G Mining Ventures Corp. (TSE: GMIN)(OTCMKTS: GMINF) closed its acquisition of the CentroGold Project in Brazil from BHP Group Limited (ASX: BHP) (NYSE: BHP), expanding the company’s portfolio in one of the world’s most prospective gold territories.
The acquisition was finalized last Friday. It gives G Mining a 100 per cent interest in the tenements within the Gurupi Gold Belt, located in the state of Maranhão, northern Brazil.
In exchange, the company agreed to grant BHP a royalty structure comprising a 1.0 per cent Net Smelter Return (NSR) on the first 1 million ounces of gold produced from these tenements, escalating to a 1.5 per cent NSR for subsequent ounces.
CentroGold currently hosts an indicated resource of 1.7 million ounces of gold and an inferred resource of 0.6 million ounces. The project spans approximately 1,900 square kilometers, comprising 47 tenements that are open for further exploration in all directions.
CentroGold is located in the state of Maranhão in northern Brazil and covers 47 tenements across approximately 1,900 square kilometers.
The project hosts several identified gold targets along a mineralized trend exceeding 80 km. These projects include the Blanket, Contact, and Chega Tudo open-pit deposits. These deposits currently contain 2.3 million ounces of JORC-compliant gold resources and remain open for expansion.
In July 2019, Oz Minerals Limited, later acquired by BHP in 2023, released a pre-feasibility study for the Blanket and Contact deposits. The study projected a 10-year mine life with an average annual gold production of 100,000 to 120,000 ounces. This also includes 190,000 to 210,000 ounces per year during the first two years of production.
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G Mining plans to fund its CentroGold Project in Brazil
This acquisition aligns with G Mining’s strategy to grow into a mid-tier precious metals producer, leveraging its access to capital and expertise in mine development.
“The addition of CentroGold to our portfolio not only diversifies our asset base but also positions us to capitalize on the rich gold resources in the Gurupi Gold Belt,” said Louis-Pierre Gignac, CEO of G Mining.
“This project has all the key attributes GMIN looks for in its next growth phase.”
G Mining Ventures is focused on expanding its presence in the gold mining sector in Latin America. G Mining will develop its CentroGold Project in Brazil using near-term free cash flow from the Tocantinzinho Gold Project.
This growth strategy mirrors the approaches taken by other successful companies in the region, such as Calibre Mining Corp’s (TSE: CXB) (OTCMKTS: CXBMF), which has made significant strides in gold production through its operations in Nicaragua and Nevada.
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joseph@mugglehead.com
