Hochschild Mining recently received permission to start the construction of its Posse gold project in Brazil. The company plans to start commercial production of this project during the first quarter of 2024. Posse, located in the central-western state of Goiás, will produce 102,000 ounces per year (oz/y) of gold during its first four years of operation. Production would then drop to 84,000 oz/y over the next six years, until the end of the mine life.

The investment required for the completion of the construction stage has been estimated between $180-$200 million, and the company has committed hiring 75% of local labor for the implementation and operation of the Posse mine, according to a statement by authorities from the state of Goiás.

The feasibility study for the Posse gold project, issued in 2020, said total sustaining costs were expected to average $750/oz to $850/oz of gold. Average recoveries are expected to be 89.9% and the average stripping rate during the life of the mine is expected to be 4.3.

Posse hosts proven and probable reserves of 23.8 million metric tons (mt), grading 1.18 grams/mt for 902,000 oz. The combined measured and indicated resource total 32 million tons grading 1.1 g/mt for 1.2 million oz of contained gold.