Overview

The Toroparu Gold Deposit is situated in the highly prospective Upper Puruni River Region of western Guyana, and contains one of the largest in-situ gold projects owned by an independent junior mining company in South America. The deposits lie within the Puruni Shear Corridor, a geologic feature that can be traced into the Malawi gold fields of eastern Venezuela. Significant resource growth possibilities with the Puruni Shear Corridor are supported both by the discovery of satellite gold deposits within the Upper Puruni Concession Area, SE Zone and Sona Hill, geochemical anomalies in the adjacent Otomung Concession, and the existence of gold deposits across the border in Venezuela along the shear.

Gran Colombia’s 100% controlled Upper Puruni Concession contains 53,283-hectare(s) of mineral leases located in the Cuyuni-Mazaruni Region (Region 7) of Western Guyana.

The region’s hilly terrain is accessible by air and road.

Facilities at Toroparu include a 150-person camp and 2,500-foot all-weather airfield.

Toroparu is currently accessed overland via the 240- km Itiballi-Puruni-Papishao Landing Road, which was rehabilitated by Gold X in 2003, and is a major corridor for both western Guyana and one of its important gold producing areas.

Plans include completion of a second access road extending to the north to Buckhall on the Essequibo River.

The Puruni Shear zone is a regional structure extending 100 km into Venezuela.

Medium to large batholiths identified as low magnetic features align with the southern boundary of the shear.

The Toroparu and Sona Hill deposits occur at the margin between the batholiths and surrounding metavolcanic host rocks.

Several exploration targets within the 20km x 7km hydrothermal alteration halo surrounding Toroparu represent satellite deposit targets.

Toroparu Project Re-Scoping and Preliminary Economic Analysis

The June 2019 Preliminary Economic Assessment (PEA) assessed the economic results of a re-scoping of the Toroparu Project to include expansion of production from the addition of Sona Hill satellite deposit resources to the mine plan.

Highlights from the June 2019 PEA include:

  • 7.353 million ounces of Measured & Indicated gold resource and 3.150 million ounces of Inferred gold resource.
  • 4.5 million ounces of gold production over 24‐year mine life with:
    • 1.476 million ounces gold doré production over first 10 years
    • 2.148 million ounces gold doré and 876,000 oz gold in concentrate production over balance 14 years
  • 187,500 ounces average gold production over 24-year mine life & 147,600 ounces per year of over first 10 years of production.
  • $2.544 billion Cash Flow from Operations at $1,300/oz gold price
    • $1.25 billion after‐tax Free Cash Flow (net of $974 million life of mine capital cost estimate)
  • $378 Million pre‐production capital expenditure estimate with
    • $272 million pre‐production financing requirement (includes Wheaton PMPA deposits)
  • $232 million Phase 2 expansion financed from internal cash flow
  • 2.92 years payback of initial capital expense

All results can be found in the Preliminary Economic Assessment Technical Report effective June 11, 2019.

Advanced Development Stage Project

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The primary permits required for development of the project including the Environmental Authorization and the Mineral Development and Fiscal Stability Agreement are complete.

Large Resource, Conventional Open Pit and Simple Metallurgy

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The 2019 re-scoped Preliminary Economic Assessment estimates production of 4.5 million ounces of gold with 125 million pounds of by-product copper and 4.46 Moz silver over a 24-year mine life. Parallel carbon-in-leach (CIL) and flotation circuits will process ore types containing varying amounts of copper. Eighty percent (80%) of the gold produced, or 3.6m ounces, is expected to be produced as doré bars and transported off-site by air to refiners in Canada or Europe, with the balance of 20% contained in copper concentrates to be shipped in containers to smelters in Europe or Asia. The PEA defines two-phases of production starting with a 4.2 Mtpy (million ton per year) CIL circuit operating for 10 years, and then expanding to 8.4 Mtpy with a parallel flotation circuit added to the mill in year 11.

A Skilled and Experienced Workforce

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Guyana’s network of skilled workers comes from the country’s strong educational system, and its well-established gold and bauxite mining sectors. Gold X employed an experienced team of Guyanese equipment operators, maintenance personnel, and administrative staff since 2000. The team has not only run efficient gold mining operations and extensive exploration programs on the Upper Puruni River Concessions, they have also built the camp, airstrip, rehabilitated 140 km of the access road from Puruni Landing, and constructed over 150 km of on-site roads. In addition, the mechanical, electrical, and other skilled tradesmen have successfully maintained Gold X’s fleet of mining and road construction equipment for more than 18 years.

Why Guyana

Guyana is an emerging economy with enormous untapped potential, and according to the IMF, is projected to be one of the world’s fastest growing economies. The country’s geographic position at the gateway to the Caribbean and South America, combined with its natural resources, access to key export markets, English-speaking population and affordable labour present investors with profitable opportunities to do business in Guyana. The country is governed by British Common Law and is a member of the Commonwealth of Nations, World Trade Organization and CARICOM (headquarters located in Guyana).