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Precious metals producer Hochschild Mining (LON: HOC) has completed 16% of its Posse gold project in Brazil’s central state of Goías, only two months after obtaining the environmental permit.
Detailed engineering has advanced 90%, the company said this week, in line with schedule and budget.
Purchase orders for 89% of the necessary equipment have been issued and key equipment such as the crusher, conveyor belts, HDPE pipes, aluminum cabling for the transmission lines and the wastewater treatment station equipment have already been received, the South America-focused miner said.
The developments will allow Hochschild to kick off production at the 80,000 ounces-per-year project, which it added to its portfolio last year after acquiring Canada’s Amarillo Gold, in the first half of 2024.
During its first four years of operations, Posse is expected to produce 102,000 ounces of gold annually, dropping to 84,000 ounces in the six remaining years of mine-life.
Located in Mara Rosa municipality, the project is expected to generate 1,350 jobs during the construction phase, which is estimated to cost $180 to $200 million, and another 810 jobs once in operation.
Posse hosts proven and probable reserves of 23.8 million tonnes grading 1.18 grams per tonne for 902,000 ounces. The combined measured and indicated resource stands at 32 million tonnes grading 1.1 gram per tonne for 1.2 million ounces of contained gold.
Hochschild has identified near-mine and regional exploration opportunities, including multiple potential satellite deposits.
