News Summary
The most recent news (December 18, 2025) announces a maiden Preliminary Economic Assessment (PEA) for the Oko Gold Project in Guyana. The study outlines a 14-year mine life producing 3.2 million ounces of gold. Average annual production is estimated at 228,000 ounces (peaking at 281,000 ounces during years 2-11). The project utilizes a combined open-pit and underground mining strategy with a 10,000 ton-per-day throughput. Key financial metrics include an after-tax NPV5% of $2.56 billion and an IRR of 39%. However, these figures are based on an aggressive “Base Case” gold price of $3,000/oz. All-in Sustaining Costs (AISC) are projected at $1,191/oz for the life of mine.
Material Impact
– Positive Scale: The production profile (200k+ oz/year) elevates G2 from a junior explorer to a potential Tier-1 developer. The resource has grown significantly, now totaling 3.5 Moz across Indicated and Inferred categories.
– Aggressive Economic Assumptions: The use of $3,000/oz gold as the base case is highly promotional. Standard industry practice typically uses $1,800 to $2,000 for conservative PEAs. While the IRR of 39% is healthy, it would likely drop significantly at $2,000/oz gold, potentially challenging the project’s viability given the $664M initial capex.
– Financing Requirement: The initial capital expenditure of $664 million is substantial relative to G2’s current cash position (~$62M). This necessitates a significant future financing event, likely involving a major project partner or high-interest debt.
– Strategic Focus: The confirmed spin-out of non-core assets to G3 Goldfields (approved Nov 2025) allows G2 to focus exclusively on the Oko project, simplifying the investment thesis for potential acquirers.
Catalysts
– Technical Report Filing: The full NI 43-101 Technical Report must be filed within 45 days. Critical details on metallurgical recoveries and geotechnical assumptions will be scrutinized.
– ESIA Submission: The Environmental Social Impact Assessment is expected in Q1 2026. Permitting timelines in Guyana are generally favorable, but any delays here would push back the feasibility timeline.
– G3 Spin-Out Completion: The effective distribution of G3 shares to G2 shareholders is slated for Q1 2026.
– Exploration Drilling: Watch for results from the “New Oko Discovery” area and “Border Zone,” which were not fully incorporated into the PEA mine plan.
Materiality Conclusion
The news is Material – Positive because it confirms the Oko Project has the grade and scale to become a significant mine. While the management has spun the economics using an inflated gold price, the underlying high-grade underground resource (8.85 g/t Au Indicated at OMZ) remains a rare and valuable asset in the current market.
