PERTH (miningweekly.com) – Gold miner Orinoco has launched an operational and strategic review of its Cascavel gold mine, in Brazil, with the aim of addressing key issues to optimse production and cash flows in 2019.
As part of the review, an independent metallurgist has attended the mine and has provided Orinico with his findings, recommending the replacement of the vertical spindle impacter in the processing plant with two hammer mills.
This was expected to potentially increase recoveries.
Orinoco noted that further options to increase recoveries with the addition of a flotation circuit and a ball mill, are also being investigated
Furthermore, productivity at the mine is expected to continue to improve in January and February with the addition of an underground loader to the mining fleet, while the company will also be sending in an experienced independent mining engineer to assist local management with the development of a revised mine plan.
In addition, the company will also be conducting a financial review of the operation with the aim of identifying remedial actions that would lead to improved operating plans for 2019 and beyond.
Meanwhile, MD Jeremy Gray has resigned, with recently appointed director Matthew O’Kane taking up the role as interim executive director.
The company was expected to continue the evolution of its leadership team in 2019, to ensure the right mix of advanced operational and non-operational skills, Orinoco told shareholders.
In addition, Orinoco has also appointed Empire Capital Partners as lead manager of a A$556 200 placement, priced at 0.7c a share, with a free attaching option with a three-year and 1c strike price.
A further A$470 000 of debt to related parties will also be converted into equity on the same terms as the placement, and subject to shareholder approval.
The company has also entered into a separate agreement with Empire to secure a two-year, A$2.5-million equity placement facility that will be sued for capital expenditure at the Cascavel mine, and for general corporate and working capital purposes.