GCM Mining Corp. (the “Company”) (TSX: GCM, OTCQX: TPRFF) announced
today that it has completed an updated Mineral Resource estimate
for its Toroparu Project in Guyana with an effective date of
November 1, 2021 and in accordance with the Canadian Institute of
Mining Metallurgy and Petroleum (“CIM”) Definition Standards
incorporated by reference in National Instrument 43-101 – Standards
of Disclosure for Mineral Projects (“NI 43-101”). GCM Mining also
announced today that Nordmin Engineering Ltd. (“Nordmin”) and SRK
Consulting (U.S.), Inc. (“SRK”) have completed preliminary results
of a Preliminary Economic Assessment (“PEA”) for the Toroparu
Project effective November 26, 2021 and is currently finalizing the
technical report to be prepared in accordance with NI 43-101 and
filed on SEDAR and the Company’s website in mid-January 2022.
Highlights of the PEA for the Toroparu
Project
- The PEA affirms the economic
viability of the open pit and underground mining operations at the
Toroparu Project.
- Total life-of-mine (“LoM”) gold
production of 5.4 million ounces (“Mozs”) representing 88.4% of the
6.2 Mozs of gold fed to the milling circuit at an average grade of
1.78 g/t Au over the 24-year mine life.
- Open pit mine operations will
deliver 93 Mt of potential mill feed (“PMF”) over the LoM and
underground mining operations, which commence in year 10, will
deliver an additional 14 Mt of PMF.
- Average annual gold production of
225,000 ounces over the 24-year mine life. During the first
two-year payback period, gold production averages 254,000 ounces
per year and over the first 9 years of surface-only mining, gold
production averages 202,000 ounces per year. With the commencement
of underground mining in year 10, annual gold production from open
pit and underground increases to an average of 239,000 ounces over
the remaining 15 years of the LoM.
- Initial capital cost, to be
incurred from 2021 through 2023, totals US$355 million, of which
US$138 million will be funded by deposits under a Precious Metals
Purchase Agreement (“PMPA”) with Wheaton Precious Metals
International Ltd. (“WPMI”) and the balance by the net proceeds of
the Senior Notes financing closed in August of this year.
- Processing capacity will be built
in two phases with an initial Phase I nominal capacity of 7,000 tpd
(2.55 Mtpa) in a gold leach plant based on gravity and
carbon-in-leach circuits (“CIL”) and increasing in year 6 to 14,000
tpd (5.1 Mtpa) in Phase II with the construction of a copper
concentrator based on gravity and copper flotation circuits. The
copper concentrator will facilitate the recovery of 141.3 million
pounds (“Mlbs”) of copper over its 19 years of operation.
- The PEA delivers solid financial
results with LoM total revenue of US$8.0 billion, US$3.5 billion of
operating margin and US$1.7 billion of after-tax Free Cash Flow.
The LoM PEA financial results are based on long-term prices of
US$1,500/oz gold, US$20.22/oz silver and US$3.13/lb copper.
- Gold and copper account for
approximately 94% and 5.5%, respectively, of total revenue over the
LoM.
- LoM cash cost of US$742/oz and LoM
all-in sustaining cost (“AISC”) of US$916/oz.
- The PEA estimates a US$794 million
after-tax NPV 5% (net present value at a 5% discount rate), a 46%
IRR (after-tax Internal Rate of Return) and a two-year after-tax
payback of the initial capital cost of the Project.
Lombardo Paredes, Chief Executive Officer of GCM
Mining, commented “The PEA was initiated as a result of a
significantly expanded Mineral Resource developed from the
discovery of the structural control of high-grade gold
mineralization at Toroparu as reported in our July 6, 2021 press
release. Compared with Gold X Mining’s previous Mineral Resource
estimate (September 2018), total Measured and Indicated Gold
Resources have increased by approximately 15% to 8.4 million ounces
of gold and reflect an increase in the average head grade from 0.91
g/t to 1.42 g/t in the latest update. The updated mineral resource
estimate reported herein, which represents a potential step change
to the economic value of Toroparu, underlies the scoping of a long
mine life project within the PEA recovering 280,000 ounces of gold
in the first year of operation in 2024 and an estimated 225,000
ounces of gold per year from both surface and underground mining
operations over 24 years. A total of 5.4 million ounces of gold is
expected to be produced over the LoM in the PEA, an approximately
20% increase from the previous PEA prepared by Gold X Mining in
July 2019. We have already commenced pre-construction activities at
the Toroparu Project site. We have hired Haukes Construction
(Guyana) Ltd., a division of Haukes NV of Suriname, for
construction of the preliminary earthworks at Toroparu, with
development of the permanent man-camp, airstrip and rock quarries
currently underway. Preparations are also being made for the
rehabilitation of the historical access road commencing early next
year. Based on the technical and financial merits demonstrated by
the PEA and funded by the US$300 million Senior Notes financing we
closed in August and the Wheaton stream, we are proceeding with
construction of the Toroparu Project, which is initially focused on
the surface mining of higher-grade gold processed through a 7,000
tonnes per day (“tpd”) gold leach mill. The PEA envisions an
expansion of milling capacity to 14,000 tpd with the addition of a
copper concentrator in year 6 and the addition of underground
mining operations in year 10 of the mine life. Importantly, the
Toroparu Deposit is open both along strike and at depth with the
additional mineralization potential below the 450 m level amenable
to underground mining methods. We believe the Toroparu Project has
the potential to be a multi-generational gold mine which can create
significant value for our shareholders, solidifying its position
along with our Segovia Operations as a cornerstone asset in GCM
Mining.”
Mineral Resource Estimate (“MRE”) Update
Effective November 1, 2021
The MRE, which is summarized in Tables 1 and 2
below, was prepared by Nordmin following a two-phase diamond drill
program carried out by Gold X Mining in 2020-2021 which comprised a
total of 20,750 meters in 114 drill holes. The updated MRE includes
an open pit and a maiden underground resource estimate within the
Toroparu Main & NW and SE deposits that are defined by multiple
discreet northwest and east-west oriented high grade mineralized
structures that intersect in a repeatable pattern over an estimated
four kilometers of strike, 400-450 m in width, and 450-500 m in
depth. The satellite deposits consist of the Southeast zone (SE)
and the Sona Hill satellite gold deposits.
Table 1: Mineral Resource Statement for the
Toroparu Gold Project
Deposit |
Area |
Type |
ResourceCategory |
Tonnes |
Au(g/t) |
Au (oz) |
Cu(%) |
Cu (lb) |
Ag(g/t) |
Ag (oz) |
Toroparu |
Main & NW |
Open Pit |
Measured |
98,070,291 |
1.21 |
3,809,178 |
0.110 |
238,111,611 |
1.19 |
3,742,659 |
Toroparu |
Main & NW |
Open Pit |
Indicated |
62,531,387 |
1.56 |
3,132,509 |
0.100 |
137,556,947 |
0.91 |
1,828,430 |
Toroparu |
Southeast |
Open Pit |
Measured |
5,121,448 |
1.16 |
190,285 |
0.043 |
4,825,694 |
- |
- |
Toroparu |
Southeast |
Open Pit |
Indicated |
2,403,013 |
1.14 |
88,391 |
0.052 |
2,762,872 |
- |
- |
Sona Hill |
Sona Hill |
Open Pit |
Measured |
6,958,156 |
1.85 |
413,224 |
0.008 |
1,241,377 |
1.07 |
238,790 |
Sona Hill |
Sona Hill |
Open Pit |
Indicated |
4,179,989 |
1.66 |
223,062 |
0.008 |
699,784 |
0.85 |
114,530 |
Toroparu |
Main & NW & SE |
Underground |
Measured |
727,497 |
2.84 |
66,476 |
0.072 |
1,150,934 |
0.47 |
11,100 |
Toroparu |
Main & NW & SE |
Underground |
Indicated |
4,977,604 |
3.21 |
513,914 |
0.091 |
9,937,252 |
0.41 |
66,013 |
Subtotal: Measured |
110,877,392 |
1.26 |
4,479,163 |
0.100 |
245,329,616 |
1.12 |
3,992,550 |
Subtotal: Indicated |
74,091,993 |
1.66 |
3,957,875 |
0.092 |
150,956,854 |
0.84 |
2,008,972 |
Subtotal: Measured & Indicated |
184,969,385 |
1.42 |
8,437,039 |
0.097 |
396,286,470 |
1.01 |
6,001,522 |
Toroparu |
Main & NW |
Open Pit |
Inferred |
4,018,483 |
1.58 |
203,693 |
0.080 |
7,117,507 |
0.66 |
84,986 |
Toroparu |
Southeast |
Open Pit |
Inferred |
9,411 |
1.67 |
505 |
0.040 |
8,348 |
- |
- |
Sona Hill |
Sona Hill |
Open Pit |
Inferred |
1,365,019 |
1.28 |
56,275 |
0.006 |
178,861 |
0.54 |
23,789 |
Toroparu |
Main & NW & SE |
Underground |
Inferred |
8,402,611 |
3.53 |
952,845 |
0.091 |
16,884,424 |
0.25 |
68,259 |
Subtotal: Inferred |
13,795,524 |
2.74 |
1,213,317 |
0.080 |
24,189,139 |
0.40 |
177,035 |
Total |
198,764,909 |
1.51 |
9,650,356 |
0.006 |
27,972,610 |
0.97 |
6,178,557 |
Table 2: Mineral Resource Estimate Summary
|
Tonnes |
Au (g/t) |
Au (oz) |
Cu (%) |
Cu (lb) |
Ag (g/t) |
Ag (oz) |
Open Pit |
Measured and Indicated |
179,264,284 |
1.36 |
7,856,649 |
0.097 |
385,198,283 |
1.03 |
5,924,409 |
Inferred |
5,392,913 |
1.50 |
260,473 |
0.061 |
7,304,715 |
0.63 |
108,776 |
Underground |
Measured and Indicated |
5,705,101 |
3.16 |
580,390 |
0.088 |
11,088,186 |
0.42 |
77,113 |
Inferred |
8,402,611 |
3.53 |
952,845 |
0.091 |
16,884,424 |
0.25 |
68,259 |
Total |
Measured and Indicated |
184,969,385 |
1.42 |
8,437,039 |
0.097 |
396,286,470 |
1.01 |
6,001,522 |
Inferred |
13,795,524 |
2.74 |
1,213,317 |
0.080 |
24,189,139 |
0.40 |
177,035 |
Combined Open Pit and Underground Mineral
Resources; the Open Pit Mineral Resource is based on a
0.40 g/t gold cut-off grade, and the Underground Mineral
Resource is based on 1.80 g/t gold cut-off grade.
Mineral Resource Estimate Notes
- Combined Open Pit and Underground
Mineral Resources were prepared in accordance with NI 43-101 and
the CIM Definition Standards for Mineral Resources and Mineral
Reserves (2014) and the CIM Estimation of Mineral Resources and
Mineral Reserves Best Practice Guidelines (2019). Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability. This estimate of Mineral Resources may be materially
affected by environmental, permitting, legal, title, taxation,
socio-political, marketing, or other relevant issues.
- Underground and Open Pit Mineral
Resources are based on a gold price of US$1,630/oz. This gold price
is the three-year trailing average as of September 30, 2021.
- Open Pit Mineral Resources comprise
the material contained within various Lerchs-Grossmann pit shells
at various revenue factors. These revenue factors are as follows:
Main/Southeast/NW Zone @ 0.75 revenue factor and Sona Hill @ 1.00
revenue factor. The gold cut-off applied to Open Pit Mineral
Resources within the selected pit shells was 0.40 g/t.
- Underground Mineral Resources
comprise all material found within Mineable Shape Optimizer (“MSO”)
wireframes generated at a cut-off of 1.80 g/t gold including
material below cut-off.
- Ag values are not reported for the
Southeast Open Pit Ag contained metal values reported will not
equal A tonnes X grade conversion calculation.
- Assays were variably capped on a
wireframe-by-wireframe basis.
- Specific gravity was applied using
weighted averages to each individual litho type.
- Mineral Resource effective date
November 1, 2021.
- All figures are rounded to reflect
the relative accuracy of the estimates and totals may not add
correctly.
- Excludes unclassified
mineralization located within mined out areas.
- Reported from within a
mineralization envelope accounting for mineral continuity.
The Mineral Resource Statement presented in
Tables 1 and 2, was prepared by Independent Qualified Person
(“QP”), Glen Kuntz, P. Geo. of Nordmin with the head office located
in Thunder Bay, Ontario. The MRE is based on validated results of
528 surface drill holes totaling 178,491 m of diamond drilling for
the Toroparu Deposit, representing a 19.7% increase over the
previous MRE conducted in 2018, and 181 surface drill holes
totaling 20,850 m for the Sona Hill Deposit that was completed
between January 2006 and the effective date of November 1, 2021.
The Mineral Resource Statement includes 72 surface drill holes
totaling 10,166 m of diamond drilling conducted by Gold X Mining in
the fourth quarter of 2020 together with an additional 73,439 gold
(“Au”) assays, 70,628 copper (“Cu”) assays, and 35,054 silver
(“Ag”) assays that were not included in the previous Mineral
Resource update completed in 2018.
The MRE, which is effective from November 1,
2021, supersedes all previous MREs and Technical Reports filed by
Gold X Mining Ltd. and Sandspring Resources Ltd. The MRE was
optimized from previous estimates which defined resources contained
in a lower grade bulk tonnage geologic model. The updated
understanding of the geologic structural control over gold
mineralization defines a lower volume, higher-grade core resource
that can be mined using both open pit and underground mining
methods. Further, the Phase 2 drill results indicate the scale of
the mineralization that remains open to the northwest and at depth
below 450-500 metres.
Toroparu PEA and LoM Plan
A mining study and schedule was prepared by the
technical professionals at SRK and Nordmin to create a LoM
production schedule for the Toroparu Project that will initially
comprise open pit mine operations and ultimately expand in year 10
to include underground mine operations. Sustaining capital
expenditures related to the development of the underground mining
areas will commence in year 9 (2032).
The PEA also envisions a two-phase investment in
processing facilities with an initial 7,000 tpd (2.55 Mtpa) Phase I
nominal capacity in a gold leach plant based on gravity and CIL.
Construction of a copper concentrator in years 4 and 5 (2027-2028)
at a capital cost of approximately US$103 million (included in
sustaining capital expenditures and AISC data) will increase Phase
II nominal capacity to 14,000 tpd (5.1 Mtpa) by Year 6 (2029) of
the LoM. The copper concentrator will be based on gravity and
copper flotation circuits and will facilitate the recovery of 141.3
Mlbs of copper over its 19 years of operation.
The PEA LoM production schedule foresees a total
of 107.3 million tonnes of mineralized material being processed
over a 24-year mine life resulting in a total of 5.4 million ounces
of gold produced at an average LoM total cash cost of US$742 per
ounce and an average LoM AISC of US$916 per ounce. The initial
capital cost, to be incurred between 2021 and 2023, is estimated to
total US$355 million. At an expected long-term gold price of
US$1,500 per ounce, total LoM undiscounted after-tax project cash
flow from mining operations amounts to US$1.7 billion. At a 5%
discount rate, the net present value of the total LoM after-tax
project cash flow amounts to US$794 million. Before financing, the
project has a 46% after-tax internal rate of return and payback of
approximately two years.
A summary of the key estimated LoM production
data in the PEA is summarized as follows:
Life of Mine |
24 years |
Processing Rate - Phase I |
7,000 tpd / 2.6 Mtpa |
Processing Rate - Phase II (starting in yr 6) |
14,000 tpd / 5.1 Mtpa |
Recovered Gold |
5.4 Mozs |
Recovered Silver |
2.5 Mozs |
Recovered copper |
141.3 Mlbs |
Average Gold Recovery |
88.4% |
Pre-production Mined Tonnage |
17.1 Mt |
Total Mined Tonnage (including pre-production) from Open Pit |
665 Mt |
Total Milled Tonnage from Open Pit |
93.1 Mt |
Open Pit Strip Ratio (waste: ore) |
6:1 |
Total Mined & Milled Tonnage from Underground |
14.2 Mt |
Total Milled Tonnage |
107.3 Mt |
Average Annual Gold Production |
225 Kozs |
Average Mill Feed Grade - Gold |
1.78 g/t |
A summary of the key operating and financial
metrics over the 24-year mine life in the PEA is as follows;
Period |
Gold Prod. |
Revenue (3) |
Opex |
Royalties and Freight Insurance |
Income Taxes |
Working Capital |
Operating Cash Flow |
Sustaining Capital |
Free Cash Flow |
Initial Capex, Net
of Up-Front PMPA Deposits (4) |
Project Cash Flow |
Cash Cost (5) |
AISC (6) |
|
kozs |
|
US$ Millions |
US$/oz |
2021 (2) |
- |
|
- |
|
- |
|
0 |
|
0 |
|
0 |
|
0 |
|
- |
|
- |
|
(3 |
) |
(3 |
) |
- |
|
- |
|
2022 |
- |
|
- |
|
- |
|
0 |
|
0 |
|
0 |
|
0 |
|
- |
|
- |
|
(78 |
) |
(78 |
) |
- |
|
- |
|
2023 |
- |
|
- |
|
- |
|
0 |
|
0 |
|
0 |
|
0 |
|
- |
|
- |
|
(135 |
) |
(135 |
) |
- |
|
- |
|
2024 |
280 |
|
390 |
|
(92 |
) |
(32 |
) |
(38 |
) |
(18 |
) |
210 |
|
(12 |
) |
198 |
|
- |
|
198 |
|
439 |
|
480 |
|
2025 |
228 |
|
318 |
|
(96 |
) |
(28 |
) |
(34 |
) |
(1 |
) |
159 |
|
(33 |
) |
126 |
|
- |
|
126 |
|
540 |
|
686 |
|
2026 |
204 |
|
285 |
|
(95 |
) |
(26 |
) |
(24 |
) |
0 |
|
141 |
|
(24 |
) |
116 |
|
- |
|
116 |
|
584 |
|
704 |
|
2027 |
207 |
|
289 |
|
(99 |
) |
(26 |
) |
(18 |
) |
(1 |
) |
145 |
|
(94 |
) |
52 |
|
- |
|
52 |
|
598 |
|
1,049 |
|
2028 |
189 |
|
263 |
|
(100 |
) |
(24 |
) |
0 |
|
(0 |
) |
140 |
|
(188 |
) |
(48 |
) |
- |
|
(48 |
) |
649 |
|
1,642 |
|
2029 |
171 |
|
265 |
|
(131 |
) |
(22 |
) |
(12 |
) |
(5 |
) |
95 |
|
(14 |
) |
81 |
|
- |
|
81 |
|
735 |
|
816 |
|
2030 |
165 |
|
262 |
|
(141 |
) |
(21 |
) |
(10 |
) |
(2 |
) |
88 |
|
(11 |
) |
77 |
|
- |
|
77 |
|
785 |
|
849 |
|
2031 |
160 |
|
249 |
|
(148 |
) |
(21 |
) |
(4 |
) |
(2 |
) |
74 |
|
(26 |
) |
48 |
|
- |
|
48 |
|
893 |
|
1,058 |
|
2032 |
213 |
|
325 |
|
(150 |
) |
(27 |
) |
(25 |
) |
(0 |
) |
123 |
|
(82 |
) |
41 |
|
- |
|
41 |
|
692 |
|
1,076 |
|
2033 |
203 |
|
315 |
|
(152 |
) |
(26 |
) |
(28 |
) |
(0 |
) |
109 |
|
(84 |
) |
25 |
|
- |
|
25 |
|
714 |
|
1,126 |
|
2034 |
198 |
|
309 |
|
(192 |
) |
(25 |
) |
(12 |
) |
(8 |
) |
72 |
|
(53 |
) |
19 |
|
- |
|
19 |
|
923 |
|
1,190 |
|
2035 |
225 |
|
337 |
|
(210 |
) |
(26 |
) |
(11 |
) |
(4 |
) |
86 |
|
(71 |
) |
15 |
|
- |
|
15 |
|
940 |
|
1,254 |
|
2036 |
290 |
|
441 |
|
(210 |
) |
(33 |
) |
(40 |
) |
0 |
|
158 |
|
(34 |
) |
124 |
|
- |
|
124 |
|
709 |
|
827 |
|
2037 |
248 |
|
367 |
|
(213 |
) |
(29 |
) |
(23 |
) |
(1 |
) |
102 |
|
(7 |
) |
95 |
|
- |
|
95 |
|
885 |
|
913 |
|
2038 |
245 |
|
355 |
|
(209 |
) |
(28 |
) |
(24 |
) |
1 |
|
93 |
|
(15 |
) |
78 |
|
- |
|
78 |
|
911 |
|
973 |
|
2039 |
214 |
|
319 |
|
(206 |
) |
(25 |
) |
(17 |
) |
1 |
|
72 |
|
(30 |
) |
43 |
|
- |
|
43 |
|
978 |
|
1,115 |
|
2040 |
232 |
|
345 |
|
(209 |
) |
(27 |
) |
(25 |
) |
(0 |
) |
84 |
|
(44 |
) |
40 |
|
- |
|
40 |
|
919 |
|
1,107 |
|
2041 |
340 |
|
491 |
|
(204 |
) |
(39 |
) |
(68 |
) |
1 |
|
181 |
|
(5 |
) |
176 |
|
- |
|
176 |
|
659 |
|
673 |
|
2042 |
352 |
|
513 |
|
(204 |
) |
(40 |
) |
(71 |
) |
0 |
|
198 |
|
(67 |
) |
131 |
|
- |
|
131 |
|
625 |
|
817 |
|
2043 |
275 |
|
407 |
|
(200 |
) |
(32 |
) |
(44 |
) |
1 |
|
133 |
|
(6 |
) |
127 |
|
- |
|
127 |
|
750 |
|
772 |
|
2044 |
300 |
|
442 |
|
(201 |
) |
(34 |
) |
(54 |
) |
(0 |
) |
152 |
|
(14 |
) |
138 |
|
- |
|
138 |
|
704 |
|
751 |
|
2045 |
203 |
|
312 |
|
(178 |
) |
(23 |
) |
(27 |
) |
5 |
|
88 |
|
(7 |
) |
81 |
|
- |
|
81 |
|
846 |
|
882 |
|
2046 |
173 |
|
254 |
|
(128 |
) |
(20 |
) |
(26 |
) |
10 |
|
90 |
|
(2 |
) |
88 |
|
- |
|
88 |
|
773 |
|
783 |
|
2047 |
92 |
|
133 |
|
(73 |
) |
(11 |
) |
(12 |
) |
11 |
|
48 |
|
(22 |
) |
26 |
|
- |
|
26 |
|
849 |
|
1,092 |
|
2048 |
- |
|
- |
|
- |
|
0 |
|
0 |
|
14 |
|
14 |
|
- |
|
14 |
|
- |
|
14 |
|
- |
|
- |
|
Total |
5,407 |
|
7,988 |
|
(3,843 |
) |
(641 |
) |
(650 |
) |
- |
|
2,855 |
|
(944 |
) |
1,911 |
|
(217 |
) |
1,694 |
|
742 |
|
916 |
|
(1) |
All figures are rounded to reflect the relative accuracy of the
estimate. Totals may not sum due to rounding. |
(2) |
Commencing November 2021. |
(3) |
Revenue is based on long-term gold and silver prices of US$1,500
and US$20.22 per ounce, respectively, and US$3.13 per lb for
copper. Revenues reflect the terms of the PMPA with WPMI. Under the
terms of the PMPA, WPMI will purchase 10% of the gold and 50% of
the silver production in exchange for up-front cash deposits
totaling $153.5 million, of which US$15.5 million has already been
received and the remaining US$138.0 million will be received during
construction of the Project. In addition, WPMI will make ongoing
payments to the Company once Toroparu is in operation at the lesser
of the market price and US$400 per payable ounce of gold delivered
over the life of the Project (subject to a 1% annual increase
starting after the third year of production) and at the lesser of
the market price and US$3.90 per payable ounce of silver delivered
over the life of the Project (subject to a 1% annual increase
starting after the fourth year of production). |
(4) |
Initial capex represents the upfront capital costs for the
development and construction of the Project totaling US$352.8
million, net of US$138.0 million of up-front cash deposits to be
received from WPMI under the PMPA. |
(5) |
Cash cost per ounce is a non-IFRS measure and is calculated on a
by-product credit basis by deducting revenues from silver and
copper production from the sum of opex, royalties and freight
insurance and dividing the sum by the number of gold ounces
produced. Opex includes mining, processing, site administration
costs, freight, treatment and refining charges. |
(6) |
AISC per ounce is a non-IFRS measure which adds sustaining capital
per ounce produced to cash cost per ounce. |
|
|
A conventional truck-shovel method was
considered for the open pit portion of the Toroparu Deposit. The
open pit analysis results in several distinct open pits coalescing
into the NW and Main Toroparu Pits over time. The Sona Hill and
Southeast Zone (SE) will be developed in a similar fashion
beginning in year 3 and 6 respectively. The final dimensions of the
NW Pit are approximately 990 m long x 690 m wide x 360 m deep. The
dimensions of the Main Pit are approximately 1,300 m long x 750 m
wide x 470 m deep. The open pit LoM plan proposes to mine
approximately 93 Mt at a cut-off grade of 0.5 g/t Au and 558 Mt of
waste rock material. The average stripping ratio for the open pit
operations is 6:1 over the LoM. Each pit is currently planned to be
developed with 29 phases each. Compacted saprolitic waste material
will be used to construct haul roads, facility pads and flood
control berms, levies and other structures.
Figures 1 & 2 accompanying this announcement are
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/d7b3f570-60c4-4636-9b7d-e3fbb1b9b299
Underground development will commence at the
beginning of the ninth year of open pit operation and targets 3,500
tpd, ramping up to full production over an approximately two-year
period. The ramp-up allows for the main ramp system development at
the 250 m elevation down from the surface portal in the NW Pit and
to connect to both fresh air and return air raises, providing
ventilation and secondary egress for the mine. Underground
production is scheduled based on approximately 3,500 tpd mill feed
and 750 tpd average waste, excavated using a fleet of 15 and 10
tonne load-haul-dump loaders, hauled with 45 tonne trucks using the
ramps to portals entrances and rehandled using the surface fleet.
Production is expected to commence in the central area between the
Main and NW Pits from 360 Level (approximately 360 m elevation
below surface) and continues for the first 2 years in a bottom-up
sequence. It is anticipated that mining next transitions to
production from lower mining areas below and around Main and NW
Pits for approximately the final 10 years of the LoM.
Figure 3 accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/64873fb2-268a-4c3c-b5e7-99e91393a8ff
Next Steps Toward the Development of the
Toroparu Project
The results of the PEA for Toroparu affirm the
Project’s technical and financial merits using base case and
sensitivity metal price assumptions and the inputs in some areas
from advanced historical studies completed by Gold X Mining that
were at Pre-Feasibility Study (“PFS”) or Feasibility Study (“FS”)
levels. The Company plans to execute the mine plan outlined in the
PEA in phases, commencing initially with construction of the Phase
I surface mine and the 7,000 tpd gold leach process mill. A PFS
focused on the initial 10 years of surface mining is anticipated to
be completed in the first quarter of 2022.
The Government had previously accepted the
previous PEA prepared by Gold X Mining in July 2019 as satisfying
the requirement in the Company’s Mineral Agreement for delivery of
a technical study demonstrating the feasibility of the Project.
Since this new PEA reflects a major, and much improved, change in
the operating plan for the Project, it is expected that the
Government will review this PEA prior to issuing the Mining License
in 2022.
The Company has hired Haukes Construction
(Guyana) Ltd., a division of Haukes NV of Suriname, for
construction of the preliminary earthworks at Toroparu, with
development of the permanent man-camp, airstrip and rock quarries
currently underway. Rehabilitation of the historical access road
constructed in 2004 that links Toroparu to tidewater at Itaballi
Station, at the confluence of the Mazaruni, Cuyuni and Essequibo
Rivers, is expected to commence in the first quarter of 2022.
Technical Report and Qualified
Persons
A Technical Report prepared in accordance with
NI 43-101 for the Toroparu Gold Project PEA will be filed on SEDAR
(www.sedar.com) on or before January 14, 2022. Readers are
encouraged to read the Technical Report in its entirety, including
all qualifications, assumptions and exclusions that relate to the
Mineral Resource. The Technical Report is intended to be read as a
whole, and sections should not be read or relied upon out of
context.
Disclosure of a scientific or technical nature
in this news release has been approved by Glen Kuntz, P. Geo.
(Ontario) of Nordmin Engineering Ltd., a "Qualified Person". Mr.
Kuntz has verified the data disclosed in this news release,
including sampling, analytical and test data underlying the
information it contains.
The Qualified Person responsible for the
preparation of the Toroparu Gold Project Updated Mineral Resource
Estimate is Glen Kuntz, P. Geo. (Ontario) of Nordmin Engineering
Ltd. The Qualified Person responsible for the preparation of the
Open Pit Mine Design and Costing, Combined Underground and Open Pit
Production schedule, and Economic analysis is Fernando Rodrigues,
P. Eng. of SRK Consulting (USA) Ltd. The Qualified Person
responsible for the preparation of the Underground Mine Design
Costing, and Sequencing is Brian Wissent, P. Eng. (Ontario) of
Nordmin Engineering Ltd. The Qualified Persons responsible for the
preparation of the Pit Slope and Underground Geotechnical Designs
and specifications are Daniel Yang, P. Eng. and Ben Peacock, P.
Eng. of Knight Piesold. Kurt Boyko, P.Eng., of Nordmin Engineering
Ltd. is the Qualified Person responsible for processing,
metallurgy, and Surface Infrastructure. Gonzalo Nureno, P. Eng. of
Klohn Crippen Berger is the Qualified Person responsible for design
of the TSF, its water management infrastructure, site water balance
and surface water management, and Closure. Each of Messrs.
Kuntz, Rodrigues, Wissent, Yang, Peacock, Boyko, and Nureno are
considered to be an “Independent Qualified Person” under NI
43-101.
About GCM Mining Corp.
GCM Mining Corp. is a mid-tier gold producer
with a proven track record of mine building and operating in Latin
America. In Colombia, the Company is currently the largest
underground gold and silver producer with several mines in
operation at its high-grade Segovia Operations. In Guyana, the
Company is advancing the Toroparu Project, one of the largest
undeveloped gold/copper projects in the Americas. The Company also
owns an approximately 44% equity interest in Aris Gold Corporation
(TSX: ARIS) (Colombia – Marmato), an approximately 27% equity
interest in Denarius Silver Corp. (TSX-V: DSLV) (Spain –
Lomero-Poyatos; Colombia – Guia Antigua and Zancudo) and an
approximately 26% equity interest in Western Atlas Resources Inc.
(TSX-V: WA) (Nunavut – Meadowbank).
Additional information on GCM Mining can be
found on its website at www.gcm-mining.com and by reviewing its
profile on SEDAR at www.sedar.com.
Cautionary Statement on Forward-Looking
Information:
This news release contains "forward-looking
information", which may include, but is not limited to, statements
with respect to Mineral Resource estimates, future production, the
development and construction of mining and processing operations,
capital expenditures and projected financial results, and the
timing of any of the foregoing, in addition to its anticipated
business plans or strategies. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "believes"
or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Factors
that could cause actual results to differ materially from those
anticipated in these forward-looking statements include but are not
limited to development or mining results not being consistent with
the Company’s expectations, risks associated with the estimation of
Mineral Resources and the geology, grade and continuity of mineral
deposits including but not limited to models relating thereto;
actual ore mined or metal recoveries varying from Mineral Resource
estimates, mine plans and LoM estimates, including all of the
factors considered in developing the LoM plan and all key operating
and financial metrics used in calculating the LoM in the PEA; the
anticipated timing at which various phases of mining will commence;
the timing of the completion of the PFS focusing on the first ten
years of surface mining; the commencement date of the
rehabilitation of the Southern Access Road; and those risks
described under the caption "Risk Factors" in the Company's Annual
Information Form dated as of March 31, 2021 which is available for
view on SEDAR at www.sedar.com. Forward-looking statements
contained herein are made as of the date of this press release and
the Company disclaims, other than as required by law, any
obligation to update any forward-looking statements whether as a
result of new information, results, future events, circumstances,
or if management's estimates or opinions should change, or
otherwise. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, the reader is cautioned not to place undue
reliance on forward-looking statements.
Reliance on PEA and Mineral Resource
Estimates
A PEA is a comprehensive study of a range of
options for the technical and economic viability of a mineral
project that has advanced to a stage where a preferred mining
method, in the case of underground mining, or the pit
configuration, in the case of an open pit, is established and an
effective method of mineral processing is determined. It includes a
financial analysis based on reasonable assumptions on any modifying
factors and the evaluation of any other relevant factors which are
sufficient for a Qualified Person, acting reasonably, to determine
if all or part of the Mineral Resource may be converted to a
Mineral Reserve at the time of reporting. A PEA is at a lower
confidence level than a PFS or FS.
The Mineral Resources in this press release were
estimated using the CIM Standards on Mineral Resources and
Reserves, Definitions and Guidelines prepared by the CIM Standing
Committee on Reserve Definitions and adopted by the CIM Council and
incorporated by reference in National Instrument 43-101 – Standards
of Disclosure for Mineral Projects. Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability. The
estimate of Mineral Resources may be materially affected by
environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues. The Inferred Mineral Resource
in this estimate has a lower level of confidence than that applied
to an Indicated Mineral Resource and must not be converted to a
Mineral Reserve. There is no certainty that Inferred Mineral
Resources will be converted to the Measured and Indicated Resource
categories through further drilling, or into Mineral Reserves, once
economic considerations are applied. Therefore, readers are
cautioned not to assume that part or all of an Inferred Mineral
Resource exists or is economically or legally mineable.
For Further Information,
Contact:Mike DaviesChief Financial Officer(416)
360-4653investorrelations@grancolombiagold.com
(1)
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