GoldMining Inc. (TSX: GOLD) (NYSE American: GLDG) has announced the results of an updated preliminary economic assessment (PEA) on the La Mina Project, located in Antioquia, Colombia.
“The updated Project PEA highlights the underlying quality of the La Mina porphyry gold-copper mineral system and represents just a small portion of and emphasises the depth of the GoldMining portfolio of projects that we continue to advance,” Alastair Still, CEO of GoldMining commented. “By capturing current market consensus metals pricing, the PEA conceptualises a robust $1 billion base case project that is characterised with an efficient capital intensity.
“We’re not simply adjusting for the higher commodity prices; we have confirmed that La Mina is potentially a resilient development opportunity. With these solid base case economics, which improve substantially at spot prices, the Company is excited by the opportunity to further advance and de-risk the Project on the path towards potential future development.”
The PEA reviewed and refined mine engineering design work completed during the previous (2023) preliminary economic assessment disclosed by the Company, including updating all operating and capital cost estimates following a comprehensive review of technical inputs, and updating metal price assumptions. No other substantive changes were made during the study.
The Project, covering 3,208 hectares, is located in the Department of Antioquia, Republic of Colombia, approximately 51km southwest of Medellin. The Mineral Resource Estimate (MRE) for La Mina includes the La Cantera, La Garrucha and Middle Zone porphyry deposits, which are located within 1,000 metres of each other.
No additional drilling has been completed at La Mina in support of this updated PEA, therefore the current MRE with effective date December 20th, 2022, remains current in support of the PEA.
The PEA considers a conventional drill, blast, load, and haul open pit operation mining an average of 97,000 tpd over the 11.2-year life of mine. It contemplates that resources will be processed at a nominal rate of 15,000 tpd by conventional grinding and flotation to generate a copper concentrate, with tailings of the copper process reporting to a leach circuit to generate gold-silver doré on site. The combined LOM average metallurgical recovery of 91%, 80% and 64% are realised for gold, copper and silver, respectively.
The PEA includes on-site development including mining, haul roads, access roads, process facilities, tailings and waste storage facilities, and related ancillary facilities. Construction is anticipated to take approximately two years with an initial capital expenditure of $523.3 million with operations continuing for 11.2 years. Sustaining capital expenditures over the LOM are expected to be approximately $166 million, consisting of a mix of mining capital equipment and staged expansion of the tailings and waste facilities. LOM operating costs are expected to average $29.50/t of material processed.
Under the PEA, highest metal production occurs in the initial five years of production averaging 152.4 koz AuEq comprising 126 koz Au, 22.4 Mlbs Cu, and 273 koz Ag annual production. Year 1 production of 176.5 koz AuEq comprises 138 koz Au, 27.0 Mlbs Cu, and 174.8 koz Ag. LOM average production is 137.0 koz AuEq, comprising 107.7 koz Au, 17.0 Mlbs Cu, and 248.6 koz Ag.
The LOM average mining rate in the PEA is 5.5 Mt resources per annum and 30.1 Mt waste, which equates to an average LOM strip ratio of 5.5:1.
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