Orinoco Gold Ltd. (ASX:OGX) announced that its board has approved the start of underground mine development at its Brazil-based Cascavel gold project.
Orinoco Gold Ltd. (ASX:OGX) announced that its board has approved the start of underground mine development at its Brazil-based Cascavel gold project. The mining team that will excavate and develop the main shaft is set to mobilize to the site on May 4, 2015.
As quoted in the press release:
The formal Decision to Mine follows the successful completion of due diligence last month by the Company’s funding partner, Singapore-based private mining investment company Chancery Asset Management, clearing the way for the provision of a US$8 million gold sharing arrangement.
This underpins the overall A$14 million funding package for the development of Cascavel, which is based on an estimated capital outlay of US$6.6 million to establish a standalone initial 40,000tpa operation using a simple gravity circuit to process high-grade underground ore.
Mark Papendieck, managing director at Orinoco, commented:
Making the transition from explorer to producer is a big step for the company, and this marks the beginning of that transformational process for Orinoco.
We look forward to providing further details in the near future about our overall construction timetable and contractor arrangements.