G Mining Ventures Expands in Brazil with Major Acquisition from BHP

Key Highlights:

- G Mining Ventures (TSX: GMIN) secures the promising CentroGold Project from BHP in Brazil.

- The acquisition includes 1.7 million ounces of gold in indicated resources and significant exploration potential.

- G Mining also announces robust PEA results for its Oko West Gold Project in Guyana, signaling strong growth prospects.

In a strategic move aimed at bolstering its gold portfolio, G Mining Ventures (TSX: GMIN) has locked down the CentroGold Project in Brazil’s rich Gurupi Gold Belt. This acquisition from BHP Group (ASX: BHP) brings G Mining significant new resources: 1.7 million ounces of indicated gold and 0.6 million ounces of inferred resources, adding a substantial boost to the company’s growing asset base.

The CentroGold Project spans nearly 1,900 square kilometers and includes 47 tenements, with a mineralized trend stretching over 80 kilometers. This land package is largely underexplored, giving G Mining considerable opportunity to uncover further resources and expand its gold reserves in the future.

Strengthening G Mining’s Portfolio

The deal allows G Mining to add one of Brazil’s most prospective gold assets to its portfolio. Despite the rich potential, BHP retains a 1% net smelter return (NSR) royalty on the first million ounces of gold produced and a 1.5% royalty on all production thereafter, ensuring they continue to benefit from the site’s eventual success.

According to Louis-Pierre Gignac, CEO of G Mining, this acquisition helps round out the company’s growing gold portfolio. “CentroGold provides us with a significant, high-quality resource in one of Brazil’s most proven gold belts,” Gignac said. “This adds long-term growth potential to our operations while positioning G Mining as a multi-asset gold producer.”

The acquisition builds on G Mining’s previous successes, especially its rapidly advancing projects in Guyana and Brazil. The company plans to update the project’s resource estimates and initiate further exploration in the coming months to maximize the value of the newly acquired assets.

Oko West Gold Project: A Game-Changer

While CentroGold is a notable win for G Mining, it’s not the company’s only exciting development. G Mining has also unveiled impressive Preliminary Economic Assessment (PEA) results for its Oko West Gold Project in Guyana. The PEA outlines a 12.7-year mine life and highlights an after-tax net present value (NPV) of $1.4 billion, along with a 21% internal rate of return (IRR). 

Oko West could produce 353,000 ounces of gold annually at a highly competitive All-In Sustaining Cost (AISC) of $986 per ounce. This positions it as a low-cost operation with strong growth potential, particularly given the scale of the project and the robust financials outlined in the PEA.

Moreover, the numbers become even more attractive under a bullish gold price scenario. If gold reaches $2,500 per ounce, the project’s NPV jumps to $2.5 billion, and the payback period shortens to just two years.

The company expects to finalize the feasibility study for Oko West by early 2025, which will allow G Mining to pursue construction, further solidifying its standing as a future mid-tier gold producer.

A Bold Strategy for Long-Term Growth

G Mining has had a banner year in 2024, growing its measured and indicated gold resources from 2.1 million ounces to 8.1 million ounces through strategic acquisitions and successful exploration. The CentroGold acquisition will only add to that momentum, giving G Mining even more potential to scale its production in the near future.

By early 2025, G Mining plans to finalize the acquisition and start working toward bringing CentroGold into production, while also ramping up its Tocantinzinho Gold Mine in Brazil and advancing the Oko West project in Guyana.

For investors, G Mining's moves in 2024 send a clear message: the company is serious about growth and is well on its way to becoming a multi-asset gold producer, with a solid pipeline of projects ready to come online in the coming years.