Amarillo Gold Corp. said Dec. 12 that Brazil's Agência Nacional de Mineração, or ANM, granted a three-year extension on the mining concessions for the Posse gold deposit until July 1, 2020.
Posse forms part of the company's Mara Rosa gold project.
The extension will allow for the continued delay of mining activities, thereby preserving the mining status of the historical concessions, enabling the company to complete a feasibility study, basic and detailed engineering, and for the application for the license to install.
Amarillo is wrapping up a 12,000-meter infill drill program to increase the measured and indicated resources at Mara Rosa, with a resource update expected in early 2019.
The construction of the Mara Rosa processing plant is targeted for the first half of 2020, with commissioning and early production in late 2021, and full commercial production in early 2022.
In September, an updated pre-feasibility study on Posse defined a posttax net present value of US$244 million, discounted at 5%, with an internal rate of return of 51% and payback period of 2.6 years.