PERTH (miningweekly.com) – Gold miner Beadell Resources has inked a deed of understanding with the Amapa Electricity Company to transition its Tucano gold project, in Brazil, to grid power.
Beadell will start required improvements to the existing 110 km 69 kV power line, which terminates at the Tucano mine, which will ensure an improved quality of electricity supply to the nearby towns and small villages.
Once the improvements have been completed, Tucano will increase its grid power supply from the current 1 MW to 5 MW by the end of 2016, and ultimately to 12 MW.
Beadell MD and CEO Simon Jackson says that the reduction of reliance on diesel-generated power will have an immediate and material effect on the operating costs at Tucano.
“We are delighted to have signed the deed of undertaking and continue our excellent relationship with Amapa state government. The improvement in power supply to the region will benefit all stakeholders and further underpin the future of long-life mining operations at Tucano.”
Beadell is eyeing a possible underground development at the Tucano mine after an earlier prefeasibility study revealed that the project could recover some 310 000 oz of gold over a mine life of seven to eight years.