Artisanal and small-scale mining (ASM) in Brazil is an important part of the country’s economy and culture. Dating as far back as the 17th century, the ASM sector provides livelihood for more than 450,000 traditional ASM miners and their communities.
A significant portion of the ASM sector in Brazil is gold mining, and one exploration company poised to benefit from artisanal gold stockpiles in Brazil is JZR Gold (TSXV: JZR.V
). The company has completed the assembly of a bulk sampling facility at its Vila Nova Gold project, and is now advancing toward near-term cash flow, with revenues expected by November 2022.
Vila Nova Gold is the company’s flagship project located in the state of Amapá in Brazil. JZR Gold acquired the Vila Nova Gold project in January 2021 and all of Coltan Gold Minerals’ interest in and to a joint venture royalty agreement between Eco Mining Oil & Gaz Drilling and Exploration EIRELI and Coltan Gold Minerals. The company has the option and right to acquire 50 percent net profits in the Vila Nova Gold project subject to certain payments.
In June 2021, JZR Gold reported significant gold results from sampling waste dumps and tailings at the Vila Nova Gold project. The geological report concluded the project contains gold estimates as high as 9 million tonnes with grades averaging 2.7 g/t. The total estimated gold content on the Vila Nova Gold project is a valuable 700,000 ounces in the 111.7-hectare area that was sampled.
JZR Gold’s flagship asset has significant upside potential based on tailings expansion and ongoing hard rock drilling. The company also owns interests in the Teddy Glacier property and the Spider mine in the province of British Columbia in Canada.
The company is in a strong position to produce profitable gold in the future. In April 2022, the company, through contractor Brastorno Tecnologia em Equipamentos Para Mineracao, completed the assembly of its Gravimetric plant, a bulk sampling facility at the Vila Nova Gold project. JZR Gold is currently moving towards near-term cash flow from bulk gold samples at the Vila Nova project and expects revenue as early as November 2022.
JZR entered into a joint venture royalty agreement (JVRA) with ECO Mining Oil & Gaz Drilling and Exploration (EIRELI) (ECO) on July 6, 2020, for its Vila Nova gold project. JZR has satisfied all its responsibilities under the JVRA and has acquired a 50 percent net profit Interest from all net profit generated from the project. ECO is entitled to 85 percent of the total sale value of all gold derived from the tailings piles, dams, pond basins and waste reservoir on the property.
The company expects its Gravimetric plant will be able to mill a hefty 800 tonnes per day and with 2 million tonne tailings with one pod to start. The company is also fully permitted to bulk sample up to 600,000 tonnes per year in Brazil.
JZR Gold values transparency and adherence to local laws and has ensured that all work conducted on the Vila Nova Gold project is conducted with sensitivity to the environment and within ESG parameters.
- JZR Gold’s Gravimetric plant at the Vila Nova Gold project is expected to create near-term cash flow from a bulk sample, with revenue expected as early as November 2022.
- Its flagship Vila Nova Gold project is located in the state of Amapá in Brazil. The company also owns interests in the Teddy Glacier property and the Spider mine in the province of British Columbia in Canada.
- The Vila Nova Gold project contains gold estimates as high as 9 million tonnes with grades averaging 2.7 g/t. The total estimated gold content on the Vila Nova Gold project is a valuable 756,000 ounces on the 111.7-hectare area that was sampled.
- The company has the option and right to acquire 50 percent net profits in the Vila Nova Gold project subject to certain payments.
- JZR Gold is led by an experienced management team including the co-founder of HealthTech Connex Inc.
- JZR has satisfied all its obligations under its joint venture royalty agreement with ECO and has acquired a 50 percent net profit Interest on the Vila Nova Gold Project in Amapa State, Brazil
Vila Nova Gold Project
The Vila Nova Gold project is located in the state of Amapá in Brazil. Stockpiles of 2 million tonnes are located approximately 1,100 metres from where the mineral processing plant and the tailings dam will be set up.
JZR Gold is entitled to 50 percent of the net gold revenues, while 35 percent is retained for Eco Mining Oil & Gas Drilling and Exploration EIRELI and 15 percent for local co-operatives.
The property features historical exploration consisting of 90 years of hand mining and 25 years of processing from semi-mechanized tailings production. As much as 70 percent of gold remained in the waste materials resulting in low historical recoveries. Assay results have identified an estimated exploration target as high as 9.5 million tonnes of gold tailings with grades between 2.4 to 3.0 grams per tonne. The projected gold content on the property is over 756,000 ounces. There is also a mineable resource equivalent that goes up to 25 tons of gold. Core drilling, sampling and trenching of tailings on the Vila Nova Gold project are ongoing with 2,000 meters completed to date by EIRELI.
The project is approaching near-term cash flow from a bulk sample, with revenue expected by November 2022. The company expects that its mill will be able to process 800 tonnes per day with 2 million tonne tailings with one pod to start.
Robert Klenk - Chief Executive Officer and Director
Robert Klenk has been an integral part of JZR Gold since 2015 and has been CEO since April 2017. During his tenure with JZR Gold, he restructured the company and acquired the company’s flagship Villa Nova Gold project in Amapa, Brazil. He has worked on the Chicago Board Options Exchange for West Coast Energy. He was also an investment advisor for Merrill Lynch, CIBC Wood Gundy and Canaccord Genuity in Vancouver, British Columbia. His more than 20 years of experience and business acumen in the fields of finance and pipeline construction will be invaluable in realizing the tremendous potential of JZR Gold projects. Klenk has an MBA in finance from the University of British Columbia and a bachelor of science in finance from the University of Illinois.
Kirk Fisher - Director
Kirk Fisher is the co-founder and chief executive officer of HealthTech Connex Inc. Fisher is one of the founding developers of the Health and Technology District. Fisher is also executive vice-president of the Lark Group. Fisher has been the director of JZR Gold since April 2017. Fisher has a background in engineering (P.Eng., UBC) and business (MBA, SFU). He has extensive experience in corporate management, project planning, business operations and investment and strategic business growth. He is well-versed in medical technologies, independent living technologies and digital health technologies. Fisher works closely with many of the clinical, university and business sector partners of HealthTech Connex, a key founding business of the Health and Technology District.
Ron Tewitz - Director
Ron Tewitz is the owner and president of Anvil Machine, an oilfield service company based in Edmonton, Alberta. He began his career 42 years ago as a welder and then machinist to eventual owner of Anvil. Tewitz has led Anvil Machine for 33 years and has successfully managed the fluctuations of a resource-based company. He was appointed director of JZR Gold Inc. in December 2020.