G2 drills Oko to 1 km depth amid $3B takeover

G2 Goldfields (TSX: GTWO; US-OTC: GUYGF) said fresh drilling at its Oko gold project in Guyana extended mineralization beyond the deposit’s known limits as the company works to complete its sale to G Mining Ventures (TSX: GMIN; US-OTC: GMINF).

Highlight hole GDD277B – the deepest intercept so far at Oko – cut 84.5 metres grading 3 grams gold per tonne from about 916 metres downhole, G2 said Monday. It extended mineralization by 140 metres vertically to 1 km, where it remains open. Another hole, GDD279, cut 6 metres of 11 grams gold from about 105 metres depth.

“These results continue to demonstrate the strong growth potential at the Oko project, with mineralization remaining open both along strike and at depth,” CEO Daniel Noone said in a statement. “With eight drill rigs active, we remain focused on expanding and upgrading resources while advancing additional near-mine and district-scale targets across the greater Oko project area.”

Toronto-based G2 agreed last month to be acquired by G Mining in a $3-billion (US$2.2 billion) all-share deal that would combine the Oko West and Oko-Ghanie projects to form a single district-scale development in the Guiana Shield. Together, both properties could deliver more than 500,000 oz. of gold annually over the life of mine, the companies said. The transaction is expected to close next month.

Multiple deposits

Located about 120 km southwest of the country’s capital, Georgetown, Oko hosts a multi-deposit resource base across several zones – such as Ghanie and Oko Main.

Oko holds 15.6 million indicated tonnes grading 3.24 grams gold for contained metal of 1.62 million oz., gold, according to a November 2025 resource. It also holds about 18 million inferred tonnes grading 3.31 grams gold for 1.91 million oz. gold of contained metal.

Other results released Monday include hole GDD270, which cut 20.8 metres of 9.6 grams gold from 298 metres downhole; and hole GDD273, which intersected 7.2 metres of 7.8 grams gold from 333 metres depth.

The latest holes — which targeted the deeper portions of Oko Main — confirmed that gold-bearing structures persist at depth with meaningful widths and grades. The results support the concept of a large underground mining scenario beneath the existing open-pit and near-surface resources, G2 says.

Long-life asset

The company is planning to drill 100,000 metres at Oko this year. Its exploration strategy has focused on expanding both the high-grade underground component and the bulk-tonnage potential, positioning Oko as a potential long-life mining operation.

Crews have been systematically stepping out and drilling deeper along the main shear-hosted system. The new intercepts are expected to feed into future resource updates and potentially enhance the underground component of the project.

G2 envisions a combined open pit and underground operation at Oko with a 14-year mine life and estimates total production of 3.2 million oz. gold at all-in sustaining costs of US$1,191 per ounce. Annual production is projected to average 298,000 oz. during years three through 10.

A preliminary economic assessment for Oko gave the project a net present value of US$2.5 billion, an internal rate of return of 38% and a payback period of 2.7 years. Initial capital expenditures were pegged at US$664 million, including a 20% contingency, while sustaining capital expenditures were estimated at US$499 million.

G2 shares rose 0.7% to $10.42 Monday morning in Toronto, valuing the company at about $2.7 billion. The stock has traded between $2.52 and $12.14 in the past year.