Gold royalty company Jupiter Gold on Wednesday reported that its first royalty project, the Pindaíba project, operated by Brazil Minerals, was expected to begin production in the third quarter of 2019.
The company’s gold recovery plant would be used in operations and Jupiter Gold would receive a 50% royalty on gold revenues, with Brazil Minerals retaining the other 50%, as well as 100% of diamond revenues.
The Jequitinhonha Valley has been mined for gold and diamonds since the 1700s and new localised discoveries of attractive deposits were still being made. Pindaíba is the name of one such deposit area.
Jupiter stated that settlers were previously mining Pindaíba, which was a strong indication of a quality mining site.
In 2018, Brazil Minerals completed 35 drill holes in a subsection of Pindaíba. All drilled holes were positive for gold and a majority of them also showed specific mineral markers for diamonds.
Jupiter Gold stated that, with revenues generated from the royalty received from the Pindaíba project, the company should become cash flow positive.
The company has no long-term debt and its bylaws prohibit the issuance of variable-rate convertible debt.Creamer Media Senior Researcher and Deputy Editor Online