G Mining proceeds with construction of Tocantinzinho gold mine in Brazil

G Mining Ventures (TSXV: GMIN; OTC:GMINF) has made a formal decision to proceed with the construction of the Tocantinzinho (TZ) gold project located in the state of Pará, Brazil. The company has received all the necessary environmental installation permits to progress with full construction, which is expected to begin this month.

"This construction decision is an important milestone which has been achieved by de-risking the technical, permitting and funding aspects, and that confirm the TZ project is both a robust and responsible development opportunity. We are happy to see step one of our 'buy, build, operate' strategy progressing as planned, and are excited to commence full construction of TZ, for what will be one of the largest primary gold mines in Brazil," Louis-Pierre Gignac, president and CEO of G Mining, commented.

Tocantinzinho is an open pit gold deposit located on an underexplored land package covering nearly 1,000 square kilometres. The property has direct access via 103 km of all-weather roads starting from the national highway, the BR-163, that links the industries in southern Brazil to the city of Belem in the north.

The history of Tocantinzinho dates back to the 1970s. The property is located in the Tapajos region, the site of the largest gold rush in history that took place from the late 1970s until the late 1990s. According to the Brazilian department of mineral production, the region had a total historical production of between 20 million and 30 million oz. of placer gold. After trading hands through different corporates, it was acquired by Eldorado Gold in 2010, which invested US$90 million into the project.

In late 2021, G Mining acquired the Tocantinzinho project for US$115 million, and shortly after published an updated feasibility study, showing an after-tax net present value (at 5% discount) of US$622 million and internal rate of return of 24.2%.

Over a mine life of 10.5 years, the TZ project is expected to produce 1.83 million oz. of gold, averaging 175,000 oz. per year. Over the first five years, annual gold production is expected to reach 196,000 oz. The initial capital cost is estimated at US$427 million, with another US$71 million in life of mine sustaining capital.

To date, G Mining has committed US$136 million (29% of total budget) on major equipment required for the process plant and mining. Detailed engineering is 30% complete and on track to service construction with all required drawings to start execution.

For more information, visit www.gminingventures.com.