Brazil remains a cornerstone of South America’s gold mining industry, with its prolific Tapajós Gold District and supportive infrastructure drawing continued investor interest.
GoldMining Inc (TSE: GOLD) (NYSEAMERICAN: GLDG) (FRA: BSR) has capitalised on this potential through a compelling Preliminary Economic Assessment for its São Jorge project, which drove the company’s shares up more than 12 per cent following the announcement.
The PEA, released on Jun. 11, outlines strong economics for the 100 per cent-owned asset. It projects an after-tax net present value of US$532 million and an internal rate of return of 42.4 per cent at a base-case gold price of US$3,500 per ounce. Initial capital expenditure stands at US$202 million with payback expected in 2.8 years.
Developers are planning a conventional open-pit operation processing 5,500 tonnes per day over a 10.6-year mine life. It is projected to produce an average 51,250 ounces of gold annually at an all-in sustaining cost of US$1,464 per ounce and 90 per cent metallurgical recoveries.
Read more: NevGold Corp. reports antimony grades up to 53.7 per cent at Nevada project
Positive assessment, typical concerns
As is standard of preliminary economic assessments, the São Jorge study relies on Inferred Mineral Resources. These early-stage estimates carry significant uncertainty, and there is no guarantee that the promising numbers will hold up in reality. More detailed pre-feasibility studies will be needed to reduce risks and refine the plans.
Key concerns include the need to move 4.27 tonnes of waste rock for every tonne of ore mined, which raises operating costs. The project also faces risks from fluctuating gold prices and the challenges of securing environmental permits in the sensitive Amazon region.
On the positive side, the project will perform very well if gold prices rise, with the net present value climbing to US$837 million at US$4,400 per ounce. GoldMining intends to push ahead with permitting and further technical work to tackle these development hurdles.
Like most PEAs, this study is inherently promotional and optimistic, drawing on favourable assumptions that may prove overly aggressive.
GoldMining’s enthusiasm extends beyond gold
The multinational miner’s excitement stretches well beyond São Jorge. GoldMining maintains a significant equity stake in NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50), an investment that has delivered outstanding returns.
NevGold’s shares soared roughly 330 per cent throughout 2025, propelling substantial market cap growth and a spot on the 2026 TSX Venture 50 list. This growth directly enhanced GoldMining’s asset value.
At NevGold’s Limousine Butte project in Nevada, teams are advancing a 20,000-metre drill campaign targeting oxide gold-antimony systems, supported by surface samples returning exceptional antimony grades up to 53.7 per cent. This complements GoldMining’s own direct exposure to the critical mineral through its Crucero project in Peru, where an updated mineral resource estimate revealed 51,000 tonnes of antimony in the indicated category and 37,000 tonnes in the inferred category. This contributes around 25 per cent of the expanded 1.74 million gold-equivalent ounces.
Together, these holdings provide both direct and indirect leverage to antimony’s rising strategic demand in defence, batteries and semiconductors.
Read more: NevGold launches 20,000-metre drill campaign at Nevada antimony-gold project
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