Name of the Project
Borborema gold project.

Location
The Seridó area of the Borborema province, in north-eastern Brazil.

Project Owner/s
Dundee Goodman Merchant Partners has increased its stake in Big River Gold to become a cornerstone investor in the company.

Dundee took a 9.1% shareholding in Big River Gold in December, after taking up A$8-million worth of shares in Big River as part of the company’s larger A$20.4-million capital raise.

Big River announced on February 5, 2021, that Dundee had increased its shareholding in the company to 19.4% through an off-market purchase of 180-million shares from major shareholder Copulus Group, at 5.5c each.

Copulus Group retains an 18.7% shareholding in Big River following the transaction.

Big River has welcomed the further investment by Dundee, saying it reinforces the company’s long-held belief in the quality of its Borborema gold project.

Project Description
A review of the 2019 definitive feasibility study (DFS) has recommended plant and equipment changes to the comminution and elution circuits. The plant changes will provide additional operational security and benefits.

The revised 2020 DFS recommends that the planned semiautogenous grinding mill be replaced by a three-stage crushing and ball mill, and that the Anglo American Research Laboratories elution circuit be replaced by a pres­sure Zadra plant. The plant was selected to conserve water and is con­sidered better suited when operating with treated sewage water from Currais Novos.

Stage 1 of the project is expected to produce 729 400 oz of gold over 10.2 years, which comprises only a portion of the Borborema resources and reserves of 2.43-million ounces and 1.61-million ounces respectively.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The Stage 1 pretax net present value has increased from $218-million tonnes, at an 8% discount rate in the 2019 DFS, to $342-million at an 8% discount rate in the revised 2020 DFS. The internal rate of return has increased from 43.6% to 64.7%.

Payback has decreased from 2.4 years in the 2019 DFS to 1.5 years in the revised 2020 DFS.

Capital Expenditure
An option study completed in March 2021 estimated the total capital cost for the project at $94.6-million, including a $15-million contingency.

Big River told shareholders at the time that it would increase confidence in the option study cost estimates, with the revised equipment specifications provided to secure quotes from prospective suppliers.

Planned Start/End Date
Big River has previously stated that construction of the project is expected to take 23 months, subject to the conclusion of financing.

Latest Developments
Big River Gold has flagged potential capital cost savings for its Borborema gold project.

The company has completed an option study reviewing and optimising the process plant design for the gold project.

While no changes have been proposed for the process circuit, changes have been recommended to some equipment selection and the plant layout to facilitate future throughput expansions with minimal disruption to production.

With the completion of the option study and subject to further costing work, Big River will update the project’s financial model and will resume discussions with potential financiers in the coming weeks.

The company will also investigate derisking the project further with detailed front-end engineering design (FEED) by progressing infrastructure development and advancing exploration and resource definition activities.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Big River Gold (Brazil), tel +55 31 2534 3620 or email admin@bigrivergold.com.au.