G Mining Ventures Corp (TSX-V:GMIN, OTCQX:GMINF) is performing notably better than initially expected, according to analysts at Jefferies, following the start of commercial production at the company’s Tocantinzinho project earlier this week.
The mill at the Tocantinzinho project is exceeding throughput and recovery rate targets, which Jefferies highlighted as a positive sign of operational efficiency and effective ramp-up.
The fact that all major equipment is performing at or above design levels indicates strong execution and reliability in their operations.
In a note, Jefferies analysts wrote: “(Tocantinzinho)’s mill operated at 76% of nameplate throughput in August, processing a total of 304,000 tons of ore (9,800 tons per day) at a recovery rate of 88%.
“This suggests the mill ramp up is tracking better than our Q3 expectations of 5,600 tons per day average throughput and 86% average recovery for 18,000 ounces gold production (assuming average gold grades of 1.33 g/t).”
GMIN noted the ramp-up continues to progress in line with internal production schedules, with all major equipment demonstrating the capability to operate at or above design levels.
The company’s milestone follows first gold pour on July 9 and first export of dore bars to a Swiss refinery on August 14.