selection of contractors for forest suppression and powerline installation was finalized and all materials purchased;
- Powerline construction was initiated in December and is progressing along two segments (1) from Novo Progresso to Jardim do Ouro for 112 km and (2) Jardim do Ouro to TZ Project for 81 km;
- 84 foundations have been poured and 34 towers have been assembled and erected out of a total of 483.
Human Resources:
- 1,100 employees and contractors are currently employed by the Project with 93% of the workforce comprised of Brazilians. Of the total workforce, 66% are from the nearby communities of Itaituba, Morais Almeida, Mamoal, and Jardim do Ouro.
Health & Safety:
- The corporation continues to deliver on its core value of prioritizing health and safety with a total of 856,329 man-hours worked year to date with no Lost Time Incidents .
Having made the positive construction decision, the corporation will be focused on completion of detailed engineering through the first half of 2023, the issuance of the inaugural ESG report in 2023, and commercial production in the second half of 2024.
G Mining Ventures is a mining company engaged in the acquisition, exploration and development of precious metal projects, to capitalize on the value uplift from successful mine development. The company is currently anchored by its flagship Tocantinzinho Gold Project in the State of Pará, Brazil.
Contact the author at jon.hopkins@proactiveinvestors.com