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G Mining Ventures (TSX: GMIN) has received an interim environmental permit for its Oko West gold project in Guyana, allowing it to begin early works construction activities ahead of schedule.
The interim permit — which is valid for one year — was granted by Guyana’s Environmental Protection Agency (EPA) following G Mining’s submission of its environmental impact assessment (EIA) and environmental impact statement (EIS) last November.
With the permit, G Mining said it will advance early works activities in the first half of 2025. These include the barge landing facility, main access road and internal roads, airstrip, permanent camp facility, water and sewage treatment plants, and power generation and communication tower.
CEO Louis-Pierre Gignac said the approval of the interim environmental permit represents “an important step in reaching a construction decision for the Oko West project.” The final permit remains under EPA review.
Shares of G Mining Ventures traded 4.9% higher at C$12.13 by 11:20 a.m. ET, for a market capitalization of C$2.6 billion ($1.8bn).
In addition to the early construction works, G Mining also plans to advance the Oko West project’s feasibility study in H1 2025, aiming to publish the study during the second quarter.
Last September, the company released a preliminary economic assessment (PEA) for Oko West, showing an after-tax net present value (discounted at 5%) of $1.4 billion, an internal rate of return of 21% and a 3.8-year payback. Initial capital costs are forecast at $936 million. The figures were estimated using long-term gold prices of $1,950/oz.
Using a higher gold price of $2,500/oz., the NPV would rise to $2.5 billion, with an IRR of 31% and payback of two years.
The project in north-central Guyana currently hosts a resource of 64.6 million tonnes indicated grading 2.05 grams gold per tonne for 4.3 million oz. and 19.2 million tonnes inferred grading 2.59 grams gold for 1.6 million oz.
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