Photo by: Reuters
PERTH (miningweekly.com) – The board of ASX-listed Orinoco Gold has approved the development of the $6.6-million Cascaval underground gold mine, in Brazil.
The decision to mine followed the successful completion of a due diligence by funding partner Chancery Asset Management, which would provide a A$14-million funding package for the Cascavel project.
The mining team responsible for the excavation and development of the main incline shaft was scheduled to mobilise on site in early May.
Orinoco MD Mark Papendieck said on Thursday that the start of underground mine development at Cascavel represented a significant milestone for the company, which was making its transition from explorer to producer.
The Cascavel mine was initially expected to produce 40 000 t/y of ore, using a gravity circuit capable of achieving gold recoveries of between 80% and 90%. Mining would initially focus on a small portion of the Cascavel and Mestre areas, using Orinoco’s existing underground extraction permits.
The Cascavel mine forms part of an emerging regional production hub for Orinoco within the greater Faina Goldfields project, which also includes the Sertão gold project and the Tinteiro polymetallic project.