G Mining Ventures Corp (TSX-V:GMIN, OTCQX:GMINF) said it has secured low-cost, 100% renewable energy for its wholly owned Tocantinzinho Gold Project (TZ) in Brazil through a power purchase agreement with Companhia Energética de Minas Gerais (CEMIG) and CEMIG Geração e Transmissão S.A.
The company said the all-in cost of electricity is about 25% lower than the estimates used in the 2022 Feasibility Study, with fixed energy pricing for 2024, 2025 and 2026.
"The low-cost power generated from renewable hydroelectric sources will ensure that TZ is in the lower quartile of the global gold production curve both in terms of cost and carbon emissions. This is a major step toward safeguarding value for our shareholders and stakeholders alike," Louis-Pierre Gignac, president and CEO, said in a statement.
Brazauro Recursos Minerais S.A., a subsidiary of G Mining Ventures, signed the agreement with CEMIG, a large, reputable power company with a generating capacity of 3.3GW.
The agreement guarantees the supply and delivery of power from March 2024 to the end of 2026, supplying over 100% of the expected power demand at TZ during commissioning, ramp-up, and initial commercial production.
“This is yet another important and relevant international customer partnership that the company establishes in the free energy market. We always seek to meet the expectations presented, signing contracts with benefits for both parties, in addition to bringing to our portfolio partners with values similar to those of CEMIG, with a focus on sustainable actions, job and income generation and the promotion of the economy," added Dimas Costa, CEMIG's chief commercial officer.
TZ is currently under construction in the State of Pará, Brazil, and remains on budget and on track for commercial production in the second half of 2024.
G Mining Ventures is engaged in the acquisition, exploration and development of precious metal projects, to capitalize on the value uplift from successful mine development. The company is well-positioned to grow into the next mid-tier precious metals producer.
Contact the author at jon.hopkins@proactiveinvestors.com