Big River raising $1.5m for Brazilian exploration push
Brazil-focused gold explorer, Big River Gold, has received firm commitments from institutional and sophisticated investors for a $1.5 million share placement for exploration and evaluation of existing tenements adjacent to its flagship Borborema project.
Proceeds from the placement of 125 million shares priced at 1.2 cents each will also be used for pre-construction activities to accelerate the development of the Borborema project.
Big River is currently progressing the definitive feasibility study for Borborema, which is scheduled for completion in the fourth quarter of this year.
The company is targeting a reduction in capital expenditure and production cost estimates.
Borborema currently holds a JORC-compliant mineral resource of 68.6 million tonnes grading 1.1g/t gold for 2.43 million ounces, from which Big River has derived an ore reserve of 42.4 million tonnes at 1.18g/t gold containing 1.6 million ounces.
An optimisation study produced in February 2018 outlined a post-tax net present value of USD$118m and an internal rate of return of 31%, with free cash flows of USD$243m from a two million tonne per annum project over an initial mine life of 10 years.
Upfront capital costs were estimated at USD$93m, while the all-in sustaining production costs were calculated at just over USD$900 per gold ounce, based on a forecast gold price of USD$1,300 per ounce.
The project consists of three mining leases covering a total area of 29 square kilometres including freehold title over the main prospect area of interest, with two permits already granted to allow mining to commence.
Big River Gold (BRV)
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