Project Overview
Engenho Gold Project, Brazil
The Engenho Gold Project is located approximately 70km north east of Belo Horizonte, Brazil’s third largest city, in a region known as the “Iron Quadrangle” where most of the country’s iron ore mines and substantial gold projects are located. Infrastructure is excellent and all personnel live within well established communities. There has been no requirement to establish employee infrastructure to support the project.
Annualised production for the Engenho Gold Project is approximately 32,000 ounces per annum. With exploration success, the Company anticipates increasing this production profile towards 50,000 ounces per annum in the medium term.
The Project is forecast to produce at an initial annualized rate of 32,000 ounces at a competitive forecast cash operating cost in the region of A$350-400/ounce. At this production rate, Engenho will have a minimum 8 year mine life.
The Engenho Project was acquired in 2006 from AngloGold Ashanti, through an open tender process, for a purchase price of US$2.1 million. Prior to selling the project, AngloGold Ashanti developed a small open pit exposing the ore body in order to assess whether it would meet the economic parameters required to be developed as an AngloGold Ashanti asset.
AngloGold Ashanti subsequently made the decision to divest the asset after concluding that the deposit would be too small to be developed under AngloGold infrastructure.
