Orinoco Gold Limited (Orinoco or the Company) is an ASX-listed (ASX: OGX), Brazilian-focused gold company which is partnering with one of the world’s leading gold miners, AngloGold Ashanti (AngloGold), to unlock the potential of its Faina Goldfields Project (Faina Project) located in the central Brazilian State of Goiás. 

Strategic Alliance with AngloGold

The Company entered into an agreement with AngloGold in February 2017, under which AngloGold invested approximately A$5.9 million to secure a 15 per cent stake in Orinoco. In addition, AngloGold has also agreed to enter into a US$9.5 million exploration joint venture (JV) on Orinoco’s broader Faina Project tenement portfolio, excluding the Cascavel Gold Mine (Cascavel).

AngloGold, which is the largest gold producer in Brazil, has a strong understanding of the local geology and operating conditions, having operated the world-class Serra Grande mining complex, located in an adjoining greenstone belt, for over 20 years. Serra Grande is a multi-million ounce project with geological similarities to the Faina Project.

Under the terms of the JV agreement, AngloGold will have the right to earn up to a 70% interest in Orinoco’s Faina Project through staged exploration expenditure of US$9.5 million over a three-year period.

In addition, AngloGold will also have the right to negotiate an agreement to earn up to a 50% interest in Cascavel for a period of nine months.

To find out more about AngloGold Ashanti, click here

Faina Project 

The Faina Project lies in a rich but under-explored part of Goiás State in central Brazil that has yielded numerous multi-million ounce deposits such as AngloGold’s world-class +5Moz Serra Grande mine and Yamana Gold’s +6Moz Chapada mine.

The Faina Project has all the hallmarks of an emerging mining hub, potentially with multiple production centres.

The Faina Project consists of a large tenement package of ~200km2 that encompasses the key Cascavel, Sertão and Tinteiro Projects, as well as numerous advanced gold exploration targets including Española, Elisio, Antenna and Xupe.

Development is currently underway at Cascavel with the aim of establishing a high grade 50,000 – 100,000tpa underground mine feeding an on-site gravity processing plant. 

Regional Exploration Potential 

Orinoco has also identified numerous high-quality gold deposits and exploration targets in the region surrounding Cascavel, which supports the Company’s belief in the potential to define a new gold production hub within the Faina Project.

A maiden JORC resource was recently announced for the Sertão Gold Project (Sertão), comprising 223,111 tonnes grading 6.9g/t Au for 49,268oz of contained gold. Sertão is located just 28km by road from Cascavel and offers potential operational synergies between the two mining centres.  

Experienced Team

Orinoco is led by a highly experienced Board and Management Team, who have extensive hands-on operational experience in minerals exploration, development and mining both in Brazil and elsewhere around the world. Read more about our Board and Management Team.