Valterra’s management launched a strategy in 2020 for the Company to become self-funded by way of generating revenue through the acquisition and operation of previously artisanal-operated/under-capitalized, laterite/saprolite-type gold mines in Brazil. The Company was presented with several attractive properties within the Poconé Gold District, Brazil, and with the pending acquisition of the Poconé Mining Company (“PMC”), Valterra now has an option to purchase a 100% interest in the Livramento Gold project.
The Livramento property is situated 64km from PMC’s Lima property and is 40km south of Cuiaba, the state capital of Mato Grosso. The Property consists of a 250ha freehold property with 5 PLG mining and environmental licences of 50ha each and with full operating infrastructure on site, including a 30 tph gravity recovery plant and a large earth-moving fleet.
The Livramento property operated intermittently by garimpeiros and small-tonnage, private Brazilian operators between 2007 and 2017. Valterra has funded PMC’s successful recommissioning of the mill and exposing fresh mineralization for bulk sampling. The goal is to identify those veins that will be further tested with larger-scale trial mining after bulk sampling. Initial areas with auriferous structures and veins have been identified by panning for future bulk sampling, and exploration trenching is planned for several attractive new target areas. Gold will be recovered during these tests.
Gold mineralization in the Poconé Gold Belt is characterized by very deep and strongly weathered overburden of laterite and saprolite, which results in easy mining without the need for explosives. Such deposits have been exploited for decades in the Pocone District as dozens of small open-pit mines by direct free-digging operations without blasting and without the use of dangerous chemicals.
The saprolite and bedrock mineralization at Livramento consists of Orogenic-type quartz veins with free gold. The veins formed similar to many such deposits in eastern Canada. The addition of intense weathering makes these veins analogous to deposits in western Africa.