Orinoco Gold Limited (ASX:OGX) is encouraged by renewed momentum of a US$9.5 million earn-in agreement with AngloGold Ashanti Holdings (ASX:AGG) covering the Faina Goldfields Project in Brazil.
Recent discussions with AngloGold have confirmed the original February 2017 agreement terms with the parties this week starting to establish the in-country joint venture.
Under the agreement terms, AngloGold may earn up to 70% interest in the JV tenements by spending US$9.5 million in exploration over three years with the right to withdraw at any time.
A$3 million advanced
To date, A$3 million has been advanced to Orinoco to reduce AngloGold’s earn-in requirements.
A technical committee led by AngloGold will be established upon formation of the Brazilian JV entity, with a detailed 12-month exploration program to be outlined thereafter.
Orinoco executive director Matthew O’Kane said: “We are very pleased to have solidified the support of AngloGold at this important juncture in Orinoco’s development.
“We are looking forward to further strengthening this partnership over the coming months as we work hard to deliver on the potential of the company’s gold assets in Brazil.”
Potential targets
The Faina Goldfields Project comprises a number of early stage and advanced exploration projects in the Faina Greenstone belt, which have the potential to rapidly develop under the AngloGold JV.
These tenements surround Orinoco’s Cascavel Gold Mine in Goias State.
AngloGold to “add value”
O’Kane said: “On the exploration side our immediate focus is on establishing the in-country joint venture vehicle which will enable us to work closely with AngloGold to define our exploration work program for the next 12 months.
“AngloGold has the very successful operating mine Serra Grande north of Cascavel.
“Their immense in-country operating experience and technical depth will add significant value to Orinoco’s gold portfolio.”
- Jessica Cummins