THE BOURSE WHISPERER: Orinoco Gold (ASX: OGX) has signed a Memorandum of Understanding (MoU) with the Goiás State Government that provides ‘Project of Importance’ status to the company’s Cascavel gold project in central Brazil.
The signing of the MoU signals a partnership between Orinoco and the Goiás State, under which Orinoco has committed to build the Cascavel gold project and the State will provide its full support and assistance for the provision of government services including items such as licensing, tax concession considerations, power, roads, water, policing and telecommunications.
Goiás is the second largest gold producing state in Brazil, accounting for 27.4 per cent of national gold production.
Orinoco declared the start of development at Cascavel to be imminent, with construction of the main incline shaft scheduled to commence in May 2015.
“We are very pleased to have secured this support from the Goiás State Government and we look forward to working with the Government agencies to deliver the project for the benefit of all stakeholders,” Orinoco Gold managing director Mark Papendieck said in the company’s announcement to the Australian Securities Exchange.
“Cascavel is our first mining operation within our broader Faina Goldfields project in central Brazil, and we see it becoming the cornerstone of a long-term resource business for Orinoco in this region.”