VANCOUVER, BC, April 5,
2022 /PRNewswire/ - GoldMining Inc. (the
"Company" or "GoldMining") (TSX: GOLD) (NYSE
American: GLDG) is pleased to issue the following letter from
its Chairman, Amir Adnani, updating
shareholders on the Company's progress in advancing and unlocking
value from its portfolio of assets while enhancing a peer leading
balance sheet which includes cash and holdings in Gold Royalty
Corp. ("Gold Royalty").
Dear Fellow Shareholders,
The last twelve months were one of the most dynamic periods in
GoldMining's 11-year history with several key catalysts creating a
sound foundation for the Company to execute various initiatives in
the years ahead to continue to unlock value from our vast portfolio
of projects in the Americas.
Through GoldMining's strategic holdings of 20 million shares in
Gold Royalty (NYSE American: GROY), the Company has built an
extremely robust and flexible balance sheet with approximately
$120 million in cash and marketable
securities. Following GROY's commencement of an inaugural dividend,
GoldMining expects to receive roughly $1
million in dividend cash flow per year. The value of this
dividend cash flow cannot be understated, as most exploration and
development companies are negative cash flowing and are forced to
dilute shareholders, whereas GoldMining is in a unique position to
have meaningful, and potentially growing dividend cash flow.
Taking inspiration from the successful Gold Royalty spin out in
2021, we recently announced the creation of U.S. GoldMining Inc.
("U.S. GoldMining"), a new subsidiary which will focus on advancing
the large Whistler gold-copper Project located northwest of
Anchorage, Alaska. Today, with
spot gold approaching US$2,000 per
ounce and copper prices near a decade high, optimum market
conditions exist to immediately unlock substantial value by
creating U.S. GoldMining without dilution to GoldMining's capital
structure. As the flagship asset of U.S. GoldMining, we believe
that the Whistler Project has district size scale to attract the
attention of major producing mining companies, with indicated
mineral resources of 3.0 million gold equivalent ounces1
and inferred mineral resources of 6.5 million gold equivalent
ounces1 covering an expansive regional land package of
17,159 hectares. U.S. GoldMining will operate as a separate public
company through an IPO or similar transaction. Stay tuned for
further announcements as we build a dedicated team and experienced
board of directors to advance this large and exciting project. See
the technical report titled "NI 43-101 Mineral Resource Estimate
for the Whistler Project" with an effective date of June 11, 2021 (as amended October 29, 2021), a copy of which is available
under the Company's profile at www.sedar.com, for further
information regarding the Whistler Project and the above resource
estimate.
Operationally, GoldMining has made several additions to key
management roles, including the appointment of Alastair Still (ex-Newmont and Goldcorp) as CEO.
Under Alastair's leadership, the Company has built a world class
technical team that has started the process of de-risking and
unlocking the value of our project portfolio. Recently, we added
over 50 years of global mining industry expertise with the
appointment of Sam Mah as our
Director Engineering Studies and Eric
Chen as our Director Mineral Resources. Additionally, we
updated our peer-leading mineral resource portfolio by completing
updated Technical Reports on core properties representing
approximately 75% of GoldMining's gold equivalent mineral resources
to strengthen the foundation for the next stage of advancing our
projects.
Our experienced team continues to de-risk the Company's
portfolio as we analyze and seek to demonstrate the economics of
the Company's most advanced assets. GoldMining recently announced
the results of a preliminary economic assessment ("PEA") at the La
Mina Project in Colombia. The PEA
outlined roughly 1 million gold-equivalent ounces of production
over 10 years with an after-tax net present value of US$232 million at a conservative gold price of
US$1,600 per ounce. La Mina's
valuation spotlights how undervalued GoldMining currently is in the
market, with a current enterprise value roughly equivalent to this
single asset which, on a gold equivalent ounce basis, accounts for
only 6% of our measured and indicated mineral resources and 3% of
our inferred mineral resources. Clearly, as we continue to rapidly
advance our extensive portfolio of assets the Company intends to
create meaningful value for our shareholders.
The PEA is preliminary in nature and includes inferred mineral
resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as mineral reserves and there is no certainty
that the PEA will be realized. See the technical report titled "NI
43-101 Technical Report and Preliminary Economic Assessment" with
an effective date of January 12,
2022, a copy of which is available under the Company's
profile at www.sedar.com, for further information regarding the La
Mina Project.
Looking forward to the remainder of 2022, we strive to continue
to add value to the La Mina Project through an exploration drilling
program on the La Garrucha zone, located less than one kilometer to
the east and immediately adjacent to the existing mineral
resources. This drill program targets the potential to grow the
underlying mineral resource base of the project which could further
enhance the economics of the La Mina Project. Additionally, work
continues at the São Jorge Project (São Jorge) in Brazil, building upon the success of our
infill sampling program that commenced in late 2021. We see the
results at São Jorge to further highlight the disconnect between
our market valuation and the value of the assets within our
portfolio. In addition to driving forward the portfolio through our
own initiatives, GoldMining continues to have active discussion
with various peers, developers, and major producers as we consider
potential strategic partnerships, joint ventures, and New Co's for
avenues to unlock value.
Additionally, GoldMining is in the unique position of holding a
75% interest in the high-grade uranium exploration project called
Rea that is located in the Athabasca region of Canada, one of the most prolific geological
regions for uranium globally. The uranium market has benefited from
bipartisan support and is embraced as a necessary component in the
shift to a green economy. Spot prices are up 40% year-to-date, but
yet still remain only about one third of all time highs. Rea is a
district-scale project covering 125,000 hectares that could become
a key asset for a uranium exploration company to be built around or
would provide meaningful exploration potential to more mature
developers and producers.
The remainder of 2022 is shaping up to be an exciting period for
GoldMining, Gold Royalty and all our stakeholders. We thank our
shareholders for their continued support and look forward to
reporting further progress in the coming quarters as we execute our
strategy.
1
The Whistler mineral resource estimate
consists of indicated resources of 118.2 million tonnes containing
1.94 million ounces of gold grading 0.51 g/t, 8.33 million ounces
of silver grading 2.19 g/t and 422 million pounds of copper grading
0.16%; and inferred resources of 317.0 million tonnes containing
4.67 million ounces of gold grading 0.46 g/t, 16.06 million ounces
of silver grading 1.58 g/t and 711 million pounds of copper grading
0.10%.
|
Qualified Persons
Paulo Pereira, P. Geo., President
of GoldMining, has reviewed and approved the technical information
contained in this news release. Mr. Pereira is a Qualified
Person as defined in National Instrument 43-101 ("NI 43-101").
About GoldMining Inc.
The Company is a public mineral exploration company focused on
the acquisition and development of gold assets in the Americas.
Through its disciplined acquisition strategy, the Company now
controls a diversified portfolio of resource-stage gold and
gold-copper projects in Canada,
U.S.A., Brazil, Colombia and Peru. The Company also owns 20 million shares
of Gold Royalty Corp. (NYSE American: GROY).
Notice to Readers
Disclosure regarding Mineral Resource estimates included herein
have been prepared by the Company in accordance with NI 43-101. NI
43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for public disclosure by
issuer of scientific and technical information concerning mineral
projects. NI 43-101 differs significantly from the disclosure
requirements of the United States Securities and Exchange
Commission ("SEC") generally applicable to U.S. companies subject
to the SEC's disclosure requirements. For example, the terms
"Indicated Mineral Resource" and "Inferred Mineral Resource" are
defined in NI 43-101 by reference to the guidelines set out in the
CIM Definition Standards on Mineral Resources and Mineral Reserves.
These definitions differ from the definitions in the disclosure
requirements promulgated by the SEC. Accordingly, information
contained herein or in the Company's descriptions of its projects
may not be comparable to similar information made public by U.S.
companies reporting pursuant to SEC disclosure requirements.
Forward-looking Statements
This document contains certain forward-looking statements
that reflect the current views and/or expectations of GoldMining
with respect to future growth plans and strategies, ongoing and
proposed work at the La Mina Project, future exploration and
work programs, the results of the PEA, the Company's plans
respecting U.S. GoldMining Inc. and expectations regarding the
Whistler Project. Forward-looking statements are based on the
then-current expectations, beliefs, assumptions, estimates and
forecasts about the business and the markets in which GoldMining
operates. Investors are cautioned that all forward-looking
statements involve risks and uncertainties, including: the inherent
risks involved in the exploration and development of mineral
properties, fluctuating metal prices, unanticipated costs and
expenses, risks related to government and environmental regulation,
social, permitting and licensing matters, and uncertainties
relating to the availability and costs of financing needed in the
future. These risks, as well as others, including those set forth
in GoldMiningꞌs Annual Information Form for the year ended
November 30, 2021, and other filings
with Canadian securities regulators and the U.S. Securities and
Exchange Commission, could cause actual results and events to vary
significantly. Accordingly, readers should not place undue reliance
on forward-looking statements and information. There can be no
assurance that forward-looking information, or the material factors
or assumptions used to develop such forward-looking information,
will prove to be accurate. The Company does not undertake any
obligations to release publicly any revisions for updating any
voluntary forward-looking statements, except as required by
applicable securities law.
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SOURCE GoldMining Inc.