G Mining's Strategic Move into Peru's Cajamarca Gold Belt: A Transformative Acquisition from BHP

G Mining Ventures Corp. (GMIN) has executed a pivotal acquisition of BHP’s CentroGold Project, now confirmed to be located in Peru’s Cajamarca region—a shift from its originally reported Amazonas state in Brazil. This move reflects GMIN’s strategic pivot to capitalize on Peru’s mining-friendly regulatory environment, while avoiding environmental opposition that stalled the project in Brazil. The deal, finalized in December 2024, grants GMIN 100% ownership of a 1,900 km² land package hosting 2.3 million ounces of JORC-compliant gold resources, positioning the company to become a mid-tier gold producer.

Acquisition Terms and Project Potential

The transaction is structured as a royalty-based deal requiring no upfront capital outlay. GMIN will pay BHP a 1.0% net smelter return (NSR) royalty on the first 1 million ounces produced and 1.5% NSR beyond that threshold. This deferred payment model preserves liquidity for GMIN’s other priorities, such as advancing its Tocantinzinho Gold Mine (Brazil) and Oko West Project (Guyana).

The CentroGold Project’s 80 km mineralized trend hosts key deposits like Blanket, Contact, and Chega Tudo, which are open-pit targets with potential for 10-year mine life and annual production of 100,000–120,000 ounces, rising to 190,000–210,000 ounces in early years. Current resources occupy just 8% of the land package, leaving vast exploration upside across the remaining 1,800 km², which extends into Peru’s prolific Gurupi geological province.

Strategic and Financial Implications

• Portfolio Expansion: Adding 8.1 million ounces of indicated and inferred resources (including prior acquisitions), GMIN’s total resources now rank among mid-tier peers like Newcrest Mining and Yamana Gold.
• Capital Efficiency: The royalty structure aligns with GMIN’s focus on capital preservation, enabling reinvestment in high-margin projects like Tocantinzinho, which targets H2 2024 production at $681/AISC.
• Operational Synergy: Cajamarca’s proximity to existing infrastructure and Peru’s mining-friendly policies (e.g., streamlined permitting) reduce development risks compared to Brazil’s environmental hurdles.

Risks and Mitigants

• Jurisdictional Risks: While Peru offers a stable mining framework, risks remain, including community opposition and currency fluctuations. GMIN’s appointment of Vincent Benoit (ex-Endeavour Mining executive) to its board signals enhanced governance to navigate these challenges.
• Resource Validation: GMIN must update resources to NI 43-101 standards by Q1 2025, relying on 135,000 meters of historical drilling data. Independent verification by IMC adds credibility.
• Gold Price Volatility: A prolonged dip below $1,800/oz could pressure margins, though GMIN’s low-cost operations (Tocantinzinho’s $681/AISC) provide resilience.

Conclusion

G Mining’s acquisition of the CentroGold Project in Peru represents a high-reward, low-upfront-risk strategic shift, leveraging Peru’s mining-friendly environment to avoid Brazil’s regulatory pitfalls. With 2.3 million ounces of gold resources and an 80 km mineralized trend, the project’s exploration upside could unlock 8.1 million ounces total, solidifying GMIN’s trajectory toward mid-tier producer status.

Key catalysts include NI 43-101 compliance by Q1 2025, permitting progress in Cajamarca, and production ramp-up at Tocantinzinho. While risks like gold price fluctuations and permitting delays exist, the royalty structure and Benoit’s leadership suggest GMIN is well-positioned to capitalize on Peru’s gold potential. For investors, this acquisition underscores a value-driven, growth-oriented strategy—a compelling case for exposure to Latin American gold assets.

Final Note: Monitor GMIN’s Q1 2025 resource update and Tocantinzinho’s H2 2024 production start for near-term catalysts.