Second Trial Mining License Approved for Altamira Gold at the Cajueiro Gold Project, Brazil
Second Trial Mining License Approved for
Altamira Gold at the Cajueiro Gold Project,
Brazil
Vancouver, British Columbia--(Newsfile Corp. - July 15, 2020) -
Altamira Gold Corp.'s (TSXV: ALTA)
(FSE: T6UP) (OTC Pink: EQTRF)
("
Altamira
" or the "
Company
") is pleased to announce that the
second Trial Mining License within the claim block 866070/2004 has been approved for its advanced
Cajueiro Gold Project in northern Mato Grosso State in western Brazil.
Highlights:
As recently announced, permits are in place for the construction of a 1000t/d processing plant at
the Cajueiro gold project which is expected to commence during H2 2020
The second Trial Mining License now grants Altamira Gold the right to process an additional
50,000 tonnes per year from the key Crente resource area, and is valid for 22 months
The two Trial Mining Licenses which have been granted so far allow the Company to process a
total of 100,000 tonnes of mineralized material per year from the entire Crente area
Altamira is pursuing two additional Trial Mining Licenses which would cover the resources in the
Baldo, Matrincha and Marines deposits within the Cajueiro Project area
Michael Bennett, President and CEO stated, "We are extremely pleased with our progress in all
respects so far during 2020 at our Cajueiro Gold Project. With two bulk sampling licenses in place,
feed for the processing plant is now guaranteed for 2021, and plant construction is planned to
commence later this year. The changes effected by the Brazilian government over the last 18 months
have accelerated permitting processes in both the mining and environmental agencies allowing us to
keep the project on schedule for production in 2021"
Approval of Second Trial Mining License
The approval of the Trial Mining License within the claim block 866.070/2004 is another significant step
forward as it allows Altamira to mine material from the northern part of the key Crente resource area
(Figure 1). Permitting is ongoing for two additional Trial Mining Licenses for claims 850224/2009 and
866464/2017 which cover the northern Baldo, Marines and Matrincha areas.
Figure 1: Map showing claims covering the Cajueiro project area.
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/4500/59796_9d36206c440bf905_001full.jpg
Cajueiro Project Update
The initial first tranche payment of US$1M required pursuant to the Gold Forward Purchase Agreement
(the "Agreement") signed with Metalstream Ltd. ("Metalstream") on April 24, 2020 (see April 27, 2020
news release for full description of the Agreement) is now expected to be completed after July 14, 2020
due to unforeseen banking delays experienced by Metalstream.
Despite these delays, Metalstream has confirmed that it remains fully committed to the Agreement, as
does Altamira. There are no other changes to the Agreement and the US$1M first tranche payment is
expected to be completed shortly. Metalstream has indicated that the subsequent US$5M payment will
also be made in accordance with the terms of the Agreement.
Rohan Cavaliero Managing Director of Metalstream stated "Our private placement is progressing
very well, and with these delays now behind us, we remain extremely confident of a full subscription by
the close of the offering at the end of July, 2020. On that basis, we fully expect to make the initial
tranche payment of US$1M to Altamira Gold shortly thereafter."
This delay has not impacted the engineering and design work phase of the Cajueiro project which is well
underway and expected to be completed by the end of the month. Construction of the plant is still
scheduled to commence during H2 2020.
The collection of several additional bulk samples of oxide material from the Cajueiro project is in
progress (figures 2 and 3). Samples will be sent for further metallurgical evaluation in order to ensure that
the plant design is optimised for maximum gold recovery. Samples are being sent to both Brazilian
Metallurgical Test laboratories to maximise plant flow through processes and to the CSIRO lab in
Australia to determine whether fine gold in the oxide material is amenable to recovery using thiosulphate
solution which would avoid the requirement for cyanidation.
Figure 2: Excavator preparing trench for collection of bulk samples in the Cajueiro gold project.
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/4500/59796_9d36206c440bf905_002full.jpg
Figure 3: Trench exposing oxide material in the Cajueiro gold project ready for collection of bulk
samples.
To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/4500/59796_9d36206c440bf905_003full.jpg
Additional soil sampling is also being carried out on areas outside of the Central resource area.
Cajueiro Gold Project
The Company's advanced Cajueiro project has NI 43-101 resources of 5.66Mt @ 1.02 g/t gold for a total
of 185,000 oz in the Indicated Resource category and 12.66Mt @ 1.26 g/t gold for a total of 515,000oz
in the Inferred Resource category.
A total of 14,000m of drilling (105 holes) and over 4,000m of trenching have been completed to date
within 285ha in the central part of the 28,577ha claim package (or 1% of the Cajueiro project area).
Numerous other gold-in-soil anomalies remain untested.
A production decision at Cajueiro is not based on a feasibility study of mineral reserves demonstrating
economic and technical viability, and as a result there is increased uncertainty and there are multiple
technical and economic risks of failure which are associated with this production decision. These risks,
among others, include areas that are analyzed in more detail in a feasibility study, such as applying
economic analysis to resources and reserves, more detailed metallurgy and a number of specialized
studies in areas such as mining and recovery methods, market analysis, and environmental and
community impacts. In accordance with NI 43-101 and the companion policy to that instrument, Altamira
cannot provide any guidance either in terms of anticipated gold production or net cash flows.
Qualified Person
Guillermo Hughes, P. Geo., a consultant to the Company as well as a Qualified Person as defined by
National Instrument 43-101, supervised the preparation of the technical information in this news release.
Neither the TSX Venture Exchange nor it's Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
About Altamira Gold Corp.
The Company is focused on the exploration and development of gold projects within western central
Brazil. The Company holds 9 projects comprising approximately 280,000 hectares, within the prolific
Juruena gold belt which historically produced an estimated 7 to 10Moz of placer gold. The Company's
advanced Cajueiro project has NI 43-101 resources of 5.66Mt @ 1.02 g/t gold for a total of 185,000 oz
in the Indicated Resource category and 12.66Mt @ 1.26 g/t gold for a total of 515,000oz in the Inferred
Resource category.
On Behalf of the Board of Directors,
ALTAMIRA GOLD CORP.
"Michael Bennett"
Michael Bennett
President & CEO
Tel: 604.676.5660
Toll-Free: 1-833-606-6271
www.altamiragold.com
Forward-Looking Statements
Statements in this document which are not purely historical are forward-looking statements, including
any statements regarding beliefs, plans, expectations or intentions regarding the future. It is important
to note that actual outcomes and the Company's actual results could differ materially from those in
such forward-looking statements. Except as required by law, we do not undertake to update these
forward-looking statements.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/59796