#Guyana #Aris Mining #Toroparu Gold

Positive PEA Results for Toroparu Gold Project

Aris Mining Corporation has unveiled positive findings from its recent Preliminary Economic Assessment (PEA) regarding the Toroparu Gold Project, located in Guyana. This 100%-owned project is gaining attention not only for its substantial resources but also for the robust economic indicators it presents, laying the groundwork for a significant mining operation in the region.

Overview of the Toroparu Gold Project

The PEA confirms Toroparu as a large-scale, long-life open pit gold mining endeavor. The project boasts an impressive expected mine life of 21.3 years, with an average annual gold production of approximately 235,000 ounces. The after-tax net present value at a 5% discount rate stands at a remarkable $1.8 billion, based on a gold price of $3,000 per ounce. Neil Woodyer, CEO of Aris Mining, emphasizes that the PEA marks an exciting opportunity for growth and diversification, particularly following the merger with GCM Mining and a re-evaluation of previous plans.

Project Highlights

The impressive figures outlined in the PEA include:

• - Measured and Indicated Resources: 126.9 million tonnes at an average grade of 1.30 grams per tonne of gold, containing 5.3 million ounces of gold.
• - Production Metrics: Over the life of the mine, the project is projected to yield 5.0 million ounces of gold, 4.9 million ounces of silver, and 260 million pounds of copper.
• - Economic Performance: With a low life-of-mine cash cost of $826 per ounce and all-in sustaining costs of $1,289 per ounce, the financial outlook is promising.
• - Strong Returns: At a base case gold price of $3,000 per ounce, the after-tax NPV reaches $1.8 billion, with an internal rate of return (IRR) of 25.2% and a payback period of just three years.

Detailed Analysis and Future Steps

The PEA outlines a well-structured approach to mine development, with the company implementing a conventional truck-and-shovel open-pit operation. This method ensures a workable strip ratio and a processing capacity of 7 million tonnes per annum. The strategy underlines an intent to optimize resource extraction, with the mining fleet financing secured through Original Equipment Manufacturer (OEM) leasing, highlighting a focus on reducing upfront costs by approximately $38 million.

Aris Mining also plans to initiate a Prefeasibility Study (PFS) targeted for completion by 2026, further progressing the project towards construction. This next phase will include updating geological interpretations and resource estimates to refine production strategies.

The Greater Context of Guyana's Mining Sector

Guyana's mining landscape is rapidly evolving, and the Toroparu Gold Project is positioned to be one of the country's next major gold mines, following the successful development of the Oko West project. With favorable government support for responsible mining practices and strong market dynamics, the project is not only pivotal for Aris Mining but also signifies the growing status of Guyana in the Americas as a key player in the gold sector.

Overall, the findings from the PEA indicate that Toroparu is poised to become a cornerstone project for Aris Mining and a significant contributor to the burgeoning mining industry in Guyana, symbolizing both a substantial opportunity for shareholders and a positive impact on the local economy as operations commence.