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Altamira Gold targets junior gold producer status

Snapshot

The company holds several projects located within the prolific Juruena gold belt which historically produced between 7 and 10 million ounces of placer gold

Altamira Gold Corp. - Altamira Gold targets junior gold producer status

Quick facts: Altamira Gold Corp.

Price: 0.135 CAD

TSX-V:ALTA
Market: TSX-V
Market Cap: $13.37 m
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  • Brazil-focused gold explorer
  • Projects located in prolific Juruena gold belt
  • Recently sold a project and secured funding

What Altamira does:

Altamira Gold Corp (CVE:ALTA) (OTCPINK:EQTRF) (FSE:T6UP) is a Brazil-focused gold explorer that currently holds several projects located within the prolific Juruena gold belt which historically produced between 7 and 10 million ounces (Moz) of placer gold.

One of these advanced projects, Cajueiro, has NI 43-101 resources of 5.66 million tonnes (Mt) at 1.02 grams per ton (g/t) gold for 185,000 ounces (oz) in the higher confidence indicated category and 12.66 Mt at 1.26 g/t gold for 515,000 ounces in the inferred.

Also in the company’s portfolio, around 50 kilometres (km) west of Cajueiro, is the Apiacas project which comprises a package of properties covering seven main target areas which collectively form the Apiacas district, the largest placer gold camp in the Alta Floresta Belt during the gold rush of the 1980s. An estimated 1Moz of placer gold has been extracted from the district.

Elsewhere, the company’s Santa Helena project is characterized by very high-grade gold values in four main areas on the surface and widespread anomalous copper values over an area which extends for 6km from east to west. The project is also located 60km southwest of the Jaca discovery, owned by mining giant Anglo American.

Other projects in the Altamira portfolio include Colider, which the company said has potential for the discovery of high-grade, shear-zone controlled gold mineralization, suitable to support underground mining operations; Nova Canaa, a geologically similar site to Colider that currently has three main target areas; and Porta Aberta, located 13km south southwest of Cajueiro and characterized by extensive historic placer workings which produced an estimated 500kg of gold and cover an area of several square kilometers.

How it is doing:

In early June, Altamira announced that it had sold its Crepori gold project in Para state to a small-scale Brazilian gold miner as it continues to transition to a junior gold producer from an exploration firm.

The firm will receive a total of C$500,000 from the sale to Mineracao do Para Ltda (MAP) and retain a 4% net smelter royalty (NSR) following the start of production.

Altamira’s chief executive Mike Bennett said the move was part of a recent strategic review of Altamira's assets, after which the group had decided to focus all its efforts on its projects within the Alta Floresta Belt.

The company also received a boost in April when it said it had secured around $6 million in funding from MetalStream, the first tranche of which was expected to be received by June 23.

Bennett said that Altamira will repay the amount by paying MetalStream 2,000 ounces of gold every year over five years at a strike price of $600 per ounce. He added that if the gold price rises above $2,000 both companies will share the excess beneficiary value.

Inflection points:

  • Ramp-up of production at Cajueiro
  • Progression of construction activity
  • Developments in other portfolio projects

What the boss says:

Regarding the company’s sale of its Crepori gold project, Altamira chief executive Mike Bennett said: "This agreement is an important step in our transition from an exploration company to a junior gold producer and will add to future revenues, further reducing our need to raise capital through dilutive private placements".

 

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Altamira Gold hires mining veteran to lead the construction on their...

Altamira Gold (CVE: ALTA-FSE:T6UP-US: EQTRF) CEO Michael Bennett joined Steve Darling from Proactive with news the company has brought on Mr Edgar Barrios to run the construction of the mine and processing plant at the Cajueiro gold project in Brazil. Bennett discusses his experience and why...

12 hours, 35 minutes ago

3 min read