Equitas Resources (EQT.V) has now received the results of a metallurgical test program on a 118 kilo composite sample of saprolite rock from the Cajueiro gold project in Brazil. The results of this metallurgical test program were in line or exceeding the expectations, as the recovery rate of the gold using a conventional CIL procedure were estimated to range in the mid-90’s.
That’s very positive news and it also made the company re-think its development plans for Cajueiro and Equitas will now fast-track the CIL process for the project. The company has hired a consultant to investigate the potential to build a CIL plant with a capacity of 250-400 tonnes per day (which would result in an annual processing capacity of 90,000-145,000 tonnes per year).
This could be an important step forward, as Equitas previous production plans to recover the gold through an alluvial process followed by a gravity plant were relying on a high(er) average gold grade. Thanks to the excellent recovery rates during the recent test work, Equitas’ will now also be able to process lower grade ore and maintain a healthy operating margin.
The preliminary study to design and build a CIL plant will be completed pretty soon, and Equitas thinks it could start the construction of the CIL plant before the end of this year which means the company could have the plant commissioned by the summer of next year. This could boost the company’s annual production rate to in excess of 10,000 ounces (depending on the average head grade of the mill feed and the throughput of the plant), putting the company on track to its mid-term goal of producing 30,000 ounces per year within three years.
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