- Mining and processing started in late 2012;
- Target operating C1 costs of ≈$400 per ounce;
- ≈76koz Indicated Resource delineated, mineralisation open in all directions;
- Excellent near-mine exploration potential;
- Premier abuts the 7+ million ounce AngloGold Ashanti Serra Grande Mine.
Mining and processing began at Cleveland’s 50:50 JV Premier Mine in late 2012, just over 3 years after the Company acquired the project. Formerly known as Meia Petaca, the project was explored and mined by the Goias state government over 30 years ago.
Since acquiring the project, Cleveland has delineated a resource of 76koz and constructed a processing plant capable of producing between 10 and 20 thousand ounces per annum. The plant design allows for rapid expansion to match any growth in the rate of mining and the size of the resource.
Premier is located approximately 800m from AngloGold Ashanti’s Serra Grande Mine, from where over 4+ million ounces have already been mined, a further 3.3 million ounces remain, and significant gold discoveries continue to be made. Cleveland believes that the Premier tenements also hold excellent potential for further multi-million ounce deposits. Cleveland intends to increase the resource through near-mine drilling as well as exploration of the O Capitão Project, where two high grade gold-bearing orebodies have been identified.
Cleveland targets operating C1 costs of about $400 per ounce . According to reports released to the TSX by AngloGold Ashanti, the first 17 years of production at Serra Grande had costs of less than $200/oz. In 2001, 134koz of gold were mined from Serra Grande at a cash cost of US$767/oz.
The most advanced project in the Crixás Hub, the Premier Project, is expected to produce between 10,000 and 20,000 ounces per year to begin. As significant exploration potential exists both at Premier and at Cleveland’s other projects, the plant at the Premier Gold Mine has been designed for expansion. The mine was built without incurring debt.
The Premier Mine is expected to provide the Cleveland with a strong foundation for growth, providing the Company with both cashflow and an opportunity to build the teams, experience, systems, culture and track-record of success that will lead to bigger projects.