Published: January 19, 2016 |

[Click image to enlarge]

A public hearing has been set for February 23, 2016, for Amarillo Gold Corp.‘s environmental permit for the Posse Project. This is the final stage of the process to obtain the preliminary license for the new mine. The date was set by the Secretary of Environment, Water Resources, Infrastructure, Cities and Metropolitan Affairs (SECIMA), and has been accepted by the Public Prosecutors office (MP).

Assuming no major impediments occur stemming from the public hearing, the preliminary environmental license (LP) would be issued, within a month or two. 

To date the company has enjoyed support for the project from the local community, who are well aware of the economic advantages of the mine. It has always focused on employment, training and business opportunities in previous informal meetings.

“The setting of the public hearing is the last major hurdle in our permitting process. A successful meeting opens the way to obtain the preliminary license, which the company now expects during the first half of the second quarter. I would like to thank the efforts of our staff, in particular Luis Carlos, Arão Portugal and Frank Baker. The recent devaluation of the local currency the “Real” (nearly 50 percent in 2015) is expected to substantially increase the economic viability of the project by decreasing capex and opex costs far outweighing the drawback of lower international gold prices, which in contrast is at near record prices in the local currency,” said Buddy Doyle, president and CEO of Amarillo Gold.

The Posse deposit at Mara Rosa contains 1,174,900 ounces of measured and indicated gold contained in 20.85 MT at 1.75 g/t Au, and 156,400 ounces of gold inferred from 3.63 MT at 1.38 g/t Au (0.5 g/t cut-off grade). The Mara Rosa Gold Project has received a positive economic assessment from a pre-feasibility study.

Brazilian mine permitting is governed and administered by each state, however the states tend to keep the same standards so the process is very similar throughout Brazil. The process has three stages, the preliminary license (LP), the installation license (LI), and finally the license to operate (LO). The application for an LP is accompanied by an environmental base-line report called the EIA (English translation: environmental impact statement) and an environmental mitigation report, or RIMA (Relatório de Impacto Ambiental). The granting of the LP is often regarded as the most important license as it outlines all the basic parameters of the project which have to be accepted by all the parties involved. Further parts of the licensing process enter in more detail always following the basic parameters stipulated in the LP.

The setting of the LP date is a milestone signifying that SECIMA has accepted the mining plan from an environmental point of view. Once the LP is in hand the company will focus on the second stage of the permit process, the LI, which will require a bankable feasibility study as well as negotiating agreements with the surface right holders. Construction can commence once the LI is obtained.

In parallel to continuing efforts with the project the DNPM (the Federal Department of Mines) granted an extension to the mineral rights. The rights have been held under a suspended mining license since 1996.

About Amarillo Gold
Amarillo Gold Corp. is focused on acquisition, discovery, and definition of gold resources in Brazil. It is the company’s policy to strive to do this in a sustainable, safe way using best practices whilst benefiting our shareholders and the communities we work in.

To stop by Amarillo Gold’s website, CLICK HERE

Be in-the-know when you’re on-the-go!

FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.

Copyright © 2016 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

For licensing permission, .(JavaScript must be enabled to view this email address)