G Mining to acquire BHP's CentroGold project in Brazil

Canada-based company G Mining Ventures (GMIN) announced an agreement to acquire the CentroGold project in Maranhão state, Brazil, from mining giant BHP.

"In consideration for the acquisition, GMIN will grant BHP a 1.0% NSR royalty on the first 1 million ounces of gold produced at the tenements and a 1.5% NSR royalty on gold production thereafter," G Mining said in a statement.

The CentroGold project comprises 47 tenements and hosts multiple identified gold targets along an 80km mineralized trend in Brazil's Gurupi gold belt, including the Blanket, Contact and Chega Tudo open pit deposits, which currently host 2.3Moz of JORC-compliant gold resources and remain open for expansion.

In July 2019, the owner of CentroGold, Oz Minerals, which was acquired by BHP in 2023, released a pre-feasibility study on the Blanket and Contact deposits. 

The pre-feasibility study envisioned a 10-year mine life with an average annual gold production of 100,000-120,000oz/y, with 190,000-210,000oz/y in the first two years of production.

"GMIN views the project as an advanced-stage exploration asset with extensive exploration and engineering work completed to date, which includes over 135,000 meters of exploration core drilling. The Project’s size, scope, and development timeline will be redesigned to suit GMIN’s long-term growth plans, ensuring resources are allocated in line with our strategy of maximizing value for all stakeholders," the company said in a statement.

G Mining's acquisition of CentroGold comes as the firm is advancing other mining projects in Brazil.

In August, the Quebec-based firm obtained the operating licenses for its Tocantinzinho gold project from Pará state environmental department Semas for the mining operation, processing plant, tailings facilities and an airstrip.

The company underlined that the project remains on time and on budget for commercial production in the second half of this year. Tocantinzinho’s useful life is put at 10.5 years and production capacity is forecast to be 175,000oz/y for initial capex of US$458mn.