Aris Mining confirms extended operational timeline of Toroparu gold project in PFS
Canadian gold miner Aris Mining Corporation has confirmed in a prefeasibility study (PFS) on the Toroparu gold project, in Guyana, its potential for a large-scale and long-life openpit development producing 5.6-million ounces of gold over a 29-year processing period, including 21 years of mining.
With the PFS complete and the large-scale mining licence application under review, Toroparu is progressing through pre-development activities.
Aris aims to make a construction decision early in 2027, subject to receiving the large-scale mining licence and other necessary approvals.
The PFS contemplates a 32-month construction period and supports Toroparu’s potential to become a major new long-life gold mine in Guyana. The PFS also underscores Toroparu’s status as a cornerstone asset within the portfolio as Aris executes its strategy to become a major gold producer in South America.
Some of the key findings of the PFS include an extended operating life through planned treating of lower-grade tonnes toward the end of the mine life, whereas the 2025 preliminary economic assessment (PEA) on the project envisioned this as waste; and the use of contract mining instead of the owner-operated, equipment-leasing model contemplated by the 2025 PEA.
The PFS confirms planned average gold production of 291 000 oz/y over the first five years and 258 000 oz/y during the main pit operations, or first 17 years, followed by 103 000 oz/y in the later life of the mine and stockpile processing operations – years 18 to 29.
The Toroparu project will require an initial capital commitment of $1-billion, but is poised to generate average yearly earnings of $588-million during the main pit operations. The project’s after-tax net present value (NPV) is estimated at $2.8-billion, its internal rate of return (IRR) 31.5% and its payback period 2.2 years from the start of operations – at base case prices of $3 600/oz of gold, $50/oz of silver and $5/lb of copper.
The NPV and IRR increase to $3.8-billion and 37.8%, respectively, at a gold price of $4 200/oz, and decrease to $1.8-billion and 24.3%, respectively, at a gold price of $3 000/oz.