Amarillo Gold Corporation (TSX.V: AGC) has received approval from the Brazilian Mining National Agency for a three-year extension of its mining concessions for the Posse gold deposit, also known as the Mara Rosa gold project.
According to Amarillo, the agreement allows for the continued delay of mining activities, thereby preserving the mining status of the concessions and providing enough time for the completion of a Feasibility Study, Basic and Detailed Engineering, and for application for the License to Install.
"We are currently wrapping up a 12K meter infill drilling program to increase the Measured and Indicated Resources at Mara Rosa. We expect to complete a resource update in early 2019 and will then initiate a Feasibility Study, Basic and Detailed Engineering in preparation for our application for the LI in mid-2019," Mike Mutchler, Amarillo's CEO, said in a press release. "Our current estimate is to receive the LI in early 2020 and to begin construction of the Mara Rosa processing plant in the first half of 2020, with commissioning and early production in late 2021, and full commercial production in early 2022."
Mara Rosa is located in the Goias State, central Brazil. The project already has its main permit, which provides the social and environment permission to mine. It was originally discovered by a predecessor of BHP Billiton in 1982 and Amarillo purchased it from Metallica in 2003.
Based on Amarillo's NI 43-101 Pre-Feasibility Study 2018 update, the site contains estimated 513,000 ounces of gold in the Proven category from 9.6 Mt at 1.65 g/t Au, and 574,000 ounces gold in the Probable category from 14.2 Mt at 1.26 g/t Au, for total estimated Reserves of 1,087,000 ounces from 23.8 Mt at 1.42 g/t Au.