Valterra has entered into an agreement to acquire a 100% interest in the freehold Lima Property for a purchase price of Cdn$500,000 via purchase of a private Brazilian company. Management believes that this is a rare opportunity to acquire a highly-prospective gold property at exceptionally attractive terms which has the potential to be fast-tracked to production.
It is a Laterite-type gold project with easy logistics in the productive Poconé District. The project comes with a proven operational team in a mature mining district with very attractive economics. Existing mines in the District require no blasting as a result of deep weathering and consist of free-digging open-pit operations, typically to a depth of up to 80 metres.
The Lima Project is located within the Poconé Mining District, in central Brazil’s Cuiabá Basin (Baixada Cuiabana), in the southern part of the state of Mato Grosso, just 10 minutes’ drive from the town of Poconé, a mining town of 32,000. Access to the project area is by paved and gravel roads with daily scheduled flights from an airport located in Cuiabá, the State Capital, 104km north and connected to the principal cities of Brazil by daily scheduled airline flights. The Poconé Mining District reportedly produces over 250,000 ounces of gold annually from 17 different active laterite mines with the Company’s Lima Property immediately adjacent to the currently producing Edmur gold mine.
Brazil has favorable geology with several major Archean greenstone and Proterozoic sedimentary-hosted gold districts, which has attracted major miners including Kinross, Vale, Anglogold Ashanti, Lundin Mining, Yamana, and Great Panther and has resulted in significant annual gold production. Brazil is highly regarded as a mining jurisdiction with regulations providing favorable mineral title and foreign ownership. Brazil has a tax agreement with Canada.
The Poconé Mineral Belt has enormous untapped potential for discovery with well-developed infrastructure, including access to power, water, major highways, airports and highly skilled labour and experienced equipment contractors.
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