Project Overview
Tocantins Gold Project, Brazil
The Tocantins Gold Project is a large-scale gold exploration project covering an extensive under-explored greenstone belt in central Brazil which offers the potential for the discovery of multiple medium-sized gold deposits, potentially providing a pipeline of new exploration and production opportunities for Mundo Minerals for many years to come.
The Tocantins exploration tenements are subject to several joint ventures between Mundo Minerals and Gamaleira Ltda, which itself is a joint venture between IamGold and AngloGold Ashanti.
Mundo Minerals has completed its earn-in requirements for a 51% interest in the first joint venture, covering an area of 60,000 hectares (including the Conceição gold discovery). A second joint venture has been established covering a further 120,000 hectares of tenements. Under the terms of the second joint venture, Mundo Minerals has agreed to spend US$2 million over a three-year period to earn an initial 51% interest.
With both joint ventures, Mundo Minerals can increase its equity in any gold resource discovered to 80% by taking the resource through bank feasibility stage. Significantly, Mundo Minerals retains the right to explore for base metals in addition to gold on any of the tenements subject to both joint ventures.
Map of Tocantins site exploration
Nova Prata Joint Venture
The Tocantins joint venture partners have entered into a further joint venture to explore tenements that cover a strong geochemical anomaly in the central portion of the tenements known as Nova Prata. The primary focus of the tenements is to explore for large tonnage, lower grade resources than are being targeted on the balance of the Tocantins joint venture tenements.
Nova Prata has a targeted grade of between 2-3 g/t Au compared to the medium tonnage higher grade targets in other areas on the Joint Venture tenements where the joint venture is targeting resources of between 300,000 oz and 800,000 oz with grades of between 6-9 g/t Au.
Under the terms of the Nova Prata joint venture, the Tocantins Gold Joint Venture can earn an initial 57% equity in the tenements by spending US$800,000 over a three year period. If production is not initiated within a period of five years of the commencement of the joint venture, the Tocantins Gold Joint Venture will relinquish a 2% equity in the joint venture annually for a maximum of three years, after which there is no further equity penalty.
Should production not commence within a period of 13 years of the commencement of the joint venture, then ownership of the tenements will revert back to the original owners.
The Tocantins Gold Joint Venture can increase its equity in the Nova Prata Joint Venture to 70% by taking the project through to bank feasibility status.
Regionally, Mundo Minerals now has in excess of 235,000 hectares of tenements to explore. This can only effectively be undertaken on a systematic basis and proper planning and processes need to be implemented to ensure that the tenement potential is appropriately assessed. Mundo Minerals is confident that a number of resources can be discovered over the joint venture tenements.
