Orinoco Gold Limited (ASX:OGX) (Orinoco or the Company) is an ASX-listed, Brazilian-focused gold company that is focussed on mining the Cascavel gold mine as well as unlocking the potential of its Faina Goldfields Project (Faina Project) located in the central Brazilian State of Goiás to deliver value for its shareholders.
AngloGold - MAJOR SHAREHOLDER
AngloGold Ashanti became a major shareholder in February 2017, under which AngloGold invested approximately A$5.9 million to secure a 15 per cent stake in Orinoco. In addition, AngloGold agreed in a Memorandum of Understanding (MOU) 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). This JV is currently in negotiation and yet to be finalised.
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The Cascavel mine has been developed and a gravity circuit Gecko mill now operational. In addition, a back to basics approach has seen the installation of hammer mills to grind the ore finer to liberate more gold. These will be used in conjunction with the gravity circuit with the aim of establishing a high-grade underground mine feeding an on-site processing plant.
A review of processing options has revealed that a “Back to Basics” mining and processing methodology is warranted to fully extract the value from the high-grade veins in Cascavel.
Faina GREENFIELDS Project
The Faina Project lies in a rich but as yet 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 over 50 tenements – approx. 200km2 that encompasses the key Cascavel, Sertão and Tinteiro Projects, as well as numerous advanced gold exploration targets including Española, Elisio, Antenna and Xupe.
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. Other exploration targets include Sertao, Eliseo, Tinteiro, Antena/Xupe and Española
A maiden JORC resource was previously 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 28km by road from Cascavel and offers potential operational synergies between the two mining centres.
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.