08:29 AM EDT, 09/09/2024 (MT Newswires) -- G Mining Ventures ( GMINF ) said Monday that it is buying the CentroGold project in Brazil from mining group BHP.

G Mining ( GMINF ) said it will grant BHP a 1% net smelter royalty on the first 1 million ounces of gold produced at the tenements and a 1.5% NSR on gold production thereafter.

"We are excited to acquire another prospective project and begin to grow into the multi-asset growth company we always envisioned to become," G Mining ( GMINF ) President and CEO Louis-Pierre Gignac said.

Separately, G Mining ( GMINF ) also released the results of a preliminary economic assessment for the Oko West gold project in Guyana.

The study outlined a posttax net present value of US$1.4 billion based on a 5% discount rate, with a 21% internal rate of return and a 3.8-year payback period using a base case gold price of US$1,950 per ounce.

Average annual gold production was forecast at 353,000 ounces over 12.7 years.

The company estimated the startup capital cost at US$936 million and sustaining capital at US$537 million over the life of mine.

"Oko is ideally sequenced to benefit from GMIN's regional footprint, development expertise, anticipated free cashflow from our in-production Tocantinzinho gold mine in Brazil and historically high gold prices," Gignac said.

G Mining ( GMINF ) plans to release a feasibility study on Oko for the first quarter of 2025.