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Orinoco cuts operating costs at Cascavel

14th July 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Gold developer Orinoco Gold on Tuesday announced considerable cost savings at its Cascavel gold project, in Brazil, after the decision was taken to move the processing facility.

Under the original plan, the Cascavel processing facility would have been located at Orinoco’s Sertao gold mine, some 28 km away, owing to licensing requirements. However, after discussions with the relevant environmental agencies, the company had reconfigured the proposed location of the processing facility to allow the installation of a gravity circuit at the Cascavel site, less than 200 m from the mine portal.

“Having the plant sitting literally right next to the Cascavel portal will significantly cut our operating costs, allow us to consolidate a number of administrative, logistical and security functions, and manage our entire infrastructure from one central location,” said Orinoco MD Mark Papendieck.

“Importantly, the location of the plant at Cascavel also gives us additional optionality in the future with regards to having a centrally located ore treatment plant relative to our exploration projects in the broader Faina goldfields project.”

Papendieck pointed out that savings of up to A$500 000 a year would be achieved from not having to haul ore to the Sertao site, while additional associated savings from road and truck maintenance, as well as other savings associated with the reduced level of security and administration required to manage the site, would also be gained.

Orinoco had secured all the necessary licences to construct the processing plant at Cascavel, and final approval for the operation of the Cascavel plant was expected before the end of the fourth quarter. The plant would likely be commissioned in January next year.

Meanwhile, mine development, fabrication and construction activities were proceeding to schedule.

Edited by Creamer Media Reporter

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