Precious metals producer Hochschild Mining (LSE: HOC) has been granted a key permit that allows it to build a processing plan and kick off mine pre-stripping at the Mara Rosa gold project in Brazil's central state of Go?-as.
The environmental licence also means that the Latin America-focused miner can begin construction of all the required site infrastructure.
Chief executive officer Ignacio Bustamante said the permit reception was a key milestone for the project, as it puts Hochschild on track to begin production in the first half of 2024.
The Mara Rosa gold asset comprises 600 sq. km of exploration permits and 26 sq. km of mining permits.
The main mineral deposit within the Mara Rosa is the Posse gold project, which includes two pits, Posse North and Posse South. For that reason, Mara Rosa is also referred to as the Posse deposit and the Posse gold project
Hochschild added Mara Rosa to its portfolio last year through the acquisition of Amarillo Gold.
During its first four years of operations, the operation is expected to produce 102,000 oz. of gold per year, dropping to 84,000 oz. in the six remaining years of mine life.
The asset hosts proven and probable reserves of 23.8 million tonnes grading 1.18 grams gold per tonne for 902,000 ounces. The combined measured and indicated resource stands at 32 million tonnes grading 1.1 gram gold or 1.2 million oz. of contained gold.
Hochschild has identified near-mine and regional exploration opportunities, including multiple potential satellite deposits.