Mike Fagan,
Editor
Jan. 20, 2022
With gold’s strong push from US$1,720 per ounce to currently above US$1,830 in just the last four months, we turn our attention to GoldMining Inc. (TSX: GOLD)(NYSE-American: GLDG), which is advancing a diversified portfolio of resource-stage gold and gold-copper projects in the United States, Canada, Brazil, Colombia, and Peru.
Bolstered by gold’s solid price performance, GoldMining’s stock is gaining market attention as a top-performer in the junior gold space, rising from the C$1.50 level to currently right around C$2.15 per share over that same timeframe. Yet, it should be noted that it’s far more than just the yellow metal that’s driving GoldMining’s current value surge.
The company has been delivering a steady stream of development news across its impressive resource inventory of ~32 million gold-equivalent ounces (M&I plus Inferred), including a newly-released first-pass PEA (Preliminary Economic Assessment) on its La Mina Gold-Copper Project located in Antioquia, Colombia.
La Mina Gold-Copper Project, Antioquia, Colombia:
On 12 January 2022, GoldMining Inc. released a positive first-pass PEA on the 3,200-hectare La Mina project. The study envisions an open pit mining scenario at a production rate of 102,000 gold-equivalent ounces per annum over a 10.4-year mine life from the La Cantera and Middle Zone deposits with additional potential via further advancement of the La Garrucha deposit area.
The PEA estimates an after-tax NPV of US$232 million and IRR of 14.5% at an all-in sustaining cost (AISC) of US$698 per ounce of gold.
GoldMining CEO, Alastair Still — whom you’re about to hear from directly — commented via press release:
“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 US$1,600 per ounce gold and US$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% copper.”
La Mina — which has advanced infrastructure in place including roads, power, and an available workforce — boasts a low capital intensity of just under US$300 million. As is the case with all early-stage mineral exploration projects, further geological surveying, mapping, and drilling will be required to advance the project toward the next stage of feasibility.
São Jorge Gold Project, Pará State, Brazil:
In Q4 2021, GoldMining released infill assays from its recently completed core sampling program at the 100%-owned São Jorge Gold Project located in Pará State, Brazil. The program — which focused on previously unsampled core intervals from historical drilling — returned highlight intervals up to 1.06 grams per tonne (g/t) gold over 7.6 meters in saprolite.
The GoldMining team is in the process of completing a PEA on the São Jorge project, which boasts a current Indicated resource of 0.71 million gold ounces at 1.55 g/t plus 0.72 million gold ounces Inferred at 1.27 g/t.
The aim of the forthcoming PEA will be to further evaluate the economic potential of an open pit operation and to advance opportunities to upgrade and expand the current resource base.
The release of the latest round of infill sampling results should prove valuable in the identification of new targets at São Jorge; additional results from the sampling program are available here.
Additionally, GoldMining Inc. has completed updated Mineral Resource estimates on two additional 100%-owned core properties; Titiribi and Whistler:
Titiribi Gold-Copper Project, Antioquia, Colombia:
- M&I Mineral Resources of 5.54 million ounces of gold and 1,061.2 million pounds of copper (434.6 million tonnes grading 0.40 g/t gold and 0.11% copper); and
- Inferred Mineral Resources of 3.15 million ounces of gold and 212.6 million pounds of copper (241.9 million tonnes grading 0.41 g/t gold and 0.04% copper)
Whistler Gold-Silver-Copper, Alaska, USA:
- Indicated Mineral Resources of 1.94 million ounces of gold, 8.33 million ounces of silver, and 422.0 million pounds of copper (118.2 million tonnes grading 0.51 g/t gold, 2.19 g/t silver, and 0.16% copper); and
- Inferred Mineral Resources of 4.67 million ounces of gold, 16.06 million ounces of silver, and 711.4 million pounds of copper (317.0 million tonnes grading 0.46 g/t gold, 1.58 g/t silver, and 0.10% copper)
GoldMining has also released an amended technical report for its 100%-owned Yellowknife Gold Project in Northwest Territories, Canada:
- Indicated Mineral Resources of 1.06 million ounces of gold (14.11 million tonnes grading 2.33 g/t gold); and
- Inferred Mineral Resources of 0.74 million ounces of gold (9.30 million tonnes grading 2.47 g/t gold)
Alastair Still, CEO, added via press release:
“We are very pleased to have completed a foundational de-risking exercise by updating Mineral Resource estimates on four of our key properties. These properties, combined with an amended Mineral Resource estimate on Yellowknife Gold collectively represent approximately 84% of the Company's total Measured and Indicated Mineral Resources of 16.24 million gold equivalent ounces and approximately 74% of the Company's total Inferred Mineral Resources of 16.17 million gold equivalent ounces. Updating and modernizing the MREs on key properties helps lay the foundation for the next stage of further advancing the projects. We are currently progressing with preliminary economic assessments ("PEAs") at our Yellowknife Gold project in Northwest Territories, Canada, São Jorge in Pará State, Brazil and La Mina in Antioquia, Colombia which we expect to have completed in the next six months. We look forward to sharing results of the PEAs and other activities as we continue to unlock value from our extensive portfolio of assets within favourable mining jurisdictions located entirely within the Americas.”
Keep in mind also that the bulk of GoldMining’s property acquisitions were completed during gold’s previous downturn at US$1,100 - US$1,300-per-ounce gold.
Today, with the yellow metal trading above US$1,830 an ounce, the company’s projects are all of a sudden much more interesting from both a development standpoint and as potential acquisition targets for larger producers seeking to add precious ounces to their balance sheets.
With a diversified portfolio of precious and base metals exploration projects in the Americas — plus more than US$100 million of liquid assets on the balance sheet — speculators can expect a steady stream of news flow from GoldMining Inc. over the coming quarters with which to potentially move the needle higher.
Our own Gerardo Del Real caught up with GoldMining CEO Alastair Still for an in-depth discussion on all-things GoldMining. Check it out below or on the site right here.
Enjoy!
Yours in profits,
Mike Fagan
Editor, Resource Stock Digest