THE BOURSE WHISPERER: Cleveland Mining Company (ASX:CDG) has commenced mining at the Premier gold mine in Central Brazil.
Ore is currently being stockpiled at the plant, where the company has live commissioning underway.
The company said it had to negotiate one final, external, hurdle before mining and processing could start at the mine, in the form of a longer-than-anticipated bureaucratic process, which delayed the connection of electricity to the site.
Cleveland has now received all permissions required to start round-the-clock mining and processing of ore through its Stage 1 gravity circuit.
Mining begins at the Premier gold mine. Source: Company announcement
“We are debt free, about to generate cash-flow, and have built the first stage of the mine far quicker than is typical,” Cleveland Mining managing director David Mendelawitz said in the company’s announcement to the Australian Securities Exchange.
“With gold now trading at around $1750 per ounce, $200 per ounce higher than 6 months ago, it’s a great time to start selling it.
“Our strategy aimed to build a reasonably small mine first so we could understand what affects budgets and schedules when building mines in Brazil, recruit and structure our teams optimally, and not expose the company to restrictive debt burdens.
“When we expand Premier and build other larger mines, we will be well positioned to get them right.
“The commencement of mining, along with the lessons learned to date, put us in a very strong position to create a solid future for Cleveland Mining.
“We are now working to get Stage Two, the cyanide circuit, of the Premier mine built as quickly as possible, whilst at the same time working to increase our gold resources through exploration or acquisitions.
“Work also continues to schedule in Amapá state on our Iron projects, where we are currently sinking shafts for bulk samples for metallurgical testwork.”
Cleveland Mining has three distinct project hubs in South America:
– The Crixás Hub, Goiás State, situated in central Brazil with projects including: The Premier Gold Mine JV, O Capitão, Baú, Guarinhos, Pantera.;
– The Amapá Hub, Amapá State, situated in northern Brazil with iron ore-focused projects: Ferradura, Porto Grande and Lebre; and
– The Canela Hub, located in central Chile. A small portfolio of gold/copper-focused projects between La Serena and Santiago.
Cleveland recently formed a strategic alliance with fellow-ASX listed company, BC Iron (ASX:BCI) aimed at acquiring and co-developing new iron ore projects in Brazil.