Cleveland Mining has revised mine plans for the Metago and Pit 3 gold open pits at its Premier Joint Venture gold project in Brazil.
The company has also set a medium-term target of 7,000 gold ounces per quarter from the Metago pit.
The company said the enhanced mine plans, produced by AMC Consultants, demonstrate that production can be increased to match the planned processing plant capacity and used to underwrite the required servicing of proposed project debt financing for longer-term operations.
Mine plans based on the two pits are expected to produce about 19,000 ounces of gold over 20 months through processing of 30,000t of ore per month, generating an estimated margin of A$12.6m.
The project’s processing capacity currently supports a base case of 15,00tpm and additional capital expenditure on refurbishing and installing second ball mill is expected to facilitate a step up to 30,000tpm.
The company has also updated the resource model focusing on the areas of proposed open pit mining by increasing a proportion of the ore-body to an indicated level of confidence.
The revised resource estimate is 950,000t at 1.52g/t gold, or 46,400oz of gold featuring 18,900oz at 2.14 g/t of indicated resource and 27,500oz at 1.29g/t of inferred resource.
Cleveland Mining plans to restart processing at 15,000tpm from Premier and expand the rate to 30,000tpm once the additional ball mill is installed.
As per the AMC mine plan, an average quarterly production rate of around 2,870oz would be forecast.
The company said that over the medium term, additional tonnes outside of Metago and Pit 3 mine area are anticipated to be introduced into the mining operation, including higher head grade sources from O Capitão.
Image: Premier Gold Mine. Photo: Courtesy of Cleveland Mining.