Gold mining company (gold-TSX, GLDGNYSE American has announced the results of the Preliminary Economic Evaluation (PEA) of the São Jorge Open Gold Project located in the state of Pará, Brazil.
PEA developed a base case scenario with an after-tax NPV at a 5.0% discount of $532 million and an after-tax IRR of 42.4% using a base gold price of $3,500 per ounce and an initial payback of 2.8 years.
Seed capital of $202 million is highly manageable, including a 25% contingency, representing an attractive 2.6x NPV (5.0%) to seed capital ratio.
PEA envisions strong internal free cash flow, supported by a stable gold production profile averaging an estimated 51,250 ounces per annum over a mine life of 10.6 years with peak gold production of 57,200 ounces per annum in years up to four years.
The PEA also highlights relatively strong estimated margins, supported by the estimated lifetime all-in sustaining cost of the mine of US$1,464 per ounce.
It involves a conventional open-pit truck and shovel operation and a processing rate of 5,000 tons per day. “Our proven processing flow chart using standard gravity and filtration circuits achieves high mineral extractions of up to 90% gold,” the company said in a press release.
The company said it plans to expeditiously begin pre-feasibility studies as the project is further de-risked and a permitting construction decision moves forward.
“PEA is more than just a standalone project, it highlights that Sao Jorge has the potential for flexible margins and rapid redemption potential to become a core self-funding asset for us,” said Alistair Steele, CEO of GoldMining.
On Thursday, GoldMining shares were unchanged at $1.21 and were trading in a 52-week range of $3.10 and 98 cents.
GoldMining controls a diversified portfolio of resource-stage gold, copper and gold projects in Canada, the United States, Brazil, Colombia and Peru. The company also owns approximately 21.5 million shares Golden Royal Company (My puppy-NYSE American), 9.9 million shares American Gold Mining Company (USGO-Nasdaq), and 25.1 million shares Nev Gold Company (NAU-TSXV).
The São Jorge Project is located in the south-eastern part of the state of Pará, Brazil, in the municipality of Novo Progreso, approximately 460 kilometers southeast of the main regional city of Santarem and approximately 70 kilometers north of the city of Novo Progreso. A paved road passes through the project area, suitable for all weather conditions.
The São Jorge gold deposit is a granite-based gold mineral system, similar to the Tocantinzinho gold mine managed by G Mining Projects Company (municipality-TSXV, gmnf-OTCQB) It is located about 80 kilometers northwest of São Jorge. Tocantinzino began production in 2024 and produced 171,871 ounces of gold in 2025.
