PERTH (miningweekly.com) – Gold developer Orinoco Gold has increased the size of its Cascavel project, in Brazil, by acquiring a nearby tenement with known gold mineralisation.
The ASX-listed company said on Tuesday that the new tenement, which is located to the north of the Cascavel gold and Central Tinteiro polymetallic projects, contained significant extensions of both the Cascavel and Tinteiro geological trends.
The tenement also contained a well known artisanal mine that produced gold during 2010 to 2012.
Orinoco told shareholders that the addition of the new tenement not only significantly extended the strike of the Cascavel structure, and confirmed the repetition of mineralised horizons, but also highlighted the prospectivity of the shear zones along the underexplored 20-km-long Sertao-Cascavel corridor.
The new tenement would now become an exploration application, prior to being gazetted as an exploration lease.
Earlier this year, Orinoco teamed up with Cleveland Mining to fast-track the development of Orinoco’s Cascavel project.
Under the terms of the agreement, Cleveland would assist Orinoco in mining, extracting, processing and selling gold ore from the Cascavel project, with the ore to be transported and processed at Cleveland’s Premier gold mine, about 120 km away.
The Cascavel openpit project would be capped at 50 000 t/y, with the profits from the gold produced to be shared on a 50:50 basis between Orinoco and Cleveland.