South Africa-based gold miner AngloGold Ashanti has terminated an earn-in joint venture (JV) agreement with TSX-V-listed Equinox Gold over the Aurizona greenfield concessions in Brazil, the Canada-based junior reported on Monday.
AngloGold has spent about $9-million at the greenfield concession since exploration started in August 2016, completing more than 43 000 line kilometres of high-resolution aeromagnetic radiomagnetic surveying over the entire property, about 10 000 m of drilling on eight targets and extensive geochemistry and geologic mapping surveys.
“AngloGold’s exploration programmes have significantly advanced regional geological models and have highlighted several untested targets that warrant further exploration,” Equinox Gold executive VP for exploration, Scott Heffernan, said.
He stated that the company’s current priority in the region was near-mine exploration at the Aurizona gold mine to expand the reserve and resource base, but that it would continue to review and interpret AngloGold’s exploration data to prioritise regional exploration targets for future drilling.
Heffernan said that Equinox might involve another JV partner in future.
The current reserve model for Aurizona outlines a 6.5-year mine life based on reserves identified in the Piaba and Boa Experanca pits. Equinox believes that the mine life can be extended with exploration success along strike from existing reserves.
Full-scale construction is under way at Aurizona, with the target of pouring gold by the end of 2018. The mine will be an openpit operation, producing about 136 000 oz/y.