Production of Over 1 Million Gold Equivalent
Ounces With Pre-Tax NPV of US$340
million
This news release constitutes a "designated news release" for
the purposes of the Company's prospectus supplement dated
December 10, 2021 to its short form
base shelf prospectus dated October 27,
2021.
VANCOUVER, BC, Jan. 12, 2022
/PRNewswire/ - GoldMining Inc. (the "Company" or
"GoldMining") (TSX: GOLD) (NYSE American: GLDG) is
pleased to announce results of a positive Preliminary Economic
Assessment ("PEA") prepared in accordance with National Instrument
43-101 on the La Mina Project (the "Project") located in Antioquia,
Colombia. The independent PEA provides a compelling base case
assessment for a mining operation with additional potential
available through proposed exploration of the adjacent La Garrucha
deposit. Development of the Project would provide economic benefits
to the Company and local stakeholders.
Highlights (all currencies reported in US
Dollars):
- The Project would produce over 1 million gold equivalent ounces
over a 10.4-year mine life.
- Production averaging 102,000 gold equivalent ounces per year
over the fully operating years.
- The Project would produce over 165 million pounds of copper and
over 600,000 ounces of silver which are incorporated in the gold
equivalent calculations.
- The Project generates a pre-tax net present value (NPV) of
$340 million at a 5% discount rate
and an after-tax NPV of $232 million
with an internal rate or return (IRR) of 14.5% using metal prices
of $1,600 per ounce gold,
$21 per ounce silver and $3.39 per pound copper.
- Attractive after-tax unit cash cost of $497 per gold ounce and All-In Sustaining Cost
(AISC) of $698 per gold ounce (net of
by-product credits).
- Low capital intensity of $299.5
million with a 10,000 tonne per day concentrator fed by a
low strip ratio (3.6:1) open pit mining operation.
- The PEA envisions an open pit mining scenario sourcing material
from the La Cantera and the Middle Zone Deposits.
- Drill-ready targets on the adjacent La Garrucha deposit have
not been included.
Alastair Still, CEO of GoldMining
commented, "We are extremely pleased with the positive economics
demonstrated by this PEA on La Mina. This study represents a
milestone for the Company as we have produced our first PEA and
continue to advance our projects to unlock value for our
shareholders and local stakeholders. With current metal prices well
above the $1,600 per ounce gold and
$3.39 per pound copper used in the
PEA, the Project is highly leveraged to enhanced economics. We are
also highly encouraged by the opportunities to build upon this PEA,
including drill-ready targets at the nearby La Garrucha deposit
which, on the last hole (LME–1106) drilled by the previous operator
yielded 271 metres of 1.03 g/t gold and 0.13%
copper1."
PEA FINANCIAL SUMMARY
Parameter
|
|
Units
|
Values
|
Net Present Value
(5%)
|
Pre-Tax
|
$ Million
|
339.76
|
After-Tax
|
$ Million
|
231.47
|
Internal Rate of
Return (IRR)
|
Pre-Tax
|
%
|
18.1
|
After-Tax
|
%
|
14.5
|
After-Tax
Payback
|
|
Years
|
7.0
|
Pre-production
Capital
|
|
$ Million
|
299.50
|
Sustaining
Capital
|
|
$ Million
|
71.37 + 17.38
(closure)
|
Life-of-Mine (LOM)
Cash Unit Cost
|
|
$/oz
|
497.4
|
LOM All-In Sustaining
Unit Cost
|
|
$/oz
|
697.8
|
Metal
Prices
|
|
|
|
Copper
Gold
Silver
|
|
$/lb
$/oz
$/oz
|
3.39
1,600
21
|
This preliminary economic assessment is preliminary in nature,
and there is no certainty that the reported results will be
realized. Mineral Resources used for the PEA include Inferred
Mineral Resources which are considered too speculative geologically
to have the economic considerations applied to them that would
enable them to be categorized as Mineral Reserves, and there is no
certainty that the projected economic performance will be realized.
The purpose of the PEA is to demonstrate the economic viability of
the La Mina Project, and the results are only intended as an
initial, first-pass review of the Project economics based on
preliminary information.
The PEA examined several mining scenarios with varying rates of
production and cut-off grades and determined that a 10.4-year
project life mining 37.8 million mineralized tonnes provided the
best financial return using consensus metal prices.
Construction of this project is expected to be 24 months that
will enable reaching 10,000 tonnes of process plant feed per day.
The operation is designed to produce a single copper concentrate
containing gold and silver credits with minimal deleterious
elements. The relatively low capital costs of the La Mina Project
is a result of the Project's proximity to established
infrastructure including roads, power and an available
workforce.
The PEA was prepared by Metal Mining Consultants Inc. of
Highlands Ranch, Colorado, which
has been involved with the La Mina Project for the past 10 years
and recently prepared the Mineral Resource Estimate for the La Mina
Deposit.
PEA TECHNICAL SUMMARY
Parameter
|
Units
|
Values
|
Mine Life
|
Years
|
10.4
|
Mined Mineralized
Material
|
Million
Tonnes
|
37.8
|
Process Plant
Production Rate
|
Tonnes/day
|
10,000
|
Process Plant Feed
Grade
Copper
Gold
Silver
Gold
Equivalent
|
%
g/t
g/t
g/t
|
0.24
0.69
1.67
1.06
|
Strip Ratio (Waste :
Mineralized Material)
|
Ratio
|
3.60
|
Operating Unit
Cost
|
$/t
process
|
$15.58
|
PRODUCTION AND PAYABLE METAL SUMMARY
|
Copper
|
Gold
|
Silver
|
Gold
Equivalent
|
Metallurgical
Recovery
|
84%
|
82%
|
30%
|
|
Production
|
165.11
Mlbs
|
687.2 koz
|
608.5 koz
|
1,045
koz
|
Payable
|
160.15
Mlbs
|
666.6 koz
|
559.8 koz
|
1,013
koz
|
The mining plan uses conventional truck/loader open pit methods
employing a fleet of 91 tonne capacity haulage trucks and front-end
loaders equipped with 12 cubic metre buckets. Two pit areas will be
mined over a period of 10.4 production years plus two years of
pre-stripping. Mineralized material will be transported by haulage
trucks to a nearby process plant, and waste rock will be stored in
proximity to the open pits. Mining will be conducted at an initial
rate of 7 million total tonnes per annum (Mtpa) or 19 kilo tonnes
per day (ktpd) to peak at 22 Mtpa (60 ktpd) for total movement that
will sustain the process plant.
The process plant feed is contained within an optimized subset
of the Mineral Resource set out in the Pit Constrained Mineral
Resource Estimate table below. Collectively, the two pits contain
37.8 Mt of process plant feed (inclusive of mining dilution and
loss factors) averaging 0.24% Cu, 0.69 g/t Au and 1.67 g/t Ag. The
process plant feed is associated with 136
Mt of waste rock resulting in an overall life-of-mine waste
to mineralized material strip ratio of 3.60:1.
The existing royalties have been included in the analysis and
are comprised of a 2.0% net smelter return (NSR) royalty owned by
Gold Royalty Corp., a gross revenue royalty (GRR) of 4.0% on the
precious metals and 5.0% on base metals both imposed by the
Colombian National Mining Agency.
Limited metallurgical testing was carried out at a reputable
laboratory. The test work has indicated a process flowsheet for a
typical copper concentrate. Key components that describe the unit
operating processes include the following:
- Primary crushing and grinding in a SAG/Ball mill circuit to a
nominal 300-150 µm grind size;
- Froth flotation to generate a copper rougher concentrate which
is reground and subjected to two stages of cleaner flotation for
copper grade improvement;
- Recycling the copper flotation tails to the rougher scavenger
for further recovery opportunity; and
- Copper concentrate is thickened, filtered and prepared for
shipment to a smelter.
Mine closure has been accounted for and is expected to reclaim
tailings and waste rock storage facilities.
CAPITAL COSTS ($ Millions)
|
Initial
|
Sustaining
|
Total
|
Pre-Stripping
|
46.30
|
|
46.30
|
Mining +
Operational
|
|
53.39
|
53.39
|
Process Plant +
Operational
|
140.00
|
5.00
|
145.00
|
Tailings Management
Facility
|
6.00
|
4.00
|
10.00
|
Site
Infrastructure
|
65.00
|
|
65.00
|
Owner's Cost +
Contingency
|
42.20
|
8.98
|
51.18
|
Total
Capital
|
299.50
|
71.37
|
370.87
|
Mine
Closure
|
|
17.38
|
17.38
|
ECONOMIC METRICS SENSITIVITY TABLE (Gold Price and Discount
Rate)
|
Units
$/oz
|
Gold Price
|
1,500
|
1,550
|
1,600
|
1,650
|
1,700
|
1,750
|
1,800
|
Pre-Tax NPV
(5%)
|
$ Millions
|
295.09
|
317.43
|
339.76
|
362.10
|
384.43
|
406.77
|
429.10
|
NPV (8%)
|
$ Millions
|
184.76
|
203.17
|
221.57
|
239.97
|
258.37
|
276.77
|
295.17
|
NPV (10%)
|
$ Millions
|
127.19
|
143.47
|
159.74
|
176.01
|
192.28
|
208.56
|
224.83
|
After-Tax NPV
(5%)
|
$ Millions
|
199.14
|
215.30
|
231.47
|
247.63
|
263.80
|
279.97
|
296.13
|
IRR
|
%
|
13.2
|
13.9
|
14.5
|
15.1
|
15.7
|
16.3
|
16.9
|
Payback
|
Years
|
7.2
|
7.1
|
7.0
|
6.9
|
6.8
|
6.6
|
6.6
|
PIT CONSTRAINED MINERAL RESOURCE ESTIMATE (Effective Date:
June 26, 2021)
Deposit
|
Tonnes
('000)
|
Grades
|
Contained
Metal
|
Au
(g/t)
|
Ag
(g/t)
|
Cu
(%)
|
AuEq
(g/t)
|
Au
(oz)
|
Ag
(oz)
|
Cu
(klbs)
|
AuEq
(oz)
|
Indicated Mineral
Resource
|
La Cantera
|
18,024
|
0.86
|
2.05
|
0.32
|
1.33
|
498,346
|
1,187,917
|
125,586
|
770.697
|
Middle
Zone
|
10,223
|
0.50
|
1.26
|
0.11
|
0.68
|
164,335
|
382,966
|
24,940
|
223,495
|
Total
Indicated
|
28,247
|
0.73
|
1.76
|
0.24
|
1.09
|
662,680
|
1,602,040
|
150,526
|
989,463
|
Inferred Mineral
Resource
|
La Cantera
|
12,034
|
0.69
|
1.84
|
0.29
|
1.13
|
266,956
|
711,883
|
78,190
|
437,189
|
Middle
Zone
|
1,599
|
0.39
|
1.17
|
0.09
|
0.53
|
20,049
|
60,147
|
3,056
|
27,246
|
Total
Inferred
|
13,633
|
0.65
|
1.76
|
0.27
|
1.05
|
287,005
|
772,030
|
81,246
|
462,168
|
|
|
|
|
|
|
|
|
|
|
|
Mineral Resource Estimate Footnotes:
- The qualified person of the above estimate is Scott Wilson, C.P.G, SME.
- Mineral Resources are classified as Indicated Resources and
Inferred Resources and are based on the 2014 CIM Definition
Standards.
- Mineral Resources, which are not Mineral Reserves, do not have
demonstrated economic viability. There is no certainty that all or
any part of the Mineral Resources will be converted to Mineral
Reserves.
- Numbers may not add up due to rounding.
- Cut-Off Grade: 0.25 g/t Au.
- The Mineral Resource Estimate was based on US$ metal prices of
$3.25/lb Cu, $1,600/oz Au and $21/oz Ag.
- The quantity and grade of reported Inferred Mineral Resources
in this estimation are uncertain in nature and there has been
insufficient exploration to define these Inferred Mineral Resources
as Indicated or Measured Mineral Resources.
- The author knows of no environmental, permitting, legal, title,
taxation, socio-economic, marketing, political or other relevant
factors that may materially affect the Mineral Resource
Estimate.
GoldMining will file a technical report for the La Mina PEA
within 45 days of the date hereof.
Qualified Persons
Scott E. Wilson, CPG is an
independent consultant acting as the Qualified Person, as defined
in NI 43-101, and is the primary author of the Technical Report for
the Mineral Resource estimate and has reviewed and approved the
Mineral Resource estimate and the Preliminary Economic Assessment
summarized in this news release. Mr. Wilson has over 31 years of
experience in surface mining, resource estimation and strategic
mine planning. Mr. Wilson is independent of the Company under NI
43-101. Mr. Wilson, a qualified person, has verified the data
underlying the information disclosed herein, including sampling,
analytical and test data underlying the information by reviewing
the reports of AAL, methodologies, results and all procedures
undertaken for quality assurance and quality control in a manner
consistent with industry practice, and all matters were consistent
and accurate according to his professional judgement. There were no
limitations on the verification process.
Paulo Pereira, P. Geo., President
of GoldMining Inc. has supervised the preparation of this news
release and has reviewed and approved the scientific and technical
information contained herein. Each of Messrs. Wilson, Cole and
Pereira are Qualified Persons as defined in NI 43-101.
About GoldMining Inc.
The Company is a public mineral exploration company focused on
the acquisition and development of gold assets in the Americas.
Through its disciplined acquisition strategy, the Company now
controls a diversified portfolio of resource-stage gold and
gold-copper projects in Canada,
U.S.A., Brazil, Colombia and Peru. The Company also owns 20 million shares
of Gold Royalty Corp. (NYSE American: GROY).
Notice to Readers
Disclosure regarding Mineral Resource estimates included herein
have been prepared by the Company in accordance with NI 43-101. NI
43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for public disclosure by
issuer of scientific and technical information concerning mineral
projects. NI 43-101 differs significantly from the disclosure
requirements of the United States Securities and Exchange
Commission ("SEC") generally applicable to U.S. companies subject
to the SEC's disclosure requirements. For example, the terms
"Indicated Mineral Resource" and "Inferred Mineral Resource" are
defined in NI 43-101 by reference to the guidelines set out in the
CIM Definition Standards on Mineral Resources and Mineral Reserves.
These definitions differ from the definitions in the disclosure
requirements promulgated by the SEC. Accordingly, information
contained herein or in the Company's descriptions of its projects
may not be comparable to similar information made public by U.S.
companies reporting pursuant to SEC disclosure requirements.
Forward-looking Statements
This document contains certain forward-looking statements
that reflect the current views and/or expectations of GoldMining
with respect to its expectations and ongoing and proposed work at
the La Mina Project, future exploration and work
programs, the results of the PEA, including the production,
operating and other cost estimates, metal price assumptions, cash
flow projections, metal recoveries, mine life projections and
production rates for the La Mina Project and the Company's
expectations regarding potential opportunities to build upon the
PEA. Forward-looking statements are based on the then-current
expectations, beliefs, assumptions, estimates and forecasts about
the business and the markets in which GoldMining operates.
Investors are cautioned that all forward-looking statements involve
risks and uncertainties, including: the inherent risks involved in
the exploration and development of mineral properties, fluctuating
metal prices, unanticipated costs and expenses, risks related to
government and environmental regulation, social, permitting and
licensing matters, and uncertainties relating to the availability
and costs of financing needed in the future. These risks, as well
as others, including those set forth in GoldMiningꞌs Annual
Information Form for the year ended November
30, 2020, and other filings with Canadian securities
regulators and the U.S. Securities and Exchange Commission, could
cause actual results and events to vary significantly. Accordingly,
readers should not place undue reliance on forward-looking
statements and information. There can be no assurance that
forward-looking information, or the material factors or assumptions
used to develop such forward-looking information, will prove to be
accurate. The Company does not undertake any obligations to release
publicly any revisions for updating any voluntary forward-looking
statements, except as required by applicable securities law.
____________________________
|
1 As
disclosed in the technical report titled "NI 43-101 Technical
Report, GoldMining Inc, La Mina Project, Antioquia, Republic of
Colombia" with an effective date of July 6, 2021, which is
available at www.sedar.com under GoldMining's SEDAR
profile.
|
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SOURCE GoldMining Inc.