G Mining Ventures Corp. (TSXV: GMIN) (OTCQX: GMINF) has achieved a significant environmental, social, and governance (ESG) milestone by signing a renewable power purchase agreement (PPA) for its Tocantinzinho Gold Project in the State of Pará, Brazil .
Announced on Friday, the PPA ensures that the project’s electricity requirements will be met with low-cost, renewable power throughout its construction, ramp-up, and initial years of commercial production.
The company entered into the PPA with Companhia Energética de Minas Gerais (CEMIG) and CEMIG Geração e Transmissão S.A., established energy providers in Brazil. This partnership ensures access to reliable, renewable power for the Tocantinzinho Gold Project. The project, located in the State of Pará, Brazil, is progressing as planned and remains within budget, with commercial production expected in the second half of 2024.
This agreement will result in an approximate 25 per cent reduction in the overall electricity costs compared to the estimates used in the 2022 Feasibility Study, with the fixed energy pricing for 2024, 2025, and 2026 further contributing to cost efficiency.
By securing a guaranteed supply of certified renewable hydroelectric power, G Mining Ventures aligns with its objective of being a low carbon dioxide (CO2) emission gold producer.
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G Mining will also receive renewable energy certificates
Louis-Pierre Gignac, president and chief executive officer of G Mining Ventures, expressed satisfaction with this significant de-risking milestone and emphasized the value it brings to shareholders and stakeholders. The utilization of low-cost renewable hydroelectric power will support the project’s cost competitiveness and environmental sustainability.
The PPA was established between G Mining Ventures’ subsidiary, Brazauro Recursos Minerais S.A., and CEMIG, which possesses a substantial generating capacity of 3.3 gigawatts through hydroelectric, wind and solar sources. This collaboration reinforces G Mining Ventures’ commitment to responsible and sustainable practices in the mining industry.
As part of the PPA, the company will receive Renewable Energy Certificates (RECs) as a guarantee of the supply of renewable power. This provision ensures that G Mining can produce gold ounces with Scope 1 emissions that are among the lowest in terms of carbon dioxide (CO2) emissions when compared to similar operations in the Americas.
TZ is currently under construction and remains on budget and on track for commercial production in the second half of 2024.
G Mining shares remained flat on Friday at $1.09 on the TSX Venture Exchange.
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