G Mining Ventures to Acquire the CentroGold Project from BHP
- GMIN to acquire the
CentroGold Project inBrazil's prospective Gurupi Gold Belt from BHP - CentroGold contains 1.7 million ounces of indicated and 0.6 million ounces of inferred JORC-compliant gold resource that is open for expansion in all directions and at depth
- District-scale land package comprises 47 tenements covering ~1,900 km2 and offers potential for multiple new discoveries
- CentroGold to provide long-term growth following Tocantinzinho ramp-up and
Oko West development - Accretive transaction adds to GMIN's project pipeline with no upfront cost
CentroGold is in the
GMIN views the Project as an advanced-stage exploration asset with extensive exploration and engineering work completed to date, which includes over 135,000 meters of exploration core drilling. The Project's size, scope, and development timeline will be redesigned to suit GMIN's long-term growth plans, ensuring resources are allocated in line with our strategy of maximizing value for all stakeholders. GMIN intends to build on CentroGold's existing geologic model and redesign the Project from first principles to better fit today's new permitting requirements and economic environment. Shortly after the Transaction's closing, GMIN plans to update the JORC-compliant gold resource to meet National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). The current corporate priorities that will take precedence are ramping up the
Du š an Petkovi ć , Senior Vice President, Corporate Strategy, commented: "The acquisition of CentroGold perfectly aligns with our strategy of acquiring high-quality, undervalued assets that GMIN is uniquely qualified to unlock. 2024 has been a transformational year for GMIN, headlined by two acquisitions that have grown our gold resource base from 2.1 million ounces measured and indicated to 8.1 million ounces, and from 50 thousand inferred to 2.2 million ounces, creating an exciting pipeline of near-term and longer-dated growth projects. Looking forward, we are excited to demonstrate and realize our asset base's immense potential."
CentroGold Highlights
- High-quality resource base open for expansion – 1.7 million ounces of indicated and 0.6 million ounces of inferred JORC-compliant gold resource across three open pit deposits that are open for expansion
- Large prospective land package – ~1,900 km2 land package with multiple identified gold targets, which remain under-explored, with existing resource occupying only ~8% of the total land package
- District-scale potential – Property encompasses +80 km mineralized trend covering +80% of the total prospective Gurupi geological province
-
Opportunity for tier 1 project – A pre-feasibility study was completed by Oz Minerals in
July 2019 that outlines the potential for a compelling initial project with high operating margin and return - Leverages GMIN's expertise – GMIN's management team is ideally positioned to unlock CentroGold's value, leveraging in-country and global community engagement experience to advance Project permitting
- Fortifies GMIN Growth Pipeline – Ideally sequenced to provide long-term growth following Tocantinzinho ramp-up, brownfield exploration, and Oko West development and construction
Blanket & Contact Reserve & Resource Estimate
|
Tonnage |
Grade |
Contained |
|
Reserve & Resource Estimate |
(000 t Material) |
(g/t Au) |
(000 oz Au) |
|
Proven & Probable Reserves |
20,000 |
1.7 |
1,100 |
|
Indicated Resources |
21,000 |
1.9 |
1,300 |
|
Inferred Resources |
7,300 |
1.8 |
410 |
|
Total Resources |
28,300 |
1.9 |
1,710 |
|
Note: (1)(2)(3)(4)(5)(6)(7) |
Chega Tudo Resource Estimate
|
Tonnage |
Grade |
Contained |
|
Resource Estimate |
(000 t Material) |
(g/t Au) |
(000 oz Au) |
|
Indicated Resources |
8,200 |
1.6 |
425 |
|
Inferred Resources |
3,100 |
1.5 |
152 |
|
Total Resources |
11,300 |
1.6 |
577 |
|
Note: (1)(2)(3)(4)(5)(6)(7) |
Transaction Summary
GMIN has agreed to purchase the
The Transaction is expected to close in Q1-25 and is subject to customary closing conditions, including BHP receiving the appropriate approvals from the Vietnamese and
Advisors and Counsel
Qualified Person
About
Additional Information
For further information on GMIN, please visit the website at www.gmin.gold.
Notes
1. |
For details on the estimation of mineral resources and reserves, including the key assumptions, parameters and methods used to estimate the mineral resources and mineral reserves, Canadian investors should refer to the ASX JORC Code Technical Reports for CentroGold and on file at www.asx.com.au and the Oz Minerals 2020 Annual Report. |
2. |
See Oz Minerals |
3. |
See technical report titled "Gurupi province potential strengthened on CentroGold Pre-Feasibility Study" dated |
4. |
See Avanco Copper Chega Tudo ASX technical report titled "CentroGold Resources Increase 45% and Exceeds 1.8 Million Ounces" dated |
5. |
Numbers may not add due to rounding. |
6. |
Mineral resources which are not mineral reserves do not have demonstrated economic viability. |
7. |
Mineral resources are inclusive of mineral reserves. |
Cautionary Statement on Forward-Looking Information
All statements, other than statements of historical fact, contained in this press release constitute "forward-looking information" and "forward-looking statements" within the meaning of certain securities laws and are based on expectations and projections as of the date of this press release. Forward-looking statements contained in this press release include, without limitation, those related to (i) GMIN closing the Transaction in Q1 2025; (ii) CentroGold's resources being open for expansion in all directions and at depth; (iii) CentroGold hosting multiple gold targets; (iv) CentroGold's prospective land package and exploration upside; (v) the conclusions of the
Forward-looking statements are based on expectations, estimates and projections as of the time of this press release. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect. Such
assumptions include, without limitation, those relating to the price of gold and currency exchange rates, those outlined in the 2019 pre-feasibility study and those underlying the items listed on the above sections entitled "CentroGold Highlights" and "About
Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that, notably but without limitation, the Corporation will (i) CentroGold will provide long-term growth and prove an accretive transaction, (ii) any of CentroGold's targets will lead to additional resources and eventually to gold production, (iii) the expected mine life and annual gold production indicated in the 2019 pre-feasibility study will materialize, (iv) GMIN's expectations regarding CentroGold, as set out in the section entitled "CentroGold Highlights" will materialize, (v) GMIN will achieve its stated objectives for Tocantinzinho and Oko West, or (vi) use TZ and Oko West to grow GMIN into the next intermediate producer, as future events could differ materially from what is currently anticipated by the Corporation. In addition, there can be no assurance that
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. Readers are cautioned not to place undue reliance on these forward-looking statements as a number of important risk factors and future events could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements and those made in the Corporation's other filings with the securities regulators of
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