G Mining moves toward construction decision at Oko West
G Mining Ventures Corp. [GMIN-TSXV, GMINF-OTCQB] said it has commenced site preparation activities at its Oko West gold project in Guyana, marking a major step forward in the project’s development.
G Mining secured the Oko West project via its $875 million acquisition of Reunion Gold Corp. last year. Oko West is located in the Cuyuni Mining District, about 95 kilometres west of Georgetown and is accessible by roads and trails from the town of Bartica or by boat using the Cuyuni River.
Back in June, 2023, Reunion announced an initial pit-constrained mineral resource estimate for the Kairuni zone at Oko West. It consists of 2.47 million ounces of gold in the indicated mineral resource category, grading 1.84. g/t gold. On top of that is an inferred resource of 1.76 million ounces of gold at a grade of 2.02 g/t gold.
In a press release on January 21, 2025, G Mining said the focus this year is on advancing the Oko West project by progressing permitting activities to secure a full environmental license from the Guyana Environmental Protection Agency. Meanwhile, with the interim environmental permit already in hand, the plan is to commence early works, including site preparation and the construction of the barge landing, permanent camp facilities and other support infrastructure. To align with the project delivery timeline, the procurement of long-lead items, including grinding mills, primary crusher, power generators and mobile equipment fleet will also be initiated.
The company said a total budgeted expenditure of $200-$240 million has been allocated, part of the project’s initial capital cost. The expenditure is funded by cash on hand and free cash flow generated from the company’s Tocantinzinho (TZ) gold mine in Para State, Brazil, where G Mining is focused on ramping up production and controlling operating costs. Annual gold production at TZ is forecasted to range between 175,000 and 200,000 ounces.
The mill at TZ is expected to operate at its nameplate capacity of 12,890 tonnes per day, processing a blend of fresh rock and softer ores, as successfully demonstrated in 2024. Gold output is anticipated to be higher in the second half of the year as higher-grade material becomes accessible according to the mine plan.
Meanwhile, at Oko West, the feasibility study, scheduled for publication in the second quarter of 2025, will feature updated mineral resources and mineral reserve estimates. A favourable outcome from the study, combined with the receipt of final permits is anticipated to support an official construction decision.
To support the objective of expanding the mineral resource inventory to improve future mine plans and extend the mine’s operational life, the Oko West exploration program has been allocated a budge of $8 million.
On Friday, G Mining shares rose 1.4% or 22 cents to $15.97. The shares trade in a 52-week range of $16.38 and $7.28.