Amarillo Gold Corp. told investors that it can begin construction of a power line that will deliver electricity to its Posse Gold Mine after it received the necessary license from the State Secretariat for the Environment and Sustainable Development (SEMAD) of Brazil’s Goiás State.
The Canadian junior resource company said the license was the final regulatory approval needed for the 67-kilometre (km) 138-kilovolt power line that will cross three municipalities and connect its flagship Posse mine to a substation in Porangatu.
Construction on the line is expected to start later this year and take about 14 months. Work on the expansion of its substation is now in its final phase.
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The company said it is investing approximately US$9 million in the overall energy supply for the project. The electrical power infrastructure includes the 138-kilovolt power line, the Porangatu substation expansion, diversion of the existing 69-kilovolt power line that traverses the Posse Mine, and a 34.5-kilovolt temporary line for power supply during construction.
The power line and Porangatu substation expansion are being built through a partnership between Amarillo subsidiary Amarillo Mineração do Brasil and Enel Brasil, the state power utility. Enel has granted its approval of the overall project, and all the land for the power line has been acquired.
“Our goal from the beginning has been to build a power infrastructure that will meet the needs of the Posse Gold Mine and leave a valuable legacy to the community long after we’re gone,” Amarillo’s country manager Paulo Serpa said in a statement.
“Our partnership with Enel and these approvals show that we are making steady progress towards achieving this goal.”
Amarillo noted that it has also received approval from SEMAD to divert an existing power line that otherwise would run through the planned pit area for the Posse Mine. The 69-kilovolt line provides power for the municipality.
A temporary power line will meet Amarillo’s energy needs during construction. The existing 34.5- and 13.8-kilovolt overhead power lines that serve small loads on land close to the Posse project will be relocated. This work is expected to begin in November, it added.
Contact the author at stephen.gunnion@proactiveinvestors.com