THE BOURSE WHISPERER: Orinoco Gold (ASX: OGX) informed the market of the progress the company is making in regards to development activities at its Cascavel gold mine in central Brazil.
Orinoco declared it is running on schedule to achieve first gold production from Cascavel in early 2016.
In July the company took the decision to change the location of its processing plant from Sertão to Cascavel.
It has since been granted all necessary environmental licenses to allow the processing plant to be constructed at the Cascavel site.
Orinoco said the decision delivers savings in operational expenditure as well as other strategic and logistical benefits.
Most importantly, the plant will be in a central position relative to other potential sources of mill feed, such as the exploration targets at Garimpo, Cuca and Tinteiro, all of which are located close to Cascavel.
Construction of the Cascavel processing plant, with the crushing circuit being manufactured in Brazil expected to be delivered to site in November, is on track.
The gravity circuit is being fabricated by Gekko Systems and is scheduled to be factory commissioned in Ballarat then shipped from Australia in October to arrive in Brazil in December.
On-site commissioning is anticipated for early in Q1 2016 with a gradual ramp-up to full capacity of around 90,000 tonnes per annum expected by late 2016 to match the progressive ramp-up of the underground mining operation.
This is also moving along with development of the Incline Shaft at Cascavel now approximately 40 metres from the portal.
The shaft is currently within a zone of more intense alteration than Orinoco expected as the shaft progresses down the main vein.
A further two initial level drives (Level 0 Central and Level 0 North) have also commenced, providing access to the upper portions of the Cascavel mineralisation.
This will provide access for stoping activities over the coming months.
“We are very pleased by the strong progress being made at Cascavel, which puts the company firmly on track to make the leap from gold explorer to gold producer early next year,” Orinoco Gold managing director Mark Papendieck said in the company’s announcement to the Australian Securities Exchange.
“The presence of visible gold in all development faces currently accessible at Cascavel, and the presence of thicker than anticipated mineralisation provides strong support for our belief that the project can underpin an exceptionally high-grade, high-margin mining operation.”