Developer for massive gold projects calls Guyana a top-tier jurisdiction

Guyana was named a Tier 1, pro-business jurisdiction by President and Chief Executive Officer of G Mining Ventures (GMIN), Louis-Pierre Gignac. The company is advancing on the massive Oko West Gold project which it plans to formally greenlight before year-end. Oko West will see GMIN extract 353,000 ounces (oz) annually, with the first production targeted for 2027.

Speaking during the company’s 2024 earnings call on Friday, Gignac said Guyana’s pro-business government, predictable permitting process, and supportive communities bear similarities with its Tocantinzinho project, an open-pit gold deposit in Brazil with 2 million ounces of reserves.

“From publishing our first resource to early works construction in under two years is a statement of the support the company enjoys and will allow GMIN to deliver significant economic growth in Guyana,” Gignac said. “This is a timeline we don’t see in North America and makes Guyana a Tier 1 jurisdiction.”

The Canada-based company announced in early March that site preparation activities have begun at the project site in northwest Guyana, following the receipt of an interim environmental permit from the Environmental Protection Agency in January. The early works construction phase includes the development of a barge landing, main and internal roads, an airstrip, a permanent camp, water and sewage treatment facilities, a communications tower, and power generation infrastructure.

The PPP/C government has played a key role in facilitating the advancement of the project. Senior government officials have publicly championed the gold mining venture. It is a clear indicator that Guyana’s non-oil economy continues to expand, enhancing economic diversification beyond the nation’s offshore oil industry. The non-oil economy grew 13.1% in 2024 and is estimated to grow 10.6% this year. Recognizing the significant demand for approximately 2,500 construction jobs to come from the mining project, the government has publicly encouraged citizens to take note of and capitalize on opportunities presented by the project.

Located about 95 kilometers west of Georgetown and south of the historic Oko Gold District, the project is a relatively new discovery. Drilling and trenching campaigns conducted between 2020 and February 2024 totaled approximately 193,000 meters, according to GMIN. The 44-square-kilometer prospecting license is fully held by GMIN’s Guyanese subsidiary, following a 2024 business combination with Reunion Gold Corp.

The company’s preliminary economic assessment, released in 2024, outlines an after-tax net present value (5%) of $1.4 billion, an internal rate of return of 21%, and a payback period of 3.8 years at a gold price of $1,950 per ounce. The project is expected to produce an average of 353,000 ounces of gold annually over 12.7 years, with all-in sustaining costs of $986 per ounce.

The period will include two years of initial development, with stopping in year three, and peak production projected for year six. GMIN has said its upcoming feasibility study, expected in the second quarter of 2025, will incorporate updated mineral resource and reserve estimates.

According to GMIN’s published resource model, the open-pit indicated resource stands at 64.1 million tonnes grading 2.06 grams per tonne (g/t) gold for a total of 4.24 million ounces. Inferred open-pit resources total 8.1 million tonnes at 1.87 g/t gold, or 488,000 ounces. The underground component includes 485,000 tonnes of indicated resources at 1.87 g/t for 29,000 ounces and 11.1 million tonnes of inferred resources at 3.12 g/t for 1.12 million ounces.

GMIN has said a positive feasibility study outcome, along with receipt of final permits and financing, is expected to support a formal construction decision in the second half of this year.