GoldMining Inc. (NYSE American: GLDG) announced results of a preliminary economic assessment for its São Jorge Project in Pará State, Brazil, according to a company statement.

The assessment shows an after-tax net present value of $532 million at a 5% discount rate and an internal rate of return of 42.4%, using a base case gold price of $3,500 per ounce. The initial capital requirement is estimated at $202 million, including a 25% contingency.

At current spot gold prices of $4,400 per ounce, the after-tax net present value increases to $836.8 million with an internal rate of return of 58.6% and a payback period of 2.4 years.

The project envisions a conventional open-pit operation processing 5,500 tonnes per day over a 10.6-year mine life. Gold production is projected to average 51,250 ounces annually, with peak production of 57,200 ounces per year in years 2 through 4. Total gold production is estimated at 543,200 ounces.

The assessment indicates an all-in sustaining cost of $1,464 per ounce and metallurgical recoveries of 90% for gold using standard gravity and leach circuits.

The project is based on mineral resources totaling 624,000 ounces of gold in the indicated category and 129,000 ounces in the inferred category. The company holds approximately $183 million in cash and publicly traded securities.

GoldMining plans to commence pre-feasibility studies and advance permitting for the project. The São Jorge deposit is located in the Tapajós gold district, approximately 80 kilometers from G Mining's Tocantinzinho gold mine.

The preliminary economic assessment is preliminary in nature and includes inferred mineral resources, which are considered too speculative to have economic considerations applied that would enable categorization as mineral reserves.