Earlier this month, G Mining Ventures (GMIN.TO) provided an update on its new Tocantinzinho gold mine in Brazil. The new mine produced in excess of 42,000 ounces of gold in the second quarter with an average throughput of just 11,100 tonnes per day. This was mainly caused by the ramp-up of the mine as the average daily throughput was just 8,600 tonnes per day in April, but this increased to 12,300 tpd in May and June (representing 96% of the nameplate capacity). Meanwhile, the recovery rate for the gold increased to 90.3% from 87.7% in the first quarter of this year, and the combination of these elements resulted in the strong production result.
The strong result in the second quarter allowed the company to confirm the full-year outlook for Tocantinzinho, which is expected to produce 175,000-200,000 ounces of gold this year. The anticipated production cost hasn’t been disclosed yet, but G Mining will provide an update on the expected costs when it announces its Q2 results on August 14th.
Disclosure: The author has no position in G Mining Ventures. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
