Planned to be launched in the second quarter of 2022, the project is expected to have an annual production capacity of around 100,000oz of gold.
During a mining business forum in Lima, Peru, Bustamante said that the firm plans to start production at the Mara Rosa mine in the first half of 2024.
Bustamante commented: “It’s the most important project we have to date.”
Located in the municipality of Mara Rosa in the state of Goiás, the Mara Rosa property comprises the Posse Gold Project, as well as several advanced drill targets.
Covering an area of 67,371ha, the Mara Rosa mine covers the Eastern Belt greenstone assemblage, with some coverage of the Western and Central belts as well.
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Based on a definitive feasibility study, the project holds the potential for discovering additional near-surface deposits that would extend Posse’s mine life beyond its initial ten years.
Last month, Hochschild closed the acquisition of Brazil-focused Amarillo Gold, which owned the Mara Rosa property.
The deal was part of Hochschild’s strategy to acquire and optimise development stage projects in the Americas.
Furthermore, Hochschild is considering an extension to the operational life of the Inmaculada mine in Peru until 2042, which would see an investment of $4.4bn in Inmaculada over two decades.
Bustamante was cited by Reuters as saying: “A process that is underway and that could occur at the end of the second quarter of this year.”
The firm’s Inmaculada and Pallancata gold and silver mines in Peru were immersed last year, following conflict with Andean region communities who demanded the mines’ closure citing water contamination in the area.
The claims, however, were later rejected and the conflict was resolved.