GoldMining ups São Jorge value in new report

GoldMining Inc. (TSX: GOLD, NYSE: GLDG) has filed a technical report for its São Jorge project in Pará State, Brazil. The company’s stock rose 2.48% in early trading.

The Vancouver-based junior miner said the report included the project’s previously announced preliminary economic assessment (PEA). 

Using a 5% discount rate and a gold price of US$3,500 per ounce, São Jorge now has an after-tax net present value (NPV) of US$532 million, an internal rate of return (IRR) of 42.4%. At an updated price of US$4,400 per ounce, the NPV rises to US$836.8 million with a 2.4‑year payback. Initial capital is estimated at US$202 million, including a 25% contingency. 

The PEA also outlines a 10.6‑year mine life producing an estimated 51,250 ounces of gold annually, with a peak production of 57,200 ounces. GoldMining says the project would use a 5,500‑tonne‑per‑day conventional plant with 90% recoveries and an all‑in sustaining cost (AISC) of US$1,464 per ounce.

“Filing the São Jorge technical report marks the next step in the advancement of our portfolio,” said Alastair Still, the CEO of GoldMining. “In addition to offering significant exploration potential, the study highlights the asset's potential resilient margins and rapid payback profile.”

GoldMining shares grew from C$1.21 to C$1.24 a piece Wednesday morning in Toronto. The company is now valued at about  C$267.03 million.