Precious metals producer Hochschild Mining (LON: HOC) has been granted permission to begin construction at its Posse gold project in Brazil, which was added to its portfolio last year after acquiring Canada’s Amarillo Gold.
Commercial production at the project, located in the central-west Goiás state, is slated begin in the first quarter of 2024.
During its first four years of operations, Posse is expected to produce 102,000 ounces of gold per year, dropping to 84,000 ounces in the six remaining years of mine-life.
Located in Mara Rosa municipality, the project is expected to generate 1,350 jobs during the construction phase, which is estimated to cost $180 to $200 million, and another 810 jobs once in operation.
“The company’s commitment is to use 75% of local labor force, both in the implementation of the project and later in its operation,” the government of Goiás said in the statement.
According to Posse’s feasibility study published in 2020, all-in sustaining costs over the mine life are expected to average $750 to $850 per gold ounce.
Average recoveries are expected to be 89.9%, and the average strip ratio over the mine life is 4.3.
Posse hosts proven and probable reserves of 23.8 million tonnes grading 1.18 grams per tonne for 902,000 ounces. The combined measured and indicated resource stands at 32 million tonnes grading 1.1 gram per tonne for 1.2 million ounces of contained gold.
Hochschild has identified near-mine and regional exploration opportunities, including multiple potential satellite deposits.
