Orinoco Gold Ltd (ASX:OGX) is continuing to make steady progress on recommissioning operations at its Cascavel Mine, a core asset within its Faina Goldfields Project in Brazil.
Hammer Mill 3 (HM3) produced 131.4 ounces of gold during the 7.5-day initial commissioning run-time in March.
Orinoco managing director Jeremy Gray said: “I’m pleased the commissioning of Hammer Mill 3 continues to move forward with solid results, albeit a little behind schedule.
“As the mill commissioning moves from development ore to run of mine ore, the company can expect to see some significant gold production increases based on the current test work being completed by Hammer Mill 2 on our underground production.”
Hammer Mill 3 commissioning results are encouraging
For the initial phase, HM3 was fed with a mixture of tailings, low and medium grade ore and development material (not run of mine).
Over the 7.5- days actual aggregate run-time in March, HM3 was fed with 640 tonnes of material grading 6.4 g/t gold - 83.9% of the hold was successfully recovered (i.e., 131.4 ounces) into gold doré.
The HM3 results are encouraging, exhibiting a proof of concept that high-grade gold can be successfully recovered from the tailings stockpile as well as mine development ore.
Gold panned from level 5S
Mining is continuing to intercept ore bearing veins
Mining continues to show significant grades underground. Level 5 Mestre was reached on April 10 with a vein that appears to range between 0.5 and 2.5 metres.
The company has already mined 25 metres of this lode and Hammer Mill 2 processed four tonnes of this material last week.
Level 6 Mestre mining has been started and the central decline is being extended as Orinoco has encountered further ore bearing veins.
Cascavel Mine and Hammer Mill strategy
Drilling along strike and down dip at Cascavel and Cuca will commence in mid-May.
Orinoco chief operating officer Richard Crew said: “Cascavel and our Hammer Mill strategy is showing real promise.
“Hammer Mill 3 has proven that gold can be liberated and at a low cost.
“Furthermore, we can consider the potential for very robust production from Cascavel Mine once commissioning completes and higher-grade ores are presented to the plant.”