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G Mining Ventures

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September 16, 2024 at 10:00 AM (MDT)|Broadmoor Hotel & Resort

Louis-Pierre Gignac

President & CEO

Mr. Gignac has more than 20 years of experience in the mining industry. His expertise includes managing project development studies, providing open-pit expertise, financial modeling, and economic evaluation of projects. He has coordinated many mandates with numerous major mining companies ranging from early exploration evaluations to operations optimization involving all fields of mining and geology. He is a member of the Ordre des Ingénieurs du Québec (“OIQ”) and the Canadian Institute of Mining (“CIM”). He holds a Bachelor of Mining Engineering from McGill University and a Master’s degree of Applied Science in Industrial Engineering from the École Polytechnique de Montréal and is a CFA Charterholder. Mr. Gignac also serves as a director of Major Drilling Group International.

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The company to, to speak to us today. He has more than 20 years of experience in the mining industry and his expertise includes managing project development studies, providing open pit expertise, financial modeling and economic evaluation of projects and to talk about the exciting developments that have been going on at at G mining. Please take it away. I'll be thank you, Brian. So we've been extremely busy over the last year developing the Ton Tenino project when we created the company. The focus was really to build off of our expertise of building assets on time and on budget. So we essentially acquired Ton Tenino Fair fair price, built it and now have put it into commercial production as of September. So with this success, we're looking to repeat this with the Oo West project following the merger that we've completed with reunion Gold. The investment highlights are many with the management team that we have, we can execute on projects with our self performed model that gives us a competitive advantage to deliver projects on time and on budget for our shareholders. We have great quality assets in Token Tan, Zino and Oco West and also Central Gold, which we announced this this week that I'll talk about. We have strong backers that have helped us grow the company since we created it four years ago. And we've created significant shareholder value by delivering on, on, on our projects. The management team has been in place since the beginning going back four years. And we also have a great Master Services Agreement with G Mining Services which gives us lots of technical capability, the ability to do due diligence, execute on construction. giving us a phenomenal bandwidth that we can pull on the board of directors. My bosses, one of them in the room it has provided great guidance for the company since we created it. And now we've joined two directors from reunion being Pierre Sheard and Rege Gord, who have long experience working in Guyana back in the Cambor days. So our model which has been a competitive advantage for us really builds off the expertise that G mining services has done over the last 15 years, building projects for others. And now having successfully done it for ourselves with Token Tan Zino is one that we want to continue pursuing. So Oo West for us, it was an asset that we were very attracted to because we see the very rapid timeline to to development on this project. Given the Guyanese mining friendly jurisdiction and and willingness to see investment take place. So the milestones have been continuing to be checked off since we created the company four years ago with a bank account. And now as a junior gold producer, having declared commercial production at the beginning of September, we also announced the PE A for OO West last week which provides some color on how we see this project developing, which I'll get into in more detail. And we also announced last week, the acquisition of Central Gold which is a property we acquired from BHP that's located in Maranon State and Para in Brazil where we paid nothing and gave them a royalty on the 1st 1% royalty on the first million ounces and 1.5 thereafter. So really on the upcoming catalysts, there's many that will be coming with the feasibility of Oo West in the first quarter of next year, we expect to start constructing on Oo West for early works also in the first half of next year and obviously continuing to ramp up TZ to nameplate which we expect to take place in the, in the first quarter of next year. So our model is, is really been one that's worked for us of acquiring assets in the bottom of the LAON curve at low PN A multiples and executing and bringing them into production to create value for our shareholders. So at this stage, given the asset base that we have, we consider that we're a very compelling company with a very good entry point was still a very low P A multiple given the assets in, in the portfolio, we have a strong shareholder base starting with La Mancha, which has 18 close to 18% in the in the company and many new funds that have taken positions in the company. We have 85 million of cash on hand in the money warrants that will add another 53 million giving us great financial capacity to continue advancing. Oo West in the coming months as TZ is ramping up. So TZ like I mentioned, commercial production was achieved on September 1st. We did 30 days at 80% of nameplate. and we project to in the coming months, bring this to 13,000 tons per day. And after that, continuing to de bottleneck the plant to likely push it beyond nameplate. This will be an asset that will give us 100 and 75,000 ounces of production at a low Asic and will essentially provide free cash flow to fund Oo West over the next three years. So the P A for Oco West gives us 353,000 ounces of production over a 1213 year mine life at a low ASIC below $1000 per ounce. We're gonna be submitting the E SI A for OO West before the end of the year, likely in October, which will set the timeline for permitting with the government, which will take about six months. And in the meantime, we do expect to get no objection letters that would allow us to start construction on early works in, at the beginning of the year, the DFS that we're currently working on will likely publish in the first quarter of next year. We've been doing lots of drilling on the property to upgrade the inferred resources in to, to feed into our feasibility study. And that's mostly complete at this point. We're awaiting final essays and be updating our resource model and that'll be something that will be publishing to market some of the infill drilling and exploration that's been going on for the last six months. So on Central Gold, this is an asset that we had looked at many years ago when it was in the hands of Oz Minerals. Oz got acquired by BHP and then that fell into their portfolio being a non-core asset. So we quickly put our hand up in the air, put a proposal into them to carry on with this project. So it's a very substantial land package of 1900 square kilometers with already 1.7 million ounces of indicated resources and another 0.6 million ounces of infer. So it's about 85 kilometers of strike length on the Grupi Greenstone Belt. So we see this as being a highly prospective region to find additional gold with further exploration. So the jurisdictions that we're working in, we consider them to be amongst the best in South America. Brazil is a large mining country, very diverse, lots of resources and skills in country in Guyana, which is a country less known but becoming more familiar with people with the Exxon oil boom that's been taking place over the last few years. It's a country that's very open to investment. And it's a country that we've known going back to the nineties with the, oh my mind back in the day. So over the last, since, since creating the company, essentially, we've appreciated 330% since 2020. while the JDXJ has been mostly flat well down 20%. So this is really a testament to the ability to execute on our projects and create shareholder value. And looking to continue that trend now with OCO and, and Central going forward. So we do see ourselves as being a an attractive entry point for investors trading based on consensus estimates at a 0.5 nav with several of our peer group. trading at much higher PN multiples. So coming up in the coming months as well, we do expect to publish some exploration results on Oontz as well. Now that we have TZ up and running the focus will be to increase our exploration programs. We'll have a second drill coming in last month and ramping up our exploration efforts on that front. with the idea of finding additional deposits within the large land package that we have there. So adding life extension or optimizing our mind plan with additional deposits that we can find. So definitely on the ESG front, we've done great things since we've been involved with TZ. And I think that's part of the reason we were able to execute on the transaction with BHP. They saw us as being a good custodian of that project with good relationships in country, with our social communities that we do business with and also with the government entities in the state of para and, and at the federal level as well. So I think we've really created a good corporate presence in country and we want to build off of that and we'll be able to do so now with, with central Gold going forward. So on our project that we've completed, we did 4.1 million hours worked with only one LT I on a very low total reportable safety record, which we're very proud of at TZ, we signed a three year power purchase agreement that gives us access to clean renewable power off the Brazilian grid and also gives us a low cost for, for powering our project. So TZ this year, year one is essentially the, this year of pre-production plus the remaining of this year as commercial production. And next year being our full year of production, which we expect to be around 200,000 ounces. And over the first five years, basically having a higher production profile before we get through some of the initial mining phases where it drops in year seven. And all this will likely be optimized with further exploration and mind planning efforts to keep that profile in the 200,000 ounce range. So we've completed our project. We're doing our final numbers, but we've essentially completed the project on time and on budget for 456 million. And now from September 1st, we'll be in commercial production, generating cash flow, especially at these gold prices. Given that we use $1600 as our base case goal price for a feasibility study and didn't have the foresight to see the goal prices we'd have. Now, we had stopped our sensitivity table at 2000. So we're happy to see that incremental cash flow coming in. So I'll maybe just quickly touch on, yeah, on TZ exploration just to give a feel for the large L package that we have, it extends over 35 kilometers. We've done Geophysics on this. We've developed 19 targets from the soil geo chem and geophysical surveys that we've done. and given the artisanal mining that's taken place in this region since the seventies and which is still ongoing in the region. We do expect to find additional deposits with with further work on the property. So, oo for us is, is gonna be a very exciting project. We think Guyana is gonna be a, a leading country in South America for gold projects. OK. O West we believe is gonna be obviously the largest one in country with 353,000 ounces. definitely has lots of similarities to the other projects we've dealt with in the Guyana Shield like Marion and Rose Bell. So basically, our oo project is a 6 million ton per annum plant very similar to Marion in terms of size. And the Capex that we have of 936 million is also very much in line with what it cost us to build Marion for Newmont 10 years ago, if you start adding inflation and, and adjustments that have taken place since that time. So even though it's A P A, we feel it's an estimate that we're very comfortable with. Obviously, we'll be adding lots of detail into that in the coming months. And we're very looking much looking forward to start construction early next year in, in line with government expectations that want to see another leg to development in the country and not just being known as an oil booming rich country as well. So maybe to finish with the highlights from our P A. we've estimated a 1.4 billion nav using 1950 gold price, 9 36 million development Capex with 353,000 ounces of production over 13 years. So definitely this is in my view, a high quality asset that everyone would want in their portfolio and one that we believe will continue to grow in terms of resources where it's been drilled down to a kilometer at depth and still open that depth, open on strike. And as we know, open to the North where our neighbor G two is also having good exploration success. So we think this is a district in the making and we're happy to be a significant part of that and, and looking to build the next leg of growth for G mining with with the OO West project. So I'll maybe leave it out there and see if there's any questions that we do have a couple of minutes for questions. If you have a question, please raise your hand and a microphone will be brought forward. Well, maybe while you guys get over. Oh, over here. Thank, thank you. 22 questions for you. One is, is, is that South American region basically your, your area where you feel comfortable or as, as you roll out your business model? Do you think you could apply it elsewhere? And then the second question goes to the unique business model with with G mining services as your I don't know, cousin partner, you know, you know what I'm saying? How, how scalable is the business model given that structure that you have with G mining services? Yeah. So we've done projects. we built S A can and Burkina faso back in the day. being based in Quebec, we have a large pool of our employees that are French speaking. So West Africa is obviously an easy place to do business. But yeah, I'd say a lot of the activity we've done in the last few years is most mostly been South America. So we have a lot of people in our organization, they speak Spanish now, Portuguese. So we do have that ability to work in, in different environments and in terms of scalability, obviously, G mining services has grown over the years. Essentially, they were working on the hard rock project last year delivering that for Equinox. Also, I would say within their expectations. So G MS has the ability to work on two large projects at any given time in addition to doing technical studies and and additional work on the side. So we do feel it's a scalable business from our point of view. Obviously, it's a question of capital and how fast we can grow. But in an ideal world with Oo West up and running generating cash flow. At that point, we see the ability to, to maybe accelerate that model at that point. Are there any other questions from the floor? Maybe just one quick one from me then. obviously, you spoke to the, the permitting in Guyana. But what was it about ou West in particular that really made it come to the top of the pile when you were looking for assets to, to purchase as your second asset? Yeah, I mean, for one, it's the quality of the resource. It's probably one of the higher grade open pit projects right now. When we compared to Roselle Marion, we felt it was as good or better. So we were very comfortable with the geology and the environment and predictability of that resources that continued to get drilled over the years. So we definitely one, we were comfortable acting quickly on to make it part of our portfolio. And the metallurgy is very simple. flow sheet is very simple. And obviously, we're attracted to projects where we can quickly put them into development and not be stuck in the permitting. abyss of years of waiting to get that, get things permitted. And unless there's a, a quick question from the floor, I think that takes us to the end of time. So please join me in. Thanking LP. Thanks.


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