GoldMining Initiates Preliminary Economic Assessment For The São Jorge Project

(GoldMining, 1.Jun.2021) — GoldMining (TSX: GOLD) (NYSE American: GLDG) is initiating a preliminary economic assessment (PEA) on its 100% owned São Jorge Gold Project in Pará State, Brazil and announces the results of an updated Mineral Resource Estimate (MRE).

Highlights:

  • Indicated Mineral Resources of 0.71 million ounces gold (14.27 million tonnes grading 1.55 g/t gold) (see Table 1);
  • Inferred Mineral Resources of 0.72 million ounces gold (17.58 million tonnes grading 1.27 g/t gold) (see Table 1);
  • The MRE utilizes an optimized pit shell to constrain resources, a database of 145 drill holes totaling more than 37,000 metres and uses modernized cost and pricing assumptions including a US$1,600/oz gold price; and
  • GoldMining has initiated work on a PEA at São Jorge to further evaluate the economic potential of an open-pit operation and advance opportunities to upgrade and expand the current resource base.

Alastair Still, Chief Executive Officer of GoldMining commented: “We are pleased with both the scale and grade of the new Mineral Resource Estimate. Building upon this solid foundation, the company has launched a preliminary economic assessment and plans to initiate further work with the goal to upgrade and expand resources and evaluate underground mineral resource potential beneath the current open pit model at São Jorge. The new MRE utilizes an optimized pit shell to constrain resources, modernizes cost and pricing assumptions, which positions us to proceed with unlocking the potential of this deposit. This work builds upon the staged approach of advancing our portfolio of gold and copper projects throughout the Americas such as the previously announced initiation of PEAs on our Yellowknife and La Mina Projects in Canada and Colombia, respectively.”

The São Jorge Gold Project is located within gold exploration concessions totaling approximately 45,997 hectares in the southeast of Pará State, Brazil, in the municipality of Novo Progresso. The region is known as the Tapajós and São Jorge is located 4 km west of Highway BR163 and is accessed by several gravel roads that cross the property. Eldorado Goldꞌs feasibility stage Tocantinzinho deposit and Serabiꞌs Palito mine occur along the same major structural zone that hosts the São Jorge deposit. Gold mineralization at São Jorge is hosted in granitic rocks and is associated with a northwest-southeast striking shear zone.

The MRE disclosed herein was prepared by Porfirio Rodriguez, MAIG, of GE21 Consultoria Mineral LTDA (Brazil) and has an effective date of May 31, 2021. Mineral Resources are reported using a 0.3 g/t gold cut-off. The MRE was constrained using a Lerchs-Grossman (LG) optimized pit shell using maximum pit slopes of 35 degrees in saprolite and 52 degrees in fresh rock and based on an assumed US$1,600/oz gold price, average metallurgical recoveries of 90%, average mining costs of US$2.00/tonne, average processing costs of US$8.50/tonne and average general and administrative costs of US$2.10/tonne processed. Mineral Resources were estimated using a block model utilizing multiple indicator kriging using a selective mining unit block size of 5 x 5 x 5 metres. Net smelter return royalties of 3.5% in aggregate have been included in the constrained pit model.

Table 1: Indicated and Inferred open pit constrained resources reported above a 0.30 g/t Au cut-off grade 1.

CategoryTonnes (000)Au Grade (g/t)Au Ounces (000)
Indicated14,2751.55711.8
Inferred17,5821.27716.8
1.Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources will be converted into mineral reserves. The estimate of mineral resources may be materially affected by environmental permitting, legal, title, taxation, sociopolitical, marketing or other relevant issues. The company is not currently aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect this MRE.
2.Mineral Resources have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into National Instrument NI 43-101.

The MRE updates and replaces the prior historic MRE of the company contained in its technical report titled “São Jorge Gold Project, Pará State, Brazil: Independent Technical Report on Mineral Resources”, dated effective 22 November 2013.

NI 43-101 Technical Report

GoldMining will file within 45 days an updated technical report for the São Jorge Gold Project, including a description of the São Jorge MRE contained herein. Further information regarding the MRE will be set forth in such report.

Qualified Persons

The Qualified Person for the São Jorge Mineral Resource Estimate is Porfirio Rodriguez, MAIG, of GE21 Consultoria Mineral LTDA (Brazil), who is independent of the company, who has reviewed and approved the scientific and technical information herein regarding the São Jorge Mineral Resource Estimate. Paulo Pereira, P. Geo., President of GoldMining Inc. has supervised the preparation of this news release and has reviewed and approved the scientific and technical information contained herein. Each of Messrs. Rodriquez and Pereira are Qualified Persons as defined in National Instrument 43-101 (“NI 43-101”).

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