Magellan to purchase Troy’s Brazilian gold assets

26 August 2015 (Last Updated August 26th, 2015 18:30)

Canadian company Magellan Minerals has signed an agreement to purchase Troy Resources’ gold processing plant, associated equipment and mining fleet at its Andorinhas mine in eastern Para state, Brazil.

Canadian company Magellan Minerals has signed an agreement to purchase Troy Resources' gold processing plant, associated equipment and mining fleet at its Andorinhas mine in eastern Para state, Brazil.

Magellan will pay $4.5m to Troy for the Andorinhas Assets.

Scheduled to be decommissioned during the fourth quarter of 2015, the processing plant comprises an 800t/day crushing and grinding facility in addition to a gravity recovery circuit and a carbon-in-pulp recovery circuit.

"This represents a major step forward for Magellan in its drive to build the high-grade Coringa mine."

Drills, LHD's, trucks and other pieces of mobile equipment that were used for underground mining at Andorinhas are included in the mining fleet.

Earlier, Troy used shrinkage and cut and fill mining methods to operate the Andorinhas underground mine.

Magellan Minerals president and CEO Alan Carter said: "This represents a major step forward for Magellan in its drive to build the high-grade Coringa mine.

"We plan to follow Troy's model of building and operating mines in Brazil for the fast-track development of Coringa."

The deal is expected to further enhance the opportunity for construction of a 'fit for purpose' mine plan at Coringa.

The crushing plant comprises a jaw crusher feeding two cone crushers, which in turn feeds a grinding plant with two ball mills. It also houses a lab, gold room and security systems.

A Knelson concentrator, which feeds an ILR plant (Acacia), is used by the gravity section.

Under the agreement terms, Magellan Minerals will also purchase all spares, reagents and consumables currently on site.