Exploration Milestones Ahead as Australian Mines Stakes Claim in Brazil’s Tapajós Province
Australian Mines Limited has secured earn-in rights to the advanced Boa Vista Gold Project in Brazil’s prolific Tapajós Gold Province, aiming to earn up to an 80% stake through staged exploration and development milestones. The company also announced a $2.5 million capital raising to fund upcoming exploration activities.
- Earn-in rights to up to 80% interest in Boa Vista Gold Project
- Historical inferred resource of 8.47Mt at 1.23g/t Au for 336,000oz at VG1 prospect
- Robust drill intercepts with broad, near-surface mineralisation open along strike and at depth
- Planned LiDAR, magnetic surveys and 3,000m diamond drilling program
- Capital raising of $2.5 million to support exploration and development
Strategic Entry into a Tier-One Gold Province
Australian Mines Limited (ASX – AUZ) has taken a significant step forward by securing earn-in rights to the Boa Vista Gold Project, located in Brazil’s highly prospective Tapajós Gold Province. This region is renowned for its prolific gold production history, exceeding 30 million ounces, and hosts several advanced projects. Boa Vista’s geological setting within the Parauari Intrusive Suite and Jacareacanga Metamorphic Suite positions it among some of the most promising intrusion-related gold systems in the world.
The earn-in agreement, struck with Cabral Resources Limited (a subsidiary of GoldMining Inc.) and Majestic D&M Holdings, allows Australian Mines to earn up to an 80% interest through staged exploration expenditure, drilling milestones, and resource development achievements. This deal strategically aligns AUZ with a project that offers both near-term resource potential and district-scale exploration upside.
Historical Resource and Exploration Potential
The VG1 prospect within Boa Vista hosts a historical inferred resource estimated at 8.47 million tonnes grading 1.23 grams per tonne gold, equating to approximately 336,000 ounces. While this resource is classified as a foreign estimate and not yet compliant with the JORC Code, it provides a solid foundation for Australian Mines’ planned exploration activities.
Drilling to date has revealed broad, continuous zones of gold mineralisation extending roughly 600 meters along strike and up to 85 meters wide, with mineralisation remaining open both along strike and at depth. Notably, diamond drilling has intercepted thick zones of gold from surface, including high-grade intervals such as 104.5 meters at 1.59 g/t Au and 102.3 meters at 1.18 g/t Au. The presence of shallow, high-grade en-echelon structures offers further potential to enhance grades within an open-pit mining scenario.
Robust Metallurgy and District-Scale Opportunity
Preliminary metallurgical test work conducted by independent laboratories has demonstrated excellent gold recoveries exceeding 95%, with simple gravity methods recovering up to 60% of gold and no deleterious elements detected. These results suggest a straightforward processing route, which bodes well for future economic viability.
Beyond VG1, the project encompasses a large 9,201-hectare tenement package with multiple high-priority targets identified through soil geochemistry, artisanal workings, and geophysical surveys. This district-scale footprint, combined with the proximity to other advanced projects operated by partner GoldMining Inc., underscores the significant exploration upside that Australian Mines aims to unlock.
Upcoming Exploration and Capital Raising
Australian Mines plans to initiate a comprehensive exploration program, starting with LiDAR and high-resolution magnetic drone surveys to refine geological models and target generation. This will be followed by an initial 3,000-meter diamond drilling campaign designed to test strike extensions, depth continuity, and the geometry of high-grade cross-cutting structures.
To support these activities, the company has secured firm commitments to raise approximately $2.5 million through a placement of new shares at $0.008 each, accompanied by free-attaching options. This capital injection will provide the necessary funding to advance exploration and progress toward defining a JORC-compliant resource.
Navigating Regulatory and Operational Milestones
The Boa Vista Gold Project is currently in the process of converting exploration licenses into mining concessions, with preliminary economic assessments submitted to Brazil’s National Mining Agency. Australian Mines anticipates timely issuance of operational permits to commence ground-disturbing activities, with a focus on environmental baseline studies and feasibility work to support future development.
While the historical resource and exploration data provide a compelling case, Australian Mines acknowledges that further drilling, assay verification, and resource modeling are required to upgrade the resource classification and confirm economic viability. The earn-in agreement’s staged structure aligns expenditure and milestones with increasing ownership, mitigating risk while incentivizing progress.
Bottom Line?
Australian Mines’ entry into Boa Vista marks a pivotal moment, but the path to a JORC resource and production remains contingent on upcoming exploration and regulatory milestones.
Questions in the middle?
- Will Australian Mines successfully upgrade the historical resource to JORC 2012 standards?
- How will upcoming drilling results impact the project’s economic feasibility and resource size?
- What timeline and challenges lie ahead for securing mining concessions and operational permits in Brazil?