GoldMining Inc. Revises Estimated Mine Life of La Mina Project Down to 11.2 Years

In an updated preliminary economic assessment (PEA) filed for its La Mina Project in Antioquia, Colombia, Canadian mining company GoldMining Inc. (TSX: GOLD) has revised down the total estimated life of its 100% owned La Mina Project mine from 12.2 years to 11.2 years “as a result of an increase in annual throughput estimates to reflect nameplate capacity,” according to a company statement.

Overall, the Vancouver-based company, which recently moved to list its shares on the Toronto Stock Exchange (TSX) instead of the TSX Venture Exchange (TSXV), characterized the updated PEA as including “minor corrections, primarily to address the accounting of plant availability and clarifications on specific calculations.”

In terms of production during the life of the Colombian mine, the PEA estimates a total of 1.74 million gold equivalent ounces at an average of 155,500 ounces per year. It also projects production of 203.9 million pounds of copper and 2.98 million ounces of silver over the mine’s lifetime.

While noting that these figures all represent “preliminary” study results, GoldMining Inc. also included the following projections:

• “After-tax net present value of approximately $279 million at base case commodity prices of $1,750 per ounce of gold, $21 per ounce of silver, and $3.50 per pound of copper; and approximately $442 million at spot commodity prices.”
• “Total cash cost of $795 per ounce of gold and all-in sustaining cost of $912 per ounce of gold (net of by-product credits).”
• “Initial capital expenditures of approximately $425 million for a 15,000 tonne per day processing facility fed by a conventional truck and loader open pit mining operation with sustaining capital and mine closure expenditures of approximately $203 million.”
• “After-tax IRR [internal rate of return] of 15.2% with a payback of 5.6 years.”