State of Para, Brazil
70km SE of the town of Novo Progresso
High grade gold
On May 6, 2016 Anfield Gold Corp (formerly Anfield Nickel Corp) acquired Magellan Minerals Ltd. Anfield’s Strategic plan includes development and commissioning of the Coringa gold project in Para State, Brazil and acquiring other gold projects to build a mid-tier gold mining company
Anfield Gold is a Vancouver based mineral exploration company, whose shares are traded on the TSX Venture Exchange under the stock symbol “ANF”
The project is located north central Brazil in the mining friendly state of Para, 70 km SE of Novo Progresso (approx. 30,000 people). Access is via the paved BR-163 highway and gravel roads. There is a 1000 metre long air strip, a field camp, core storage and logging facility on the property.
A Preliminary Economic Assessment (PEA) of the project was completed by Global Resource Engineering in Dec, 2012 and updated in Feb, 2015. The proposed 750 tonne/day mine will operate over an 8.6 year period with average annual gold production of 50,885 ounces. Initial capital costs are estimated at $US 64.5 million with life-of-mine capital costs of $US 115 million. At a gold price of $US 1,350/oz the project generates an after tax net present value (NPV) at a 5% discount rate of $US 109.9 million and an internal rate of return (IRR) of 33%. Payback is 2.9 years.
Magellan had previously entered into a purchase agreement with Troy Resources to acquire Troy’s gold processing plant and associated mining equipment at its Andorinhas mine also located in Para state. The processing plant and mining fleet has been moved to the Coringa property. Based on the positive PEA, a Feasibility study incorporating the Andorinhas processing plant and equipment is already underway as this will significantly reduce the PEA capital costs and improve project development schedule.
Late 1970 - 1991 local miners (garimpeiros) recovered gold from alluvial workings and small surface pits on many of the quartz veins. A local prospector staked the area in 1990 which was acquired by Chapleau/Magellan in 2006. Between 2007 and 2012 they carried out extensive exploration programs which included: airborne magnetic, radiometric and EM surveys, surface IP surveys, stream, soil and rock sampling, trenching and diamond drilling (179 holes - 28,436 metres).