G Mining Ventures Corp (TSX:GMIN, OTCQX:GMINF) is entering a “new phase of value creation” after delivering a new preliminary economic assessment for its Oko West project in Guyana.
“With a larger, higher-grade, and unencumbered asset in Oko West, we see G Mining entering a new phase of value creation,” the analysts wrote.
“The company is well positioned to become a 500,000-ounce-per-year gold producer by 2028.”
The study, released this month, outlines a 10% increase in mine-level costs compared to the preliminary economic assessment (PEA) published last September, largely due to a slightly higher strip ratio and modestly lower open-pit grades.
All-in sustaining costs (AISC) rose 14% to $1,123 per ounce. Still, Jefferies called the revised figures “generally in line” with its expectations and said they don’t alter the positive investment outlook.
“These cost updates are notable but not a game changer,” the analysts wrote. “We continue to see strong execution ahead, with a final investment decision (FID) expected in the second half of 2025.”
The Oko West project is envisioned as a large-scale, long-life gold mine combining open-pit and underground operations, with a conventional carbon-in-leach (CIL) plant and a 12-year mine life based on reserves alone. The first three years will be open-pit only, transitioning to a combined approach thereafter. Total reserves stand at 4.6 million ounces grading 1.89 g/t, while measured and indicated resources total 5.4 million ounces at 2.10 g/t.
Construction is expected to begin following the final investment decision and permitting milestones, with commissioning targeted for late 2027 and commercial production set for the first half of 2028.
Unlike G Mining’s first project, Tocantinzinho (TZ), which was partially funded by a gold stream, Oko West is expected to be financed through a combination of operating cash flow and debt—allowing the company to retain full upside from production.
Jefferies made only minor revisions to its model following the feasibility study, adjusting costs and capital assumptions while incorporating a larger portion of open-pit resources into its mine plan. The changes added approximately $100 million to the firm’s net asset value (NAV) estimate for the project.
The firm continues to highlight G Mining’s strong track record, noting the successful and timely delivery of TZ. Since August 2021, G Mining shares have gained roughly 500%, compared with a 49% rise in the VanEck Gold Miners ETF (GDX).
The internal rate of return for Oko West is estimated at 27% based on current gold prices.