THE BOURSE WHISPERER: Orinoco Gold (ASX: OGX) has gained a further foothold in the Faina Greenstone belt in central Brazil.
The company has entered into an agreement with private Brazilian company Mineração Goias Velho (MGV) to acquire an 80 per cent interest in a portfolio of exploration acreage in close proximity to the company’s Cascavel gold mine.
The new land package covers a total area of approximately 100 square kilometres and increases Orinoco’s total ground holding in the region by approximately 50 per cent.
The company explained that of the 12 exploration concessions, 10 are located in the central portion of the Faina Greenstone Belt between Cascavel and Sertão (mined historically by Troy Resources, producing produced 250,000 ounces of gold at a head-grade of 24.9g/t).
The remaining two tenements are located in the south of the Goiás Velho Greenstone Belt.
The company declared it expects the new acquisition to provide a pipeline of exploration and growth opportunities once the Cascavel gold mine has been commissioned, which it anticipates to happen by early next year.
“This is a fantastic opportunity for the company to consolidate its ground holding in the Faina Greenstone belt,” Orinoco Gold managing director Mark Papendieck said in the company’s announcement to the Australian Securities Exchange.
“Importantly, the key ground package between Cascavel and Sertão is now under our control, and our geologists believe that the mineralised system is likely to extend south from Cascavel and north from Sertão into this exciting and underexplored package.”