By Robb M. Stewart
GCM Mining Corp. said a preliminary economic assessment of its Toroparu gold project in Guyana affirmed the viability of open-pit and underground mining operations, with total life-of-mine production of 5.4 million ounces.
On the Toroparu project:
The gold producer Wednesday said the updated mineral resource estimate for the project points to a measured and indicated gold resource of 8.4 million ounces, at 1.42 grams a metric ton and a 396 million pounds measured and indicated copper resource at 0.1% in 185 million tons of rock.
It said the preliminary economic assessment for Toroparu estimates it will produce 5.4 million ounces of gold, 2.5 million ounces of silver and 141.3 million pounds of copper over a 24-year mine life. Gold output is expected to average 225,000 ounces a year over the 24 years, with production rising to an average 239,000 ounces annually with the start of underground mining in year 10 of the operation.
The assessment estimates life-of-mine total revenue of $8 billion, with a $3.5 billion operating margin and $1.7 billion in aftertax free cash flows, the company said.
The initial capital cost of the project, to be taken from 2021 through 2023, is expected to total $355 million, GCM said. Of that amount, $138 million will be funded by deposits under a precious metals purchase agreement with Wheaton Precious Metals International Ltd. and the balance with the proceeds of senior notes financing that closed in August.
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