Guyana has been recognised as a Tier 1 pro-business jurisdiction by the President and Chief Executive Officer of G Mining Ventures (GMIN), Louis-Pierre Gignac.
The company is advancing the massive Oko West Gold project, which it plans to formally approve before the end of the year. Oko West is expected to yield 353,000 ounces (oz) of gold annually, with the first production targeted for 2027.
Speaking during the company’s 2024 earnings call on Friday, Gignac highlighted Guyana’s pro-business government, predictable permitting process, and supportive communities, drawing parallels with its Tocantinzinho project—an open-pit gold deposit in Brazil with two million ounces of reserves.
“Going from publishing our first resource to early works construction in under two years is a testament to the support the company enjoys and will enable GMIN to deliver significant economic growth in Guyana,” Gignac said. “This is a timeline we do not see in North America, which makes Guyana a Tier 1 jurisdiction.”
The Canada-based company announced in early March that site preparation activities had begun at the project site in northwest Guyana, following the receipt of an interim environmental permit from the Environmental Protection Agency in January.
The early works construction phase includes the development of a barge landing, main and internal roads, an airstrip, a permanent camp, water and sewage treatment facilities, a communications tower, and power generation infrastructure.
The government has played a key role in facilitating the advancement of the project, with senior government officials publicly championing the gold mining venture.
This reflects the continued expansion of Guyana’s non-oil economy, which enhances economic diversification beyond the nation’s offshore oil industry. The non-oil economy grew by 13.1 per cent in 2024 and is projected to grow by 10.6 per cent this year.
Recognising the significant demand for approximately 2,500 construction jobs arising from the mining project, the government has encouraged citizens to take note of and capitalise on the opportunities it presents.
Located approximately 95 kilometres west of Georgetown and south of the historic Oko Gold District, the project is a relatively new discovery.
Drilling and trenching campaigns conducted between 2020 and February 2024 totalled approximately 193,000 metres, according to GMIN.
The 44-square-kilometre prospecting licence is fully held by GMIN’s Guyanese subsidiary, following a 2024 business combination with Reunion Gold Corp.
The company’s preliminary economic assessment, released in 2024, outlines an after-tax net present value (five per cent) of $1.4 billion, an internal rate of return of 21 per cent, and a payback period of 3.8 years at a gold price of $1,950 per ounce.
The project is expected to produce an average of 353,000 ounces of gold annually over 12.7 years, with all-in sustaining costs of $986 per ounce.
This period will include two years of initial development, with stopping commencing in year three, and peak production projected for year six. GMIN has stated that its upcoming feasibility study, expected in the second quarter of 2025, will incorporate updated mineral resource and reserve estimates.
According to GMIN’s published resource model, the open-pit indicated resource stands at 64.1 million tonnes grading 2.06 grams per tonne (g/t) of gold, totalling 4.24 million ounces.
Inferred open-pit resources amount to 8.1 million tonnes at 1.87 g/t gold, or 488,000 ounces. The underground component includes 485,000 tonnes of indicated resources at 1.87 g/t for 29,000 ounces and 11.1 million tonnes of inferred resources at 3.12 g/t for 1.12 million ounces.
GMIN has stated that a positive feasibility study outcome, along with the receipt of final permits and financing, is expected to support a formal construction decision in the second half of this year. (DPI)
