G Mining Ventures Corp (TSX:GMIN, OTCQX:GMINF) revealed the results of a feasibility study for its Oko West Gold Project in Guyana, outlining a $2.2 billion after-tax net present value.
The study confirms plans for a large-scale, low-cost open pit and underground mining operation with average annual production of 350,000 ounces of gold over a 12.3-year mine life.
What’s more, the project boasts a 27% internal rate of return at a base case gold price of $2,500 per ounce.
At a higher gold price of $3,000 per ounce, the project’s after-tax NPV rises to $3.2 billion with an internal rate of return of 35% and a payback period of 2.1 years.
Initial capital expenditure for the project is estimated at $972 million, with sustaining capital over the life of mine pegged at $650 million.
All-in sustaining costs are projected at $1,123 per ounce.
“The Oko West Feasibility Study marks a major milestone in realizing the value of what we consider one of the world’s most exciting undeveloped gold projects,” said Louis-Pierre Gignac, G Mining’s CEO.
"With Tocantinzinho nearing nameplate capacity and generating meaningful free cash flow, GMIN is well positioned to advance Oko West using the same experienced team and disciplined execution that delivered our first mine ahead of schedule and on budget."
The company said early works construction at Oko West is progressing following receipt of an interim environmental permit. Final permitting is expected in the second quarter of 2025, with a construction decision targeted in the second half of the year.
Commissioning is planned for the second half of 2027, followed by commercial production in the first half of 2028.
Shares of G Mining Ventures added 1.7% in Toronto and over the counter in New York.